Beginning in January 2020, Ontario’s Workplace Safety and Insurance Board (WSIB) is ending its unfunded liability charge also known as Past Claims Cost charge – reducing the employer’s average premium rate to 17 per cent.
According to Minister of Labour Monte McNaughton the elimination of this key charge from WSIB rates will result in approximately $607 million savings to employers. Of this, about $130 million is related to reduced new claims cost and lower administration costs.
“This money will lead to investments in new jobs, technology and health and safety programs,” McNaughton said.
“Canadian Manufacturers & Exporters (CME) congratulates the government and the WSIB for continuing to support Ontario manufacturing by further reducing most premium rates for 2020,” said Dennis Darby, President and CEO, Canadian Manufacturers & Exporters (CME) in the press release.
“This decrease, along with the elimination of the unfunded liability, is critical for helping Ontario manufacturers compete for investment by reducing their operating costs. This continuing trend in rate reductions also reaffirms the tremendous efforts of Ontario manufacturers and their employees to reduce workplace injuries and related claims.”
Workers groups such as OccupyWSIB and Peel Injured Workers, do not welcome this news. According to the activists, the elimination of the fund will take $600-million out of health care and compensation of injured workers.
Back in September 2018, the Ontario government announced the elimination of the unfunded liability, along with an almost 30 per cent decrease in premiums starting in January 2019.
For more information about the WSIB changes and updated rate framework, register for Acclaim Ability Management’s free webinar on October 30, 2019.