N. D. House Majority Leader Says New CEO Needed at Workers’ Comp Agency

North Dakota’s House Republican majority leader says the state’s troubled workers’ compensation agency needs to replace its interim chief executive with an experienced outside manager.

John Halvorson, the chief of employer services at Workforce Safety and Insurance, has been the agency’s acting director since former chief executive Sandy Blunt was forced out last December.

Rep. Rick Berg, R-Fargo, said Wednesday that Halvorson should be replaced as the interim director with “someone that has credibility and the confidence of the public.” He declined to suggest who that should be.

“I think we need someone from the outside to come in to take a fresh look,” Berg said Wednesday. “I don’t think that can be done with anyone in the current management of WSI.”

Berg is chairman of the Legislature’s interim Industry, Business and Labor Committee, which is holding a hearing in Bismarck next week to listen to reports from outside consultants who have been examining the agency’s management, personnel practices and methods for handling claims.

Halvorson did not respond to interview requests. Rep. Steve Zaiser, D-Fargo, who is a member of the interim committee, said he supported Berg’s suggestion.

“That would be better than what we have now,” Zaiser said. “I think a new face would give us a better chance of turning around that culture of corruption.”

Mark Gjovig, who is chairman of WSI’s board of directors, said the board should wait for the consultants’ recommendations. He said Halvorson is doing an excellent job in difficult circumstances.

Mark Schneider, a Fargo attorney who represents injured workers, said Berg was “the person most responsible for the train wreck that has become WSI.”

Berg has supported efforts to reduce benefits to employees who have been hurt on the job while backing millions of dollars’ worth of premium rebates to companies, Schneider said.

Berg’s “entire machinations regarding pretended interest in the welfare of injured workers is nothing more than a latter-day charade, to provide him and his ilk with political cover,” Schneider said in a letter Wednesday.

The letter was written to John Bjornson, a staff attorney for the Legislative Council, the research arm of the Legislature, in response to Berg’s request that Schneider participate in next week’s legislative hearings on WSI. Schneider said he would not do so.

Berg said he hoped Schneider would reconsider.

“I think if you’re not satisfied with the current situation, we’re offering you a seat at the table. You need to take that seat,” he said.

Schneider, in his letter, said Bjornson should not take part in any legislative work involving WSI because his wife, Jodi Bjornson, is the agency’s highest-ranking attorney. “This creates an overwhelming appearance, at best, of a conflict of interest,” Schneider wrote.

John Bjornson referred a request for comment to Jay Buringrud, the Legislative Council’s assistant director, who said Bjornson had no reason to recuse himself. Bjornson does research, legal writing and administrative work for the committee and does not determine policy, Buringrud said.

“We’re aware of what could be perceived as the potential for a conflict, but none of the (Legislative Council) attorneys are involved in any of the decision-making,” Buringrud said.

Berg brought up the issue himself at a Feb. 7 committee hearing, saying he had told Bjornson he had no reason to recuse himself. No committee member objected then to Bjornson’s staff role.

“John is an extremely ethical, good attorney,” Berg said. “I’m not sure which side of the conflict that people would perceive him to be on.”

Berg’s committee is holding two hearings next week. One is scheduled at Workforce Safety and Insurance’s Bismarck headquarters over the noon hour on Wednesday, when the WSI board will be meeting.

Berg said the time would be convenient for employees, and said they should not have to worry about board members and managers listening to testimony. “We want to hear from the people who are actually doing the work. This does not mean management,” Berg said.

Zaiser said he does not expect employees “to spill their guts” because they don’t have civil service protection, as do most North Dakota government employees. Critical statements by employees could cost them their jobs, Zaiser said. Berg said he would be very upset if that happened.

Berg said he also wants to hear from injured workers. They could
brief other legislators or Legislative Council staff about their
complaints, or testify in person, he said.
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Associated Press writer Dale Wetzel contributed to this story from Bismarck.