N.B. Employers Face 15 Per Cent Increase in Workers Compensation Rates
FREDERICTON – Employers are facing a 15 percent increase in the workers’ compensation rate with the average assessment increasing from 1.48 per $100 of payroll to 1.70, the WorkSafeNB announced Monday.
The increase was necessary because of rising claim costs, said Tim Petersen, WorkSafeNB’s acting president and CEO. But the rate increase was lower than it could have been because the organization was able to reduce administrative costs.
Peterson said the organization has worked diligently to find savings in the face of rising claim costs.
“We reduced administration costs by 16 per cent ($0.09 on the average assessment rate) while minimizing any impact on client programs and services,” he said, in a release.
WorkSafe NB Board chairperson Dorine Pirie said there will likely be more increases in the coming years.
“To balance our goal of long-term sustainability while ensuring the security of benefits for injured workers and their families, the board expects that future rate increases will be needed under current legislation,” said Pirie. “The board intends to continue its ongoing communication efforts with stakeholders to keep them informed on the evolution of the system as information develops.”
The Saint John Region Chamber of Commerce, Greater Moncton Chamber of Commerce, and Atlantic Provinces Chamber of Commerce released a joint statement in opposition to the rate hikes:
“Chamber members are concerned with the fiscal reality such substantial workers compensation increases will bring,” they said. “Such increases could place New Brunswick among the highest workers compensation rates in the country.”