February 24, 2005

Labour minister to decide shortly

Mandatory WSIB coverage for all onsite workers makes sense: Bentley

By Grant Cameron

staff writer

Labour Minister Chris Bentley says it makes sense for everyone on a construction site to have Workplace Safety and Insurance Board (WSIB) coverage.

‘We haven’t reached a final decision but we’ve received a lot of very good input’

Chris Bentley

While the minister has yet to make a final decision on the issue of mandatory coverage, he said recently that it seems to be a good idea because it would combat the underground economy, level the playing field for legitimate contractors and put money back into federal and provincial coffers.

“I think I would say simply this: It does make logical sense that when you have a construction site all of those on the site are subject to the same risks and potentially create the same risks, so you would instinctively think that they should be covered somehow by insurance.”

Bentley said he’s been wrestling with the issue of mandatory coverage of construction workers for some time now.

“The issue of mandatory coverage has been raised by many involved in construction from the time I became the minister of labour.

“They are concerned about the principles . . . the general principle that if you are on a construction site you potentially create a risk and you are subject to risks that aren’t fully supported by the existing coverage system.”

Bentley said that many construction groups, like the Joint Advisory Implementation Group set up under the WSIB, the Council of Ontario Construction Associations and many other employer and labour groups, have asked the province to consider mandatory coverage.

A report on the underground economy released last year by the Ontario Construction Secretariat also suggested that mandatory coverage would help curb the black market economy.

The study, conducted by T.E. Armstrong Consulting and Prism Economics and Analysis, determined that the widespread prevalence of underground practices in Ontario’s construction industry constitutes an urgent challenge to public policy.

The report estimated that the revenue loss to governments and public agencies was approximately $1.3 billion annually between 1998 and 2000.

Bentley said he is taking such input seriously and is fast approaching a decision.

Asked whether he is swaying one way or another, Bentley replied: “We haven’t reached a final decision but we’ve received a lot of very good input.”

As for the timeframe on a decision, Bentley said it would likely come shortly.

“I would think sooner rather than later,” he said. “It’s a huge issue for members of the industry.

“The fact of the matter is that the WSIB loses $60 million a year from the underground economy.

“The provincial and federal governments lose a lot of tax revenue and the unfortunate reality is that when workers get injured, if they don’t happen to have been covered, they often end up receiving WSIB benefits so you have a drain on the benefit system that other employers have contributed to.

“This creates an unlevel playing field.”

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