(Winnipeg) The Workers Compensation Board will increase the average premium rate charged to employers for WCB coverage from $1.49 to $1.56 effective July 1, 2002.

"This increase is due to the decline in the WCB's investment revenues and the prospects for the economy in 2002," said WCB Acting CEO Ron Perozzo. "Over 30 percent of WCB revenues come from investments."

Decreasing revenues as a result of the downturn in the Canadian economy, heightened by the events of September 11, have caused increases in WCB premium rates across Canada. Of the rates that have been announced for 2002 increases range up to 27.3 percent.

"Manitoba will have the lowest average WCB assessment rate among the provinces," added Perozzo. "This rate increase is effective mid-year to allow employers to include the increase in their 2002 budgets."

Employers will pay premiums based on the $1.49 average for the first half of the year. Then, effective July 1, 2002 premium rates will be adjusted to accommodate the average rate increase to $1.56. For the first time, the WCB expects to use $4 million from its Rate Stabilization Fund to keep the rate increase as low as possible and minimize the impact on employers.

In 2001, the WCB introduced a new Rate Model that more accurately reflects the accident experience in workplaces. Even with the increase in the average rate for 2002, the model shows that the majority of employers will receive WCB premium rate reductions if they continue to improve their accident experience and reduce their claims costs. The majority of employers pay less than the average assessment rate for WCB coverage.

"Employers are rewarded under the new rate model for reducing accidents and effective workplace disability programs," said Perozzo. "We believe that the rate model effectively promotes the benefits of safer workplaces."

Manitoba has the lowest administration cost per time loss claim in Canada. The WCB has implemented a new case management system and is encouraging workers and employers to report claims faster so that benefits can be paid sooner and injured workers can return to health and work sooner.

The Workers Compensation Board is an accident and disability insurance provider established in 1917. The WCB is funded solely by employer premiums and receives no tax dollars. A Board of Directors representing employers, labour and the public interest, with an independent chairperson, governs the WCB. Seventy percent of Manitoba's workforce is covered by WCB insurance.


For further information contact:
Don McDonald, Director of Communications
WCB Manitoba--(204) 954-4113