Thank you, Mr. Chairman. The recommendation, then, after the second major concern was that the Standing Committee on Legislation recommends that the annual report of the Workers' Compensation Board include
more operational details and statistics as listed in this report.
Mr. Chairman, going back to the merit rebates/super-assessments, there was great concern about a merit rebate/super assessment system expressed during the public hearings. Most labour organizations felt this system would bring forth the issue of failure on the part of an employer to report accidents. It was suggested that there are fines already in place in the act for failure to report accidents. It was felt that more severe penalties should be applied to those employers who deliberately avoid reporting accidents to make their record look good and keep their assessment rate low. It was suggested the Workers' Compensation Board consider a penalty assessment system, such as the British Columbia system.
Recommendation 3
The Standing Committee on Legislation recommends that the merit rebate/super assessment program be implemented, however, the act should be amended to increase the fines used as penalties for failure to report accidents.
Board Composition
During the public hearings, it was expressed that the board should be representative of the Northwest Territories. That would mean a requirement to include at least one member of aboriginal descent. A larger board would ensure that at least one person from every part of the territories and the diversity of the occupations was represented. It was also felt that nominations to the board should be scrutinized to ensure appointments were based on qualifications and not patronage. Although the presenters were not suggesting this is the case currently, they felt public scrutiny would prevent nominations from seeming to be based on patronage.
Recommendation 4
Therefore, the Standing Committee on Legislation recommends that the board membership be increased to include at least one member of aboriginal descent and to ensure that the diversity of occupations is represented.
Traditional Harvester/Aboriginal Artists and Carvers
The legislative action paper makes no specific proposal for dealing with the issue of traditional harvesters. However, in July 1993, the Workers' Compensation Board released a proposal paper drafted jointly by the board and the Department of Renewable Resources. The following changes to the existing program were proposed:
- a change to the policy criteria used to define "principally engaged." Rather than using a minimum income level of $10,000, the policy would require that the injured harvester earn at least 25 per cent of his or her yearly income from harvesting. The use of country food by an applicant could be valued to a maximum of $7,000. However, it is not proposed that this definition be added to the act; and,
- an amendment to the act to reduce the amount of compensation provided to traditional harvesters from the YMIR of $47,500 to $24,000. The Workers' Compensation Board stated that this figure was compiled by the Department of Renewable Resources, based on sales records of harvesters for the past several years. Harvesters who earn greater than this amount could apply for optional coverage.
The legislative action paper, similarly, does not address the issue of aboriginal artists and carvers in detail. It notes that the Workers' Compensation Board has the authority under the act to determine an industry or an independent operator to be within the scope of the act; however, it makes no specific proposal regarding the structure of such a program, or compensation levels or eligibility.
There were many varied opinions on these particular issues. Many felt that the board and the department should be commended for their efforts to address the "principally engaged" dilemma. However, a majority of those who made presentations felt that the workers' compensation system was designed to meet the requirements of a wage economy and, more specifically, workers of employers. It was felt that perhaps workers' compensation was not suited to cover independent operators and piece workers.
Recommendation 5
Therefore, the Standing Committee on Legislation recommends that the Minister responsible for the Workers' Compensation further investigate other programs of guaranteed income that may provide coverage for traditional harvesters, artists, carvers and other occupations which my not clearly fit into the workers' compensation scheme.
Management of Pension Fund
It was brought up a number of times during the public hearings that the responsibility of the board of directors, with respect to the management of the fund, is not clearly stated in the legislation. Many were concerned that the legislation did state that the board shall manage the fund, but that it doesn't say that the board of directors is accountable, has a fiduciary obligation to manage these funds in a responsible and knowledgeable manner. Some people feel that this accountability should be in legislation.
Recommendation 6
Therefore, the Standing Committee on Legislation recommends that the Workers' Compensation Act be amended to clearly state the fiduciary obligation of board members for the management of the fund.
Commutation/Lump Sum Payments
Currently, the Workers' Compensation Act allows the board to commute certain permanent disability pensions to lump sum payments. This is possible in cases where impairment of the worker's earning capacity is not greater than 10 per cent, at the discretion of the board. However, the board has adopted a policy that uses the percentage of disability rating, rather than percentage of earning capacity as the 10 per cent guide. This discrepancy between earning impairment and disability impairment has created much confusion.
The legislative action paper proses that the 10 per cent limit on eligibility remain, and that the act be clarified. It also proposes that, within the 10 per cent limit, commutation be available to workers as a right upon application, and where no application is made, the board should have the discretion to commute.
Opinions on commutations varied from strongly opposed to strongly supportive. Most employer groups and organized labour groups did not support a change to the current legislation. Most felt that lump sum payment provisions do not belong in a workers' compensation scheme and that commutations are contrary to the established purpose of workers' compensation legislation. Individuals or employees supported the lump sum provision being available upon application. They felt the current legislation was too paternalistic. They believe that the current legislation takes away the right of the individual to decide.
Recommendation 7
Therefore, the Standing Committee on Legislation recommends that the ten percent disability on eligibility for commutation of pension payments remain in the legislation as currently is, and that the commutation be provided as a right upon application of the worker and that the discretion of the board to commute in the absence of an application from the worker, be eliminated.
I'll ask Mr. Lewis to continue with the report.