AOI Instrumental in 1990 Mahonia Hall Reforms

AOI Chairman Dan Harmon spoke to a group of business, labor and political leaders last week at the state capitol in commemoration of the 20-year anniversary of the landmark Mahonia Hall workers' compensation reforms. AOI was instrumental in the negotiation and passage of the reforms.

The reforms, set in motion in 1990 by years of escalating costs and Oregon's place as the one of the highest-cost workers' compensation states in the nation, are still regarded today as one of the premier examples of business and labor coming together for the benefit of the state.

Since 1991, Oregon's workers compensation costs have declined by over 60 percent. Oregon employers have saved over $17.4 billion. In fact, in the 20 years since the Mahonia Hall pact, Oregon's workers' compensation pure premium rate has not risen once. That's right – 20 consecutive years with no increase in pure premium costs to employers. Employers saw their 2010 pure premium rate decrease by yet another 1.3 percent.

Workplace injury and illness rates in Oregon have declined nearly 19 percent since 2004 and more than 50 percent since Mahonia Hall. And workers who are injured are returning to work faster, with the help of Oregon's return-to-work programs. Use of the Employer-at-Injury Program – the most widely used return-to-work program – has grown 100 percent during the past five years.

AOI is proud of its role in these landmark reforms. Many states today look for guidance from Oregon when undertaking the task of managing their workers' comp systems. AOI's primary role today is a vigilant guardian for these reforms, making sure that employers today continue to glean the benefits of the hard-fought 1990 reforms.