Government to enact legislative changes in support of workers� compensation system

Labour Minister Anna Thistle is pleased to announce that government has reviewed the task force report on the province�s workers� compensation system and is prepared to move forward with legislative amendments.

The task force was established by government in October of 2000, to address the commission�s financial dilemma, as well as the governing legislation and overall objectives and effectiveness of the workers� compensation system. The task force was made up of members of the commission�s board of directors, who represent employers, workers and the public at large. The group held extensive consultations with stakeholders and convened public meetings throughout the province as a basis for completing the final task force report. This document was publically released on February 16, 2001.

"Government is endorsing the task force message that a significant change in the mindset around workers� compensation is necessary," said Minister Thistle. "Positive legislative changes will emphasize the importance of accident prevention as well as early and safe return to work. It is also timely in that these changes are being announced during North American Occupational Safety and Health Week, which promotes the theme: Prevention is the Cure."

The minister said she is extremely pleased that stakeholders such as the Newfoundland and Labrador Federation of Labour, the Newfoundland and Labrador Employers� Council and the Fish, Food and Allied Workers Union, have welcomed and endorsed the task force report.

"The legislative program which I am announcing today in the House of Assembly provides the commission with the necessary tools to address the issues identified in the report. In this regard, I wish to compliment the task force for the comprehensive approach it has recommended," added Minster Thistle

Media contact: Kathy Dicks-Peyton, Communications, (709) 729-1741.

BACKGROUNDER

In October 2000, Environment and Labour Minister Oliver Langdon appointed a task force to examine the commission�s financial dilemma, as well as the governing legislation and overall objectives and effectiveness of the workers� compensation system. The task force was comprised of representatives of employers, workers and the public at large. They were drawn from the board of directors of the Workplace Health, Safety and Compensation Commission.

The task force released a discussion paper in November 2000, which outlined the extent and nature of the commission�s current financial challenges. This document formed the foundation for which a comprehensive stakeholder consultation process was initiated. The consultation process included written submissions, a series of public meetings and round table discussions.

The task force report entitled "Changing the Mindset", was released in February 2001. This consensus report outlined 48 key recommendations which highlighted the need for a fundamental change in how all stakeholders interact, participate and manage the workers� compensation system. Rather than offering a "quick-fix" approach through increasing assessments and/or reducing benefits, stakeholders indicated their support for a fundamental change in mindset among the participants in the system. In particular they emphasized a need to focus greater efforts on preventing workplace accidents and having employers and injured workers, work together to ensure a safe and expeditious return to work.

Key areas of change include measures to:

• Significantly increase the emphasis placed on preventing workplace accidents and injuries;
• Establish proactive action by, and cooperation among, employers, injured workers and the Workplace Health and Compensation Commission, in assisting injured workers return to work safely and expeditiously;
• Ensure a fair, affordable and sustainable insurance system;
• Improve and streamline the appeals processes so that injured workers are ensured timely decisions on their claims; and
• Enhance the Department of Labour�s enforcement capabilities under the Occupational Health and Safety Act.

Government supports the core direction of the task force report and applauds its success in achieving widespread stakeholder support for a comprehensive package of reform. The recommendations represent key changes which are essential in ensuring the workers� compensation system is placed on the right path to long-term financial stability.

The Department of Labour, the Workplace Health, Safety and Compensation Commission and their partners in this initiative recognize that the changes which are being implemented will initially pose challenges to employers, workers, government and the stakeholders who participate in occupational health and safety and the workers� compensation system.

* References to the Department of Environment and Labour were outlined in the report before it was divided into two separate departments. All references to Environment and Labour should now read Labour.

** Of the 48 recommendations in the task force report, only four are not being fully endorsed by government. These include numbers: 10, 30, 45 and 46.

Recommendation #10

- while government is not endorsing this recommendation, it is supportive of improving the awareness of occupational health and safety in the province�s high schools. Students currently participating in co-op education placements receive instruction in workplace safety prior to such placements. Over the next year the Department of Education and the Department of Labour will work towards measures to improve health and safety awareness among students in the province�s high schools. Progress on this issue will be reviewed at the end of the 2002 school year.

Recommendation #30

- Government has referred this item back to the task force for further review. In particular, government has asked the task force to provide greater clarity with respect to the nature of dangerous work and occupations in the province which could be considered in this category.

Recommendation #45

- Is not being endorsed because enforcement services provided under the Occupational Health and Safety Act are an exclusive service to workplaces. Costs associated with enforcement in other jurisdictions also come from employer assessments. Our practice is consistent with other jurisdictions.

