Canadian Manufacturers & Exporters (CME) applauds the Workplace Safety & Insurance Board (WSIB) for moving on its recommendation to eliminate unfunded liability, as announced today at its Annual General Meeting.
With the changes, Ontario manufacturers will benefit from premium rates which are more reflective of their experience and, will no longer be burdened with legacy debt.
CME had often highlighted that the WSIB’s unfunded liability was negatively affecting manufacturers’ competitiveness. Legislative enhancements to workers’ compensation benefits were often given without government offsets which ultimately added to employer costs when legislative changes had retroactive application.
With the elimination of this debt, Ontario employers can begin to compete on a more level playing field with employers globally and attract top talent. CME looks forward to working with the WSIB as it rolls out the 2019 premium rates and moves towards implementing its new rate structure in 2020.
- With the elimination of the unfunded liability, Schedule 1 employers’ average premium rate will be reduced by 29.8% for 2019, from its current rate of $2.35 per $100 of payroll to $1.65 in 2019. For the manufacturing sector, the average premium rate will decrease from $2.50 in 2018 to $1.79 in 2019.
- The elimination of the unfunded liability will allow those employers with good accident cost performance to see their rates decrease by a maximum of 48% in 2019. Employers whose premium rates should be increasing in 2019 will have a 0% increase.
- The manufacturing class currently has 73 manufacturing rate groups with 23,717 firms. Of those rate groups, 68 (or 21,876 firms) will experience a rate reduction and 5 rate groups (1,841) will see no change to their rate.
About Canadian Manufacturers & Exporters
Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and thrive around the world. In 2016, CME released Industrie 2030 – a roadmap for doubling Canadian manufacturing activity by 2030. Our focus is to ensure the sector is dynamic, profitable, productive, innovative and growing. We aim to do this by strengthening the labour force, accelerating the adoption of advanced technology, supporting product commercialization, expanding marketplaces and, most importantly, ensuring a globally-competitive business environment. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports.