Longshore “Once a Decade"

The Gowanus Gas Turbines electric generation facility in Brooklyn. The site, located on navigable waters in the Gowanus Canal includes four barges that are each 80 feet wide by 200 feet long that collectively house eight individual gas turbine generating units. While stationed, the barges are afloat in the bay and connected to a power grid. Approximately once a decade, the barges are moved to drydock for maintenance. They are also capable of being moved for the purpose of providing electric power at other locations. Two of the barges had been so moved on at least one occasion.

In 2000, Astoria/Orion (The owner of the facility) hired defendant Elliott Turbomachinery, Co., Inc. to perform an overhaul of the turbines at the Gowanus facility. In 2001, plaintiff, a millwright employed by Elliott, injured his back while performing work on a turbine on barge number one at the facility.

The question became is the barge still a vessel - according to the court a "'vessel' includes every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on water" (Stewart v Dutra Construction Company, 543 US 481, 489 [2005], quoting 1 USC § 3). Structures temporarily stationed in a particular location maintain their status as vessels. However, floating structures that are "not practically capable of being used as a means of transportation" do not qualify as vessels. Such floating structures (non-vessels) are permanently fixed or moored "to shore or resting on the ocean floor".

Here, the barge, located on navigable waters in the Gowanus Bay, is a vessel within the LHWCA. The barges have been tugged on water approximately once a decade to a maintenance station and, at least once, to provide energy to another part of New York City in an emergency. Thus, the barge at issue is practically capable of being used as a means of transportation on water. Although the barge is stationed at the Gowanus facility, because it is not permanently anchored or moored, it has not lost its status as a vessel. Accordingly, the barge is a vessel under section 905(b). Thus the employee is entitled to Longshore Benefits.

Lee v. Astoria Generating Co., L.P.

7.7% Florida Marine Contractors Rate Drop Approved!

NCCI has filed a new set of rates to be effective January 1st 2010. These new rates have now been approved by the Florida Department of Financial Services, and show an overall rate decrease of 6.8%

The even better news for Florida Marine Contractors is that even after the 37% drop in 1.1.2007 and 19% on 1.1.2008, the proposed rates drop a further 7.7%! The proposed rate for 6006F for 2010 is just $12.58.

A MAMMOTH DROP OF 56% IN JUST 2 YEARS!

Since 2003, this group of employers has seen the largest drop of any class of businesses in Florida from rates back in 2003 of $61.65 to the proposed rate for 2010 of $12.58, a cut of ALMOST 80%.

NC Longshore Rates

Quoted with the permission of NC Insurance Commissioner Wayne Goodwin.

"Please see today’s news about the rate filing referenced in your post. Go to the link below:

http://www.ncdoi.com/media/news2/year/2009/110209.asp

I came across your blogpost several weeks ago.   You indicated that some longshoremen were concerned that they may be getting a fairly large average increase in loss costs (8.8% on average), while all other major categories of workers in North Carolina were receiving decreases on average of (-9.6%). Our staff here at the Department of Insurance looked into the details of the calculations, and persuaded the North Carolina Rate Bureau, which is not a State agency, to lower the average longshoreman increase to +1.6%.  In other words, the settlement ordered a 9.6 percent decrease to the voluntary market loss costs and no change (zero percent) to the assigned risk markets. "

Wayne Goodwin, NC Commissioner of Insurance. Nov 2nd 2009

The Power of The Keyboard!

The September 6, 2009 post "NC Longshore Rates Rise?" highlighted the hidden rate increase for Waterfront employers in NC , buried within a rate cut for other NC employers.

I am delighted to advise that the blog was brought to the NC Insurance Commissioner's, Wayne Goodwin, personal attention and he instructed his staff to look into the details of the calculation, and then persuaded the NC Rating bureau to significantly lower this rise.

Details of the changes will be posted shortly, but Mr. Goodwin has issued an invitation to those of you who are on Facebook to sign onto to the NC DOI page or sign up for their RSS feeds at http://www.ncdoi.com/media/rss-feed_mediarelations.xml in order to keep up to date with the latest updates from their department.

This blog was designed to educate and inform, but now has the additional benefit of helping to put a significant amount of money back into the pockets of NC waterfront employers!

Kudos to Mr. Goodwin and his staff for making the effort to help our small sector of the market!

OK, which state is next?

NC Longshore Rate Rise?

North Carolina Insurance Commissioner Wayne Goodwin has received industry rate filings for workers compensation requesting a 9.6% decrease.  If approved, the loss cost rate adjustments would go into effect on April 1, 2010.

What is hidden in the filings however is a proposed increase in the Federal Longshore and Harbor workers' rates up 8.8% but a massive 22% if you are in the assigned risk plan!

There is a public hearing scheduled for Sept 15^th, so NC Longshore employers speak up now!

As you dry colleagues are looking at significant decreases, they are unlikely to create too much of a fuss (other than perhaps looking for a bigger decrease), but the spread of 18.4% of between your rise and the dry reduction, seems tough to swallow in today’s economy.

Ian Greenway
IRG@LIGMarine.com

Consider Employee Lending To Return Employees to Work

Thank you to Crystal Witham for the following item

“Mitigating workers compensation claims cost can be tricky. The best way to control challenging cases is managing an effective return-to-work program. How many times have we heard that? What about, "If you would just return this employee to a job within his restrictions, it would help with your experience modifier rate?" What if you are too small and do not have opportunities within your company?

There are charitable organizations that need volunteers desperately in order to continue the valuable work that they do for their communities. They need people to answer phones, schedule interviews, perform light janitorial tasks, and sell items in their used goods stores. Once an injured employee is released to return to some level of activity, this is an opportunity for an employer to "lend" that employee to a charitable organization. It shows the employer to be a good citizen and offers a much-needed service to the community. The employer pays the employee wages and may be eligible for a tax benefit, plus the workers compensation claim is being managed toward resolution. When the employee has reached full duty or a point in healing that the employer can accommodate, s/he can go back to his/her job or another employer. In most states, this is considered a suitable job offer.

What is the value? The bottom line is that by returning an employee to a job, the healing process is enhanced. Employee lending starts the act of work hardening by getting the employee back to the routine of going to a work environment. The employee becomes productive again, and the reconditioning process is in place.”

Crystal Witham ABA, ADR Senior Injury Management Consultant CM-Services Inc 207-487-3736 crystal.witham@cm-services.com

Florida WC 6.8% Rate Cut

NCCI are recommending an overall average rate decrease of 6.8% effective 1/1/2010. NCCI attributed the rate decline primarily due to a significant reduction in claims frequency, although there are signs the pace of improvement has moderated.

If approved, the rate decrease would be the seventh consecutive decline since the Legislature passed reforms to the state's workers' compensation system in 2003. The cumulative overall statewide average rate decrease since 2003 would total 63.2%.

So what will the final number be? So far the initial filing has always been rejected in favor of a larger decrease. Aare we looking at another double digit rate decrease?

But when is enough enough? Carrier have been making noise already that Florida is not a preferred state, but now are we going to start finding carriers withdraw from the state?

And what about the poor agents and brokers? 63.2% rate decrease, also means 63.2% commission decrease – add to that payrolls plummeting in certain industries and some agent have lost 80%+ of their workers compensation revenue stream!

We do not yet have the initial numbers for the Longshore class codes, but will post as soon as they are available.