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For Immediate Release WEIRTON, W.VA. – Weirton Steel Corp. today reported it has asked a West Virginia Senate committee to strongly consider the ramifications of a possible increase of up to 25 percent in the company’s workers’ compensation premiums and administrative charges. Weirton Steel was scheduled to testify before the Senate Finance Committee Monday, but inclement weather prevented company officials from traveling to Charleston. Instead, the company today submitted written testimony to committee members. The Senate is considering a bill to deal with the state’s workers’ compensation crisis which centers on an actuarial $7.3 billion deficit in the program. Lawmakers are contemplating workers’ compensation program reforms that include finding new funding sources. "Last year, Weirton Steel avoided bankruptcy by restructuring itself which dramatically cut costs for short-term survival. We are seeking additional expense reductions to help improve our competitiveness through new labor agreements which, if approved, also will affect management employees," said Gregg Warren, director-corporate communications and government relations. "Obviously, every dollar counts and increasing our workers’ compensation and administrative costs would lessen the effect of the cost reductions we gained and those we seek." A portion of the testimony states, "Even with much reform, it’s estimated that Weirton Steel can expect its average premiums and administrative charges to increase by 25 percent. Make no mistake. Major cost increases from any source weaken our ability to compete. A noncompetitive steel company translates in job losses." Warren noted that one of the most unpredictable, increasingly punitive costs is the expense of insuring workers’ compensation risk. He said the company always has upheld its responsibilities to the system. The testimony further stated, "Weirton Steel is self-insured for workers’ compensation and has paid, and continues to pay, every dollar of workers’ compensation claims attributable to its injured employees. In addition, the company pays $2 million annually in administration premiums. It has never participated in the infamous ‘second injury fund’ that some self-insurers are alleged to have abused. The company has not sidestepped any payment. It has not contributed one penny to the deficit problems, yet its claims are extremely excessive because of the state system in which the company works." Warren said the company supports recommendations supported by the majority of the state’s business community for new legislation which would include: · new and more strict definitions of key program terminology; · a new appellate process to reduce involvement by the state’s Supreme Court; · the actual reduction of some benefit rates and elimination of certain outdated forms of benefits. "We, like many other businesses in the state, believe there are alternative funding sources that do not rely solely on businesses to shoulder the burden. Our legislators have a very difficult job. We hope they can find such solutions while maintaining the system for those injured employees who need its assistance," Warren said. Weirton Steel is West Virginia’s fourth largest private employer.
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