Thank you, Mr. Speaker. The standing committee on agencies, boards and commissions has completed its comprehensive review of the Northwest Territories Workers' Compensation Board. The standing committee held public hearings in Yellowknife on May 11 through 13, 1992, and has met on several occasions subsequently to review submissions and research material.
An interim report, Committee Report 11-12(2), was tabled in the 12th Legislative Assembly on June 18, 1992, The report included recommendations for an urgent amendment to the Workers' Compensation Act and for the initiation of a major legislative review to be undertaken by the Minister responsible for the Workers' Compensation Board. The standing committee on agencies, boards and commissions is pleased to note that Bill 30, An Act to Amend the Workers' Compensation Act, has been accorded speedy passage by the Legislative Assembly in response to the committee's earlier recommendation, and has been assented by the Commissioner of the Northwest Territories. The efforts of the Minister, the Workers' Compensation Board, and the standing committee on legislation should be acknowledged in this regard.
The standing committee on agencies, boards and commissions also wishes to acknowledge the Minister responsible for the Workers' Compensation Board, the Hon. Dennis Patterson, as well as the directors, chairperson and staff of the Northwest Territories Workers' Compensation Board, who provided considerable assistance and material over the course of the review. The standing committee on agencies, boards and commissions also acknowledges the many individuals and organizations who agreed to appear during public hearings, or who submitted written or telephone comments. Their input has, in all cases, been carefully studied and was extremely helpful.
In Its review of the Workers' Compensation Board, the standing committee on agencies, boards and commissions considered carefully the basic principles on which workers' compensation has been based in this country since the early 1900s. The standing committee became aware, as well, that new principles have tended to emerge through the years as the Canadian workplace has grown progressively more sophisticated. In addition, the social and economic characteristics of the Northwest Territories provide a set of unique elements which must be taken into account when developing a practical approach to workers' compensation. The challenge of our northern environment has been to marry all these elements within a framework that is fair to both employers and workers across the Territories.
While employers and workers are identified often as the groups which benefit most directly from the presence of the Workers' Compensation Board, the standing committee on agencies, boards and commissions quickly came to realize that, to some degree, every resident of the Northwest Territories has a stake in ensuring that an adequate, well working system is in place to compensate injured workers. Not only are residents affected by the impact of the Workers' Compensation Board assessments on both costs and salaries, but they share in the image this jurisdiction presents to the rest of the world, that is where workers who are injured in the Northwest Territories are treated with efficiency and dignity, that reflects on each of us.
The standing committee on agencies, boards and commissions was concerned by many comments that suggested the Workers' Compensation Board is not sensitive to the concerns and needs of injured workers. The standing committee, during the course of its review, concluded that where such perceptions of insensitivity exist, they are a reflection of outdated legislation and ineffective policy rather than the activities or attitudes of board staff or the chairperson.
There were other general concerns, as well, which were brought to the attention of the standing committee on agencies, boards and commissions. These tended to relate to significant frustration, confusion and isolation of injured workers. There were perceptions that the Workers' Compensation Board has become too oriented toward financial management priorities at the expense of claimant groups. There was a concern that the board has become increasingly representative of, and responsive to, a narrowing frame of reference reflecting the views of the larger industry associations and organized labour.
The standing committee on agencies, boards and commissions has recommended structural changes to the Workers' Compensation Board. These include the expansion of the board to nine members to better accommodate regional and other perspectives. It is also recommended that the important role of industry representatives and organized labour be recognized by amending the Workers' Compensation Act to provide that they will recommend appointments to the Minister.
The standing committee recommends that a part-time neutral chairperson be appointed by the Minister. Board continuity and consistency will be improved through the use of staggered appointments so that all members' terms do not expire at the same time.
The standing committee on agencies, boards and commissions takes a strong position that accountability for the Workers' Compensation Board ultimately lies with the Legislative Assembly. It is recommended that the section of the Workers' Compensation Act, which deals with the authority of the board, should be amended to reflect this.
While the standing committee fully recognizes and accepts the importance of long standing principles which require the board to operate at arm's length from government, the time has come in the Northwest Territories to redefine and clarify what that means. To this end, the standing committee on agencies, boards and commissions is bringing forward recommendations that will increase the role of the Minister in matters surrounding the operation of the Workers' Compensation Board, and will establish new procedures for reviewing board accountability tools within the Legislature. Recommendations are included to establish a formal, open and all inclusive consultation process, as well as a mandatory review of board operations and legislation to be held at regular periodic intervals.
The standing committee on agencies, boards and commissions is recommending that a now attitude be embraced within the board and that this will involve a more active and visible presence in the regions outside of Yellowknife.
In reviewing board infrastructure, the standing committee on agencies, boards and commissions found that the appeals process is, at present, sound and working well. Clarification is needed with respect to the role and relationship of the workers' advisor, however.
With respect to financial matters, the standing committee on agencies, boards and commissions recognized the significance that the Northwest Territories has one of the very few fully funded boards in Canada. The standing committee is recommending that this status be established in legislation. It is also recommending that changes be made in procedures through which employers are assessed for contributions to the board, and advocates the use of merit rebates and super assessments.
General comments are made with respect to board investments, the policy for commutation of pensions, for instance lump sum payments, third party liability issues, and areas for further study are identified.
The standing committee on agencies, boards and commissions took a long and hard look at the manner in which the traditional aboriginal harvesters are covered within the workers' compensation system. The standing committee raises concerns that the current policy does not reflect the realities of the contemporary lifestyle of the professional hunter or trapper, and it recommends the elimination of the current threshold income criterion for eligibility.
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A now definition of persons who should qualify as traditional harvesters for the purpose of workers' compensation eligibility must be incorporated within the act.
Finally, the standing committee on agencies, boards and commissions expresses a strong stand on the importance of safety enforcement and work place safety education. Responsibility for the enforcement of occupational health and safety standards in the Northwest Territories should remain within the Department of Safety and Public Services, but the Government of the Northwest Territories must ensure adequate funding and support Responsibility for safety education should remain as it is currently allocated with the additional establishment of a program of contribution funding to allow greater community involvement in safety education.
Recommendations
Mr. Speaker, the following recommendations are included in the final report of the standing committee on agencies, boards and commissions:
Recommendation 1: That the Workers' Compensation Act be amended so that the board will be composed of: a) two directors appointed by the Minister on the recommendation of organized labour; b) two directors appointed by the Minister on the recommendation of the representatives of employers; and c) five additional directors appointed by the Minister, one of whom is to be appointed by the Minister as chairperson of the board.
Recommendation 2: That the Minister appoint four of the additional directors of the board according to criteria that will establish a full cross-section of background and opinion on the board, including but not limited to, regional representation, representation of both genders and representation of aboriginal perspectives.
Recommendation 3: That the Minister responsible for the Workers' Compensation Board make appointments so that no more than 50 per cent of the members' terms will expire in any one fiscal year.
Recommendation 4: That the Workers' Compensation Act be amended to specify that the chairperson's duties will be equivalent to that of part-time employment.
Recommendation 5: That the role of the workers' advisor be clarified with respect to responsibilities for communicating and promoting and understanding of workers' compensation in communities across the Northwest Territories; and further, that adequate funding be allocated to support activities undertaken in this area by the workers' advisor.
Recommendation 6: That the Workers' Compensation Board establish memoranda of understanding with regional health boards and hospital boards to provide resource and supportive services to regional clientele.
Recommendation 7: That the Workers' Compensation Board develop a strategy for meeting outside Yellowknife on several occasions over the course of each year to conduct business and acquaint itself with the issues and people of the regions.
Recommendation 8: That the Minister review the definition of .exclusive jurisdiction' in subsections 7.(1) and 7.(2) of the existing Workers' Compensation Act; and further, that a new formulation for board authority be included for discussion in the legislative action paper.
Recommendation 9: That the Minister responsible for the Workers' Compensation Board be empowered to take a more active role in the monitoring and management of the board; and further, that the Workers' Compensation Act be amended to reflect the nature of that increased role; and further, that draft policy and/or regulations required for the implementation of the Minister's increased authorities be available for review at the time when amendments to the Workers' Compensation Act are introduced.
Recommendation 10: That the Minister responsible for the Workers' Compensation Board make It a practice to table in the Legislative Assembly the corporate plan received annually from the Workers' Compensation Board.
