Safety & Risk Management
Lower WSIB premiums ‘show our safety improvements are working’: RESCON
October 8, 2021 By Crane & Hoist Canada Staff
The Residential Construction Council of Ontario (RESCON) says it supports that Ontario’s Workplace Safety and Insurance Board (WSIB) is reducing its premiums.
WSIB is cutting premium rates in 2022 by $168 million. In addition, the government is intending to introduce legislation that, if passed, would allow for a significant portion of the WSIB’s current reserve, currently valued at $6.1 billion, to be distributed to safe employers.
“[This] announcement will allow employers in the construction industry to increase their investment in health and safety and grow their businesses, allowing construction to continue to lead the economic recovery,” says RESCON VP Andrew Pariser, who is also chair of the organization’s health and safety committee, in a statement.
“Premium rate decreases highlight that health and safety efforts in residential construction are working. RESCON supports the approach that the risk should be reflected in the rate. Lower rates show our safety improvements are working.”
RESCON says it supports the change as it will provide some relief to construction employers in Ontario who have been dealing with COVID-19 and ensuring that their worksites are safe for workers.
The rate reductions are the direct result of improvements to the WSIB’s sufficiency ratio, which once was below 80 per cent and is now well above 115 per cent. As a result, the WSIB system remains in a funding surplus and the change proposed by the government will have no impact on taxpayers or at the expense of injured workers.
Currently, the WSIB is not permitted to distribute surpluses to employers. New legislation intended to be introduced later in the fall would, if passed, require the WSIB to return excess funds to employers once the WSIB’s surplus reaches 125 per cent, with the option to do so earlier, thus ensuring premiums paid by employers reflect the risk associated.
“Linking the premium ceiling to inflation protects workers and gives construction employers the flexibility they need to invest in safety, their businesses and the Ontario economy,” Pariser adds. “
RESCON applauds the funding corridor approach as it improves future rate predictability and balances the needs of employers and workers.”
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