09/07/06 Workers` comp rate cut for 07

Washington Ag September 7, 2006 The Washington Department of Labor and Industries recently proposed lowering workers' compensation rates next year by an average of 2 percent, the first general rate reduction in six years. L&I says the reduction will save employers about $31 million in premiums. For production agriculture the average savings would be one percent. The food processing and manufacturing sector would see an average three percent drop. Some categories within ag would see increases, two percent for machine harvesting on vegetable farms and a one percent increase for berries. The largest reduction for comp rates in ag would be five percent for poultry farms and four percent for Christmas tree farms. Hearings will be held around the state in October on L&I's proposal before final adoption of the 2007 workers compensation rates. Hearings are scheduled for Yakima, Spokane, Mount Vernon and Tumwater. L&I Director Gary Weeks credited the proposed rate reduction on a strong economy, a good return on investments and L&I's ability to control its health-care costs. He said the rate proposal is in keeping with his and the governor's goal of making minor annual adjustments in the rates to avoid the kind of big rate increases that occurred in 2003 and 2004. I'm Bob Hoff. For rates proposed by type of business see http://www.lni.wa.gov/ClaimsIns/Files/Rates/2007ProposedRatesByBusTypeClassCode.pdf