Recommendation 11: That the Workers' Compensation Act be amended to include provisions for the Minister responsible for the Workers' Compensation Board to receive, approve and table the strategic plan of the Workers' Compensation Board on an annual basis; and further, that the legislative action paper outline legislation options for limiting the board's operational capacities until ministerial approval of the strategic plan has been obtained.
Recommendation 12: That the Minister develop and table a process for receiving input from employee and employer groups, as well as the Legislative Assembly, unorganized labour and injured workers with respect to board appointments, policy considerations and legislative initiatives.
Recommendation 13: That the legislation action paper include a review of options for statutory requirements which would establish a regular process of periodic review.
Recommendation 14: That the Workers' Compensation Board reinstate policy through which claimant files are reviewed by the manager of claim services prior to the appeal process.
Recommendation 15: That the Minister review existing provisions in the Workers' Compensation Act with respect to board appointments of the review committee membership; and further, that the Minister include in the legislative action paper the consideration of advantages inherent in a ministerially appointed review committee.
Recommendation 16: That the Workers' Compensation Act be amended to establish the office of the workers' advisor and grant authorities necessary to access the information and support required in the performance of the duties of the office; and further, that an administrative structure should be finalized in which the office of the workers' advisor is established to operate independently from the Workers' Compensation Board; and further, that the workers' advisor continue to report directly to the Minister responsible for the Workers' Compensation Board; and further, that a yearly review of the office of the workers' advisor be undertaken by the Minister to focus on process barriers, outcome measures and forced growth requirements.
Recommendation 17: That the Minister include in the legislative action paper a consideration of the concept of incorporating a requirement that the Workers' Compensation Board be fully funded within the Workers' Compensation Act.
Recommendation 18: That the Minister encourage the Workers' Compensation Board to revise its fee payment schedule for seasonal employers in order to spread fees out over a longer period of time.
Recommendation 19: That the Minister evaluate the potential application of merit rebates and super assessments within the assessment framework used by the Workers' Compensation Board; and further, that the Minister include in the legislative action paper a consideration of the legislative amendments which would be required to support a system of merit rebates and super assessments.
Recommendation 20: That, for the purpose of subsection 10.(I) in the Workers' Compensation Act, the definition of aboriginal harvesters who are 'principally engaged in hunting, trapping or fishing for a livelihood" should not include a threshold income criterion.
Recommendation 21: That, for the purpose of subsection 10.(1) of the Workers' Compensation Act, the definition of aboriginal harvesters "who are principally engaged in hunting, trapping or fishing for a livelihood' should reflect the realities of working and living in northern communities.
Recommendation 22: That the legislative action paper include a consideration of a now process through which a workable definition of aboriginal persons 'principally engaged in hunting, trapping or fishing for a livelihood" can be incorporated within the Workers' Compensation Act.
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Recommendation 23: That the legislative action paper include a consideration of programs which could be established under the authority of the Workers' Compensation Board and/or the Department of Culture and Communications regarding the compensation of aboriginal artists and carvers Injured or disabled as a result of their work.
Recommendation 24: That the legislative action paper include a full consideration of third party liability provisions within the Workers' Compensation Act; and further, that the legislative action paper propose a range of suitable options which can then be the subject of further public discussion and review.
Recommendation 25: That the legislative action paper include a full consideration of questions surrounding the commutation of disability pensions.
Recommendation 26: That for the present time, responsibility for the enforcement of occupational health and safety standards should remain with the Department of Safety and Public Services; and further, that the Minister of Safety and Public Services examine concerns raised by witness" at the public hearings with regard to safety enforcement and provide a response to the Legislative Assembly at the earliest possible time.
Recommendation 27: That the Minister consider establishing a contribution fund from funds within the Workers' Compensation Board in order to support local training initiatives in the area of safety education.
Mr. Speaker, that concludes the report of the standing committee on agencies, boards and commissions on its review of the Workers' Compensation Board.
Motion That Committee Report 16-12(2) Be Received And Moved To Committee Of The Whole, Carried
Therefore, I move, seconded by the honourable Member for Yellowknife Centre, that the report of the standing committee on agencies, boards and commissions, be received by the Assembly and moved Into committee of the whole for consideration. Mahsi.