Yellowknife (Mar 17/04) - Some industries throughout the NWT and Nunavut will have to contribute more money to the Workers Compensation Board even though their official contribution rate remains the same.

A reduction in the subsidy offered to employers gives the illusion of a rate hike, even to industries whose rates have not actually increased.

WCB began offering a 35 per cent subsidy to all employers after seeing a surplus in its budget in 1999.

The board reduced that subsidy to 30 per cent in 2003, and 20 per cent this year.

"I was shocked when I opened the bill," said Judith Drinnan, owner of The Yellowknife Book Cellar. Like many industries, retailers saw their unsubsidized rates increase.

"It's the kind of increase that makes you question the viability of your business," Drinnan said.

Her store is not in jeopardy, but the rising cost of overhead has her concerned for small businesses in the North.

Without subsidy the average contribution rate for employers in the North increased from $1.60 per $100 of payroll last year to $1.91 this year.

There has been a small increase in the number of claims in the last year, but a WCB official says rising medical costs and not the number of claims is responsible for the average unsubsidized rate increase of 31 cents.

"Overall the biggest driver is the cost of the claims themselves," said Donna Allen, vice-president of WCB.

The board handles accident claims from the NWT and Nunavut. Someone injured at work is eligible for compensation from the board based on their wages, with a cap at $66,500 annually.

Yearly revision

Employers are required to contribute money every year based on their payroll budget and what industry they are in.

The board revises its contribution rates yearly. A complex formula is used to determine how much employers in each industry must contribute based on their payroll budget.

The formula takes into account how much money the board has and how much it paid out in the previous two years. Rates can increase or decrease from year to year, with a 25 per cent cap on increases.

A higher instance of reported accidents and consequent payouts in a certain industry affects the contribution rate of all employers in that industry. A business' individual accident claim history has no direct affect on their rate.

Businesses in the field of metal fabrication, (auto) body work and alteration pay the highest rates, $6 per $100 after the subsidy.

Forest fire fighters, ambulance services and rescue services pay the lowest subsidized rate at $0.45 per $100.