I am searching for disabled workers and managers in UK. But itīs not so easy to get people who will work in a new company. I do not think that in Europe disabled workers are more expensive than non disabled. Albrecht -- Albrecht Marignoni orthoPoint Network http://www.orthopoint.net ----- Original Message ----- From: "Michael H. Collis" <[log in to unmask]> To: <[log in to unmask]> Sent: Tuesday, July 15, 2003 6:12 PM Subject: [Fwd: Firms Fire Disabled Workers to Save Health-Care Costs] > Comments? > > -------- Original Message -------- > Subject: Firms Fire Disabled Workers to Save Health-Care Costs > Date: Tue, 15 Jul 2003 08:10:10 -0400 > From: Justice For All Moderator <[log in to unmask]> > Organization: Justice For All E-Mail Network > To: [log in to unmask] > > > > "Firms Fire Disabled Workers to Save Health-Care Costs" > > Here's a sobering article from the front page of > yesterday's Wall Street Journal, highlighting the > persistent barrier that lack of quality health care poses > to disabled Americans who want to work. The story openly > discusses some corporations' approach to managing slow > economic times - firing people with disabilities who have > high health care costs. Curiously, there's no mention of > the Americans with Disabilities Act in the article and how > these actions might be prohibited discrimination under the > ADA (violation of another statute is mentioned). You can > contact the author, Joseph Pereira, at > [log in to unmask] > > Jonathan Young > JFA Editor, AAPD > > ========================= > > To Save on Health-Care Costs, Firms Fire Disabled Workers > > Policy Shift at Polaroid Leads to Scrimping, New Worries > for Extremely Sick Employees > July 14, 2003 > PAGE ONE > By JOSEPH PEREIRA > Staff Reporter of THE WALL STREET JOURNAL > > As it was preparing the sale of its assets to Bank One > Corp. last July, Polaroid Corp. sent a letter to 180 > disabled employees notifying them that they had been fired > and their health, life and dental insurance were being > terminated. > > At the time he received the letter, Nelson Tauriac, a > Polaroid forklift operator for 21 years, was bed-ridden, > his feet swollen to three times their normal size because > of kidney disease. John Magenheimer, who had headed a > Polaroid research laboratory, was recovering from surgery > in which one of his ribs was removed so doctors could cut > out a cancerous tumor pressing against his heart. Elizabeth > Williams, a senior human-resources administrator, was at > home, doubled over with pain from a form of lupus that > attacks the lungs and muscles. > > "I couldn't believe this was happening," recalls Mr. > Magenheimer, who says his wife showed him the letter as he > lay "in a fog" from chemotherapy and radiation treatment. > "How could Polaroid do this to me? For more than 20 > years I gave them everything I had." > > > Across the corporate landscape, disabled workers are > becoming an increasingly common casualty of the drive to > cut costs. As recently as three to five years ago most > companies paid health benefits for the long-term > disabled until they were 65 years old, according to James > Curcio, a senior consultant for Washington Business Group > on Health, a trade association that helps companies contain > health-care costs. At 65, federal Medicare benefits > kick in. > > But as health-insurance costs and the number of disabled > employees climb, more companies are firing them. A Mercer > Human Resource Consulting study last year found that 27% of > the 723 companies surveyed dismiss employees as soon as > they go on long-term disability and that 24% dismiss them > at a set time thereafter, usually six to 12 months. (Dow > Jones & Co., which publishes The Wall Street Journal, > terminates employees six months afterward.) The survey > found 15% keep the disabled on as employees with benefits > until age 65. > > Mr. Magenheimer and the other employees fired by Polaroid > were on long-term disability leave because of injuries or > illnesses that left them too incapacitated to work. They > are entitled to be compensated at 60% to 70% of their > regular pay through a combination of social-security > disability benefits and payouts from disability-insurance > policies purchased by Polaroid. > > They still receive that money. But the loss of their other > benefits -- especially their health and life insurance -- > has brought them additional financial burdens at a time > when they already are struggling with reduced income and > the ravages of cancer, heart disease and other serious > conditions. > > The federal