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Business is opposed to use of ARL surpluses

The president of COPARDOM says they have not been consulted and they will not accept the proposal

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Business is opposed to use of ARL surpluses
SANTO DOMINGO. The business sector, represented by the Management Confederation of the Dominican Republic (COPARDOM), called the use of the surpluses in the Labor Risk Insurance illegal, and indicated that those resources should be employed in order to prevent and cover the damages occasioned by workplace accidents and professional illnesses, guaranteeing services in medical attention and in money, such as the subsidies for temporary, permanent and pensions due to a disability.

Although the president of the Medical Group of the Dominican Institute of Social Security (AMIDSS), Rafael Rodriguez Sandoval, in a letter sent to Diario Libre, congratulates the decision by the government, the business sector and the union sector to order that a part of the resources of the Labor Risk Administrators (ARLs) to be used in the improvement of the infrastructure and remodeling of the IDSS hospitals and of those of the Ministry of Public Health, the president of COPARDOM, Joelle Santos, said that they have not been informed regarding the possible use of the accumulated resources for this concept.

"This initiative has not been presented to us and, and in case that is submitted to the consideration of the employment sector, we would oppose it because we feel it is illegal," he added.

Santos said that he felt that the Labor Risk Insurance should go towards indexing the pensions of the workers, to provide greater benefits and to revise the accident rates in the companies.

He said that they would favor only those initiatives within the framework of the legal environment and that at the same time they should consolidate the institutionalism of the Dominican System of Social Security.

Last 13 May, the IDSS director, Sabino Baez, requested authorization from the superintendent of Health and Labor Risks (Sisalril), Pedro Luis Castellanos, in order that the Institute might use the accumulated earnings by the ARL since the beginning of its functions in 2004 in order to be invested in the modernization of the hospital infrastructure of the entity.

The request by Baez was because the ARL belongs to the IDSS.

Castellanos answered him on 22 May and he asked them to submit a proposal to Sisalril requesting the improvement, which would give him judicial support to the investments that they wanted to make with the surpluses of the ARL calculated in some RD$10 billion.

Besides improving the physical plants of the hospitals, the proposal would include equipment, medications and supplies and that these cover the First Level of Attention.

He also asks for the strengthening of the managerial capacity of the Administrator of Health Risk Insurence (ARSS).

Something of history

In 2010, as a result of the Tripartite Agreement between the Government, as the public employer; the business community, the private employer, and the unions in representation of the labor sector, the sectors distributed the resources in the following manner: more than RD$6.9 billion would be for the business sector, RD$3.0 billion for the government and RD$60 million would go to the union representatives.

Starting in February 2011 the resources would be delivered to the government, while the employer sector would stop contributing to the ARL for 60 months an amount equal to the RD$6.9 billion.

At that time, the National Council of Social Security (CNSS) ordered the payment of RD$2.0 billion to the Government, resources that it supposedly did not return, in spite of the fact that the Council revoked the decision.

The position of the CNSS

The National Council of Social Security (CNSS) has not received the proposal which suggests the use of RD$10.0 billion of the funds that the Administrator of Labor Risks (ARL) has as a surplus), reported the general manager, Rafael Perez Modesto.

He said in a press release, that in case the CNSS is authorized of the proposal, it will be made available to the national public opinion with transparency, as ordered by the Dominican System of Social Security.