There are a number of problems that have arisen as a result of audits conducted by the Workplace Safety & Insurance Board (WSIB) on businesses that are members of the NACCB. These problems include:
Potential challenges of the WSIB’s position on coverage for incorporated subcontractors should there be, for example, a fatal accident involving one of them. A surviving spouse (and/or his/her children), could make a very serious, and legitimate challenge of the WSIB’s position that these incorporated subcontractors are workers, a position which appears to contravene the Workplace Safety & Insurance Act. Such a challenge would be made with a view to having the seriously injured, or deceased spouse declared an independent operator in order to open up the way to pursue legal action against whatever association member retained the injured contractor, the association member’s client, or one or more workers of the association member’s client.
NACCB representatives met with WSIB officials, sent correspondence and generally worked within the business community to raise public awareness of this issue and help formulate a response. As a result of the NACCB consultation process, WSIB did make a number of concessions in the guidelines for WSIB decision-makers. To date 11 NACCB members have appealed and won rulings of independent contractor status.
The NACCB drafted a White Paper which was submitted to the Workplace Safety and Insurance Board of Ontario – Coverage Review Consultations.
This paper described:
One of our most significant achievements thus far has been our collaboration with the WSIB to address concerns related to their new rate framework. As discussed during our last update, the WSIB has listened to our feedback, as well as that of many industry firms individually. Consequently, they have agreed to categorize our low-risk workers under the Class L category (Professional, Scientific, and Technical) with an expected category pricing of $0.22. This solution closely resembles the standard exception model in the US and is scheduled for implementation no earlier than 2024. However, our work with the WSIB is far from complete. We still aim to gain their support in streamlining the independent operator ruling process, and we are even considering alignment with the new changes in ESA for IT and Business Professionals.
Perhaps the most tangible win that we have achieved thus far was our ability to work with the WSIB and express our concerns with their new rate framework. As we discussed during our Fall Update, the WSIB has listened to our feedback as well as the feedback from many firms in the industry individually and they have agreed to categorize our low-risk workers in the Class L category (Professional, Scientific, and Technical) with category pricing expected to be $0.22. This is a similar solution to the standard exception model in the US, and it is scheduled to be implemented no earlier than 2024. There is still work that remains to be completed with the WSIB, namely, to gain their support in tightening up the independent operator ruling process and perhaps even considering aligning it with the new changes in ESA for IT and Business Professionals.
StrategyCorp and the NACCB submitted a consultation response to the WSIB on the rate premiums charged to agencies placing knowledge workers. We understand that our submission has been well received. NACCB and StrategyCorp have participated in two official briefings with WSIB officials and have also had numerous discussions with the Minister’s office and Ministry officials.
NACCB also participated in pre-consultations with the WSIB regarding a new proposed rate framework for the knowledge worker temporary staffing industry. We expect a public proposal to be released shortly and will introduce a new category for knowledge/clerical workers. Early indications are positive, but we look forward to reviewing the details in the short-term and discussing with membership.
Further to our previous communication, please find attached our submission to the WSIB for its TEA rate setting consultation.
Following this submission, StrategyCorp and the NACCB will engage with the WSIB team to ensure the NACCB’s issue set and messaging are heard and understood, and to ensure any issues with the consultation process are addressed.
WSIB Consultation StrategyCorp and the NACCB are crafting a submission to the Workplace Safety and Insurance Board’s (WSIB’s) consultation on rate setting for Temporary Employment Agencies (TEAs). StrategyCorp conducted an initial meeting with the WSIB to better understand the intentions driving the consultation, how the information would be best presented, and what the follow-on steps would be once consultation documents are submitted. The NACCB’s piece will be submitted at the end of the month. Following its submission, StrategyCorp and the NACCB will engage with the WSIB team to ensure the NACCB’s issue set and messaging are heard and understood, and to ensure any issues with the consultation process are addressed.
The first item was the changes to WSIB that were to go into effect on January 1, 2022. These changes would have increased our premium in some cases by 2000%. The Industry took an aggressive approach to this issue. In particular, I wanted to thank members for getting involved in discussions directly with WSIB. A couple of NACCB members such as Katherine Tremblay and her team from Excel HR, and Derrick Bullen from SI Systems really leaned in on this issue. There was also a lack of understanding of how our workers provided services to clients. Internal employees were mis-categorized to be included with high risk industries like window washers and landscapers. The officials and the Minister of Labor heard our message and deferred the transition with a small 5% increase in 2022. It is still unknown what will happen in 2023. WSIB and the Ministry of Labor are open and committed to working with us to find a better solution, and we will be working with them over the coming months.
We have been arguing that the currently planned rate increase of up to 2700% is unjustified. 2Current definitions in the result have created significant legal pressure on the industry and has resulted in a significant lack of clarity. While no formal announcements have been made, I can report that we feel progress is being made on both issues. OWRAC, WSIB & government decisionmakers have all been briefed and understand the economic and legal challenges our industry is facing and the importance of a competitive knowledge economy in Ontario.
Speakers: John Young and Bob White, William John Young Professional Corp
NACCB Webinar Announcement: WSIB Classification Issues and Pending Changes for 2022 as they affect your business. The NACCB is pleased to announce an information sharing session regarding current WSIB classifications and pending significant changes in 2022 including premium rates as they affect the professional staffing industry. This virtual session will allow for comprehensive information exchange and will include a Q&A session. It is extremely important to enhance our collective understanding of these issues, to inform you of our actions to date on your behalf and ensure that our collective and individual actions are optimized and impactful on the public policy front. Our session leaders are John Young (paralegal) and Bob White from William John Young Professional Corp, who are helping some of our members with WSIB challenges they face today and with repositioning for the future to minimize business impact from adverse WSIB changes.
Agenda:
Introduction, Purpose of Today’s Session and Current Activities Update (M. Leacy, NACCB president)
Common Ground – The Supply of Knowledge Workers (B. White)
What We’ve Heard about WSIB in the Industry (B. White)
WSIB “As-Is” – How do things work today? (J. Young) o WSIB “To-Be”– What Changes does WSIB have planned for early 2022? (J. Young)
Potential Impact to your Business (J. Young)
What can we Do? – Individually & Collectively – Call to action (B. White)
Q&A (B. White) REGISTER HERE
After registering, you will receive a confirmation email containing information about joining the meeting. Please click here for more details. This free webinar is open exclusively to NACCB members in good standing. Not sure about your membership status? Email us at membership@naccb.ca.
Government Relations program was identified as the main strategic direction for our association this year. NACCB is currently focusing on the two key areas: 1) Changes to the ESA to recognize the unique status of knowledge workers. 2) WSIB rate increases and how these changes cause unintended consequences to the industry and our clients in both the private and public sector.
The NACCB GR committee in collaboration with the StrategyCorp made a submission to the Ontario’s Workforce Recovery Advisory Committee (OWRAC) to address these areas. You can view our submission here.
