Workplace assessment rates are set to go lower, according to WorkSafeNB President and CEO Tim Petersen. He dropped the hint during a speech at a Saint John Region Chamber of Commerce luncheon at the Delta Hotel on Thursday.
While Petersen couldn’t fully commit to what the WorkSafeNB board would decide in the next two weeks, he did say it would be “better than a buck 69,” which is the current average assessment rate.
“New accident costs, which are one of the key components, are trending very positively in the downward direction. I am confident that there will be a significant, positive change in the assessment rate for 2023,” said Petersen, who addressed a crowd of business leaders as part of regular speakers series organized by The Chamber.
The 2022 rate of $1.69 per $100 of assessable payroll represents a 22 percent decline in rates from 2021. An additional rate decrease would continue the downward trend for assessment rates for New Brunswick businesses still reeling from the impacts of Covid 19.
Higher rates are costly for business
In 2017, the rate was $1.48 for every $100 of payroll. In 2018, it jumped to $1.70, and then $2.65 in 2019.
“The issue has been on our radar for a number of years,” said David Duplisea, the CEO of the Saint John Region Chamber of Commerce. “[The rate] kept creeping higher and higher, which was unstainable, especially for large corporations that might have 1,000 employees. Rising rates had a significant effect on them.”
Duplisea said business groups and labour wanted the same thing, a drop in rates with no erosion of benefits to workers. In 2020, the situation began to improve, with the rate dropping to $2.40, then $2.17 in 2021, and $1.69 in 2022.
“It looks like we’re going to get some good news,” he said. “It looks like it’s going even lower, heading in the direction we want it to go.”
That sentiment was echoed by Petersen.
“The work we’re doing with early intervention is having a very positive impact,” he said. “What we’re seeing is claim duration coming down, and that’s a key driver of costs.”
Benefit level also discussed
Petersen reported that the percentage of clients who are off benefits has increased to 74.4 percent over 90 days and 86.9 percent over 180 days, representing 72 percent and 80 percent of 2022 targets, respectively.
“Workers are back to work, they’re back to financial stability, it’s the best possible outcome for our workers. And because they’re getting back to work sooner, the cost for our employers are going down” he said.
Petersen was less forthcoming about where he saw the board’s upcoming decision on whether it would raise benefit payouts to 90 percent of earnings. However, he did lay out a timeline for a decision to be made. Currently, the compensation payable for new accidents is 85 percent of loss of earnings.
“We just finished a consultation of that and several other benefit improvements,” he said. “Right now, those have been before the board for discussion.”
“Right now, where we’re at in the process is we’re talking to government. I would anticipate from a timing perspective that if changes like the 90 percent were to move forward, we’re probably looking at Q2, Q3 of 2023.”
Alex Graham is a reporter with Huddle, an Acadia Broadcasting content partner.
