The PCs have tabled a bill that would bring big changes to workers compensation in 2027.
The province tabled a bill on Thursday that will lower employer payments for worker’s compensation, as well as increasing benefit payments to match inflation.
Karen Adams, the CEO of the Worker’s Compensation Board (WCB) of Nova Scotia, said people have waited a long time for these changes.
“The often difficult decisions that we’ve taken, they’ve changed the trajectory of this company. WCB is finally on the right path, so much so that the government is able to introduce an amendment to restore benefits to workers injured on the job,” said Adams.
In 1993, benefit increases were cut, so they would only go up 50 per cent of the inflation rate. But in 2027 when the proposed legislation takes effect, they will be increased at 100 per cent of the inflation rate.
For example, the province says, if a worker gets $2000 a month and the inflation rate is 2 per cent, their monthly cheque will go up to $2040.
However, the change does not come into effect until January of 2027. It is also not retroactive, so if you get hurt from now until 2027, your benefit payments will only increase at half the rate of inflation, according to a government spokesperson.
Adams would not specify how much the employer payments would go down and said that would be revealed later.
She said they are able to make this change now because they have gotten out of the financial trouble the company faced in the early 90s, with their operations being more than 106 per cent funded.
Overall, fewer people are being injured at work as well. A few years ago, they were at 3 injuries per 100 workers. Now that rate has gone down by nearly half to 1.28 workers per 100.
Not enough clarity for employers, says CFIB
The Canadian Federation of Independent Business (CFIB) criticized the lack of clarity on how employer rates will change.
They said the surcharge put in place to replenish the insurance fund should be removed because the WCB is now fully funded.
“Workers’ compensation premiums in Nova Scotia remain the highest in the country. This reality of the last twenty years continues to impose a structural cost burden as well as a competitive disadvantage on small businesses across the province,” read a statement from the CFIB.
They said the company should work faster to get in line with the rest of the country.
More coverage needed, says labour group
The Nova Scotia Federation of Labour said they welcomed the increase to worker’s compensation, but there is still more work to do, and called for universal coverage. They said without it, 26 per cent of workers in the province are not covered by workers’ compensation.
“Let’s be clear: this is not the time to hand employers a rate cut,” said Cavanagh.
“For decades, injured workers have borne the brunt of an underfunded system. Before employers see any relief, the priority must be ensuring that benefits are fair, accessible, and sustainable for people who are hurt on the job. Workers should not have to worry about whether financial sustainability is being sacrificed for the sake of lower employer costs.”
