The WSIB has finally recognized ICI general contractors for their outstanding safety and cost performance. The G-6 Class Rate (Non-residential building Construction) has been set at $1.79, a reduction of 51 cents from the current rate of $2.30. This reduction will save ICI contractors approximately $9.2 million in 2022.
The OGCA has advocated for an ICI general contractors class rate since the release of the original Rate Framework proposal 6 years ago. Under the Rate Framework model, employers’ rates are adjusted from the Class Rate reflecting cost performance. Therefore most OGCA members will be paying less than the Class Rate.
The Rate Framework model originally lumped residential and ICI contractors into the G-1 rate group. This caused ICI contractors to be overcharged on premiums. This year ICI contractors were awarded their own class rate based on continued accident and cost performance compared to the rest of the G-1 contractors.
The WSIB reduced the average system premium rate by 5.1% or about 7 cents so that most other construction rates will enjoy a reduction in that range. This substantive premium reduction is directly related to the ICI industry’s dramatic long-term reduction in claims and costs. The system is designed to respond to performance, and it now has.
The WSIB has also taken steps with MLTSD to resolve the current issue of premium rate inflation due to the inflation of the income earnings ceiling by capping the growth of premiums to an increase of 3.2 percent (close to the normal range). The problem will be resolved by Minister McNaughton introducing a regulation under the Workplace Safety and Amendment Act.
You can find the full 2022 premium rate report here.
Additional Proposed Legislative Changes to the WSIB
In addition to the premium rate reduction, Minister McNaughton intends to introduce legislation that, if passed, would allow for a significant portion of the WSIB’s reserve, currently valued at $6.1 billion, to be distributed to safe employers.
You can read the full press release from today here.
If you have any questions about this announcement or any other WSIB, health and safety or COVID-19 related inquiry, please contact David Frame, Director of Government Relations, at email@example.com.