How much is a human life worth in dollars-and-cents workers compensation?
A recent memorial for four workers who died tragically 37 years ago provides an opportunity to consider the gruesome calculation.
Gunther Couvreux, Brian Stevenson, Donald Davis and Yrjo Mitrunen were carpenters working on Bentall Tower IV in downtown Vancouver. On Jan. 7, 1981, they were killed when the fly form on which they were standing collapsed, sending them plummeting 36 storeys downward to the street below.
As reported in a recent issue of the Journal of Commerce, construction workers, labour organizations, government representatives and the families of the men gathered at the Bentall Memorial plaque on Jan. 8 to mark the anniversary.
Those men — all of us — have a spiritual, personal and social value. We also have an economic value, as producers and consumers.
When there has been a workplace death, what is the economic value of the deceased worker and how is it calculated?
According to B.C.-based independent worker compensation researcher and consultant Terry Bogyo, the amount in Canada depends on the jurisdiction.
In Nova Scotia, for example, dependency benefits are 85 per cent of net average earnings before the accident, payable until either the spouse reaches 65 years of age or the worker would have reached 65 years of age, whichever is later.
In Ontario, a surviving spouse can receive a lump-sum death benefit of
$78,616.07, increased by $1,965.40 for every year under 40 years of age or reduced by $1,965.40 for every year over age 40. There is a minimum of $39,307.99 and a maximum of $117,924.03.
In B.C., compensation for a dependent surviving spouse is payable for life. A surviving spouse 50 years and over, or invalid, can receive 60 per cent of the compensation wage rate that would have been paid to the deceased worker for permanent total disability, less 50 per cent Canada Pension Plan (not less than $1,105.63 per month).
(Note — the provincial information above is illustrative and partial. For current details, check with Workers Compensation in your jurisdiction.)
“Because workers’ compensation is a provincial responsibility, each province establishes its own benefit structure and calculation model,” said Bogyo. “Most are based on the average earnings prior to injury with compensation paid to either the estate or in the form of periodic payments to survivors and dependents.”
Different jurisdictions have different philosophies underlying their legislation and policy.
“This may reflect societal values, historical precedence or competitive pressures from neighbouring jurisdictions,” said Bogyo. “Legislation reflects the societal values and political responses at the time it is passed. There are often trade-offs and compromises that result in policies that are unique to the provincial system.”
For example, although the coverage for funeral costs in B.C. and Alberta is similar, the methodology for compensating surviving spouses is different.
“While B.C. has benefits that continue for life, Alberta has provisions for a decreasing benefit,” said Bogyo.
Compared to other countries, Canada rates well for scope of coverage and level of financial compensation available.
“About one-half of the deaths accepted each year for workers’ compensation coverage are related to traumatic injury,” he said. “Compensation for these single, work-related events are generally accepted with little dispute.”
The other half of fatalities are related to occupational disease and may be more contentious.
“Complications, including deaths that may be related to drug reactions, depression, post-traumatic stress disorder, secondary infections, underlying diseases and so forth are more contentious,” Bogyo said. “They may involve protracted consideration, investigation and adjudication.”
As good as fatality compensation in Canada is, Bogyo says there is room for improvement.
“Fatality compensation should be provided as if the worker — any worker killed in a work-related incident within the scope of coverage — were earning the maximum insurable earnings,” he said.
“Or, in the case of Manitoba, which has no maximum, some multiple of the provincial average industrial wage.”
For long-latency occupational diseases, such as asbestos-related deaths related to mesothelioma cancer, Bogyo says there should be a lump-sum benefit even if the worker is retired at the time of death.
“This adds pressure to prevent asbestos exposures in the first place,” he said. “And it would add little cost to the overall premiums because, thankfully, fatal work-related deaths are relatively rare events.”
Bogyo says the industry also needs to do a better job of educating workers and employers regarding what is and is not covered if there is a work-related fatality.
“Workers and their families need to be able to make better and more informed choices about their needs for group and private insurance coverage,” he said.
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