Quick Links
Customer Centres
WorkSafeBC announces lower average premium rates for 2008
Richmond, B.C., October 15, 2007— WorkSafeBC has announced a 7.5 percent decrease in the average base rate for employers in 2008. The rate next year will be $1.56 per $100 of assessable payroll, compared to $1.69 in 2007. This is the lowest rate that employers have experienced in more than 30 years.
“This is a good news story for BC employers and their workers,” said WorkSafeBC Chief Financial Officer, Sid Fattedad. “Base rates will be among the lowest in Canada. The sound financial condition of WorkSafeBC makes it the first Canadian workers compensation organization currently capable of meeting minimum capital adequacy test standards required of insurance companies. This ensures our ability to provide payment security for injured workers while providing premium rate stability for employers into the future. WorkSafeBC's financial condition is equivalent to a 30,000 member pension plan in a healthy surplus position, which is a rarity these days.”
However, Fattedad cautions, “We have been fortunate that this far into the current economic expansion the injury rate has not risen. With the help of employers and workers engaging in safe work practices and effective return-to-work programs, we are sure that the cost of injuries can remain on a declining track.”
Highlights
Overall, 73 percent of employers will see a reduction in their 2008 base rates, 11 percent will see their rates remain unchanged and 16 percent of employers' rates will increase.
Most classification units across all industry sectors are witnessing base rate decreases.
Most notable are the following key industries, which each will see rate decreases of 20 percent in 2008: Sawmills, Paper Mills, Open Pit Mining, General Trucking, Hotels, General Retail, Shipbuilding, Hi-Tech Manufacturing, as well as Light Industrial Manufacturing, Road Construction and construction trades such as painting, plumbing, and electrical work (Industrial Construction and House Construction are down 14 percent and 11 percent respectively).
Decreases are also announced for Forestry, Motion Picture Production, Couriers, Electric Utilities, Department Stores, Home Improvement Centres and Auto Repair.
Because of the exceptional financial position of their respective rate groups, the Harbour Front industries and the Ready Mix Concrete industry will receive surplus dividends and experience 30 percent rate decreases. Other industries receiving exceptional surplus dividends are Acute Care, Short Term Care, Long Term Care, Distribution Centres and Warehouses.
Education, Supermarkets, Local Governments, Telephone Services and Consulting will see their rates remain virtually unchanged or witness very small increases.
Other industries whose rates are increasing include Bus Lines (12 percent), Ferry Services (20 percent), Convenience Stores, Furniture Stores and Flooring Stores (20 percent), Greenhouses (19 percent), Coffee Shops (17 percent), and Gas Utilities (6 percent).
“Premiums are primarily driven by injury costs,” said Fattedad. “It's important to recognize that industries can decrease their rates by improving safety and return-to-work programs with effective disability management.”
To this end, to assist industries to lower their injury and premium rates, WorkSafeBC has worked with industries to establish safety associations in forestry, construction, health care, agriculture and the oil and gas industries. WorkSafeBC has also developed sector-based business teams to work closely with industry and labour groups. WorkSafeBC has also increased the number of safety officers in its efforts to support the declining trend in the serious injury rate.
Information on 2008 rates is available on the WorkSafeBC web site at WorkSafeBC.com.
Serving 2.2 million workers and about 190,000 employers, WorkSafeBC is a provincial statutory agency governed by a Board of Directors and funded by employers. WorkSafeBC was born out of a compromise between BC's workers and employers in 1917 where workers gave up the right to sue their employers or fellow workers for injuries on the job in return for a no-fault insurance program fully paid for by employers. WorkSafeBC is committed to a safe and healthy workplace and to providing return-to-work rehabilitation and legislated compensation benefits to workers injured as a result of their employment.
|
For more information, contact: |
|
| Donna Freeman Manager, Corporate Public Affairs WorkSafeBC 604 276-3141 or e-mail Donna.Freeman@worksafebc.com |
|