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PRESS RELEASE

For Immediate Release
February 25, 2004
CMTA Contact: Gino DiCaro
916-730-3443
Coalition Contact: Dave Puglia
916-554-3430
Survey Shows Voters Overwhelmingly Embrace Workers' COmp to Reduce Costs and Save Jobs

Voters Poised to Pass Cost-cutting Reform Measure if Legislature Fails To Act
SACRAMENTO – A new survey released today shows that nearly 80% of voters support the cost-cutting reforms sponsored by Governor Schwarzenegger and supported by the Workers’ Compensation Action Network, and are poised to enact a ballot measure in November containing these reforms if legislators refuse to pass them. The Governor has given legislators until March 1st to pass his plan or has said he will support an initiative that contains his proposed reforms.

“California voters recognize that our state’s workers’ compensation system is in a shambles and must be rescued,” said Allan Zaremberg, president of the California Chamber of Commerce and co-chair of the Workers’ Compensation Action Network, a coalition of public and private employers working to enact cost-savings reform. The two organizations, along with the Committee for Workers’ Compensation Reform and Accountability, co-sponsored the survey. “Voters know that unless costs are reduced substantially, more businesses will have to close and more jobs will be lost. Democrats, Republicans and Independents; unions members, teachers and non-union members all agree that our workers’ comp system has major problems. By overwhelming margins, voters support the complete workers’ compensation system overhaul essential to keeping jobs in our state.”

The survey took several measurements of support for the workers’ comp reform plan, including: » After hearing pro and con arguments, by a margin of 77% to 16%, voters say they will adopt the reform plan that contains Governor Schwarzenegger’s proposed reforms.

» All segments of the electorate believe that California’s workers’ comp system faces major problems, including 63% of Democrats, 77% of Republicans, 62% of Independents, 66% of labor union members, 72% of teacher union members and 68% of non-union workers.

» When read a summary of the measure in the form of a typical Title & Summary, support for the proposal was 74% in favor compared to 21% opposed.

» After voters hear arguments for the measure and against it, support stood at 77% in favor compared to 16% opposed.

»When voters hear who supports the measure and who opposes it, and are reminded of their respective positions, the vote was 64% in favor compared to 28% opposed.

“This survey should be a wake up call to the legislature,” said Jack Stewart, president of the California Manufacturers & Technology Association and a WCAN co-chair. “There is little question that private employers, public entities and nonprofit organizations are going to see major reform to reduce costs. We call on the legislature to enact this reform package now so that all employers – public, private and charitable – can get the lower costs we need without the expense and needless delay of going directly to voters.”

The survey of 800 randomly selected California voters was conducted by the national polling firm Voter/Consumer Research of Washington, DC. The poll has a margin of error of 3.5%. Key findings include:

» 85% of voters believe the state’s business climate is in bad shape, but are split as to whether it is getting better (44%) or is not improving (41%).

» Voters have a high regard for Governor Schwarzenegger, giving him a 56% approval rating, but view the legislature very unfavorably, giving them a 63% disapproval rating.

» When asked to pick between two directions, 70% of voters believe the workers’ comp system is too expensive and costs must be reduced to make it more affordable, compared to only 19% who believe benefits are inadequate and should be increased.

» Support for major elements of the governor’s proposal is overwhelming, including the use of objective medical findings (90%), use of independent medical reviews (81%), prohibiting compensation when injuries are not primarily work related (80%), prohibiting chiropractors from making medical evaluations for which they are not qualified (75%), making sure that treatments are medically necessary (68%), limiting the circumstances in which lawsuits can be filed (66%), interpreting the laws equally between workers and employers (65%), and prohibiting workers from collecting benefits for pre-existing conditions (65%).

» The only provision of the reform proposal that does not garner majority support is granting employers the right to select a physician, which 39% of voters support. However, this provision does not diminish overall support for the proposal.

» When told which groups support the measure (including Governor Schwarzenegger, the California Chamber of Commerce, school districts and insurance companies), and those who oppose it (including the California Labor Federation, physicians, attorneys and consumer groups), 64% of voters say they will vote in favor of the proposal while only 28% will oppose it.

For more information on problems with California’s workers’ compensation system, visit www.fixworkerscompnow.org. # # #