Thank you, Madam Chairperson. The Standing Committee on Government Operations reviewed Bill 6, An Act to Amend the Workers Compensation Act, at meetings on August 31, September 1 and November 12, 1998. The committee would like to thank the sponsor of the bill, the Member for Yellowknife North, and his legal counsel, for presenting the bill and responding to the committee's questions.

Under the workers' compensation system, injured workers give up the right to sue employers and other workers, in exchange for the right to receive benefits under a no-fault compensation system, funded by employers. This is referred to as the "historic trade-off". Employers pay assessments to the Workers' Compensation Board to collectively share the risk of compensating injured workers because of negligence. The standing committee recognizes under the current act, the NWT is different from all other Canadian jurisdictions because many employers and workers are not protected from lawsuits for work-related injuries. In the NWT, an injured worker may not sue his or her own employer or another worker of that employer. However, the injured worker may sue other employers and workers covered by the act. Because of subrogations, this means the WCB may sue employers and workers who are participants in its own system and who provide the assessment income. This situation has been commented upon in various reports over the years. There have been several proposals that the act be amended to prohibit court action against all employers and workers covered by the act.

Bill 6 would amend the Workers' Compensation Act to prohibit injured workers and the WCB from suing other workers and employers covered by the act with certain exceptions. This bill would provide greater protection from lawsuits to NWT workers and employers when a worker is injured on a job and bring our act more into line with the philosophy of workers' compensation throughout Canada.

The standing committee received submissions from the Minister responsible for the Workers' Compensation Board, CAW Canada and an individual employer. These submissions supported the bill, although the Minister had some suggestions for amendments. As a result, the sponsor brought to the committee a proposed motion to amend the bill. This motion was considered and passed by the committee. The amendment to the bill provides some exceptions to the bill's prohibition on lawsuits; so that lawsuits would be allowed against workers and employers covered by the workers' compensation system in certain circumstances. The amended bill would allow an injured worker to sue an employer or a worker covered by the act if the person causing the injury was not acting during the course of his or her employment, or engaged in an industry to which the act applies when the accident occurred. Seven other provinces have similar provisions.

The amended bill would also allow lawsuits where the accident is caused in the use of the motor vehicle, as defined in the Motor Vehicles Act. There is a provision to protect a person who operates a vehicle that he or she does not own. The bill provides that the maximum liability for a worker who is not the owner of the vehicle is the amount payable in respect of the accident under any insurance policy covering that worker. If the owner of the vehicle does not have insurance covering that driver, the driver is not liable.

As well, the amended bill would allow lawsuits where the accident was caused in the use of a mode of transportation other than a motor vehicle - including aircraft - but only where the accident is covered by a policy of liability insurance. The extent of the liability for the employer or worker would be limited to the amount payable for the accident under the insurance policy. The transitional provisions of the bill were also amended by the Standing Committee. Under the original bill, the amendments made by the bill would apply to accidents that occur before the bill comes into force, if no legal action has begun. The amended bill provides that the bill would only affect accidents occurring after the bill comes into force. Accidents occurring before the bill comes into force will be governed by the act as it read on the date of the accident. Madam Chairperson, committee Members may have questions or comments on the bill as we proceed. This concludes the standing committee's comments on Bill 6, An Act to Amend the Workers' Compensation Act. Thank you, Madam Chairperson.