09/24/07 Proposal would boost ag's workers' comp rates

Washington Ag September 24, 2007 The Department of Labor and Industries will hold hearings starting late next month on its proposal to increase workers' compensation rates an average 3.2 percent for 2008. The proposal follows a two percent decrease in average premiums this year and a current partial rate holiday in the second half of 2007 that L&I says is saving employers and workers 315-million dollars. Dan Fazio of the Washington State Farm Bureau says while the average proposed increase is 3.2 percent, the average increase for agriculture would be seven percent and within that the largest group, orchards, would see an 11 percent increase. Fazio says much of the increase will be paid by workers. The fund paid only by employers will be fairly flat. Fazio: "And then the funds that are paid 50/50, workers and employers, are going to go up quite a bit. It boils down to a composite base rate for orchards going from about 55 cents per hour to about 60 cents an hour per worker. That is not great." Fazio says the 58-million dollar rate hike wouldn't be needed if L&I didn't use 60-million dollars from the industrial insurance fund for other purposes. I'm Bob Hoff.