"Not Worth The Effort" - Mahoney Denies WSIB Fraud

"Workplace Safety and Insurance Board (WSIB) chair Steve Mahoney dismissed suggestions Wednesday that far too many companies are cheating a program geared to promoting safe work environments. . . Mahoney responded to an audit released Wednesday that claims many employers are exploiting the WSIB's incentive initiative at the expense of injured workers. . . The review, commissioned by the WISB, claimed a significant number of firms save money by hiding injuries and rushing injured employees back to work. . . . "I don't buy this stuff that there is fraud and whatever fraud there is it's not worth the effort and the money it would take for us to root it out," Mahoney charged."

Mahoney, whose term as WSIB chair is up for renewal in May, addressed local business leaders at a breakfast meeting hosted by the Brampton Board of Trade.

The onetime Liberal MP spoke to a range of issues during the event, including allegations of widespread fraud in the board's incentive program.

Mahoney responded to an audit released Wednesday that claims many employers are exploiting the WSIB's incentive initiative at the expense of injured workers.

"People say there is a lot of fraud in the system; well it's simply not true," Mahoney told the 60 or so people in attendance. "I just don't buy it."

The WSIB oversees Ontario's workplace safety education and training system and administers no-fault workplace insurance for employers and their workers.

It is funded entirely by employer premiums and is one of the largest disability insurers in North America.

With these premiums, the WSIB funds numerous Ontario health and safety associations and clinics.

But the WSIB does offer breaks to companies that meet certain work place safety objectives.

Premiums to the insurance board are based largely on the expected cost of a company's claims for the year.

If the claims are fewer than projected, the company gets money back.

The review, commissioned by the WISB, claimed a significant number of firms save money by hiding injuries and rushing injured employees back to work.

But Mahoney rejected the notion that the program is fraught with fraud.

He argued the incentive program works for the most part and if there are companies scamming the system, they constitute a small percentage.

"I don't buy this stuff that there is fraud and whatever fraud there is it's not worth the effort and the money it would take for us to root it out," Mahoney charged. "There is some fraud by the companies that don't report injuries, but you take one hell of a risk by doing that because if we catch you not reporting injuries you are going to get slapped a fine of hundreds of thousands of dollars."

The review found that from 2005 to 2007, 73 firms that received rebates were convicted of safety offences leading to a fine.

The authors of the report urged the WSIB to replace the current incentive program with a new "world-class" system.

Linda Ford, former BBOT president, said fraud is "something that will always be out there."

She suggested the WSIB could be more effective in curbing instances of fraud.

With files from Torstar News Service