September 2, 2014 - Halifax, N.S – Demonstrating leadership in workplace safety and return to work programs can reduce the impact of workplace injury as well as the costs of workplace injury insurance, reported the Workers’ Compensation Board as part of its 2015 employer rate announcement.
This week, the Workers’ Compensation Board notified 18,500 covered employers of their 2015 rates for workplace injury insurance. An industry’s rate is set based on claims cost experience - the ratio of injury costs to payroll. Just like other insurance models, employers with higher claims costs in their industry pay a higher rate.
That means the best way to reduce workers’ compensation premiums is through industry and employer leadership. This starts with a focused and dedicated approach to safety leadership at all levels of business. Individual employers can take steps to prevent injuries in the workplace, and, if an injury does occur, support injured workers to return to work. Similarly, when an industry works together to reduce its claims cost experience, and brings down the relative percentage of costs to the system, that industry will see a reduction.
Nova Scotia’s health care sector, for instance, which includes hospitals, specialty care homes and long term care facilities, is an example of an industry whose rate is benefiting from leadership commitments to safety and return to work programs. According to the WCB, the average rate of assessment for the health care sector has declined by almost 15 per cent over the last five years. If the industry didn’t make improvements, it would be paying roughly $8.6 million more in premiums today.
New programs introduced by the WCB have also challenged more employers to step up their safety leadership, and have driven more improvements in workplace safety this year. Rebates and refunds were issued for the first time in 2014 as a result of the practice incentive rebate program and the conditional surcharge refund program. To date, just over $2.43 million have been issued through these programs.
Each year, the WCB issues surcharges to employers whose claims costs are significantly and consistently higher than their industry peers. In 2015, 107 employers will receive a surcharge, down slightly from 113 in 2014.
To be surcharged, an employer’s claims cost experience must be at least three times their industry average, or at least 200 per cent higher, for at least four consecutive years.
The WCB works with employers and industry associations to provide tools, resources and return to work expertise to help prevent workplace injury, support injured workers’ to return to work, and to reduce claims costs.
QUICK FACTS
- The average rate is unchanged this year, at $2.65 per $100 of payroll. It has remained consistent for several years.
- Rates are decreasing by 10 per cent or more in industries such as crop farming, aquaculture, ready-mix concrete, interior finishing and specialty care homes. Some industries are facing rate increases in 2015 of 20 per cent or more such as the feed industry, furniture manufacturing, wrecking and demolition, framing, storage and warehousing, and recycling and scrapyards.
- Through the Conditional Surcharge Refund Program employers have the opportunity to be refunded all or part of their surcharge premiums paid in the previous calendar year for qualifying investments made in safety during that same time period. Employers have until the end of the year to apply. In 2014, 92 employers are eligible for refunds totalling $1.9 million. To date, $860,000 has been issued.
- The Practice Incentive Rebate Program offers rebates for employers in the construction and trucking industries who have received safety certification. To date, close to $1.58 million in rebates have been issued to 1,584 employers. The program may be expanded to other industries in the future.
- The Nova Scotia Workplace Safety Strategy aims to make Nova Scotia Canada’s safest place to work. It includes work in six priority areas, including leadership, safety culture, small and medium sized enterprises, education and training, inspection and enforcement, and performance management and measurement. The strategy is co-led by the WCB and the Nova Scotia Department of Labour and Advanced Education.
QUOTES
“Safety and return to work leadership is an essential part of business. This leadership protects people and helps them live full, healthy, productive lives. It also leads to more productive workplaces and a stronger economy of the future. We all have a role to play in making our workplaces safer.”
Stuart MacLean, CEO, Workers’ Compensation Board.
“WCB rates are responsive to a company’s safety performance. The model includes incentives for good safety performance, and disincentives for poor safety performance. In this way the rate model supports the goal of the Workplace Safety Strategy to build a stronger safety culture in Nova Scotia.”
Leo McKenna, CFO, Workers’ Compensation Board.
“It takes multiple approaches to make safety culture a top priority. At Annapolis Valley Health, we’ve put increased focus on promoting safety, including patient handling and movement, hand washing, occupational health and safety committees, and our Stay at Work/Return to Work program, which supports injured team members to remain at work or return to work much sooner. Safety leadership throughout our organization is key to being successful.”
Janet Knox, President and CEO, Annapolis Valley Health.
RELATED LINKS
Contact:
Denise Corra, Manager, Communications and Marketing
Workers’ Compensation Board of Nova Scotia
902.491.8102 | denise.corra@wcb.gov.ns.ca