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WorkSafeBC projects decrease in average premium rate for 2007
Richmond, B.C., July 27, 2006 — WorkSafeBC — the Workers' Compensation Board — is proposing a 9.8 percent decrease in the employers' average base rate for 2007. While the reduction reflects recent years' trends of stable injury rates and lower duration of injuries, it is largely due to very positive investment returns that enable WorkSafeBC to maintain lower premium rates for employers.
The 2007 average published base rate is projected to be $1.71 per $100 of assessable payroll, compared to $1.90 in 2006. In 2000 the average published base rate was $2.31.
“This is a relatively good news story for B.C. employers because their rates will be among the lowest in Canada,” said WorkSafeBC Chief Financial Officer Sid Fattedad. “However, employers in British Columbia should know that there are potential storm clouds on the horizon if they allow the injury rate reduction trend to stall. While economic expansion in British Columbia means more jobs and thus more claim volumes, the rate at which workers are injured has been holding steady or rising in some industries. Successful initiatives targeted at those industries with high or rising claim rates will be particularly important if they want to see continued rate reductions.”
“It's important to note that employer premium rates in 2007 are being protected by very strong investment returns in the past three years. Sound financial management of WorkSafeBC's investment portfolio is keeping employer rates lower than they would otherwise be,” added Fattedad.
Highlights
In 2007, Sawmills, Paper Mills, Industrial Construction and House Construction will see a 20 percent reduction in their rates, while Road Construction, General Trucking, Public Schools, Hotels and Supermarkets will see at least 15 percent reductions in their rates. Other industries such as General Retail, Universities, Restaurants and Local Governments will also see base rate reductions.
Electrical Utilities and Forestry will see their rates remain virtually unchanged. Industries whose rates are projected to increase include Gas Utilities (20 percent), Department Stores (7.5 percent), Ferry Services (6.6 percent), and various business services such as Consulting, Accounting and Clerical Labour Supply which will see rates increase by a small amount.
Overall, just over 68 percent of employers will have a reduction in their 2007 base rate, 10 percent will see their rates remain unchanged, and 22 percent of employers' rates will increase — none of which will likely exceed more than 20 cents per hundred dollars of worker payroll. “Premiums are primarily driven by injury costs,” said Fattedad. “It's important to recognize that industries can influence their rates by improving safety, and through effective return-to-work and disability management programs.” To this end, in order to assist industries to lower their injury and premium rates, WorkSafeBC has worked with industries to establish safety associations in forestry, construction, agriculture and the oil and gas industries, and developed sector-based business teams to work closely with industry and labour groups.
WorkSafeBC is releasing preliminary rates to provide reasonable notice to employers and an indication of the direction of their premium rates. Preliminary rates are reliable as indicators; however they may differ when final rates are set in October.
Information on the 2007 preliminary rates is available on the WorkSafeBC web site at WorkSafeBC.com.
Serving nearly two million workers and about 184,000 employers, WorkSafeBC — the Workers' Compensation Board — is a provincial statutory agency governed by a Board of Directors and funded by employers. WorkSafeBC was born out of a compromise between B.C.'s workers and employers in 1917, where workers gave up the right to sue their employers or fellow workers for injuries on the job in return for a no-fault insurance program fully paid for by employers. WorkSafeBC is committed to a safe and healthy workplace and to providing return-to-work rehabilitation and legislated compensation benefits to workers injured as a result of their employment.
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For more information please contact: |
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Donna Freeman
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