10/04/2005
Mr. Chairman and members of the House Commerce and Labor Committee:
My name is Reba Matern and I am vice president of Matern Metal Works Incorporated based out of Mansfield, Ohio. I am here today to testify in opposition to House Bill 80. I want to thank you for the opportunity to appear before this committee today.
Matern Metal Works is a small custom metal fabrication and installation company started in 1982 by my husband Joseph Matern. The company was born out of entrepreneurial spirit when Joe became frustrated with the frequent lay-offs as a journeyman sheet metal worker and gathered the courage and capital to open Matern Metal Works. Today we employ ten people in the Mansfield area with an emphasis on industrial maintenance and commercial construction work.
When Gov. Taft issued an executive order requiring all companies seeking to bid on state contracts be enrolled in the Bureau of Workers’ Compensation Drug-Free Workplace Program, or an equivalent program, he in effect, put small employers like me at a competitive disadvantage in the state bidding process. While my company only bids on one to three projects per year, we are required to have in place a comprehensive drug testing and use prevention program. The costs associated with entering into a drug-free workplace program for Matern will run about $2,000 per year.
What that $2,000 does not include is the estimated 50 plus hours of lost productivity for training and testing purposes, the potential that an employee has an accident, at which point we would need to drug test again, or the possibility one of my employees is selected for random testing. The $2,000 figure also assumes we do not hire anyone else in 2005. These costs add up to a significant amount of money for a small employer. While some employers might realize some savings on workers’ compensation premiums of 10 to 20%, my company is not eligible. The reason we do not qualify for savings under this program is that we already qualify for the highest percentage bracket of group rating due to our safety record.
At Matern, we have a commitment to worker safety, and providing a safe working environment. My husband and I work with our employees to increase the awareness of safe working practices and risk reduction. As a small employer, I want to ensure not only a safe working environment, but also a positive and trusting working environment. Legislation like this not only costs small companies money and lost production, but also puts the employer in the uncomfortable position of forcing employees we know and trust to submit to drug tests. Programs like the BWC Drug-Free Workplace are a great tool to promote safety while saving employers premiums on workers’ compensation. If the legislature is concerned about improving workplace safety, I would encourage you to continue to explore and promote incentive-based programs instead of punitive government mandates.
Mr. Chairman and members of the committee, I appreciate the opportunity to be here and testify before the legislature. I would like to leave you with a thought. As legislators, you work very hard to improve Ohio’s business climate and encourage job creation. This type of legislation makes it more difficult for small-business owners to do what we do best. Create jobs for the hardworking people of Ohio. Thank you for your time and consideration. I would be happy to answer questions you have at this time.