law known as COBRA mandates that they can keep > the health insurance they had at Polaroid for 18 months > after their dismissal. Some companies pay the premiums, but > most, like Polaroid, require employees to pick up the tab > themselves. Disabled workers can purchase Medicare coverage > after 18 months. Both kinds of coverage cost thousands of > dollars a year, which many disabled workers can ill afford. > Because people on long-term disability leave continue to > receive a portion of their salaries, they are typically not > eligible for the Medicaid program that offers poor > Americans health insurance. > > Kevin Pond, a Polaroid spokesman, says that Bank One took > over Polaroid with the understanding that the new > management would decide whom to hire and whom to let go. > "Even though the old Polaroid maintained their employee- > like status, the [workers on long-term disability] were not > real employees," he says. In response to a letter to > Polaroid by U.S. Rep. William Delahunt of Massachusetts, > who had written on behalf of constituents who worked there, > Polaroid general counsel Neal Goldman noted that the > company had preserved the benefits as long as it could, > despite "enormous pressure to dramatically reduce costs" > during bankruptcy. > > The disability-payment squeeze is likely to continue for > companies and their employees. Some 5.5 million people > received long-term disability benefits last year, according > to the U.S. Department of Labor, a 62% jump from 1992. > The reasons for the big rise aren't completely understood, > but the most cited explanation is an aging work force. > > Bankruptcies and takeovers often spur companies to fire > disabled workers. When International Steel Group Inc. > acquired the assets of LTV Corp. last year, it rehired many > of the able-bodied workers who had been dismissed in > LTV's bankruptcy proceeding. It didn't rehire the hundreds > of employees on disability. When MMI Co., a medical > consulting and insurance firm in Deerfield, Ill., in 1999 > acquired Applied Risk Management Inc. of Oakland, Calif., > which administers worker's compensation programs for > companies, it only hired ARM employees who weren't on > medical or extended leave. Five employees on long-term > disability leave weren't hired. > > MMI has since been acquired by St. Paul Cos., an insurance > concern. A spokeswoman declined to comment. Mitch Hecht, > vice president of external affairs at International Steel, > says, "It's strictly an arithmetic fact that the profits > are not being generated to cover the costs of all the > health care programs of workers from the past." The company > views the plight of the disabled workers as a tragedy and > calls on the government "to come up with a broad solution > to fix the problem," says Mr. Hecht. > > Polaroid began its downward spiral in the mid-1990s, as > digital cameras and cheap, one-hour developing ravaged its > niche of instant photography. With nearly $1 billion in > debt, Polaroid filed for bankruptcy-court protection in > October 2001. Nine months later, One Equity Partners, a > Bank One investment arm, acquired its assets. "Under the > asset purchase agreement, employees on long-term disability > will not be hired by One Equity Partners," Polaroid wrote > in a July 2002 letter to the affected workers. > > Ms. Williams, who has been on disability since 1988 because > of her lupus and diabetes, says "people in the group have a > multiplicity of medical problems." Many are in their 50s. > Elaine Johnson, 59, of Attleboro, Mass., suffers from blood > clotting and heart problems and nearly died from a > pulmonary embolism earlier this year. Another, Paul Day, > 61, of Billerica, Mass., has undergone several surgeries to > remove cancerous growths in his leg and kidney. > > Ms. Williams recruited some of her ex-colleagues to hire > attorney Harvey Schwartz, who filed a discrimination case > last week in federal court in Boston. Polaroid and One > Equity "got together and consciously planned to > discriminate against people who were receiving" long-term > disability benefits, says Mr. Schwartz, of Boston. The new > Polaroid hired able-bodied workers, but their disabled > colleagues "were intentionally not hired because they were > disabled," Mr. Schwartz added. A spokesman for Polaroid, > under One Equity's management, declined to comment on the > suit. > > It isn't the first time disabled workers have gone to court > on the issue. Denice Lessard, a compensation analyst for > Applied Risk Management, had been on long-term disability > for three