Risky workplaces face cash penalty

"Ontario's workplace safety agency has launched a review of the controversial payouts it makes to companies where workers have died on the job. . . . For years, many unsafe companies that caused deaths or injuries have received substantial payouts that were supposed to reward businesses with golden safety records. . . . WSIB payouts are often double or quadruple the fines levied against the companies by the Ministry of Labour, allowing dangerous businesses to recoup their financial losses by the very system that was created in 1915 to protect the rights of injured workers. "

Moratorium placed on payments to companies with safety issues pending WSIB review

Ontario's workplace safety agency has launched a review of the controversial payouts it makes to companies where workers have died on the job.

The review comes after the Star raised serious questions about the practice within the Workplace Safety and Insurance Board.

For years, many unsafe companies that caused deaths or injuries have received substantial payouts that were supposed to reward businesses with golden safety records.

WSIB payouts are often double or quadruple the fines levied against the companies by the Ministry of Labour, allowing dangerous businesses to recoup their financial losses by the very system that was created in 1915 to protect the rights of injured workers.

An ongoing Star investigation has uncovered many examples of companies that were awarded with these payouts, despite grisly deaths and injuries.

Labour groups say the WSIB system gives companies little incentive to enhance workers' safety.

Though the Ontario Federation of Labour has been complaining for years, nothing changed until yesterday morning, when the WSIB issued a news release saying it would review the system and place a moratorium on payouts to companies responsible for worker deaths.

"It is long overdue," said Wayne Samuelson, OFL president. "I am glad to see they are finally reacting."

Details are thin on exactly how the problem will be fixed, but WSIB chair Steve Mahoney said yesterday that the "internal" review will be complete in 30 days, at which point he will begin discussions with labour and business groups.

Mahoney said the review will examine how the WSIB's incentive program works so there will be "more money for the good guys and no money for the bad guys."

He said he told an Ontario government standing committee a year ago that the WSIB "recognizes the need" to review its financial incentive programs – known in WSIB circles as the "experience rating system."

The system, which began in 1985, is supposed to make companies safer by using a "carrot-stick" (penalty-rebate) approach. Companies with good safety records are rewarded with rebates. Those with troubled safety records have to pay surcharges.

The system looks at the "experience" of each company. But the Star found that deaths were not being counted against them.

So companies where workers died could still easily receive hefty rebates each year, ranging from a few thousand dollars to millions, depending on the size of the business.

Mahoney said the WSIB has authority to claw back rebates from companies that are subsequently fined for unsafe practices.

It has used this authority "on occasion."

However, he said, "I want to stop (the rebate) from going out in the first place. So if there is a (ministry) charge, I would rather say a rebate is pending."

The Star's questions to the WSIB were part of its ongoing Working Wounded series, an investigation into the WSIB and workplace safety in Ontario.

An analysis of WSIB data obtained through a Freedom of Information request revealed a broken system that in some cases leaves workers unprotected from dangerous companies.

Mahoney has already pledged changes to protect temporary workers after a recent Star story exposed a loophole which allows companies hiring temp workers from staffing agencies to avoid financial penalties.

Mahoney is meeting Labour Minister Brad Duguid next week to discuss ways to fix it.

Another story used the data to expose high levels of post-traumatic stress experienced by TTC workers. The Star investigation continues.