WorkSafeBC covers 2.4 million employees in B.C. in case of job-related injury, illness or death. (Tom Fletcher/Black Press)

B.C. businesses await worker compensation overhaul

Cost, ‘gender-based analysis’ among employer concerns

B.C.’s worker compensation system pulled itself out of an unfunded liability onto a solid financial footing after changes made in 2002, and now employers, injured workers and their families are waiting for the next overhaul.

WorkSafeBC is responsible for 45,000 sick or injured workers and more than 4,000 spouses and children who depend on pension payments, and administers an insurance system paid into by 238,000 B.C. employers. Workers give up their right to sue employers for negligence in exchange for no-fault compensation funded by employers and administered independently, an arrangement created in Ontario a century ago known as the “historic compromise.”

Among the terms for B.C. Green Party support of the minority NDP government was “improving fairness for workers and ensuring balance in workplaces,” and Labour Minister Harry Bains appointed retired labour lawyer Janet Patterson in April to conduct the review.

According to a consultant report prepared for the province in December, WorkSafeBC retains compensation rates “among the highest levels among workers’ compensation systems.”

Public hearings around the province on proposed changes have been completed, and final submissions from business and other groups are being submitted for a report to be released by the end of September.

In a joint submission by 46 employer groups, employers questioned terms of the review including a “gender-based analysis” and moving to a “worker-centric service delivery model.” The review’s terms of reference didn’t give them enough information to make recommendations, the employers said in their submission.

The employers noted that Patterson advised them that her review was not directed to examine costs of changes.

“We submit that the cost of funding the B.C. workers’ compensation system is an intrinsic and integral aspect of the ‘historic compromise’ which is the genesis of that system, that a balance must be drawn between the level of benefit entitlement for disabled workers and the cost to employers to fund the system, and that this balancing of interests is predicated on disabled workers receiving fair (but not full) protection against economic loss,” the employers wrote.

RELATED: Employer health tax is ‘profit-insensitive’

RELATED: WorkSafeBC warns of marijuana use on the job

In his report to the government, consultant Terrance Bogyo warned that turning back the clock on worker compensation is not an option, after employer premiums were increased and benefits restricted in 2002. Among those reforms was one restricting inflation indexation of pensions and cash awards to workers and survivors, reducing payouts by $584 million between 2002 and 2017.

Bogyo proposed a series of options for WorkSafeBC changes, including:

• Increase maximum insurable earnings to $100,000 per year

• Increase the presumed age of retirement from 65 to 70

• Assuming maximum earnings in the event of a work-related death

• Alter the current inflation cap of Consumer Price Index minus one per cent

B.C. businesses have shouldered the province’s new employer health tax this year, and many are still paying half of the Medical Services Plan premiums the new payroll tax is replacing as of 2020.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Trucking company fined $175K for Lemon Creek fuel spill

Decision handed down last Friday in Nelson court

Interior Health leading the way with innovative therapy for stroke patients

Percentage of ischemic stroke patients who received treatment has risen dramatically

Trail open house part of Basin-wide public engagement

Trail event goes Thursday, March 12 from 2-6 p.m., and guided discussion from 6-8 p.m.

Missing Nelson woman found dead

Police say there is no evidence of a crime in the death of Heather Gunderson

Fashion Fridays: Tammy’s big makeover

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Ryan nets hat trick in return as Senators beat Canucks 5-2

Ottawa winger received assistance for admitted alcohol problem

Wet’suwet’en hereditary chiefs meet with provincial, federal ministers

Neither party speaking on the groundwork laid for tomorrow’s talks

Speaker ‘will not tolerate illegal activity’ on B.C. legislature grounds, says chief of staff

Chief of staff to the B.C. speaker Alan Mullen says situation with demonstrators appears ‘fluid’

MPs to examine privacy implications of facial-recognition technology used by RCMP

The MPs will look at how the technology affects the privacy, security and safety of children

Dates back to 2009: Calgary police lay charges in fraud involving semi-trucks

Three people from Calgary are facing charges that include fraud over $5,000

Wet’suwet’en hereditary chiefs optimistic ahead of talks with feds, province

Discussions with provincial and federal governments expected to start later today

‘The project is proceeding’: Horgan resolute in support of northern B.C. pipeline

B.C. premier speaks as talks scheduled with Wet’suwet’en hereditary chiefs

Most Read