The Canadian Federation of Independent Business (CFIB) says WorkSafe BC should return a portion of its $2 billion surplus to employers across the province.
In a nationwide report titled ‘Funding Fairness’ issued Wednesday, the CFIB detailed just how much the provincial agency is sitting on and how it has exceeded its intended target several years in a row.
“Rather than accumulating and sitting on large surpluses, boards should return these funds to the eligible businesses that paid them and could put them to much better use,” the report reads.
Jairo Yunis, Director of CFIB BC, tells 1130 NewsRadio it’s a “slap in the face” to the small businesses that fund the insurance systems.
“A rebate like this can really help small businesses increase wages, pay down some of the debt they’ve incurred over the years, and even improve their workplace safety measures,” said Yunis.
WorkSafeBC is one of the few Canadian compensation boards not legally required to return excess funds. Yunis says other similar organizations have issued rebates to their constituents, and WorkSafe BC is being “too conservative.”
He says that WorkSafeBC claims the fund is necessary to maintain rates.
“With a surplus of $2 billion, there’s more than enough to smooth rates and still provide much-needed financial relief.”
Yunis adds that businesses would receive roughly $750 per employee if the provincial agency returned the full amount.
The report found that Ontario is the only province to legislate the return of funds when they reach a surplus of at least125 per cent. Other provinces have similar — non-legislated — policies, but the report says B.C. is one of three that has no such policy in place.
It found that WorkSafeBC’s surplus could reach 142 per cent in 2024.
“CFIB continues to encourage other boards to follow [Ontario’s] example,” the board stated.
1130 NewsRadio has reached out to WorkSafeBC and the provincial labour ministry for comment.