New Brunswick Chambers Launch WorkSafeNB Letter-Writing Campaign
SAINT JOHN – New Brunswick’s chambers of commerce are encouraging their members to write WorkSafeNB and the provincial government to protest rising costs of the province’s workers’ compensation system.
The chambers are arguing the current costs are having damaging effects on their businesses and the economy.
“An effective and sustainable workers’ compensation system is of critical importance to both employees and employers in New Brunswick,” said Carol O’Reilly, CEO of the Greater Moncton Chamber of Commerce in a release. “Our member businesses consistently tell us that their employees are their greatest resource. The continuing escalation of costs to the system since mid-2015 are a major concern for all businesses in the province, not only for their own operations, but also for the continued sustainability of WorkSafeNB.”
WorkSafeNB rates increased by an average of 33 per cent in 2017. The average assessment rate for New Brunswick employers this year will increase from $1.11 per $100 of payroll to $1.48 per $100 of payroll. According to the WorkSafeNB website, this is the first rate increase since 2010. Over the last six years, the average rate has declined from $2.08 in 2010 to $1.11 in 2016.
But the province’s chambers claim they have been warned that an increase next year could be even greater.
“The costs associated with doing business in New Brunswick have dramatically increased in the past couple of years, with an increase to minimum wage, HST, income tax, property tax and now WorkSafe premiums, amongst other costs,” added David Duplisea, CEO of the Saint John Region Chamber of Commerce in a release. “Employers are now looking at another WorkSafe hike and carbon price in 2018 and a CPP expansion in 2019. It is important that the correct balance is struck that provides employees with the right benefits while ensuring that employers are able to continue to fund the system.”
But New Brunswick’s rates are still currently cheaper than in Nova Scotia and Ontario. In Nova Scotia, the average rate is $2.65 per $100 of payroll. In Ontario, the rate is currently $2.43 on every $100 of payroll. Yet, the chambers argue that increases to payroll taxes such as WorkSafeNB premiums are particularly difficult to absorb because they are based on hours worked by employees, not due to an increase in revenue or profit.
A stakeholder meeting was called by WorkSafeNB on April 19 with both employer and employee representatives in attendance.
“The stakeholders meeting on April 19th was a step in the right direction and demonstrated that business needs to be engaged more closely with WorkSafe so that all parties can better understand the cause of the spike in costs and work together to create solutions,” said Krista Ross, CEO of the Fredericton Chamber of Commerce in a release.
“With more detailed and transparent information such as type of injuries, industries most affected, and geographical data, employers can do their part to address particular issues. Meanwhile, WorkSafe and the government can focus their efforts on solving the most urgent problems while maintaining a system that is fair to employees and affordable and sustainable for the businesses who entirely fund the system.”