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.

Just Posted

Catholic church buys $7.5M equestrian facility in Abbotsford, plans ‘agri-retreat’ centre

Church hopes to grow crops, host students and others on Bradner property

VIDEO: Organization’s stolen wheelchair van recovered on backroad near Hope

Wheelchair accessible van is only transportation for some people in Hope and Fraser Canyon

Kennedy, Cartier Roads could see upgrade in Kent’s next budget

Residents living and working on Kennedy Road wrote to complain about the dust from the gravel

Police ask public’s help locating missing Hope woman

Penelope Leslie Lackey has not contacted her family since mid-June

Get a free sneak peek at modern ballet performance in Chilliwack

New ballet @giselle is putting the final touches on its show at the Chilliwack Cultural Centre

VIDEO: Title of 25th Bond movie is ‘No Time to Die’

The film is set to be released in April 2020

Victoria father charged with double murder of his daughters takes the stand

Andrew Berry pleaded not guilty to the December 2017 deaths

New ‘Matrix’ film set with Keanu Reeves and Lana Wachowski

Fourth installment to feature Reeves as Neo and Carrie-Anne Moss as Trinity

New regulations require training for B.C. addiction recovery homes

Inspections, standards replace ‘wild west,’ Judy Darcy says

Trans Mountain gives contractors 30 days to get workers, supplies ready for pipeline

Crown corporation believes the expansion project could be in service by mid-2022

66% of B.C. residents want opt-out system for organ donation: poll

Support was lowest in Ontario and the Atlantic provinces

Teacher disciplined after bringing 45 grams of cannabis to Surrey school

Eugenio Bahamonde was also charged with trafficking in Vancouver, but later acquitted

B.C. rainbow crosswalk covered in mysterious black substance

Black substance spilled intentionally near Vancouver Island school and difficult to remove

Most Read