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Missouri Workers Compensation Attorney Watches Ohio Deal With Chryslers Work Comp Problems

Dec. 19, 2009

Chrysler sale An interesting article regarding Chrysler’s workers compensation concrens. JEFF SWANEY FREE CONSULTATION (314) 310-8373

The state’s top lawyer is objecting to Chrysler LLC’s pending sale in federal bankruptcy court over worries that the Ohio workers’ compensation system could be saddled with the burden of the automaker’s self-insured claims under a new owner.

The limited objection that Attorney General Richard Cordray filed in U.S. Bankruptcy Court in New York asked that the court delay a sale of the automaker until the company’s workers’ compensation obligations are “properly addressed.” Cordray’s office said that Auburn Hills, Mich.-based Chrysler, in bankruptcy filings, has committed to fulfilling workers’ compensation obligations, but the documents don’t shift the obligation to a new owner.

That could put the Ohio Bureau of Workers’ Compensation on the hook for payment and administration of the company’s self-insured claims and take a bite out of Ohio’s self-insured guaranty fund. Such a burden would cause problems for all of the state’s self-insured workers, Cordray said.

Chrysler employs about 5,000 of workers at factories scattered across the northern reaches of the state, mainly in the Toledo area, where it operates a major Jeep assembly operation and stamping plants.

Marsha Ryan, administrator for the state Bureau of Workers’ Compensation, said the agency is “closely monitoring the situation with Chrysler and is prepared to effectively manage any transition of claims management.