years because of a work-related spine injury, > when MMI acquired the company and she was fired. A three- > judge panel of the U.S. Circuit Court of Appeals in San > Francisco ruled in Ms. Lessard's favor, stating that > discrimination had occurred. By firing the disabled > workers, MMI was effectively punishing them "for exercising > their rights under an employee benefit plan," the court > wrote. That is illegal under the Employee Retirement Income > Security Act, which guarantees employees the right to use > their benefits. > > The case was sent back to the district court, which had > earlier ruled in the company's favor. MMI subsequently > settled, and Ms. Lessard's benefits have been restored, > says her attorney Laurence F. Padway. > > In Polaroid's good years, the 1970s through the early > 1990s, surveys frequently rated the company as one of the > 100 best companies to work for. The company paid full > tuition for employees pursuing college degrees and provided > free medical services at headquarters and other sites with > a staff that included four doctors, 13 nurses and about > half a dozen family and divorce counselors. > > Polaroid took pride in supporting employees who were sick > or got hurt on the job. Short-term disability compensation, > at 100% of pay for up to a year, was among the best in the > country. Employees on long-term disability were permitted > to remain with the company until 65. When employees went on > long-term disability, the company even picked up the tab > for the portion of health and life insurance premiums that > were typically deducted from Polaroid paychecks. > > At the time of One Equity's offer, Polaroid had about 8,000 > employees. It now has less than 6,000, says a person > familiar with the company. The company no longer reports > results, but people familiar with the revamped company's > business say that it is now profitable. The company has > introduced new products and most employees received a bonus > last Christmas, says Karl Farmer, chairman of a court- > appointed committee that looks after Polaroid retirees' > interests. > > For many disabled employees, things haven't worked out as > well. On receiving news of his termination last summer, Mr. > Tauriac, the long-time forklift operator, found it would > cost him $862 a month to continue the health insurance he > had been getting free. > > That left Mr. Tauriac with a difficult choice. He could > continue to live in his $1,100-a-month, two-bedroom > apartment in New Iberia, La., without health insurance, or > keep his health insurance and move out. On his monthly > disability income of $1,960 he couldn't afford both. Even > with the company's health plan, his co-payments for 16 > prescription drugs and doctors' visits had been running up > to $350 a month. In addition to heart problems Mr. Tauriac > was suffering from hypertension and diabetes, and needed > kidney dialysis three times a week. > > After deliberating for a month, Mr. Tauriac and his wife > Gladys reluctantly decided to move to a modest cottage > owned by her brother, who discounted the rent to $400 a > month. Over the next six weeks he was hospitalized five > times for ailments including chest pains, shortness of > breath and high-blood pressure. > > On Oct. 15, 2002, his feet swollen and filled with blood > clots, he died. He was 61 years old. "He used to wake up in > the middle of the night and say to me, 'I don't know what's > happening to me, lovely,' " Mrs. Tauriac recalls. She > believes "it was the stress" that made him take a turn for > the worse -- "no money, no house, no peace." > > Had he died before Polaroid fired him, Mrs. Tauriac would > have received $77,220 from a life insurance policy that > paid 1.5 times his salary. But the policy ended with his > employment. Mrs. Tauriac says she couldn't have afforded > the funeral without a gift from her son, who is in graduate > school. > > Herself a Polaroid employee before taking early retirement > in 1995, she receives a total of about $800 a month from > her pension and survivor benefits. Of that, $381 goes for > health insurance, which doesn't cover drugs. So Mrs. > Tauriac says she skips prescriptions for hypertension and a > heart condition. She has been moving from relative to > relative to save on rent. At 59, she has concluded, she > soon will have to find work. > > "Life today is a far cry from the way it used to be a > decade ago," when she and her husband lived in suburban > Easton, Mass., she says. "Between the two of us we made > $90,000 a year. We sent our son to Boston College and we > thought life was good. I never thought I was going to end > up this way." > > When Mr. Magenheimer was dismissed, he lost his health > insurance, although he was still covered under his wife's > policy, provided by the school where she teaches. He > started looking to replace the life-insurance policy that > he also lost, fearing his family would be left in a bind. > He had a $1 million policy through Polaroid, including > extra coverage for which he paid between $500 and $1,000 a > year for 20 years. As director of the company's Materials > and Chemical Analysis Laboratory, Mr. Magenheimer had > earned $110,000 a year. > > Diagnosed with a deadly form of skin cancer in 1992, Mr. > Magenheimer worked for six years following the diagnosis. > He worked longer than he would have liked, he says, in part > because he wanted to keep the life insurance. To keep up > with the work, he took an afternoon nap and then often > worked late. He injected himself with anticancer drugs that > he kept in a cooler at the lab. "It made you feel like you > had the worst case of the flu, but it gave you energy," he > recalls, sitting in his dining room of his suburban home. > > He went on long-term disability leave in 1998. Treatments > did some good, he says, but tumors kept resurfacing, and > his condition didn't improve enough to return to work. He > had just undergone surgery when the news came about > his dismissal. From a Boston hospital bed, he telephoned > insurance agents, searching for a new life policy. Many > asked him whether he was "nuts" and told him no one so sick > was insurable, he says. > > He was so frustrated he would scream into the phone and end > up drained from the fighting. After several weeks, Mr. > Magenheimer says, he threatened to bring a discrimination > case against the insurance company that covered him > at Polaroid unless it extended the policy. It agreed to > $500,000 in coverage, for $20,000 a year in premiums. To > make the payments, he took out a third mortgage on his > home, adding $100,000 in debt to the $125,000 he already > owed on the previous mortgages. > > Sally Ferrari, another of the terminated Polaroid > employees, was diagnosed with Alzheimer's disease in 1996 > and went on long-term disability a year later. The former > executive assistant to a marketing director is 59. Her > husband John is two years older and worked for 31 years at > Polaroid as a human resources executive before leaving in > the same year for another job. At Polaroid the two would > meet for lunch whenever possible. > > Mr. Ferrari says he would have retired by now to take care > of his wife, but has to keep working to afford her care and > health insurance. He said he is "bitter" about having to > spend his days away from his wife in the time remaining > before her dementia puts her beyond reach. > > Patients who contract Alzheimer's as early as his wife > usually decline rapidly, Mr. Ferrari has learned. Many are > dead within eight years, according to the Alzheimer's > Research Foundation, "But she's got a strong constitution," > says Mr. Ferrari, holding back tears. "I'm hoping she can > make it to 65." > > Write to Joseph Pereira at [log in to unmask] > > # # # > > ===================== > > NOTE: Some Internet Providers (including AOL, Earthlink and > Juno) may see JFA postings as spam because of the large > volume of JFA mail recipients and fail to deliver the > posting. If this happens more than a few times, the JFA > system may automatically unsubscribe some email > addresses. Should you stop receiving JFA Alerts, please > subscribe to JFA again as per the instructions at > http://www.jfanow.org. > > PLEASE Empty your email inbox regularly. JFA deletes > subscribers that are consistently over their message quota. > If you stop using an account please unsubscribe that old > account. > > With hundreds of inbound emails and thousands of outbound > emails daily, JFA can not respond to every message. > > We thank you for your understanding and continued > outstanding advocacy! > > ===================== > > JUSTICE FOR ALL -- A Service of the > American Association of People with Disabilities > www.aapd-dc.org www.jfanow.org > > There's strength in numbers! Be a part of a national > coalition of people with disabilities and join AAPD today. > www.aapd-dc.org > > > > ===================================================================== > Justice-For-All FREE Subscriptions > To subscribe or unsubscribe, send mail to [log in to unmask] > with one or the other in the body of your message: > subscribe justice > unsubscribe justice