Injury Management Solutions

In the wake of the recent Ontario government crackdowns over expenses at both e-Health and the Ontario Lottery and Gaming Corporation, the need for periodic review of government agencies has never been more apparent. Whether the province is committed to go beyond the “symbolic” measures it announced recently, however, remains to be seen.

While there is no shortage of agencies that are deserving of increased public scrutiny, a most fitting and early test of the government’s resolve is the Workplace Safety and Insurance Board (WSIB). Funded by employers, the WSIB is responsible for managing scarce tax dollars to provide compensation to injured workers. However, recent losses at the agency — $3.34-billion — threaten to drag the workers compensation system into financial ruin.

At a recent meeting, the WSIB confirmed that the gap between their liabilities and the money to pay for them — the unfunded liability — continues to grow. Canadians will recall similar warnings about the demise of the CPP and EI in the mid-1990s before those rates went through the roof. Ironically, measures to control costs have suddenly morphed into similar threats here — “we give fair warning that if the WSIB’s economic situation does not improve, we will have to consider introducing premium rate increases in the future.”

When the current plan to balance the WSIB’s books was developed back in 1984, the Canadian Federation of Independent Business was one of 19 employer groups who supported a multi-faceted approach (series of premium rate increases, measures to make workplaces safer) to get the system back on track. Business owners are outraged that the WSIB has chosen to ignore the significant contributions that employers and their employees made to reduce the funding gap in half to under $6-billion by 2001.

Since then, the WSIB has squandered all those hard fought gains. Today, the unfunded liability sits right back where it was 25 years ago. Imagine the bank reneging on the terms and conditions of your mortgage contract, nullifying payments to-date and forcing higher payments for an indeterminate amount of time. Indeed, all Ontarians should be worried about what is going on at 200 Front Street.

While the WSIB conveniently blames the economy for its financial woes, not only were their losses on the rise prior to the current economic downturn, but even private insurers have managed a return on their investments in this tough period. At a time when businesses must control their costs in order to survive, the WSIB seems more interested in picking the pockets of hard working, law-abiding businesses to make up for their own financial shortcomings. It is for these reasons that the business community has no confidence in the WSIB, its state of health and direction.

Is it a problem of institutional stagnation, leadership or both? At a time when the Chairs and CEOs of government agencies are being held more accountable, what about some accountability at the WSIB? The McGuinty Government must order an independent review of the WSIB. Ontario cannot afford to do anything less.