Worker’s Compensation 2014

TWU Benefit Conference-August 20

Overview

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• Organization

• Integration Update

• New Metrics - 5-Year Trend

• Team Assignments

• Initiatives: Nurse Case Management

• Questions

Organization

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Work Comp Integration Update

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•Following a selection process, Sedgwick was chosen as the Claims Administrator for the combined airline.

•Effective 9/1/2014, Sedgwick will be handling all workers’ compensation claims for the combined airline which includes five (5) entities: American Airlines, US Airways, Envoy, Piedmont and PSA.

– Over 100,000 employees and over 15 different union contract

– Annual expected volume of over 9,500 injuries, which is an average of 26 injuries per day

•When an employee is injured on the job, we expect Sedgwick to perform a thorough accident investigation, ensure quality medical care, and accurate wage replacement in the most expeditious manner possible. This will benefit our employees by expediting their recovery and assure a prompt and safe return to work, and it will further benefit American Airlines Group by reducing workers’ compensation costs.

Total Injuries with Cost (5 Year Trend)

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• Includes on-the-job injuries with any medical and/or wage replacement costs

• Injury rate Average: Injury per 200,000 risk hrs. worked (200,000 = average # of risk hrs. worked by 100 people in 1 year)

18.119.1

18.1 18.0 17.8

15.7

9.8 10.49.4

10.4

13.1

9.2

0.0

5.0

10.0

15.0

20.0

25.0

2009 2010 2011 2012 2013 YTD Jun 2014

L-AA ACS L-AA Tech Ops

ACS and Tech Ops Year-End Rates

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Lost Time Injuries (5 Year Trend)

• Includes on-the-job injuries with one or more off work day(s)

• Injury rate Average: Injury per 200,000 risk hrs. worked (200,000 = average # of risk hrs. worked by 100 people in 1 year)

11.0

11.9

10.6 10.4 10.6

8.9

3.9 4.23.6 3.9 4.0

2.8

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2009 2010 2011 2012 2013 YTD Jun 2014

L-AA ACS L-AA Tech Ops

ACS and Tech Ops Year-End Rates

Team Assignment East

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• AAG Risk Management will be split by state to align with the Sedgwick offices and Operations

EAST TEAM: Kris Sallee 817-963-3065 

Sedgwick Offices JurisdictionAAG Claims Analyst

Syracuse, NY NY TBD

 PA, CT, MA, NH

Sharon Mallich

    412-776-8253

 VT, KY, VA, LA, ME, AR, MD, DE, RI

Suzanne Crosby

    703-419-7844Lake Mary, FL FL Debra Kadlecik    412-776-8254

 NC, GA, AL, TN, SC, MS

Janet Stepanik-Kaufold

    412-776-8252

Team Assignment West

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WEST TEAM: Bryan Conner 817-963-4573

Sedgwick Offices JurisdictionAAG Claims Analyst

Aurora, IL IL, MO TBD  AZ, IA, IN,

KS, MI, MN, NE, WI, UT, NV (OH & WA)

Jamie Keith 480-693-8449

Plano, TX TX (Ground) Paula Young

   817-967-3301 HDQ

   972-425-2302 DFW

 OK & TX (Maintenance)

Drew Cashett

    817-963-3061  TX (INF) CO Ed Rudi

    305-526-1217Long Beach, CA CA Ed Rudi

Designated OfficesNM, ID, HI, OR

Ed Rudi

Questions

How can we help you, the benefit coordinator, going forward?

Q&A

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