Sedgwick Faulted as MTA Board Members Question Crichlow

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JULY 28 – After third-party payment processor Sedgwick bungled workers compensation claims, resulting in potentially thousands of TWU Local 100 members receiving no payments or only partial payments this month, TWU Local 100 President John V. Chiarello demanded an explanation. So, today, did MTA Board Members.

The failure was elevated to the level of the MTA Board as members questioned NYCT President Demetrius Crichlow on the issue in a public meeting Monday. Three board members registered their displeasure with Sedgwick Claims Management, the contractor chosen by the MTA to oversee workers compemsation claims at a cost to taxpayers of over $51 million for three years.

Sedgwick was hired by the MTA in May to review workers compensation claims, to curtail such payments as much as legally possible, and to pay out the ones deemed eligible. The pricey contract comes with an option for a three-year extension at the cost of another $35 million for a total cost of almost $87 million--which is a lot of money to find ways not to pay people.

Astoundingly, NYCT President Demetrius Crichlow first reassured board members of Sedgwick’s position in the claims management industry, which include being founded in 1969 and serving 59% percent of Fortune 500 companies, facts that have no relevance to someone whose check is late.

Crichlow did admit that Sedgwick “wasn’t as ready as they should have been” to pay some 13,000 claims, “and that resulted in delays to our employees.”

Midori Valdivia, who was placed on the Board by Mayor Adams, said, “It’s troubling. Being a vendor for the MTA sometimes can be difficult, because we are so big, but it’s pretty unacceptable. These are tough jobs,” Valdivia added, referring to the transit workforce. “These folks are struggling potentially due to injury on duty, so we really want to make sure that it gets paid attention to.”
 
The criticism was echoed by longtime board member David Jones, who is also President of the Community Service Society. Jones said that “many people, who are not poor, if they lose one paycheck, are in real danger of not being able to pay the rent, of real hardship… [I’m asking for] anything you can do to expedite this, to [prevent] serious consequences.”
 
A third question came from Melva Miller, who was put in place by Governor Hochul. She asked: “We know the seriousness of the affordability crisis in New York, so it’s really important… are there any other measures in terms of accountability to the contractor?”
 
“This was our first time transitioning to this, and that is no excuse. But we’re at the place now where we’re really handling what we expect them to deliver, and what follow-ups are necessary… we are, without question, focused on trying to get it right,” Crichlow responded. 

The pressure brought by President Chiarello since the issue came to light nearly two weeks ago has not let up, and will not let up until it is fully resolved.