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announces lower premium rates for 2005
Cites lower injury rates and lower duration of injuries in
recent years as key reasons
November 5, 2004, Richmond, B.C. — The Workers' Compensation Board (WCB) has announced a 4.1 percent decrease in the overall premium rate for 2005. The decrease was projected in August and reflects recent years' trends of lower injury rates and lower duration of injuries through the shared commitment of employers, workers and the WCB to prevent injuries, diseases and fatalities from occurring in the first place and to improve return to work outcomes for those injured.
"The 2005 aggregate base rate will be $1.975 per $100 of assessable payroll, compared to $2.059 in 2004," said WCB Chief Financial Officer Sid Fattedad. "Clearly this is a good news story for the coming year; however I would caution that current premium rates reflect historical injury trends and these trends appear to be changing."
"While we have experienced record low injury rates in recent years in British Columbia, what we're seeing now is the potential for an increase," said Fattedad. "The injury rate is influenced by a number of factors including an increase in the volume of business activity in industries such as construction and forestry."
Fattedad added that employers can mitigate the potential for higher premium rates by improving health and safety at their workplaces and improving return to work outcomes. "Each percentage point of reduction in the injury rate means that approximately 600 fewer workers are injured and $9 million in claims costs is avoided."
In 2005, hospitals, long term care facilities, public school districts, universities, poultry processing, auto and aircraft assembly, auto dealerships and financial institutions will have lower base rates. Each of these industry groups will see a 20 percent reduction in their workers' compensation premium rates.
Key industries whose rates will increase include logging, industrial, commercial and high rise construction and shake or shingle mills.
Overall, approximately 56 percent of employers will have no change or a reduction in their 2005 base premium rate and 44 percent of employers' rates will experience a base rate increase.
Information on 2005 rates is available on the WCB's web site at www.worksafebc.com.
The Workers' Compensation Board is a provincial statutory agency governed
by a Board of Directors that serves about two million workers and more
than 173,000 employers. The WCB was borne out of a compromise forged between
B.C.'s workers and employers, where workers gave up the right to sue their
employers or fellow workers for injuries sustained on the job in return
for a no-fault insurance program fully paid for by employers. The WCB
is committed to a safe and healthy workplace, to providing return-to-work
rehabilitation and legislated compensation benefits to workers injured
as a result of their employment, and to being responsible, accountable
and financially sustainable.
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For more information please contact: |
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Donna Freeman |
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