Last week, Minister Monte McNaughton, Minister of Labour, Training and Skills Development, announced he would introduce legislation that, if passed, would allow for a significant portion of the WSIB’s current reserve, currently valued at $6.1 billion, to be distributed to safe employers. The proposed legislation would set a funding corridor for the institution between 115 per cent and 125 per cent, with an option to redistribute funds below the threshold.
Who will receive the redistribution, or the administration of the redistributions, have yet to be decided. The Government of Ontario has proposed enabling the WSIB to work with the Canada Revenue Agency to streamline remittances for businesses. OGCA expects the legislation to be introduced in the next few weeks.
In addition to the proposed legislation, the Ministry has taken steps to limit the wage inflation to the income earnings ceiling caused by the COVID-19 pandemic. After passing legislation last year, the income earnings ceiling will again be capped to an increase of 3.2 per cent (close to the normal range) under the Workplace Safety and Amendment Act.
Linking the premium ceiling to inflation protects workers and gives construction employers the flexibility they need to invest in safety, their businesses and the Ontario economy.
You can find more information about this announcement by clicking here.