Workers' Compensation Committee Tables Report

Eliminating the appeals backlog and the unfunded liability is key to the future stability of the workers' compensation system in Nova Scotia, the Select Committee on the Workers' Compensation Act has concluded.

"There are many problems with our workers' compensation system," said committee chairman Michael Baker. "The appeals backlog and the unfunded liability undermine the ability of the Workers' Compensation Board to do what is right -- pay compensation to a worker injured on the job and provide no-fault' insurance to employers."

Joining Mr. Baker on the all-party committee were Hyland Fraser, Charles MacDonald, Michel Samson, Frank Corbett, Rosemary Godin, Charlie Parker, Ernie Fage and Jim DeWolfe.

In compiling its report, the committee heard 174 presentations at 11 public hearings across the province. It reviewed more than 100 submissions made by phone, fax, e-mail and regular post, and also examined the auditor general's audit of the Workers' Compensation Board, Workers' Advisers Program and Workers' Compensation Appeals Tribunal.

The committee and the auditor general agree that extraordinary measures must taken to immediately reduce the appeals backlog. More than 2,500 appeals are currently backlogged at the Workers' Compensation Appeals Tribunal.

"In some cases there are individuals with appeals in the system for more than 10 years," said Mr. Baker. "This is totally unacceptable. These people deserve some answers to bring closure to their cases and be free to move on with their lives."

Recommendations to eliminate backlog include:

• increasing benefits for individuals injured between March 29, 1985, and March 23, 1990, provided they meet specific criteria
• reinstating survivor benefits for spouses who remarried prior to Oct. 1, 1992
• hiring additional appeals commissioners to work specifically on hearing backlogged cases
• mediate settlements through the alternative dispute resolution program
• provide individuals injured between March 29, 1985, and March 23, 1990, who did not return to work, with a benefit for their permanent medical impairment

Eliminating the backlog is only part of the solution. To ensure it does not recur, the report proposes a streamlined appeals process with legislated timelines for hearing appeals.

The other issue of great concern is the system's unfunded liability of more than $360 million. The committee said the unfunded liability jeopardizes the long-term viability of the system and needs to be reduced in a manageable way. Employers should not expect to be burdened with excessive assessment premiums.

Recommendations to reduce the unfunded liability include:

• introducing general universal coverage
• reducing the waiting period for out-of-province employers doing business in Nova Scotia to one week, from six months
• refining assessment rates

Mr. Baker said the liability made it impossible for the committee to address all the issues raised in its report, but the recommendations will benefit thousands of Nova Scotians and the workers' compensation system.

"When we started this process, we asked Nova Scotians for their ideas on how to make the current system better. We believe our report contains recommendations that provide injured workers with fair treatment, compensation and respect, and employers with a system they can afford."

Copies of the report are available at the Nova Scotia Government Bookstore, One Government Place, Granville Level, 1700 Granville St., Halifax; phone 1-800-526-6575 or 902-424-7580. The text of the report will also be on the Internet starting Nov. 27, at the Select Committee on the Workers' Compensation Act website, http://www.gov.ns.ca/legi/wcbact .