Upon reviewing the testimony from public hearings and the documents provided, the standing committee found many examples of situations in which adjudicators, rehabilitation counsellors and other staff within the Workers' Compensation Board have treated claimants professionally and have been willing to go that extra mile on their behalf. Clearly, the problem lies not with the individuals who work within the board infrastructure but rather with the legislative policy and decision-making framework in which they must operate,
The standing committee became aware early on in the process that the Workers' Compensation Act has remained substantially unchanged since 1977. This is despite significant changes that have taken place within the Northwest Territories. New concepts of occupational injury and disease, new principles surrounding workplace health and safety, and an evolving form of ministerial government within our northern political system have all emerged since that time. The legislation has not kept pace and presently does not reflect any of those elements.
Clearly, where insensitivity exists with a workers' compensation system, this can be attributed to insensitive and outdated legislation. inadequate organizational structure, and improperly focused policies. This is not the result of the hard-working staff at the Workers' Compensation Board.
--- Applause
This situation cannot be allowed to continue. Members of the standing committee could empathize with the feelings of injured workers who believe they are being mistreated by board practices and with the staff who are in the position of having to work within an insensitive statutory and policy environment.
Several recommendations will be forthcoming in the standing committee's comprehensive report. However, the standing committee was aware that certain deficiencies within the Workers' Compensation Board require immediate attention and to that end has brought forward this interim report to deal with two matters of urgent concern.
Year's Maximum Insurable Remuneration
The first matter is the year's maximum insurable remuneration. In the opinion of the standing committee on agencies, boards and commissions, the most pressing example of insensitivity to workers' needs had to do with the level established in the Workers' Compensation Act for the year's maximum insurable remuneration, or what we call YMIR. In the act, the YMIR is defined as follows:
"The year's maximum insurable remuneration means the maximum remuneration for any year for the purposes of determining the benefits payable in respect of an accident that occurs in the year and for determining the amount of the assessable payroll of an employer for the year and is equal to $40,000."
This definition is critical to the administration of the Workers' Compensation Act as it provides the basis for the board's system of remunerating injured workers and of assessing employers.
The standing committee on agencies, boards and commissions was concerned to learn that the level of the YMIR has not been adjusted since 1988. This has definite implications for injured workers who receive WCB pensions in the Northwest Territories. Persons who are earning more than $40,000 per annum at the time of their injury must immediately face a drastic lifestyle adjustment when their yearly remuneration drops to the YMIR level. Given that these individuals and their families have often faced personal spending limits on pre-injury salary levels, they are often confronted with mortgage, vehicle, and personal loan payments that suddenly become impossible to make. The cost of living in the Northwest Territories cannot often be borne by persons on disability pensions, and our communities see the loss of the skills and talents of hard-working people who are then forced to move to southern Canada.
Our first recommendation, Mr. Speaker: Clearly, immediate action is in order to raise the YMIR and provide relief to workers who are injured in the Northwest Territories. Accordingly, the standing committee on agencies, boards and commissions recommends that the Workers' Compensation on Act be amended prior to the conclusion of the June sitting of this House to increase the year's maximum insurable remuneration; and further, that the Minister responsible for the Workers' Compensation Board consider the concept of indexing the YMIR so that yearly increments can be made without the passage of amendments to the Workers' Compensation Act.
Legislative Review Process
Recommendation number two is related to legislative review process. Without a doubt, there is an urgent need for a comprehensive review of the Workers' Compensation Act. Although independent panels were established for the review
of the act, both in 1986 and 1989, the recommendations which came forth were not followed through as legislative initiatives. The review process which takes place must be a fully public exercise. Opportunities should be available for input and guidance not only from the larger industry associations and organized labour but also from workers and employers throughout the Northwest Territories who are less formally affiliated with public interest groups.
--Applause
The review should be driven by the need to make needed revisions to the act, and responsibility for operationalizing the review should rest with the Legislative Assembly. There must be a recognition that, just as it is important for the Workers' Compensation Board to exercise its jurisdiction over the administration of the act, it is vital that the Legislative Assembly maintain responsibility for the legislative process.
During the first session of the 12th Legislative Assembly, a new legislative process was introduced which vastly increases the level and type of public participation included in reviewing proposed legislation. One aspect of that process involves the preparation of a legislative action paper to outline principles and substance for inclusion in a proposed bill. There is an opportunity for the Assembly to then use its system of standing committees to receive public input on matters included in the legislative action paper before a bill is even drafted. When the bill comes forward, it reflects the input received from this preliminary review and is again subject to a more technical public and committee scrutiny following second reading.
Mr. Speaker, recommendation number two: This is the process favoured for review of the existing Workers' Compensation Act. Therefore, the standing committee on agencies, boards and commissions recommends that the Minister responsible for the Workers' Compensation Board prepare a legislative action paper outlining proposed areas for amending the Workers' Compensation Act, for tabling prior to December 31, 1992.
--- Applause
Mr. Speaker, this concludes the standing committee on agencies, boards and commissions' interim report on the Workers' Compensation Board.
Motion To Move Committee Report 11-12(2) To Committee Of The Whole, Carried
To permit further discussion on the report and Its recommendations, I move, seconded by the honourable Member for Yellowknife Centre, that the interim report on the Workers' Compensation Board be moved into committee of the whole for consideration.