- Is not being endorsed, as government�s overall policy is that fines from provincial statutes go to general revenues. Further, the cost of prosecutions under the Occupational Health and Safety Act are handled through the Department of Justice and this is a cost that is currently borne by government.

That a provincial accident prevention strategy be developed on a priority basis, led by the commission with the involvement of all key stakeholders.

That the Department of Environment and Labour aggressively enforce the provisions of the Occupational Health and Safety Act pertaining to health and safety committees.

That, effective January 1, 2002, training be mandatory for all health and safety committee members in companies with 50 or more employees. For smaller companies (10-49 employees), training for the co-chairs of the committee be mandatory.

That, effective January 1, 2002, worker representatives be mandatory for all companies with less than 10 employees, and that training be mandatory for these individuals.

That the commission monitor health and safety committees and worker representatives to ensure that they have undertaken the legislated training and the meetings held are effective.

That legislation be amended to ensure paid leave is available for persons participating in the above-referenced committee and worker representative training.

That for smaller companies where the designated worker representative is non-management, management employees seriously consider taking health and safety training as well.

That employers be legislated to report back in a timely manner on the actions to be taken on the recommendations made by the health and safety committees or worker representatives.

That the commission strengthen the standards for workplace health and safety training by developing a strategic training program and a process for the setting of standards for training providers. Immediate priority be given to the development of a training protocol for occupational health and safety committees and worker representatives.

That the Minister of Education ensure that an appropriate course in occupational health and safety, along the lines of Workplace Safety 3220, be part of the core high school curriculum, commencing the Fall of 2001.

Recommendation #10

- while government is not endorsing this recommendation, it is supportive of improving the awareness of occupational health and safety in the province�s high schools. Students currently participating in co-op education placements receive instruction in workplace safety prior to such placements. Over the next year the Department of Education and the Department of Labour will work towards measures to improve health and safety awareness among students in the province�s high schools. Progress on this issue will be reviewed at the end of the 2002 school year.

That the Minister of Education embark immediately upon consultations with public and private post-secondary institutions and other relevant stakeholders with the objective of having health and safety education a mandatory part of every post-secondary program.

That the commission aggressively launch both global and targeted education and awareness initiatives to ensure all stakeholders (i.e., workers, employers, unions, health care providers) fully understand their respective roles and responsibilities under both the Occupational Health and Safety Act and the Workplace Health, Safety and Compensation Act (including its administrative processes).

That the commission and the relevant stakeholders pursue the establishment of sectoral committees, with a view to having several functioning within six months.

That new Ergonomics Regulations under the Occupational Health and Safety Act be developed along the lines of those in British Columbia.

That the commission and the Department of Environment and Labour ensure better delineation and co-ordination of their respective mandates and associated activities.

 

That the Workplace Health, Safety and Compensation Act be amended to introduce a new mandatory co-operative return-to-work model as described in Appendix 6 of this report.

 

That the commission pursue all appropriate measures to increase the accountability of health care providers in ensuring the appropriateness and timeliness of medical services provided to injured workers.

That the commission embark upon further dialogue with the Department of Health and Community Services and groups such as acupuncturists and message therapists to explore ways and means by which such professions can be recognized by the commission for health care purposes when appropriate.

 

That the commission proceed immediately to revise the assessment rate classification system and implement the changes effective January 1, 2002.

That the Experience Rating System be amended to include surcharges of 40% beginning January 1, 2002, with the current discount of 20% to remain.

That the commission investigate further the appropriateness of implementing a monthly payroll reporting system on a revenue neutral basis.

That the commission conduct a detailed actuarial review of all self-insured employers with a view to pursuing that action which ultimately is in the financial best interest of the overall workers� compensation system.

That the commission ensure the total administration fee for self-insured employers is sufficient to cover all relevant expenditures incurred in association with said claims.

That the Department of Environment and Labour consult with the Department of Health and Community Services and the commission with a view to bringing closure to the question of eligibility of self-employed home support workers for workers� compensation coverage.

That the commission immediately examine any and all existing limited-life projects to ensure that assessment revenue is sufficient to cover their project-related claims.

That the commission, in consultation with the Department of Justice, review the current legislation to ensure that the commission has full flexibility to apply any assessment model it deems appropriate to minimize any financial risk associated with limited-life projects, with legislative amendments to be made as deemed appropriate.

That the current allowance for a disaster fund reserve be removed, with the need for such a fund to be left to the discretion of the commission.

 

That the Workplace Health, Safety and Compensation Act be amended as follows:

to include, under Section 60, specific reference to the benefit of doubt provision, with the provision to apply only when the evidence for or against a claim is equal in weight.

to clarify that entitlement for benefits shall not include pre-existing conditions or non work-related injury.

to provide specific authority for the commission, with approval of the Lieutenant-Governor in Council, to make regulations dealing with chronic pain and occupational disease after appropriate consultations have first been held.

