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Methods for Calculating Assessments in the Fishing Industry
2000/11/14-02
THE WORKERS' COMPENSATION BOARD OF BRITISH COLUMBIA
RESOLUTION OF THE PANEL OF ADMINISTRATORS
RE: Methods for Calculating Assessments in the Fishing Industry
WHEREAS:
Pursuant to Section 82 of the Workers Compensation Act, RSBC 1996, Chapter 492 and amendments thereto (the "Act") the Panel of Administrators (the "Panel") must approve and superintend the policies and direction of the Workers’ Compensation Board (the "Board"), including policies respecting compensation, assessment, rehabilitation and occupational safety and health, and must;
82(a)(ii) review and approve the operating policies of the Board;
82(a)(iv) develop policies to ensure adequate funding of the accident fund;
82(a)(vi) plan for the future of the Board;
AND WHEREAS:
Section 5(2) of B.C. Reg. 674/76, Fishing Industry Regulations provides authority for the Board to prescribe methods of calculating assessments in the fishing industry;
AND WHEREAS:
In December 1976, the Board established three methods for calculating assessments payable in the fishing industry, including calculating assessments on the gross crew share of fish sales;
AND WHEREAS:
The Administration is concerned that the manner in which assessments are calculated on the gross crew share of fish sales is inconsistent, unfair, and inequitable to some commercial fishers, commercial buyers, and other commercial recipients of fish;
AND WHEREAS:
Extensive consultation has occurred with stakeholders in the fish harvesting industry about changing the methods for calculating assessments;
THE PANEL OF ADMINISTRATORS RESOLVES THAT:
- Assessment Policy No. 40:20:10 be amended to limit the deduction of fishing license lease costs from fish sales to 40% of their value, as set out in the Appendix to this resolution.
- The Policy and Regulation Development Bureau, in co-operation with the Administration, will begin consultations with the fishing industry immediately with a view to reviewing the settlement method and the 60/40 formula and recommending changes, where necessary.
- This resolution constitutes a policy decision of the Panel of Administrators, and is effective January 1, 2001.
DATED at Richmond, British Columbia, December 13, 2000
By the Workers' Compensation Board
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By the Workers' Compensation Board
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| MAUREEN NICHOLLS, CHAIR, PANEL OF ADMINISTRATORS |
APPENDIX
Amendments to the Assessment Policy No. 40:20:10
(Amendments in bold, deletions in strikethrough)
Compensation coverage for commercial fishers is provided for by Section 4 of the Workers Compensation Act and the Fishing Industry Regulations made under it. The regulations are found in Workers' Compensation Reporter Decisions 223 to 225. The matters covered by those decisions include the right of fishers to claim compensation for injury or disease, the transportation of injured fishers, claims procedures and appeals, the situation where the injury is caused by a third party, the payment of assessments on fishers' earnings and the provision of first aid.
Almost all "commercial fishers" are automatically covered for compensation. A "commercial fisher" is a master or crewmember of a licenced commercial fishing boat who has or should have a current personal commercial fishing licence. The fisher may also be a master or crew member of a boat which has or should have a B.C. Fisheries Act licence to buy or collect fish for commercial sale or use, or any other person who, in the opinion of the Board, contributes to the catching of fish for commercial sale or use. The commercial fisher must also be involved in catching or landing fish for arrival at B.C. ports for commercial use (selling to the public is not "commercial use"), or have made individual arrangements with the WCB for payment of assessments.
Most fishers who sell less than 10% of total value of their catch in B.C. to commercial buyers are not automatically covered, but they may apply for optional coverage. Coverage is not available to fishers who have totally removed themselves from the B.C. Fishing industry. An example of this is a fisher who catches and lands tuna in South America. No coverage is offered for sports fishing activity, even though the fisher may have a personal commercial fishing licence.
In the Fishing industry, the employer for assessment payment purposes is basically the first commercial buyer of the catch. A commercial buyer or other commercial recipient of fish who directly or indirectly acquires fish from a commercial fisher is responsible for paying the assessment on those fish, except where they are obtained from another commercial buyer or recipient who has or should have already paid the assessment on those fish. For fish not covered by the above statement, the assessment must be paid by the person who hired the master or crew of a fishing boat, unless the fish are sold to people who will use them for personal consumption.
There are three formulas for calculating Assessable Payroll in the Fishing industry:
- Where the commercial fisher is paid a salary (for example, with tendermen), the Assessable Payroll is calculated on the basis of that salary.
- Where the commercial fisher is paid by established settlement, and where the labour component is clearly identified, the Assessable Payroll is based on the gross labour component. That labour component will include bonuses and any other payment which, according to the practice of the industry, are part of the fisher's share.
- Where the commercial fisher is not on salary and the labour component cannot be clearly identified, then the Assessable Payroll is based on 60% of the gross purchase price of the fish.
Where it is the practice of the industry to deduct costs incurred to earn fishing income from the gross purchase price of the fish, or share those costs between the boat and the crew, not more than 40% of the cost of a fishing licence, permit, or quota, if leased, may be deducted or shared.
Assessments paid are limited to the Maximum Wage Rate for each fisher (see Section 40:10:20). If records are retained by the fish buyer/processor to identify payments to individuals, excess deductions can be considered regardless of whether the commercial fishing firm is incorporated. This consideration would include verification of the number of crew members, etc. Excess earnings, as is the case with all industries, are allowed only with respect to earnings paid through one specific source or employer. In other words, if a fisher sold to three buyers in a year, only the amounts paid by each buyer would be considered when calculating excess for each fisher.
1. Payroll - Firms generally have two classifications
in the fishing industry:
(i) "Fish Processing"; and (ii) "Fishing (or Fish Buying)". The payroll
must be allocated to the applicable classification.
(i) Fish Processing -
Payroll allocated to this classification will include plant crews, truck drivers, warehouse workers and office staff.
(ii) Fishing (or Fish Buying) -
Payroll allocated to this classification will include tendermen, campmen, net workers and any other acquiring personnel.
If a firm has assessable payroll in more than one classification in the fishing industry, then the administrative payroll (including active principals) that is common to both classifications must be pro-rated to both classifications.
A commercial fisher who is engaged in the maintenance or minor repair of that fisher's own fishing vessel or equipment during the fishing season or on the off-season is automatically covered for compensation, as these activities are considered incidental to the fishing operations. Similarly, any commercial fisher who is doing maintenance or minor repairs on a fishing vessel owned by another person is also automatically covered for compensation. However, if a commercial fisher or vessel owner hires a person who is not a commercial fisher to perform maintenance or minor repairs, the fisher or vessel owner must register as the employer of the non-fisher.
If a commercial fisher is involved in the construction of that fisher's own fishing vessel or is doing major repairs on the fishing vessel (greater than 25% of replacement value), that fisher would not be covered for compensation unless personal optional protection was obtained. However, if that fisher hires help to assist in the construction or major repair of the vessel, the fisher would be required to register. Any employer who is engaged in vessel repair or construction as a business is required to register with the Board.