A manufacturer's threat of plant closings might spur the New York Legislature to pass a new workers' compensation reform measure outlined last week by Gov. George Pataki, insurance group officials say.

However, a staff member with a key Democratic legislator rejected that idea and said, with one exception, most of what had been put forward so far seemed like "rehash."

Gov. Pataki, in announcing a comprehensive workers' comp plan on Nov. 3, said it would cut costs for businesses while increasing benefits for injured workers and keeping business, "especially manufacturing-based business, competitive in the global marketplace."

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