Human Resources, Labour and Employment
April 25, 2008
Province Taking Action on Review of
Workers� Compensation System
The Provincial Government, along with the Workplace
Health, Safety and Compensation Commission (WHSCC), is undertaking a
series of actions to address the needs of the province�s workplace
insurance and compensation system. The Provincial Government believes
that the action plan announced today will strengthen client services,
reduce claim duration, support early and safe return to work, and
strengthen the role of the WHSCC in injury prevention and occupational
disease. These actions provide for an accountable and sustainable
insurance and compensation system that balances the interests of
employers and workers.
"We are firmly committed to seeing measures put in
place that further strengthen the financial position of the workers�
compensation system, that enable it to improve and adapt to changing
needs, while respecting the needs and expectations of workers and
employers," said the Honourable Shawn Skinner, Minister of Human
Resources, Labour and Employment.
Finding the Balance: The Report of the 2006 Statutory
Review Committee on the Workplace Health, Safety and Compensation Act
provided a extensive review of the workers� compensation system in the
province. It identified a number of areas for government�s
consideration.
"The committee indicated that while the system has
moved from crisis to stability, further efforts can be made to maintain
a high quality system that is sustainable over the long-term," said
Minister Skinner. "Following a comprehensive assessment of the report�s
findings, including further input provided by stakeholders and an
actuary, we have decided on a series of balanced actions designed to
move the system forward."
The Provincial Government and the WHSCC will advance a
series of measures to address claim duration, early and safe return to
work practices, client services, injury prevention, and occupational
disease, while ensuring an accountable and sustainable system is
preserved.
Accountability and Long-term Sustainability
Actuarial advice provided to the Provincial Government
confirms that, when viewed as a package, the benefits available to
injured workers in Newfoundland and Labrador are either better or
comparable to other Atlantic Canada jurisdictions, and are similar to
those available in other Canadian provinces. Benefit levels will be
maintained at their current level. The advice also supports continued
vigilance on costs to ensure the sustainability of the benefit system
over the longer-term.
"Government is of the view that the benefit increases
recommended by the committee are not sustainable as it will increase the
cost of claims, employer assessments and contribute to the unfunded
liability of the WHSCC," said Minister Skinner. "This government will
not oversee a return to the 2001 era and see the system revert to a
state of financial crisis. The Provincial Government supports the
establishment of a realistic and achievable funding policy that accounts
for market volatility and unforeseen liabilities."
The Provincial Government asks the WHSCC to:
- Consider benefit levels on an annual basis in a
manner similar to the way in which assessment levels for employers are
determined; and,
- Finalize a funding policy that establishes a
suitable funding target, and that considers the input of employers and
workers to further ensure a financially sustainable insurance and
compensation system over the long-term.
Claim Duration and Early and Safe Return to Work
Claim duration, or the length of time an individual is
in receipt of benefits, is a significant cost for the workers�
compensation system. Claim duration in Newfoundland and Labrador is the
highest in Canada. The Provincial Government supports the adoption of a
strategic and focused approach to address the issues surrounding claim
duration. The Provincial Government asks the WHSCC to:
- Adopt a strategic approach to address claim
duration and the Early and Safe Return to Work Program (ESRTW); and,
- Complete an evaluation of the entire ESRTW program
in support of the development of a comprehensive claim duration
strategy.
While improvements have been made, it is important
that enhancements are continually made to the quality of client
services. The Provincial Government will introduce legislative
amendments to support this objective. Further, the Provincial Government
will undertake an evaluation, in conjunction with stakeholders,
including the WHSCC, of the external review, internal appeals and the
worker and employer adviser systems to identify further options for
enhancing the quality of a client�s experience. As well, the WHSCC is
asked to establish a protocol to enhance client services and training
for front-line staff.
Injury Prevention
The promotion of workplace health and safety practices
helps to prevent and reduce workplace injuries. Recent figures show that
safe work practices and an injury free culture are becoming firmly
established in provincial workplaces. This is reflected in the lost time
incident rate, which, between 2000 and 2006, has fallen by 34 per cent.
In the area of injury prevention, the committee highlighted the value of
industry-led sector committees. As demonstrated in the construction
sector, this approach has enhanced safety awareness and practices on the
job.
The Provincial Government asks the WHSCC to:
- Support the further establishment of sector
committees by engaging key sectors such as manufacturing, health care,
fisheries, and the mining sector.
