WORKERS' COMP PUSHING FIRMS AWAY BY1.

Byline: H. Jere Robings Special to the Daily News

The following is a true story. If anyone wonders why businesses are leaving California, perhaps the following will help to answer that question.

In Ventura County, a businessman owns and operates several manufacturing companies. His buildings meet the highest architectural standards, and he treats his employees so well they praise him. In other words, he runs a company that most of us would like to work in.

As a businessman, he is accustomed to dealing with the bureaucracies of the various levels of government. He realizes he must conduct business by following all the rules and regulations that are imposed by federal, state, county and city agencies, however absurd.

The following describes a situation created by the state Legislature when they revised the workers' compensation system and rules of the State Division of Occupational Safety and Health (otherwise known as CAL/OSHA).

It seems his manufacturing company in Ventura County had a salesman headquartered in Philadelphia. Unfortunately, the salesman died of a heart attack. As is often done in heart attack cases, the surviving family filed with workers' compensation claiming the heart attack was caused by job-related stress. While the claim has never been paid, the mere fact it was filed affected the company's workers' comp rating.

Now along comes CAL/OSHA. CAL/OSHA was established to inspect businesses to ensure worker safety in the workplace. Well, because of the workers' comp claim the company is considered ``a high hazard employer'' and CAL/OSHA is assessing the company $1,000. The assessment is to fund consultative assistance to help eliminate the workplace safety hazards that contribute to the high workers' comp rating.

The obvious question that comes to mind is: How will the inspection and consultation of a Ventura County facility reduce fatalities caused by heart attacks in Philadelphia? The second obvious question: Is this assessment really related to a fatal heart attack in Philadelphia or is it simply a legal means of raising money? A tax, by any other name, is still a tax.

When the state Legislature revised the workers' compensation insurance system in 1993 and 1995, did its members envision this type of situation? The more important question is whether they will correct such an inequity.

While this assessment will not break the company, it is another burden that has caused this company to move many of its operations to Nevada. They have four manufacturing buildings outside Carson City, with a fifth under construction. Why would any astute businessman stay in California and put up with the high taxation and regulation when they can move to Nevada, save money and operate in a less restrictive environment?

When Everest and Jennings took 500 jobs from Camarillo to St. Louis, they identified workers' comp as one of the primary reasons for the move. Missouri does not allow stress-related claims. At the time of their move in 1992, their workers' comp premium in California was $10.68 per $100 of payroll, while the premium in Missouri was $4.65 per $100.

Then there is the true story of the CAL/OSHA inspector who, upon finishing an inspection of a commercial warehouse, found nothing out of compliance. As a last thought, he asked to see the company's first-aid kit. Since an employee had hurt himself the day before and used a compress, the kit was short of the required number of compresses and a substantial fine was assessed. The owner of the company advised the inspector that replacements had been ordered, but to no avail.

Now there is another company looking to move out of state.

H. Jere Robings is president of the Ventura County Alliance of Taxpayers.