The Association of Washington Business (AWB) President Don Brunell said his organization is encouraged by the Dept. of Labor and Industries’ (L&I) announcement that the 2004 rate increase will now be 9.8 percent instead of the previously stated 19.4 percent.

AWB heard from its 4,000 members that the average 19.4 percent increase was a job killer, especially on top of the 29 percent average increase announced earlier this year. AWB relayed those messages to L&I and the governor, meeting with both several times to find resolution.

Brunell said he is not surprised by L&I’s revision downward. “Not only are workers’ comp rates increasing, but so are health insurance, unemployment taxes and liability insurance premiums in a time when many employers are facing a slow economic recovery. We believe they are doing the right thing in keeping rates as low as possible.”

Brunell said he is encouraged by the governor’s call for a blue ribbon commission to look at the entire workers’ comp system. “We certainly don’t want to let our system go the way the California workers’ comp system has gone where it now faces over a $20 billion shortfall,” Brunell said. “We welcome the renewed emphasis on fraud investigation as well.

Brunell said AWB plans to work collaboratively on the blue ribbon commission. “We hope that in the end we have a cost-effective system, which works equally well for workers, their families and employers,” he concluded.