WORKERS´ COMPENSATION SYSTEM IN ARGENTINA

CONSULTORA LEAIS

L.R.T. - Workers´ Compensation System In Argentina

• Introduction

• Summary

• LRT system deficiencies

• Injury and death data

• Comparison between the previous and present system

Introduction

• Applicable legislation

• Regulatory policies for different activities

• System evolution indicators

• Market share data

Legislation

National Constitution

Civil CodeLawsDecrees

Ministerial Resolutions

SRT and SSN Resolutions

RegulationsOperating Circulars - Ordinances

Legislation

NATIONAL CONSTITUTION

General framework and unavoidable reference for all legislation appointed to preserve hygiene, health and life conditions to Argentine citizens.

States: “work in its different ways will be protected by law”

Establishes workers’ rights and introduces “Right to know” and “Product Safety” concepts.

Legislation

CIVIL CODE

Defines responsibilities in the occurrence of injuries to any person in the Country

1974 - LAW 20744: “LABOR CONTRACT LAW” (LEY DE CONTRATO DE TRABAJO) - Modified in 1976

– Imposes Employers´ “Safety Duty”

– Death Compensation = half salary for each worked year

– Total Permanent disability = one salary for each worked year

Legislation“OCCUPATIONAL RISKS LAW”

1995: LAW N° 24557 (Ley de Riesgos del Trabajo - L.R.T.)

Purposes: To focus on work related accident PREVENTION, enforcing

LAW N° 19587 and its regulations.

PRESENT WORKERS´ COMPENSATION SYSTEM

Occupational illnesses.

To rehabilitate injured workers and compensate damages caused by accidents and occupational illnesses.

To favour requalification and repositioning of injured workers.

Contemplated Situations: Accidents at the Workplace.

Accidents while commuting (“in-itinere”).

Legislation

“OCCUPATIONAL HYGIENE & SAFETY LAW”

1972 - LAW N° 19587

Purposes:

– To protect life, and to preserve and maintain workers’ psycho-physical integrity,

– To prevent, reduce, eliminate or isolate risks at different workplaces or positions.

– To stimulate and develop a positive attitude toward occupational accidents and illnesses prevention.

LegislationREGULATORY POLICIES FOR DIFFERENT ACTIVITIES

REGULATIONS FOR LAW N° 19587

• 1973: DECREE N° 4160. It has been derogated by

• 1979: DECREE N° 351. It approves Hygiene & Safety mandatory regulations for all activities, contained in 8 annexed sections (some based on OSHA requirements and ACGIH - 1978 Recommended TLVs)

• 1996: DECREE N° 1338. Partially modifies Health, Hygiene & Safety Services. It eliminates IAE and other bureaucratic requirements.

LegislationREGULATORY POLICIES FOR OTHER ACTIVITIES

• 1996: DECREE N° 911. Regulates CONSTRUCTION Health and Safety Conditions.

• 1997: DECREE N° 617. Regulates AGRICULTURE Health and Safety Conditions.

REGULATIONS FOR LAW N° 19587

LegislationOTHER REGULATIONS FOR DIFFERENT ACTIVITIES

• 1991 Resolution MTSS N° 369: PCBs handling, use and disposition

Resolution MTSS N° 295: Modifies TLVs (update to 2003)

Resolution MTSS N° 577: Asbestos handling, use and disposition

….

• 1995 Provision DNSST N° 1: Carcinogen Substances: Updates list and creates User Register

Provision DNSST N° 2: PCBs: Creates User Register

Provision DNSST N° 8: Creates National Register for the Prevention of Major Industrial Accidents..

...

• ETC.

RESOLUTIONS AND PROVISIONS

Legislation

S. R. T. S. S. N.

INSURANCE COMPANIES FOR OCCUPATIONAL RISK (ASEGURADORAS DE RIESGOS DEL TRABAJO - A. R. T.)

Regulation

Prevention actions

Supervision & control of benefits

Prosecution

Regulation

Patrimonial & Financial Supervision

A.R.T.s´ REGULATION AND SUPERVISION

Market Share DataWORKERS BY ACTIVITY SECTOR

Transport 369,1867.63%

Commerce 688,87914.24%

Financial Services 485,81310.05%

Manufacture 823,91317.03%

Construction 231,3234.78%

Pow er Gas & Water 63,4131.31%

Social Services 1,922,44839.74%

Mining 23,9230.49%

Agriculture 228,7784.73%

Source: S.R.T. 06/00

System Evolution IndicatorsAFFILIATED EMPLOYERS

Source: S.R.T. 06/05

System Evolution IndicatorsCOVERED WORKERS

Source: S.R.T. 06/05

L.R.T. System Deficiencies

• INITIAL DEFICIT BY PREEXISTENT OCCUPATIONAL ILLNESS

?

• LOW PREMIUM• LOW MAXIMUM COMPENSATION

AND CIVIL JUSTICE ACCESS BANNED (BOTH RECENTLY DECLARED INCONSTITUTIONAL BY THE SUPREME COURT)

L.R.T. System Deficiencies

– SELF EMPLOYERS

– DOMESTIC WORKERS

– FIREMEN

• NOT INCLUDED SECTORS

– ARMED FORCES

• INFORMAL WORKERS (+ 50 % PEA)

L.R.T. System Deficiencies

Injury & Death Data in Argentina

• GENERAL DATA

• ACCIDENTS UNDER THE LRT SYSTEM

• ACCIDENT RATES

• Total Population 38,000,000

• Economic Active Population 16,000,000

• Workers within LRT system: 5,025,286

GENERAL DATA

Sources: INDEC 1999 - S.R.T. 12/03

Injury & Death Data in Argentina

ACCIDENTS UNDER THE LRT SYSTEM - INCIDENCE RATES

Injury & Death Data in Argentina

Source: S.R.T. 12/03

INDICE DE INCIDENCIA

0102030405060708090

100

1997 1998 1999 2000 2001 2002 2003

ACCIDENTS UNDER THE LRT SYSTEM - TOTAL NUMBERS

Injury & Death Data in Argentina

Source: S.R.T. 12/03

CANTIDAD DE ACCIDENTES

050000

100000150000200000250000300000350000400000450000500000

1997 1998 1999 2000 2001 2002 2003

DEATHS REPORTED - EVOLUTION

Injury & Death Data in Argentina

Source: S.R.T. 12/03

CANTIDAD DE FALLECIDOS

0

200

400

600

800

1000

1200

1997 1998 1999 2000 2001 2002 2003

SUMMARY

With the Workers´ Compensation System we have:

• Legislation focused on PREVENTION

• Employers´ Concern about LOSS CONTROL

• Better labor conditions for workers

• Training programs

• Rehabilitation & reinsertion

SUMMARY

ARGENTINA IS ON THE SAFE WAY