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Government Legislation
Fall 2002: Minister Dunford announces plans to reduce
Alberta's LTC rate by 40%
Minister Dunford challenges industry to create a "healthy
and injury-free work environment." To start with, Dunford hopes to
reduce the current lost time claim rate from 3.4 to 2.0 per 100 person
years.
The announcement is in response to an overall increase
in WCB premiums despite significant reductions in lost time claims over
the past ten years. In 2002 alone, WCB premiums rose an average of 27%
representing nearly 38,000 workers in Alberta who missed work due to some
type of workplace injury.
"Reducing lost time claims is just one part of the
equation," emphasizes EARA Technologies President Grenville Lock.
"In order to minimize the impact of lost time on our economy, companies
must implement comprehensive disability management programs to complement
their injury reduction strategies."
To meet Dunford's new agenda, Alberta Human Resources
and Employment has ramped up enforcement of Health and Safety regulations
hiring 6 additional inspectors, flagging more files for review and possible
prosecution by Alberta Justice and levying higher fines against violators.
In addition, Dunford created a joint industry and government
committee to formulate a strategy for improving health and safety in the
province of Alberta. In July, the committee submitted a working plan highlighting
proposed methods of achieving the 2.0 target. The document estimates the
cost to Alberta of lost wages and output, medical and other related costs
resulting from workplace injuries at $3 billion dollars annually, a figure
that represents more than 2% of Alberta's gross domestic product.
The committee proposes a review of the Occupational Health
and Safety Act to broaden accountability and develop new "industry-based"
standards. The enforcement section outlines proposed plans to strengthen
enforcement with the introduction of public reporting of safety performance
and closer connections between WCB premiums rates and participation in
programs designed to improve health and safety.
"Ultimately, what this means to employers is increasing
penalties for poor performance," says Lock. "Penalties in terms
of increased premiums and fines as well as the introduction of public
reporting to penalize companies in the court of public opinion. Eventually,
controlling lost time claim costs won't be an option."
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