March 31, 2006

Health and Safety

Industry backs WSIB consultations

CINDY WOODS and PATRICIA WILLIAMS

staff writers

Ontario’s construction industry is applauding the province’s proposal to extend workplace safety and insurance coverage to all construction workers.

Earlier this week, Labour Minister Steve Peters announced 90 days of consultations on the proposal.

Currently, construction companies pay premiums to the Workplace Safety and Insurance Board (WSIB) on behalf of employees, or an average of six per cent of payroll costs.

But independent operators, sole proprietors, partners and executive officers can opt out.

That, according to Peters, puts legitimate companies at a disadvantage when businesses that are part of the underground economy avoid paying WSIB costs.

David Frame, president of the Council of Ontario Construction Associations, agrees, adding “only 61 per cent of the industry pays into the WSIB system.

“Thirty-nine per cent of the workforce doesn’t have premiums paid for them. Some of these are part of the underground economy, but most are employed by independent operators who, under current legislation, can opt out of coverage,” Frame said.

“This proposal will take away that option, allowing mandatory coverage for all independent operators.”

Provincial estimates suggest Ontario loses $1.5 billion annually to the underground economy.

“It won’t directly hit the underground economy, but it will go after those who are choosing to operate on the fringe of compliance,” Frame says.

Clive Thurston, president of the Ontario General Contractors Association (OGCA) says his organization is “looking forward to participating and commenting” during consultations.

“It is important to go after the underground economy ...”

Clive Thurston

OGCA

“It is important to go after the underground economy, and this is one of the best tools that we are aware of to do that,” Thurston adds.

“This is about the fact that there are a large number of people and companies who are employed in the construction industry who are not covered and are a drain on the system later on.”

Meantime, the Canadian Federation of Independent Business (CFIB) says the plan would be bad for small firms that operate above board and force those who don’t “further underground.”

“Those who currently cheat the system, from the inside or from the outside — the true source of the problems — will remain beyond WSIB’s reach, while the firms already subsidizing the cheaters will see the amount of their overpayment increase,” says Judith Andrew of the CFIB.

In a 2000 survey of its 42,000 members, CFIB found 76 per cent opposed any extension of WSIB coverage, while 12 per cent were in favour. Nine per cent were undecided, while three per cent weren’t interested.

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