Audit Report Confirms WSI Performance Problems

Saturday, December 16, 2006 | 0

By Rep. Jasper Schneider

In my practice as an attorney, my firm has represented hundreds of hard-working men and women who "through no fault of their own" have had the unfortunate experience of being injured on the job.

While our workers' compensation system is supposed to be a two-way street that benefits both employers and employees, many of the injured workers whom I represent have been unfairly denied compensation that would allow them to support their families while they were unable to work.

This literally adds insult to injury.

In North Dakota, injured workers have given up the right to sue their employers for injuries suffered while on the job. In exchange, the exclusive remedy for injured workers is an appeal to Workforce Safety & Insurance, which is required by law to provide "sure and certain relief" to injured workers.

The bad news is that this agency isn't functioning well, and that's putting it lightly.

Recently, State Auditor Robert Peterson released his office's performance audit report on WSI. What the audit showed was abuses ranging from favoritism, low morale and the unlawful use of its own fraud department to retaliate against its own employees.

The 106-page report validates what many of the advocates of working people in North Dakota and Forum reporter Pat Springer's award-winning series on WSI have stated all along: that Workforce Safety & Insurance is anything but the fair deal it was intended to be and is significantly lacking in leadership or political oversight.

The executive summary evaluated four aspects of WSI that are in need of serious improvement: procurement, human resources, WSI's management and the agency's board of directors. In each of the four categories, the audit report noted that WSI did not even have "adequate" procedures or policies in place.

For example, the board of directors, which is an 11-person board (three of whom represent employee interests), was noted to have "not established adequate policies and procedures to provide appropriate leadership and accountability for the organization."

Further, the audit notes a number of areas of concern related to the organization's personnel system with regards to the "strategic planning, and actions, or lack of actions, taken by the executive director."

To read the audit, click here.

To restore accountability and public trust in our workers' compensation system, the agency needs stronger political oversight.

In the 1997 legislative session, there was legislation passed to take control of the workers' compensation bureau away from the governor. This led to the creation of the workers' compensation system as we now know it and granted control to the board of directors rather than to officials accountable to the voters in North Dakota. Given the recent audit report, it is time to admit that the creation of a board of directors to govern WSI is not working.

As we begin this next legislative session, I am hoping we can learn from our past mistakes and pass bipartisan legislation that ensures WSI will be held accountable by elected officials, helping to provide fair treatment for both employers and injured workers. It's a matter of common sense and good public policy.

Schneider, D-Fargo, was elected in November to the N.D. House of Representatives from District 21. He can be reached at jasper.schneider@gmail.com .This column first appeared in the Forum newspaper located in North Dakota.

----------------------------------------

The views and opinions expressed by the author are not necessarily those of workcompcentral.com, its editors or management.