Statement by the Board of Trade on Developments in Workers’ Compensation

Statement by the Board of Trade on Developments in Workers’ Compensation 

The Board of Trade appreciates WorkplaceNL’s assessment rate reductions for the upcoming year. The average rate employers will pay will decrease by 4 percent to $1.66 per $100 of assessable payroll, which includes a temporary 21-cent discount due to the injury fund's current overfunding. The Board of Trade has consistently advocated for relief for employers, and this reduction reflects the substantial effort and investment made by employers to create safer workplaces in the province.  

While this reduction provides a degree of relief for employers, Newfoundland and Labrador continues to have a higher rate than most other Canadian jurisdictions, despite having one of the lowest injury rates nationwide. We also note the intended worker benefit expansion recently introduced by the Provincial Government. Bill 31 increases the income replacement rate from 85 to 90 percent of a worker's net pre-injury earnings.  

Supporting injured workers is a shared priority, but this expansion will cost an estimated $60.7 million increase in benefit liability. This change is happening alongside additional legislative coverage expansions despite an ongoing statutory review of the workers’ compensation system launched this past summer. To maintain its integrity, Newfoundlanders and Labradorians, including employers, must have the opportunity to engage in this required process before decisions with system-wide impacts are made. 

We will continue to actively engage with the ongoing independent statutory review to support a balanced, collaborative approach, and make recommendations that effectively support workers and recognize the efforts of employers who invest substantial time and resources into creating safer workplaces.