That the Workplace Health, Safety and Compensation Act be amended to repeal the requirement for a minimum level of compensation to injured workers, with the exception of surviving spouses.

That the Workplace Health, Safety and Compensation Act be amended to ensure that workers who are prohibited legislatively from exercising their right-to-refuse dangerous work under the Occupational Health and Safety Act be entitled to receive 100% of net earnings when injured in the line of active duty. The differential of 20% of net earnings above workers� compensation entitlement should be borne by the employer.

Recommendation #30

- Government has referred this item back to the task force for further review. In particular, government has asked the task force to provide greater clarity with respect to the nature of dangerous work and occupations in the province which could be considered in this category.

That the benefits to surviving spouses in the post-1985 group be fully reinstated, effective April 17, 1985 or the date of remarriage, whichever is later.

That the level of benefits to surviving spouses in the pre-1985 group be continued at their current levels.

That the Workplace Health, Safety and Compensation Act be amended with respect to injury recurrence to ensure that compensation is paid on the basis of earnings at the time of the recurrence.

That the commission embark upon a thorough review of the pension benefit provisions of the Act in consultation with appropriate stakeholders.

 

That the Workplace Health, Safety and Compensation Act be amended as follows:

That the workers� Compensation Review Division (WCRD) be bound by the Act, Regulations and policies of the commission and show appropriate deference to valid and reasonable decisions made by the commission.

That review commissioners not decide on reconsideration requests where they originally decided the matter.

That the commission be granted reconsideration where, in the opinion of the commission, the review commissioner has not properly applied the Act, Regulations or commission policy.

That the current period of 90 days allowed to file an appeal with WCRD be reduced to 30 days. Reconsideration requests should also be limited to 30 days.

That all requests for appeal be required to clearly state the grounds for the objection.

That the 90-day time frame for decisions by WCRD be reduced to 60 days for hearings and 45 days if no hearings are involved.

That the cases heard by WCRD be more evenly distributed among, and heard by, the regional review commissioners.

That the complement of review commissioners be increased as needed to meet the new time lines for WCRD decisions.

That Section 20 of the Act, which permits the commission to hold internal appeal hearings, be repealed.

That the commission make the following amendments to its policies and procedures pertaining to internal appeals:

That the period allowed to file an appeal internally on any matter be 30 days.

That the internal review of appeals be limited to a paper file review.

That the time line for decisions of internal review be reduced to 45 days from 90 days.

That pursuant to Section 27(1) of the Workplace Health, Safety and Compensation Act, WCRD develop appropriate rules of procedure and evidence to guide its activities, with such procedures to include specific requirements for regular training and information sessions on commission policy and rules of administrative law.

 

That the Board of Directors of the commission ensure that the independent review of operations be conducted and concluded in a timely manner.

That the commission review its Annual Report, with a view to improving the content, particularly the operational aspects of the commission and sector-specific reporting.

That the Board of Directors of the commission engage in more open dialogue with its key stakeholders through regular forums.

 

That the commission�s policy of zero tolerance for system abuse and fraud be aggressively enforced.

That the commission immediately take measures to increase the quality and frequency of investigations to catch and prosecute all abusers of the system.

That the commission take immediate steps to improve and promote a reporting hotline.

That the commission, in concert with the Department of Justice, review the fine and penalty provisions of the Workplace Health, Safety and Compensation Act on a priority basis to ensure they are sufficient to act as a deterrent.

 

That effective April 1, 2001, government assume all costs associated with enforcement of the Occupational Health and Safety Act by the Department of Environment and Labour.

Recommendation #45

- Is not being endorsed because enforcement services provided under the Occupational Health and Safety Act are an exclusive service to workplaces. Costs associated with enforcement in other jurisdictions also come from employer assessments. Our practice is consistent with other jurisdictions.

That any funds derived from prosecutions under the Act be deposited directly into the Workers� Compensation Injury Fund.

- Is not being endorsed, as government�s overall policy is that fines from provincial statutes go to general revenues. Further, the cost of prosecutions under the Occupational Health and Safety Act are handled through the Department of Justice and this is a cost that is currently borne by government.

That the Department of Environment and Labour increase substantially its compliance monitoring and enforcement of the Occupational Health and Safety Act, that the number of inspectors be increased significantly, be aligned by industry/sector and trained accordingly.

That the Department of Environment and Labour enforce a zero tolerance policy for violations of the Occupational Health and Safety Act.

2001 05 07                                                                    1:10 p.m.