Bill would increase fines, prison sentences for compensation violations
Workers’ compensation offenders in Manitoba will soon be facing stiffer penalties after the government passed legislation designed to bolster illness and injury prevention.
Bill 65, which received royal assent last month, increases fines for violations under the Workers Compensation Act — such as false claims or failure to report injuries. Maximum fines for workers will be $5,000 (previously $1,500) and employers can face fines of up to $50,000 (up from $7,500). The maximum jail term will be extended to six months, up from three months.
The legislation will also make compliance and prevention amendments to the act. One change is to broaden and clarify the offences of claim suppression and discriminatory action, as well as a reverse onus for discriminatory action on employers, said Erna Braun, Manitoba’s labour minister.
"Bill 65 will help ensure a level playing field for the vast majority of Manitoba employers who willingly comply with their obligations, and will also protect vulnerable workers by promoting compliance and raising awareness," Braun said.
The legislation supports compliance activities by requiring employers to provide records and allows the Workers Compensation Board of Manitoba (WCB) to inspect workplaces. It also safeguards rights by establishing an appeal process for administrative penalties.
It also trumpets a SAFE Work Manitoba service dedicated to prevention, and provides incentives for employers who take genuine prevention activities. The SAFE Work Manitoba initiatives are already up and running, Braun added.
Since 1999, Manitoba has doubled the number of its safety officers as well as the number of annual workplace inspections. Last year, more than 14,000 inspections spawned 8,000 improvement orders, 700 stop-work orders and 17 administrative penalties.
Labour applauds changes
While the changes are a step in the right direction, labour groups say more needs to happen before the province is churning out peak health and safety standards.
The legislation was lauded by Kevin Rebeck, president of the Manitoba Federation of Labour, who said it prohibits an employer from discriminating against someone for exercising their rights — and instead puts the onus on the employer.
"If someone claims there is discriminatory action related to their making a claim or exercising their rights, it is now the employer that has to prove that’s not the case," he said. "It’s often people who are fairly intimidated already that are putting themselves out there to raise a concern — and subjecting them to prove it so is tough on them, while they’re trying to do their regular work life."
Establishing a designated prevention arm (with a bigger mandate than that of SAFE Work’s) would bolster health and safety for Manitoban workers, he said.
"To actually find a way to award safe behaviours and safety investments — you know, if we do that, there will be less accidents overall, it makes a lot of sense," he said. "I think the employer community isn’t 100 per cent clear what that would look like and as a result are fearful, as people are often fearful of change. They’re clinging to a system that is broken."
Though the process can be painfully slow, Rebeck also backed the idea of a rate model review, currently under way at the WCB.
Rebeck deemed the former fines "laughable" and said a review would help to hold employers accountable and make sure workers understand their entitlements.
Manitoba’s compensation system offers financial incentives for safe employers with little or no claims reported. However, that process can sometimes feed a culture of intimidation, discrimination and suppression, Rebeck added.
"The system is flawed. Part of its core is supposed to incentivize employers to make the workplace safer — but our current system does absolutely nothing to incentivize that," he said. "Instead, it incentivized people to return back to work too soon, or to intimidate or find ways to not have people report claims."
Prompted by the province’s five-year plan for workplace injury and illness prevention (introduced in April), the rate model review will consult with stakeholders to glean new improvement strategies. The current rate model has been in effect since 2001.
"The WCB is looking at ways to improve the model to ensure that all employers are treated fairly, and to prioritize injury prevention by rewarding employers for safe workplaces while addressing concerns about claim suppression," according to the board. "Stakeholder feedback, gathered from the consultations, will be used to gauge the relative strengths and limitations of the model, including its impact on employers and workers."
The WCB’s rate model review wrapped up at the end of June with results and recommendations — to be tabled by HR consulting firm, Morneau Sheppell — due in the near future.
