Changes to the Workers' Compensation Act

Benefit Cuts

The Workers' Compensation Board (WCB) can establish an earnings cap above which the WCB would not pay benefits. It can decide the level of compensation (now and historically 90 per cent of earnings), and the amount of the cost of living allowance (COLA), if any. COLA is now set at the Alberta inflation rate. The government's fact sheet estimates these changes will reduce payments to workers by about $112 million a year plus plus depriving workers of about $240 millions through COLA reductions. The WCB Board of Governors (BoG), which is said to represent workers, employers and the public, is responsible for setting the COLA and level of compensation. The UCP is confident that the BoG will make whatever changes the government dictates. The UCP makes no bones about the fact that it is dictating what supposedly "independent" boards and authorities can do.

Reduction of COLA will be most harmful to workers with permanent disabilities, who will be left with declining incomes and increasing poverty.

Obligation to Reinstate Workers

The Act no longer requires employers to reinstate workers who are ready to return to work. Workers not reinstated must file a complaint with the Alberta Human Rights Commission that the employer has violated the duty to accommodate, a process which can take years.

Continuation of Health Benefits

Employers are no longer required to continue health, dental and other benefits to workers on WCB. Benefits are part of a worker's earnings, and this violates the basic principle of WCB. WCB only covers the cost of health benefits related to the injury, and only for the injured worker but not their family, who will be left without health benefits.

Presumptive Coverage for Psychological Injuries

Bill 47 eliminates presumptive coverage for psychological injuries for almost all workers with the exception of first responders, defined as firefighters, paramedics, peace officers, police officers, correctional officers and emergency dispatchers. Not even emergency room nurses and workers in long-term care and COVID-19 wards will be covered. Workers other than those designated as first responders would have to prove that their psychological condition was related to their job.

Since the UCP appointed a new BoG to the WCB, a traumatic experience at work has been narrowly defined as: "Specific, sudden, frightening or shocking; and/or an actual or threatened death or serious injury to oneself or other, or threat to one's physical being." The UCP estimates that withdrawing presumptive coverage will reduce claims by $70 million a year.

Ability to Reduce or Suspend Compensation

The Act introduces a "duty to cooperate" for workers. Compensation can be suspended or reduced if workers fail to cooperate and or be available for vocational or rehabilitation programs. Cooperation and availability are not defined. Workers can also be cut off if they are fired for "egregious conduct" which is also not defined. One can only imagine the arbitrary power this gives both the WCB and employers to deprive workers of what is theirs by right.

Abolishing the Fair Practices Office and Changes to Appeals

The Fair Practices Office is abolished and the WCB will now review its own practices for fairness, putting the fox in charge of the henhouse. Workers are left on their own to figure out how to navigate the WCB system and get their claim accepted. The minimal assistance provided to workers for appeals now reverts to the Appeals Commission. Workers will now have one year to file an appeal, not two.

Benefit of the Doubt

The Act will no longer state that if a difference in medical opinion exists and the evidence is approximately equal, the decision will be resolved in favour of the worker.

Limiting Participation and Reviews

The Occupational Disease and Injury Advisory Committee has been eliminated. This committee included medical experts, and at least one member nominated by a worker(s) organization. Its purpose is to update medical knowledge of workplace diseases, include new medical knowledge, in legislation. Legislative reviews of WCB legislation are now required only every 10 years.

"Surplus" Funds

The UCP also appears to be instructing the WCB to review the funding policies around the "surplus" funds in the Accident fund, likely intended to mandate return of "surpluses" to employers. The WCB Review Panel recommended ending the practice of distributing "surplus" money from the Accident Fund to employers, and was incorporated in the Act in 2018.

(Photo: AFL)


This article was published in

Number 81 - December 1, 2020

Article Link:
Changes to the Workers' Compensation Act


    

Website:  www.cpcml.ca   Email:  editor@cpcml.ca