Letters

Nation's Business, Nov 1, 1998

OSHA Inspections And Workers Comp Costs

"When OSHA Calls," your September cover story, made it seem as if Minasa Construction Co. in Lyndhurst, N.J., had a six-figure increase in its workers' compensation insurance premium because of an inspection by the Occupational Safety and Health Administration and a resulting fine.

Without getting into the matter of judging OSHA, it should be noted that an OSHA inspection (with or without a resulting fine) in and of itself plays no role in determining the premium charged for workers' compensation insurance.

What probably happened is that medical bills (and indemnity costs, if any) for the treatment of Minasa's employees exposed to lead were later included in the calculation of the company's "experience modification," which is a major component in determining an insured's workers' compensation premium.

Tony Antonico

President

Antonico Insurance & Consulting Group

Hooksett, N.H.

Help Is A Phone Call Away

Regarding "When OSHA Calls," here is a bit of advice that business owners might find valuable:

When preparing or reviewing the company's injury- and illness-protection program, call the company's carrier for workers compensation or general-liability insurance. Request a risk-assessment inspection by the carrier's loss-control agent.

This service usually is included in the company's premium and can also be used to the company's advantage by earning extra safety credits in the premium.

In my experience, these inspectors are very helpful, are trained specifically for Occupational Safety and Health Administration inspections, and are industry-specific.

Nichole L. Torsey

Director of Risk Management

Cross Petroleum

Redding. Calif.

Advice For Employers: You Get What You Pay For

I wanted to let you know that I to tally agree with Holly Johnstone in "Casting A Skeptical Eye On The Worker Shortage" [Letters, August] when she refers to the fact that many businesses are targeting college students and retirees for recruitment.

I had a small business during college, and I can't tell you how many times other business owners approached me and inquired about college students who would work for $5 an hour.

Until employers realize that you get what you pay for, they will always be searching for skilled labor. There are people available out there-you just have to be willing to pay them a decent wage.

And this intern thing-what a joke! Who in their right mind would ever work for free?

Karla M. Cummings

Houston

Profit-Sharing Plans: One Firm's Success Story

I read with interest "Small-Firm Pension Gap Reflects Lack Of Demand" [Small Business Financial Adviser, September].

I am president of a small business (31 employees) in a very competitive industry, manufacturing pressure-sensitive labels. The company was established in 1965.

In 1982 we established a profit-sharing plan. Leaning to the conservative side, we felt we could achieve the least risk by having an insurance company administer the plan.

In each of the past 16 years we have contributed 7 to 12 percent of each employee's total salary to the plan. We have earned annual interest of between 6.3 percent and 10.2 percent, and there is now $2 million in the plan. The cost for outside administration and in-house paperwork in 1997 was less than one-fifth of i percent of contributions.

Yes, 75 percent of our employees say they would rather see the contributions in their weekly paychecks. However, those that leave the company are very happy to get the money Only a few roll it over into an individual retirement account.

In spite of the great growth in stocks in the past 16 years, our profit-sharing administrator says that we have made out better than most of his other clients who invested in the market.

WP Webster Jr.

President

Alcop Adhesive Label Co.

Beverly, N.J.

Another Place To Turn On The Year 2000 Problem

"Counting Down To The Year 2000" [August] did an excellent job of highlighting the year 2000 problem and the risks for businesses that fail to prepare.

The article rightly called attention to the pervasive problem of computer chips embedded in building systems and equipment. As the association representing commercial-real-estate interests, the Building Owners and Managers Association International (BOMA) recognizes the need to assess and remedy potential problems in this area.

However, the "Where To Turn' article that accompanied the main story did not mention a valuable resource. More than 15,000 copies of BOMA's Meeting the Year 2000 Challenge: A Guide for Property Professionals have been distributed. This publication enables business owners to manage the embedded-systems issue through an eight-step plan that includes a variety of model forms and checklists.

The guidebook, which costs $20 (quantity discounts are available), can be ordered by calling 1-800-426-6292 or through BOMA's World Wide Web site, at www.boma.org.

Gerard Lavery Lederer

Vice President/Government and Industry Affairs

Building Owners and Managers Association International

Washington, DC

Seeing Some Dangers In No-Fault Insurance