|
Accountability and Long Term Sustainability |
|
Action |
Statutory Review Committee Report Said
|
|
The Commission will implement a practice
to review potential changes to the level of income replacement
benefits on an annual basis. Government asks the Commission to
finalize a long term funding policy reflecting the input of
employers and workers |
The Commission should maintain wage loss
benefits at their current level and consider changes to wage loss
benefits on an annual basis similar to the manner in which it
considers changes to assessment rates. |
|
To complement the Auditor General�s
existing authority to audit the Commission, the Commission will
enhance its existing operational and "value for money" audit
processes, with particular emphasis on communicating the results to
stakeholders. |
The Auditor General should include the
operations of the Commission as part of his or her regularly
scheduled routine of audits. |
|
Government will bring forward an
amendment to the Act to allow for future representation on
the Board to include a minimum of one board member recommended by
the Newfoundland and Labrador Employers� Council and one board
member recommended by the Newfoundland and Labrador Federation of
Labour and one board member representing injured workers. |
The composition of the Board of
Directors should consist of four employer representatives, four
labour representatives, and an independent Chairperson and
appointments to the Board be selected from nominees submitted by
employer and labour stakeholders. |
|
The Commission will work with Government
to implement a new system to ensure that all required workers�
compensation premiums are paid by out-of-province fish buyers. |
The Commission should ensure that
workers� compensation premiums are collected from out-of province
fish buyers operating in NL. |
|
Client Service |
|
Action |
Statutory Review Committee Report Said
|
|
The Commission will establish a protocol
to enhance client services and provide front-line staff with needed
training and decision-making support to serve clients. |
The Commission should establish a
protocol for improving client service, recruitment, training and
decision-making support for front-line staff |
|
Government will undertake an evaluation
of the elements of the workers� compensation internal appeal and
external review structures to identify options for enhancing the
quality of the client�s experience. |
The internal appeal, external review and
the worker and employer advisor offices require change in order to
ensure a seamless, efficient and client-centered service is provided
to workers and employers. |
|
The Commission will build on recent
policy improvements by working with stakeholders in the development
of a plan to implement quality improvements to the Labour Market
Re-entry program. This plan will include improved staff training,
education, and performance measurement. |
The Commission should improve Labour
Market Re-entry practices by ensuring the program is flexible, that
staff conduct a holistic assessment of labour market re-entry
options with a view to restoring pre-injury earnings, and that a
framework to monitor the program and its service providers is
implemented. |
|
Government will bring forward an
amendment to Section 89.1(2) of the Act to ensure that all
injured workers are ensured full access to a two year re-employment
obligation. |
Government should amend Section 89.1 (2)
of the Act to state from date of disability rather than from
date of injury. |
|
The Commission will develop a policy to
manage employer/worker requested independent medical examinations. |
The Commission, in consultation with the
stakeholders, should develop a policy for Commission managed,
employer and employee requested, independent medical examinations of
injured workers. |
|
Government will bring forward an
amendment to Section 89.1 of the Act to delete references to
the term "medically" from the phrase "medically able" to clarify
that the return to work decisions of the Commission are based upon
an assessment of the functional abilities of injured workers.
|
Government should amend Section 89.1 of
the Act to delete references to the term "medically" from the
phrase "medically able." |
|
The Commission has implemented changes
in its application of proportionment and will continue to ensure a
fair application of this practice. |
The Commission should not
proportionately factor in pre-existing health conditions that did
not previously impair a worker�s previous earning capacity when
calculating workers� compensation benefits. |
|
Claim Duration and Early and Safe Return to Work |
|
Action |
Statutory Review Committee Report Said
|
|
The Commission will develop a
comprehensive claim duration strategy, including the public
reporting of key performance indicators. |
The Commission should develop, through
stakeholder consultation, an enhanced system of performance
indicators to allow it to more effectively manage and measure the
various components of claim duration. |
|
The Commission will evaluate the
existing legislated early and safe return to work practices and
report back to Government with a plan for enhancing the program�s
effectiveness. |
Implementation of mandatory Early and
Safe Return to Work committee with a minimum 50 per cent worker
representation, mandatory training, and greater support to workplace
parties to build capacity within their workplace to better manage
return to work programs. |
|
The Commission will develop performance
indicators to measure management of early and safe return to work
practices as a part of their comprehensive claim duration strategy. |
The Commission should develop detailed
performance indicators to enhance the management of early and safe
return to work and improve claim duration. |
|
Injury Prevention and Occupational Disease |
|
Action |
Statutory Review Committee Report Said
|
|
The Commission will proceed with the
establishment of an Occupational Disease Advisory Panel.
Government is also asking the Commission to determine the
appropriate value of a proposed Occupational Disease Reserve Fund to
address costs associated with occupational disease in the workplace. |
The Commission should immediately
establish an Occupational Disease Advisory Panel consisting of
representatives from workers, employers, health care providers, and
a representative from the Commission to review and advise on the
issue of occupational disease. |
|
The Commission has made progress towards
the establishment of new industry led Sector Committees and will
work in partnership with industry to build on these efforts.
|
The Commission should facilitate the
development of Sector Committees in key industrial sectors as a
means to emphasize injury prevention in the workplace. |
|
The Commission will continue their
collaboration with the United Steelworkers of America to address
issues relating to Baie Verte Miners. |
The former miners of Baie Verte should
be the subject of a comprehensive health study. |
|
The Commission and government will
continue with existing strategies to address shellfish asthma and
will consult further with the proposed Occupational Disease Advisory
Panel on this issue. |
The Commission should continue
initiatives aimed at addressing shellfish asthma and refer the
matter to the proposed Occupational Disease Advisory Panel for
further analysis. |
|
The Commission will work in
collaboration with Government and industry partners to enhance
existing health and safety training for fish harvesters.
|
The Commission and the proposed Fishery
Sector Committee should collaborate with the Professional Fish
Harvesters Certification Board to establish safety-training programs
for fish harvesters. |
|
Government will continue to work with
the Commission to ensure that workplace safety education is
integrated into existing mandatory high school curriculum and that
post-secondary institutions identify opportunities to enhance
occupational health and safety information within current
curriculum. |
Workplace safety programming should be a
mandatory part of high school and post-secondary programming in NL.
|
