WCB Review Begins Next Phase

A report on the review of the workers' compensation program was released today, April 16, by David Morse, Minister of Environment and Labour.

The review identifies Nova Scotia as having the second-highest workers' compensation premiums in the country, while having the second-lowest benefits. The committee reported that while the basic principles of the program are sound, it recommends changes such as extending workforce coverage, creating a more comprehensive prevention strategy and improving supplementary benefits for injured workers.

The review recognized that the Workers' Compensation Board has made dramatic improvements in reducing its unfunded liability to 28.4 per cent in 2001 from 64.1 per cent in 1994. It also notes that the board has been progressive and successful in the area of revenue collection and recommends that the maximum insurable wage rate remain at 152 per cent of the average industrial wage.

"Workers' compensation is a complex issue that affects thousands of Nova Scotians," said Mr. Morse. "The committee has worked hard to get everyone's point of view and has created a report that looks at the system from all possible viewpoints. On behalf of all Nova Scotians, I thank the committee for their time and energy on this project."

The report also recommends improving the workers' compensation program's accountability by restructuring the board of directors to include non-voting representatives from the Workers' Advisors Program, the Workers' Compensation Appeals Tribunal and Environment and Labour's occupational health and safety division. The reconstituted board would allow for valuable input from each programs' administrators while maintaining all of the responsibilities of the current board of directors.

An eight-member committee reviewed the 28 specific questions in its initial terms of reference and made additional recommendations. The committee was appointed in April 2001 and was chaired by James Dorsey, a lawyer and workers' compensation expert from British Columbia.

The committee conducted extensive public hearings as part of their review and the views of many Nova Scotians are reflected in the report. The government has identified a response team, which will now review the committee's report, identify priorities and make recommendations on implementation within proposed time frames. The response team will be accepting written submissions from affected stakeholders over the next month. Government's formal response process will take about three months to complete.

"The committee thanks everyone who submitted their issues and concerns to us," said Mr. Dorsey. "The experience of each individual gave us a front-line look at how the program operates. The agencies that deliver the workers' compensation program were also most co-operative in providing us with information and their views about what needs to be improved."

The review was expected to take up to 12 months and to cost about $500,000. The committee completed its work on time and within budget.

The report is available on the department's Web site at www.gov.ns.ca/enla or by calling 1-800-567-7544.