September 4, 2007

79 employers to receive surcharges due to poor safety and return to work performance

(HALIFAX – Sept 4, 2007) In an effort to improve injury rates and return to work performance in Nova Scotia, the WCB is, for the first time, levying surcharges on 79 employers with consistently poor safety and return to work records.

Last week the WCB mailed packages to the 18,000 employers it covers, notifying them of their 2008 workers’ compensation assessment rates. The average assessment rate remains unchanged from the last three years at $2.65 per $100 of payroll, although individual industry rates will shift, either up or down, depending on that industry’s claim experience. Among the 18,000 covered employers 49% will see their rates decrease, 50% will experience an increase, 1% will see no change and 0.5% will receive a surcharge.

”In an ideal world the WCB would not need to issue surcharges. But assessment rates are one lever we can push to help employers embrace a workplace safety culture in Nova Scotia and reduce the human and economic toll of workplace injures,” says Nancy MacCready-Williams, WCB CEO. “A large percentage of costs to the system are due to the injury and return to work performance of a small percentage of employers. Yet, all employers are bearing these costs,” adds MacCready-Williams.

Last year, over 30,000 Nova Scotians were injured on the job. There is a workplace injury in Nova Scotia about every 15 minutes. Last year 22 people died as a result of a workplace injury – about one every two weeks. There is a huge potential to reduce the human suffering associated with workplace injury in Nova Scotia.

In order to be surcharged, an employer’s safety and return to work performance must be at least 200% worse than the average for their industry for at least four consecutive years. The 79 employers who will receive a surcharge in 2008 have already received two warning notices, one in each of the past two years, allowing them time to take action to prevent workplace injuries and avoid or reduce the amount of the surcharge.

Among the 18,000 employers receiving packages, 162 will get a first warning notice that a surcharge could be applied to their premiums in 2010 while another 80 employers will receive their second warning notice that a surcharge could be applied in 2009.

The 79 employers facing a surcharge in 2008 will see increases in their rate ranging from $0.09 to $1.82 per $100 of assessable payroll. This will mean an increased premium owing in 2008 up to $360,000 depending on the rate increase and reported payroll of each company. Under this program, a surcharged company can continue to see increases of up to 20% each year with no maximum.

“The surcharge is an incentive for those employers with the most potential to improve their performance to focus on injury prevention and early and safe return to work. Many of these employers have already started to make improvements,” adds MacCready-Williams. “Safe and healthy work is incredibly valuable to individuals and to the province as a whole. When injury takes that away, everyone stands to lose. Creating safer workplaces and fostering safe, timely return to work is in everyone’s best interest – it can translate into lower premiums for employers, and most importantly, it means fewer Nova Scotians being injured, fewer lives disrupted due to injury.