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.