Workers’ Benefits

Gov. Pete Wilson is absolutely correct and should be praised for his leadership in making reform of California’s workers’ compensation laws part of his budget package (“Plan to Revise Workers’ Benefits Opposed,” Part A, June 13).

Our workers’ compensation system has been subverted from a no-fault insurance system, which protects workers suffering legitimate on-the-job injuries, into a cottage industry for a few unprincipled doctors and lawyers.

Millions of dollars that should be used to increase benefits for legitimately injured workers and to reduce the outrageous insurance costs for government agencies and businesses go to pay these attorneys’ and doctors’ fees.

The cost of workers’ compensation claims has a serious impact on the budgets of local and state agencies as well as businesses. For private business, the costs are so great that it has begun to affect their ability to compete. A business climate survey conducted for the California Business Roundtable last year found that 40% of California companies plan to expand outside the state and nearly three-quarters of those listed workers’ compensation costs as a major reason.

The governor astutely recognized that workers’ compensation reform is not a labor-management issue. It is a matter of restoring some fairness, integrity and common sense to a system fraught with abuse.

ROBERT MONAGAN, President, California Economic Development Corp., Sacramento