Looming changes to the Workplace Safety and Insurance Board (WSIB) will hamper small, independent construction contractors by adding to their costs, says Perth-Wellington MPP Randy Pettapiece.
He is a member of the Ontario legislature’s all-party Standing Committee on Government Agencies, which is currently conducting a review of the WSIB.
During recent hearings, Pettapiece says many stakeholders expressed concern that high premiums and red tape are taking a toll on small businesses.
“Small businesses drive our economy,” said Pettapiece. “But they’re facing higher and higher operating costs because of too much red tape and other provincial policies.” This affects Ontario’s ability to recover from the economic downturn, Pettapiece added.
Effective Jan. 1, 2013, all small, independent construction contractors must carry WSIB insurance on themselves. Currently these owners may purchase their own private insurance. Many such policies offer better coverage than WSIB insurance and at lower costs, said Pettapiece.
“Many of these policies provide seven-day-a-week coverage, while WSIB only covers them on the job,” Pettapiece explained.
He noted the new rules will place all employees of a construction firm in the same premium category.
“They will have to insure every employee, as if they were a construction worker, even a secretary working in an office,” he said.
Also appearing at the committee’s review was a local group of Old Order Mennonite representatives from Perth and Wellington counties.
Aaron Weber, Chair of the Old Order Mennonite Government Relations Committee, appealed to the committee to exempt his community from paying the mandatory WSIB premiums for reasons of religious conscience.
Currently, Mennonite’s operating farms and businesses which fall under the WSIB’s regulatory umbrella are compelled to purchase insurance.
“It’s against their religion to pay into insurance plans and they want to be exempted,” said Pettapiece, adding Mennonites are already exempted from paying Canada Pension Plan premiums by the federal government and are simply seeking a similar exemption from the province.
Some Mennonite business operators, he pointed out, have had their bank accounts garnished for failing to pay premiums.
Weber told the review committee that if WSIB were a tax, rather than an insurance plan, his community would have no problem paying, although they wouldn’t access the benefits.
Pettapiece first met with Weber and others from his community in January at his constituency office. Pettapiece followed up by arranging a meeting for the group with the Ministry of Labour, and then inviting them to appear before the committee.
“I hope the government will listen to the views expressed today,” said Pettapiece. “Independent contractors and our Mennonite community have expressed serious concerns with the government’s policy of forcing them to purchase insurance through the WSIB.”
Pettapiece says his party wants to see Bill 119, which would implement the changes, scrapped.
Christine Arnott, WSIB media relations specialist said any exemptions from paying mandatory WSIB premiums would require new legislation from the provincial government. However, she noted, senior WSIB executives have had meetings in the past with members of the Mennonite community to hear their concerns and a meeting with recently appointed WSIB chair Elizabeth Witmer is planned in the next few weeks.
Over the next three years, the WSIB estimates between 65,000 and 95,000 new entrants to the system as a result of the new mandatory coverage requirements.
