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 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 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° (Ley de Riesgos del Trabajo - L.R.T.) Purposes:  To focus on work related accident PREVENTION, enforcing LAW N° 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 ” LAW N° 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.

Legislation REGULATORY POLICIES FOR DIFFERENT ACTIVITIES REGULATIONS FOR LAW N° : DECREE N° 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 Recommended TLVs) 1996: DECREE N° Partially modifies Health, Hygiene & Safety Services. It eliminates IAE and other bureaucratic requirements.

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. REGULATIONS FOR LAW N° 19587

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 … 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 Data WORKERS BY ACTIVITY SECTOR 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 ?

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 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

ACCIDENTS UNDER THE LRT SYSTEM - TOTAL NUMBERS Injury & Death Data in Argentina Source: S.R.T. 12/03

DEATHS REPORTED - EVOLUTION Injury & Death Data in Argentina Source: S.R.T. 12/03

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