WORKERS´ COMPENSATION SYSTEM IN ARGENTINA

1. WORKERS´ COMPENSATION SYSTEM IN ARGENTINA CONSULTORA LEAIS

2. L.R.T. - Workers´ Compensation System In Argentina • Introduction • Comparison between the previous and present system • LRT system deficiencies • Injury and death data • Summary

3. Introduction • Applicable legislation • Regulatory policies for different activities • Market share data • System evolution indicators

4. Legislation National Constitution Civil Code Laws Decrees Ministerial Resolutions SRT and SSN Resolutions Regulations Operating Circulars - Ordinances

5. 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.

6. 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

7. 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.

8. 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.

9. REGULATIONS FOR LAW N° 19587 LegislationREGULATORY 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.

10. 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.

11. RESOLUTIONS AND PROVISIONS LegislationOTHER REGULATIONS FOR DIFFERENT ACTIVITIES • 1991Resolution 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.

12. A.R.T.s´ REGULATION AND SUPERVISION Legislation S. R. T. S. S. N. Regulation Prevention actions Supervision & control of benefits Prosecution Regulation Patrimonial & Financial Supervision INSURANCE COMPANIES FOR OCCUPATIONAL RISK (ASEGURADORAS DE RIESGOS DEL TRABAJO - A. R. T.)

13. Market Share DataWORKERS BY ACTIVITY SECTOR Source: S.R.T. 06/00

14. System Evolution IndicatorsAFFILIATED EMPLOYERS Source: S.R.T. 06/05

15. System Evolution IndicatorsCOVERED WORKERS Source: S.R.T. 06/05

16. L.R.T. System Deficiencies • INITIAL DEFICIT BY PREEXISTENT OCCUPATIONAL ILLNESS ?

17. L.R.T. System Deficiencies • LOW PREMIUM • LOW MAXIMUM COMPENSATION AND CIVIL JUSTICE ACCESS BANNED (BOTH RECENTLY DECLARED INCONSTITUTIONAL BY THE SUPREME COURT)

18. L.R.T. System Deficiencies • NOT INCLUDED SECTORS • SELF EMPLOYERS • DOMESTIC WORKERS • FIREMEN • ARMED FORCES • INFORMAL WORKERS (+ 50 % PEA)

19. Injury & Death Data in Argentina • GENERAL DATA • ACCIDENTS UNDER THE LRT SYSTEM • ACCIDENT RATES

20. 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

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

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

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

24. 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

25. SUMMARY ARGENTINA IS ON THE SAFE WAY