Business community concerned about lack of employer input
A bill to overhaul the workers’ compensation system in Manitoba has triggered criticism from the business community over worries that coverage will be expanded without employer input.
The bill would allow for a major expansion of workers compensation coverage, which now applies to only 70 per cent of workers, representing one of the lowest coverage rates in Canada.
Part of the reason is, unlike most other jurisdictions that set out lists of exempted industries, Manitoba’s system sets out a list of industries that are covered. As a result, industries that had a marginal presence in the past and weren’t put on the list do not have to pay into the system.
“Those industries (listed under the current legislation) have not been looked at since 1957, and the act was written in 1917. So you’ve got button-makers and saddle-makers,” said Labour Minister Nancy Allan. “It’s completely out of date.”
The province is moving to a reverse onus system, in which workers’ compensation coverage is compulsory for all industries by default, and a list will be drawn up to indicate industries that are exempted.
Allan noted that despite having the reverse onus system, the government will ensure the exempted list reflects the status quo, and that the Manitoba Workers Compensation Board will consult with stakeholders before expanding coverage.
She added that what’s known as “cousin” occupations and industries will be first on the list of those under review.
“For instance right now, if you’re a janitor, you’re working inside a building and cleaning windows, you’re covered. If you’re working outside the building as a window washer, you’re not covered. So there are some really silly anomalies in the act, and that’s where we’ll start.”
At the Manitoba Chambers of Commerce, president Graham Starmer said businesses are not opposed to the idea of expanding coverage as such, only to how it will proceed. What employers dislike is the reverse onus system, he said. Rather, “we feel any extension of coverage should be voluntary not mandatory, on an industry level.”
The Manitoba Chambers of Commerce also oppose the proposal that the power to exempt industries resides with the provincial cabinet and not the WCB, said Starmer. He added that business groups have been working with the government on an amendment that would ensure the government consults with the WCB before deciding to exempt particular industries.
The bill, which has passed second reading, was introduced following a legislative review led by former chair Wally Fox-Decent. Fox-Decent’s committee made 100 recommendations, most of which survived in the bill, said Allan.
Starmer, however, criticized the government for not implementing all 100 recommendations, which were unanimously endorsed by members of the committee, including representatives of business and labour.
“We still are upset that the government didn’t just accept that report. One of the things we tried to impress upon the government is when you have a consensus report, that was a result of a great deal of negotiations. There was a tremendous amount of behind-the-scene negotiations between labour and business.”
Cliff Arlt, president of executive air charter Keystone Air Service, said he would welcome compulsory WCB coverage for the air service industry. The St. Andrews, Man.-based air charter company signed up for WCB coverage two years ago, when the company reflected on the massive liability in case an injury occurs.
“It would be stupid not to have coverage,” said Arlt.
Apart from opening the way for expanded coverage, the bill would also improve benefits in a number of ways, including:
•set wage replacement at 100 per cent for workers on minimum wage;
•eliminate the current policy of reducing wage-loss benefits to 80 per cent after two years;
•eliminate a cap on workers’ earnings for wage replacement purposes; and
•increase awards for permanent injuries.
The bill would also add three forms of cancer to the list of occupational diseases for firefighters. Heart attacks that occur within 24 hours of an emergency response would be presumed to be work-related injuries.
In other WCB-related news, the Nova Scotia workers’ compensation board has added 70 people to its staff to help handle claims for chronic pain, which is now covered by the province’s WCB following a decision by the Supreme Court of Canada.
In Ontario, the Workplace Safety and Insurance Board has been tackling its unfunded liability by using an information-sharing agreement with Canada Revenue Agency to identify “thousands of businesses” not registered with the board and not paying premiums. By cross-referencing data, the WSIB and the tax agency have identified more than 17,500 employers in Ontario that are registered with one body but not the other.
The WSIB is also working on a policy for occupational diseases, which is expected in September. Karl Crevar, president of the Ontario Network of Injured Workers Groups, said workers have long waited for a clear policy on occupational diseases such as cancer.
