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June 5, 1998
(Environment and Labour)


Government responds to injured workers

Minister of Environment and Labour, Oliver Langdon, stated today that although he is sympathetic to the concerns expressed by injured workers, government has done all that can be done at this time to address these concerns.

"I would like to give injured workers more money," said Langdon, "but the reality is we have to balance benefits to injured workers with financial stability of the workers' compensation system. If not, we might very well find ourselves back in the same position we were in six years ago." In 1991, the Workers' Compensation Commission had an unfunded liability of $176 million and was experiencing annual operating losses.

"The Workers' Compensation Commission was in desperate financial condition," stated Langdon, "and tough measures were needed all around to address this problem, including reduced benefits and increased premiums for employers. The unfunded liability has been reduced to $92 million over the past six years, but the commission is still a long way from being in a stable financial position."

It would not be in anyone's best interest to implement all the recommendations in the statutory review. The cost of doing so would add approximately $73 million to the unfunded liability and add an additional $11.5 million annually for employers. Employers already pay the highest assessment rates in Canada. In 1992, employer assessment rates were increased by an additional $13.4 million annually to reduce the commission's unfunded liability. "To implement this report in its entirety would mean everything that has been done to date to ensure this system is financially secure would be in vain," said the minister.

"What we have done is accept the majority of the recommendations contained in the report. We are giving injured workers a modest increase in benefits. We are increasing benefits for survivors. Improvements have been, and will continue to be, made to the deeming process and we are holding the line in addressing the unfunded liability. This is a well balanced approach," stated Minister Langdon.

In responding to the Statutory Review Report, government agrees it is time to refocus. In its response, government considered the views of all stakeholders including injured workers, survivors and employers. "It is not easy to strike a balance and government will not satisfy all groups with its direction, but we have implemented an approach which is in the best interests of workers and employers in the long term."

Contact: Sean Kelly, Communications, (709) 729-2575

1998 06 05                 10:05 a.m.


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