May 31, 2011

This spring, the Senate Republicans introduced a jobs recovery plan which offered up 30 specific proposals to revive the Illinois economy and avoid an economic "doomsday."

The centerpiece of the Republican plan was advancing workers' compensation reform. As a signal to employers of the importance of this issue, Senate Republican Leader Christine Radogno took the rare step of personally sitting on the working committee of Senators created to negotiate a reform bill. Radogno and the other Senate Republican appointee, small businessman Sen. Kyle McCarter prodded and pushed the other negotiators and interest groups to move forward on genuine reform.

In April, a strong reform bill, SB 1349 sponsored by Sen. McCarter, finally came to the floor of the Senate. In a telling moment of truth, the bill failed to pass when virtually all Senate Democrats voted their yellow "present" buttons. Their fear of voting either for or against the major reforms effectively killed the bill, but allowed them to claim they really supported reform.

After months of negotiations, Senate lawmakers advanced workers’ compensation changes aimed at lowering workers compensation costs and improving the state's jobs climate.

“This is not a perfect bill, but I think we’ve achieved our main objective of lowering costs for job creators, while protecting the rights of injured workers,” Senate Republican Leader Christine Radogno said. “While this measure alone will not eliminate all abuses of this system, this is good step towards addressing a system that has driven employers and business out of our state.”

Improving the system and reducing costs for employers was a high priority of Senator Radogno, who was commended by both Republican and Democrat lawmakers during the debate for her personal involvement and tenacity in pushing the issue forward.

Supporters readily acknowledged that the measure (HB 1698) is a first step and that much more needs to be done to control workers' compensation costs, which in Illinois are among the highest in the nation. A preferred measure, SB 1349, won strong support from Republican Senators but failed to pass when virtually all Senate Democrats voted their yellow "present" buttons in April.

The single-most important issue facing Illinois is the creation of jobs. Excessive Workers' Compensation costs have been consistently cited by employers as the single-most important problem they face.

Yet, in the last 10 days of the legislative session the majority continued to stall on this issue. That's occurred even as Governor Quinn rushed around Illinois offering tax breaks and other incentives to employers who are being lured to other states where workers' compensation costs and rules are more rational.

Fair, meaningful reforms were voted on in the Illinois Senate April 14, but because the majority refused to take a stand and instead 28 Democrat Senators hit the yellow "present" button these reforms failed to pass. Rather than having the courage to vote "yes" or "no" the decision to push their yellow "present" buttons was a way to kill reform without declaring support or opposition.

At the time, they said they promised they would produce meaningful reforms, but instead, employers have only seen delays and obstruction.

As the final hours of the session close in, two things will determine whether or not the majority has fulfilled its obligations to the taxpayers: adopting a budget that meets the promise to roll back the 67% tax increase and adopting workers' compensation reforms that will put Illinois employers on a more competitive basis with their neighbors.

Illinois finally has an opportunity to approve meaningful workers' compensation reforms and that's prompted the CEO of Caterpillar to call on his fellow business leaders to put pressure on their local legislators.

Quoted in a story in Crain's Chicago Business, Doug Oberhelman, head of Peoria-based Caterpillar pointed out that "workman's compensation is being discussed right now, today and tomorrow night." According to the article, Oberhelman indicated workers' compensation rates in Illinois are seven times as high as neighboring Indiana's.

In order to be meaningful, key components of workers' compensation reforms must include requirements that injuries are actually the result of the job and the state should adopt clear medical standards for injuries, Oberhelman told the Tooling and Manufacturing Association in a meeting May 9, in Hoffman Estates.

Those and other reforms were included in major legislation that came before the Senate last month. That measure (SB 1349) failed when most Senate Democrats voted "present" rather than take a stand on the issue.

As a signal to employers of the importance of workers' compensation reform, Senate Republican Leader Christine Radogno has been personally involved in negotiations. Viewing reforms as critical to improving the state's jobs climate, Sen. Radogno has made it a top priority in discussions with the Governor and other legislative leaders.

Last month, Radogno also urged employers to keep up the pressure for reform and said "I urge job creators to continue to appeal to their state lawmakers and Gov. Quinn to make sure we do not let this opportunity slip away.”