Collective Bargaining Agreement

Before an ADR program comes into being, an agreement must be reached between the employer and its employees that it is advantageous to participate in an ADR program for workers' compensation. To be eligible to participate in a workers' compensation ADR program, the employer must be a trade association, group of employers, a project with several employers or a single large employer of sufficient size. The employees of the eligible employer must be an organized labor union. The two factions must reach an agreement in principle that the ADR program serves both interests.

ADR Program Setup

At this point, a Labor Management Committee (LMC) of some type is formed. The Committee is normally composed of an equal number of appointees from management and labor. In general, this Committee is responsible for overseeing the ADR program. Among other things, the Committee approves the lists of doctors and vocational rehabilitation consultants which can provide services to injured union members. The Committee also approves the selection of ombudsmen, mediators, and arbitrators.

	A Typical AOE ADR Program in Action

The Injured Worker

The injured worker receives medical care and in addition, cash payments during the healing period and cash payments that are agreed upon in the final claim settlement. It is the goal of the Labor Management Committee that the injured worker is treated fairly and that given the circumstances of the injury, the best possible outcome ensues. The Ombudsman is available to answer questions and help guide the injured worker step-by-step in the claims process.

The Ombudsman

The Ombudsman is responsible for operating the ADR program. Once an injury occurs, and an injured worker files a claim, AOE's alternative dispute resolution system begins to work toward an expeditious and equitable settlement between the injured worker and the insurance company. The expertise provided by the AOE Ombudsman ensures that the claim submitted by an injured worker continues heading toward the swiftest and most equitable resolution possible, because the ombudsman plays an active role in accelerating the claims process and answering any questions from involved parties. The AOE system and the expertise of our ombudsmen, made possible by years of experience in the workers' compensation arena, save people time and money.

Medical Practitioners

Medical practitioners, including doctors and qualified medical examiners, are all approved by the Labor Management Committee and provide medical services to injured workers involved in the ADR program. They provide medical reports and evaluations to the Ombudsman and are compensated by the insurance company that provides workers' compensation insurance for the employer. The medical judgments of the medical practitioners play a role in determining the precise nature of the claim settlement.

The Insurance Company

The insurance company receives money from the employer in exchange for providing workers' compensation insurance. The insurance company is therefore responsible for paying for medical services relating to the workers' qualifying injury. The insurance company will also make direct cash payments to the injured worker arising from the result of lost wages or lost function that are included in the final settlement of the claim.