The bill would allow for a major expansion of workers compensation coverage, which now applies to only 70 per cent of workers, representing one of the lowest coverage rates in Canada.
Part of the reason is, unlike most other jurisdictions that set out lists of exempted industries, Manitoba’s system sets out a list of industries that are covered. As a result, industries that had a marginal presence in the past and weren’t put on the list do not have to pay into the system.
“Those industries (listed under the current legislation) have not been looked at since 1957, and the act was written in 1917. So you’ve got button-makers and saddle-makers,” said Labour Minister Nancy Allan. “It’s completely out of date.”
The province is moving to a reverse onus system, in which workers’ compensation coverage is compulsory for all industries by default, and a list will be drawn up to indicate industries that are exempted.
Allan noted that despite having the reverse onus system, the government will ensure the exempted list reflects the status quo, and that the Manitoba Workers Compensation Board will consult with stakeholders before expanding coverage.
She added that what’s known as “cousin” occupations and industries will be first on the list of those under review.
“For instance right now, if you’re a janitor, you’re working inside a building and cleaning windows, you’re covered. If you’re working outside the building as a window washer, you’re not covered. So there are some really silly anomalies in the act, and that’s where we’ll start.”
At the Manitoba Chambers of Commerce, president Graham Starmer said businesses are not opposed to the idea of expanding coverage as such, only to how it will proceed. What employers dislike is the reverse onus system, he said. Rather, “we feel any extension of coverage should be voluntary not mandatory, on an industry level.”
The Manitoba Chambers of Commerce also oppose the proposal that the power to exempt industries resides with the provincial cabinet and not the WCB, said Starmer. He added that business groups have been working with the government on an amendment that would ensure the government consults with the WCB before deciding to exempt particular industries.
The bill, which has passed second reading, was introduced following a legislative review led by former chair Wally Fox-Decent. Fox-Decent’s committee made 100 recommendations, most of which survived in the bill, said Allan.
Starmer, however, criticized the government for not implementing all 100 recommendations, which were unanimously endorsed by members of the committee, including representatives of business and labour.
“We still are upset that the government didn’t just accept that report. One of the things we tried to impress upon the government is when you have a consensus report, that was a result of a great deal of negotiations. There was a tremendous amount of behind-the-scene negotiations between labour and business.”
Cliff Arlt, president of executive air charter Keystone Air Service, said he would welcome compulsory WCB coverage for the air service industry. The St. Andrews, Man.-based air charter company signed up for WCB coverage two years ago, when the company reflected on the massive liability in case an injury occurs.
“It would be stupid not to have coverage,” said Arlt.
Apart from opening the way for expanded coverage, the bill would also improve benefits in a number of ways, including:
•set wage replacement at 100 per cent for workers on minimum wage;
•eliminate the current policy of reducing wage-loss benefits to 80 per cent after two years;
•eliminate a cap on workers’ earnings for wage replacement purposes; and
•increase awards for permanent injuries.
The bill would also add three forms of cancer to the list of occupational diseases for firefighters. Heart attacks that occur within 24 hours of an emergency response would be presumed to be work-related injuries.
In other WCB-related news, the Nova Scotia workers’ compensation board has added 70 people to its staff to help handle claims for chronic pain, which is now covered by the province’s WCB following a decision by the Supreme Court of Canada.
In Ontario, the Workplace Safety and Insurance Board has been tackling its unfunded liability by using an information-sharing agreement with Canada Revenue Agency to identify “thousands of businesses” not registered with the board and not paying premiums. By cross-referencing data, the WSIB and the tax agency have identified more than 17,500 employers in Ontario that are registered with one body but not the other.
The WSIB is also working on a policy for occupational diseases, which is expected in September. Karl Crevar, president of the Ontario Network of Injured Workers Groups, said workers have long waited for a clear policy on occupational diseases such as cancer.
