Delphi has about 6,000 employees in Western New York. Kristina Baldwin, who represents the Property Casualty Insurers Association of America in Albany, said the threat of major job losses might be "enough of a crisis" to spur action on a comp measure in the legislature, where animosity between the Republican-controlled Senate and Democrat-led Assembly makes passage of anything difficult.

She said labor interests are expected to seek action on a comp measure because there has been no benefits increase since 1992. PCI, she said, would oppose increases without accompanying reforms for cost savings.

With both labor and business pushing for reforms, "hopefully compromises will be struck," said Michael Moran, a representative with the American Insurance Association. He cited remarks by Mr. Miller that New York workers' comp "adds $3 an hour to the cost of labor."

While there has been talk of a special session, Mr. Moran said he doubted there would be any action on comp by the legislature until next year.

Peter Newell, an aide to Assemblyman Pete Grannis, D-Manhattan, who chairs the Assembly Insurance Committee, said, "everyone is waiting for the bill. It's hard to comment without seeking the language."
However, he added that Western New York Assembly members were concerned Gov. Pataki is "trying to capitalize on the Delphi situation and to use those sad events" to advance "a program that he proposed a few years ago that didn't have much support."

Mr. Newell said Gov. Pataki's concept of a lump sum payment instead of monthly annually disability payments is "interesting," adding that "the rest is [a] rehash" of his 2004 proposal.

Gov. Pataki said his plan would reduce comp costs for businesses by more than 15 percent, while increasing benefit levels for injured workers by 25 percent. He said measures for which he secured approval in 1996 had cut costs by 25 percent on average.

Gov. Pataki said he was urging the legislature to "protect tens of thousands of jobs across the state and ensure benefits for injured workers."

His plan, he said, would reduce workers' comp costs for businesses by 15 percent by creating a system of tiered benefit levels for injuries that are not currently scheduled under the law, reducing litigation, better coordinating anti-fraud efforts and authorizing comprehensive fee schedules for medical goods and pharmaceuticals.

It would also increase the maximum weekly indemnity benefits paid to injured workers by 25 percent, from $400 to $500 per week.

Gov. Pataki cited figures from businesses that they faced increases of 15-to-29 percent since Oct. 1.

The governor's plan includes establishment of a medical committee to develop objective medical criteria for determining the level of impairment sustained by injured workers.