Home page

Text size

E-mail this page

NWT
Employers in the NWT are bracing to take a hit in the pockets from workers safety rates, after the Workers' Safety and Compensation Commission (WSCC) announced it is increasing the amount employers must pay from payroll.

Worker safety rates paid by NWT and Nunavut general construction employers such as Dowland Contracting Ltd., which managed the construction of Inuvik's new schoolhouse East 3 - pictured here in 2011 - are expected to rise after the Workers' Safety and Compensation Commission (WSCC) announced it is raising its target assessment rate to $2.05 per $100 of assessable payroll, from the current rate of $1.77. - Nick Westover photo

The commission said this month that the target assessment rate, which is used to determine the rates for each industry subclass, is being increased by more than 15 per cent, to $2.05 for every $100 of assessable payroll, from the current rate of $1.77.

"That's huge," said Phil Moon Son, executive director of the NWT and Nunavut Construction Association, saying the hike will no doubt affect the construction industry.

"Especially during this economic downturn, this is gonna be a double whammy for us," Son said.

General construction employers are currently paying $4.16 per $100 of assessable payroll for workers safety -- up from $3.92 in 2011.

Renewable resources and outdoor recreation employers, which includes dogsled tour operators, outfitters, commercial fishing, hunters and trappers, and fishing lodges, are already seeing the biggest increase this year, to $9.76 per $100 assessable payroll, up $1.35 from the 2011 rate of $8.41.

Ria Letcher, who operates North Nahanni River Tours from Fort Simpson, said the rate increase will definitely impact small businesses.

"We already pay a lot of money and we're a small business," Letcher said. "Now we're just being hit on the chin even further. This definitely does have an impact to small business, especially in the tourism industry."

Dave Grundy, president of the WSCC, said to help control the increase in costs, the increase will be capped at 20 per cent for at least the first year.

"We don't want to add costs to businesses, that's not our intention," Grundy said. "Our intention is to look after all our workers, make sure we have all our liabilities covered, and to ensure that we can present the programs that are needed for employers.

"The vast majority of industry, businesses, in the Northwest Territories and Nunavut know this money is to ensure their workers, if they have injuries, are cared for."

The commission paid out approximately $58 million in claims costs last year, and the claims are trending higher this year, Grundy added, although the commission is not pointing to any specific industry causing strain to the program.

The new rate of $2.05 per $100 assessable payroll is what is needed to meet all the commission's claim liabilities, Grundy said.

World markets -- specifically an uncertain investment environment -- and the rising cost of health-care services also contributed to the increase, he said.

Independent actuaries are consulted to determine the employer assessment rates each year, and changes for each subclass are released at the end of the year.

We welcome your opinions. Click here to e-mail a letter to the editor.