NU Online News Service, May 20, 11:31 a.m.EDT--The nationally recognized Workers' CompensationResearch Institute (WCRI), rather than being independent, is a toolof the insurance industry the AFL-CIO charged.

"We are at the point, if we have to, we will withdraw from anyinvolvement in WCRI. We're concerned they are misrepresenting thecondition of workers' compensation," said Robert E. McGarrah Jr.,the AFL-CIO coordinator for workers' compensation.

Mr. McGarrah made his comments in an interview after hisorganization released a letter sharply critical of the 22-year-oldCambridge, Mass.-based research group, calling on it to change themethod and focus of its studies.

A spokesperson for the WCRI, Karen Holt, who was forwarded ane-mail copy of the letter, said the organization could not commentbecause it had not arrived in the mail and WCRI Executive DirectorRichard A. Victor was away on a business trip.

The letter to Mr. Victor said the AFL-CIO had concluded that"WCRI, like the insurance companies it depends upon for itsfinancial support, operates to promote the interests of theworkers' compensation insurance industry."

WCRI states on its Web site that it provides "high-quality,objective information about public policy issues involving workers'compensation systems" and "does not take positions on the issues itresearches; rather, it provides information obtained throughstudies and data collection efforts, which conform to recognizedscientific methods. Objectivity is further ensured throughrigorous, unbiased peer review procedures."

But according to the labor group's letter, "WCRI's Board ofDirectors and its Research Committee are almost entirely officersof the major insurance companies that sell workers' compensationinsurance."

WCRI, which does ongoing studies of the functioning of workers'comp in the various states, the AFL-CIO said, is dependent for itsresearch "on insurance industry data, which cannot be publiclydisclosed, even to the public officials to whom WCRI presents itsreports."

In its entire history, the AFL-CIO wrote, WCRI has not "produceda single study on the effect and practices of the insuranceindustry in pricing and administering the workers' compensationsystem."

According to the letter, AFL-CIO participated in WCRI peerreview process and found that it "not only flawed, but also failsto meet even the most rudimentary standards of scholarlyresearch."

According to Mr. McGarrah, the WCRI has focused on outmodedmanaged care systems and ignored cost efficient self-insuredworkers' comp programs that guarantee high quality medical carethat are run by John Hopkins University and the Marriott group.

Despite major concerns by business and labor over the price ofworker's comp insurance, WCRI has looked at injury treatment, butnot examined alleged fixing and manipulation of prices, Mr.McGarrah charged. "This is a clear issue," he said.