Council of Ontario Construction Associations: Comprehensive review of costs needed at WSIB

The Workplace Safety and Insurance Board (WSIB) should undergo a comprehensive review of costs, recommended the Council of Ontario Construction Associations (COCA) during a recent presentation before the Standing Committee on Government Agencies at the Ontario Legislature at Queen’s Park in Toronto.

COCA president Ian Cunningham said the Arthurs Review, released earlier this year to make recommendations on how to retire the WSIB’s $14.5 billion unfunded liability, had a very “one-sided mandate.”

“It looked only at the revenue side of the equation. It seemed to me that a more holistic approach to modernizing the WSIB should have been undertaken,” he said in an interview with the Daily Commercial News.

“I think a comprehensive review of WSIB benefits and costs is in order just to make sure that the opportunity for one benefit cascading over another isn’t present and to ensure that injured workers are compensated fairly.”

As part of a review of the WSIB, there were two days of public hearings at the beginning of July where the WSIB heard submissions and fielded questions from stakeholders and government representatives from all three parties.

Cunningham made 10 recommendations during his presentation, including:

— Consideration should be given to transferring oversight of the WSIB from the Ministry of Labour to the Ministry of Finance which is better equipped to monitor a large complex financial organization such as the WSIB;

— Cost-based experience rating must continue to be an integral element in WSIB pricing — experience rating refines employer premiums for the lack of homogeneity within risk classifications; and

— Further consideration should be given to a waiting period before WSIB benefits kick in, during which time injured workers would continue to be compensated by their employers.

Cunningham told the committee that, in general, COCA is pleased with the organization transformation that is underway at the WSIB, being led by president David Marshall.

“While the current financial state of the WSIB is extremely weak, we believe the organization has put itself on the track to financial sustainability. The WSIB’s strategic plan for 2012-2016 identifies sufficient funding as one of it five major themes and current senior management appears to have the rigor, discipline and commitment to restore financial stability,” he said in his presentation.

Cunningham said once the unfunded liability is eliminated, Ontario will be in a position to have the lowest rates of any jurisdiction in Canada.

“Because of the steadfast work of employers and workers, the injury rate has been on a steady decline and as a consequence, once the unfunded is eliminated, we’ll be in the position to have the lowest rates of any jurisdiction in Canada,” he said.

“This will put Ontario in a much more competitive position and a much better position to attract new investment and to create new jobs going forward.”

The Arthurs Review gave a 20-year timeframe for the WSIB to get to 90 per cent funding, though Minister of Labour Linda Jeffrey said the goal is to reach 100 per cent funding in 15 years.

Appearing before the hearing on July 4, the newly appointed WSIB chair Elizabeth Witmer confirmed the WSIB is on course to eliminate the unfunded liability by 2027.

“There are tough decisions to be made not the least of which is a decision about our insurance premium for employers for the next few years. But I am confident we are moving in the right direction for the benefit of Ontario’s workers and employers,” she said.

In 2011, the WSIB had its first operating surplus in 10 years. A series of improvements have resulted in better service and getting more workers back to work. Examples include: in-sourcing Labour Market Re-entry and Return to Work improvements, a medical strategy to provide better, timelier care; and expanded eServices for better service and greater accessibility.

Other presenters to the committee included Professor Harry Arthurs, the Ontario Federation of Labour and the Canadian Union of Public Employees.