Transcript WORKERS´ COMPENSATION SYSTEM IN ARGENTINA Past

WORKERS´ COMPENSATION
SYSTEM IN ARGENTINA
CONSULTORA LEAIS
L.R.T. - Workers´ Compensation System In Argentina
• Introduction
• Comparison between the previous and
present system
• LRT system deficiencies
• Injury and death data
• Summary
Introduction
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Applicable legislation
Regulatory policies for different activities
Market share data
System evolution indicators
Legislation
National Constitution
Civil Code
Laws
Decrees
Ministerial Resolutions
SRT and SSN Resolutions
Regulations
Operating 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
PRESENT WORKERS´ COMPENSATION SYSTEM
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.
 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”).
 Occupational illnesses.
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.
REGULATIONS FOR LAW N° 19587
Legislation
REGULATORY POLICIES FOR DIFFERENT ACTIVITIES
• 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.
REGULATIONS FOR LAW N° 19587
Legislation
REGULATORY POLICIES FOR OTHER ACTIVITIES
• 1996: DECREE N° 911. Regulates CONSTRUCTION Health
and Safety Conditions.
• 1997: DECREE N° 617. Regulates AGRICULTURE Health
and Safety Conditions.
RESOLUTIONS AND PROVISIONS
Legislation
OTHER 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.
A.R.T.s´ REGULATION AND SUPERVISION
Legislation
S. R. T.
Regulation
Prevention actions
Supervision & control of
benefits
S. S. N.
Regulation
Patrimonial & Financial
Supervision
Prosecution
INSURANCE COMPANIES FOR OCCUPATIONAL RISK
(ASEGURADORAS DE RIESGOS DEL TRABAJO - A. R. T.)
Market Share Data
WORKERS BY ACTIVITY SECTOR
Agriculture 228,778
4.73%
Mining 23,923
0.49%
Manufacture 823,913
17.03%
Pow er Gas & Water
63,413
1.31%
Social Services
1,922,448
39.74%
Construction 231,323
4.78%
Financial Services
485,813
10.05%
Transport 369,186
7.63%
Commerce 688,879
14.24%
Source: S.R.T. 06/00
System Evolution Indicators
AFFILIATED EMPLOYERS
Source: S.R.T. 06/05
System Evolution Indicators
COVERED WORKERS
Source: S.R.T. 06/05
L.R.T. System Deficiencies
• INITIAL DEFICIT BY PREEXISTENT
OCCUPATIONAL ILLNESS
?
L.R.T. System Deficiencies
• LOW PREMIUM
• LOW MAXIMUM COMPENSATION
AND CIVIL JUSTICE ACCESS BANNED
(BOTH RECENTLY DECLARED
INCONSTITUTIONAL BY THE
SUPREME COURT)
L.R.T. System Deficiencies
• NOT INCLUDED SECTORS
– DOMESTIC WORKERS
– SELF EMPLOYERS
– FIREMEN
– ARMED FORCES
• INFORMAL WORKERS (+ 50 % PEA)
Injury & Death Data in Argentina
• GENERAL DATA
• ACCIDENTS UNDER THE LRT SYSTEM
• ACCIDENT RATES
Injury & Death Data in Argentina
GENERAL DATA
• Total Population 38,000,000
• Economic Active Population  16,000,000
• Workers within LRT system: 5,025,286
Sources: INDEC 1999 - S.R.T. 12/03
Injury & Death Data in Argentina
ACCIDENTS UNDER THE LRT SYSTEM - INCIDENCE RATES
INDICE DE INCIDENCIA
100
90
80
70
60
50
40
30
20
10
0
1997
1998
1999
2000
2001
2002
2003
Source: S.R.T. 12/03
Injury & Death Data in Argentina
ACCIDENTS UNDER THE LRT SYSTEM - TOTAL NUMBERS
CANTIDAD DE ACCIDENTES
500000
450000
400000
350000
300000
250000
200000
150000
100000
50000
0
1997
1998
1999
2000
2001
2002
2003
Source: S.R.T. 12/03
Injury & Death Data in Argentina
DEATHS REPORTED - EVOLUTION
CANTIDAD DE FALLECIDOS
1200
1000
800
600
400
200
0
1997
1998
1999
2000
2001
2002
2003
Source: S.R.T. 12/03
SUMMARY
With the Workers´ Compensation System we have:
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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