September 27, 2005

COCA outraged with WSIB rate stance

The Council of Ontario Construction Associations is outraged the Workplace Safety and Insurance Board has opted to go ahead and increase 2006 assessment rates that will see an average increase of 5.3 per cent for construction groups.

COCA is disappointed WSIB merely confirmed the final 2006 rates without any changes.

“Despite COCA pointing out flaws in the calculations, the WSIB has decided to increase the burden on construction companies who are in compliance with the law.”

COCA said these costs will have an impact on purchasing decisions, including the government’s infrastructure program. It is estimated that these rate increases will result in an extra cost to the government of up to $52.4 million.

“This could have even greater repercussions given the fact that the WSIB has already tipped its hand that there will continue to be increases in assessment rates in 2007 and 2008.”

The rate increase is only one of the actions taken recently against the construction industry, COCA said. This past summer, WSIB also made changes to the CAD-7 program, “which will take money out of the system and increase the maximum surcharge.” Moreover, COCA said, WSIB is looking to approve possibly “an unreasonable and ineffective” return-to-work regulation.

“Not only would this regulation add to the administrative burden of dealing with the WSIB, it does not account for the mobility factor in the construction industry.”

COCA said it is “deeply concerned” with this unprecedented hit on the industry.

DCN NEWS SERVICES

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