November 26, 1997
(Environment and Labour)
The following statement was issued today by
Oliver Langdon, Minister of Environment and Labour. It was also
read in the House of Assembly:
I rise in the House today to provide a status
report on government's review of the Statutory Review Committee
Report of the Workers' Compensation Act. I am also announcing
government's first response to this report which will see an
increase in benefits to claimants. The status report I am
providing here today outlines the beginning of government's
efforts to address the recommendations of the Statutory Review
Committee.
Upon receipt of this report in May 1997, my
department undertook to immediately review, analyse and consult
on the recommendations in this report. This involved further
consultations with the Workers' Compensation Commission, the
Board of Directors, individual stakeholders and associations
including the Board of Trade, the Employers' Council, the
Federation of Labour, the Injured Workers' Association and many
others. As recently as Monday of this week, the Federation of
Labour met with me to provide its response to this critical
report. Given the extensive consultations we have been able to
hold to date, I am breaking with tradition to provide Honourable
Members with a status report in advance of a more detailed and
complete announcement following the full review.
Throughout the consultations held to date with
stakeholders, I have sensed a spirit of cooperation between
workers and employers in an effort to ensure that Newfoundland
and Labrador's Workers' Compensation System continues to serve
the needs of all stakeholders.
Given the magnitude of the report and the broad
range of complex issues, the analysis of this report needs to be
detailed and comprehensive to ensure that the changes we make are
appropriate to the need of workers and employers. We consider
this level of consultation and analysis essential prior to
introducing the full range of amendments which will affect the
Workers' Compensation System, injured workers, and employers for
the next five years.
A statutory review such as this is commissioned
every five years to ensure that the rights and responsibilities
of workers are kept up to date. We have made this report a major
priority within my department and we expect to have the review
completed by the sring of 1998. We will work as diligently as
possible to also have the legislative amendments necessary to
bring about gvernment's response.
As indicated in the Statutory Review Report, the
changes to the system of workers' compensation need to be
addressed in a holistic manner. We accept and support this
approach and are taking measures to accomplish this goal. I
commit to you here today, government will announce a complete
list of changes to workers' compensation in 1998.
As you are aware, employers, employees and this
government are deeply concerned about providing fair and
equitable benefits to injured workers while at the same time
ensuring the long term financial viability of the Workers'
Compensation System. This government is committed to ensuring
that Newfoundland and Labrador has a system that is responsive,
sustainable, and provides an adequate level of benefits to
injured workers. Government's response will address issues that
have arisen in the past such as deeming, employer assessment,
benefits, rehabilitation and administration.
While the consultations on this major report are
still under way, I am taking steps here today, to announce that
government is initiating action to amend legislation during this
session of the House to introduce an increase in certain
benefits. I am pleased to announce that government decided to
increase benefits from 75 per cent to 80 per cent effective
January 1, 1998 for the first 39 weeks of an individual's claim.
Claimants currently receive benefits at a rate of 75 per cent for
this time period; they will now receive 80 per cent. I want to
emphasize that this is the beginning of our response to this
report. This will not result in any increase in the 1998 employer
assessment rates.
In being more responsive to the needs of all its
stakeholders, the Workers' Compensation Commission has been
actively undertaking measures to improve the quality of its
services. As part of this, the commission has developed a
position paper and action items to provide Quality Service
Initiatives to its clients. Some of these include Customer
Service Training which will be developed and delivered to all new
staff hired at the commission. To solicit further the views of
stakeholders (i.e. workers and employers), the commission will
undertake to survey a sample of clients to receive feedback and
modify its services where necessary. I want to commend, here
today, the commission and its staff for recognizing and
responding to the needs of clients in such a positive way. I
believe that these initiatives will go a long way to improving
the quality of services by the commission.
The amendments and initiatives to the Workers'
Compensation System, I am announcing here today, are largely a
result of feedback from clients. I believe this direction
represents a significant step forward in the system of Workers'
Compensation for the people of Newfoundland and Labrador.
Government is committed to dealing with the response in a timely
fashion.
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