OLYMPIA — Washington leaders strained Saturday for a deal that would end days of budget-stalling negotiations on how to overhaul the state’s workers compensation system, pushing ahead even after a key labor organization panned the governor’s latest proposal.
Negotiators have narrowed the scope of their discussions and still hope to have an agreement by the end of the weekend, said Jim Justin, Gov. Chris Gregoire’s legislative director. He said talks could still fall apart but that lawmakers were looking at variations of a central idea.
“We are very close,” Justin said.
The closed-door debate grew even more complicated after a key labor organization declared Saturday that it couldn’t support Gregoire’s latest proposal, which would offer limited settlements to injured workers who would otherwise draw benefits for a prolonged period.
Jeff Johnson, president of the Washington State Labor Council, said lawmakers can’t rush through a new law that could leave some of the most disabled and vulnerable workers in financial trouble.
“These settlements are the bread and butter of the private insurers,” Johnson said. “They are an open invitation to the private insurance industry, and they give Washington employers incentive to aggressively negotiate lower benefits when workers are seriously injured on the job.”
Meanwhile, Republicans have voiced skepticism about Gregoire’s proposal to limit the settlements to people over the age of 55, arguing that it may not achieve enough savings.
Lawmakers aren’t expected to take any budget votes until a workers’ compensation deal is reached.
The governor and others have sought major changes in the state’s workers compensation system because they are concerned that it is currently unsustainable. About 85 percent of compensation costs come from 8 percent of all claims, according to the Department of Labor and Industries.
To address that, the Senate pushed to allow the option of lump-sum settlements for those who would be in the system for a prolonged period. House leadership and labor groups have complained that reaching settlement agreements would mean that injured workers aren’t getting full benefits.
Gregoire’s new plan would essentially create a hybrid of the two approaches by allowing settlements that would be paid over a period of time. Negotiators have been working on details of how big the settlements would be and how long they would be paid.
Cary Condotta, R-East Wenatchee, said the so-called structured settlements would not be as attractive to workers as lump-sum payments, so not as many would take the deal. Because of that, he’s pushing to have a lower age threshold than 55 to make sure the state gets enough savings out of the plan.
“We’re trying to expand the audience slightly to make up the difference,” Condotta said.
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