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Who takes Chrysler’s workers’ comp problems?

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in Leaders & Managers,Management Training

As Chrysler sought a buyer, Ohio Attorney General Richard Cordray wondered how much it would cost the state in workers’ compensation payouts. Chrysler self-insures its workers’ compensation, but Fiat may not want to assume that obligation. What happens to workers receiving benefits then?

Cordray filed a limited objection in Chrysler’s bankruptcy proceedings asking the court to address the issue of future workers’ compensation claims from Chrysler workers. Cordray maintained the bankruptcy documents did not adequately address the issue. He said the company promised to pay the claims, but failed to shift that responsibility to the new buyer.

Marsha Ryan, administrator for the Ohio Bureau of Workers’ Compensation, said in a statement that her agency was “monitoring the situation” and was “prepared to effectively manage and transition claims management.” 

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