REFORMING WORKERS' COMPENSATION IN ONTARIO

A CHALLENGE TO THE NEXT PROVINCIAL GOVERNMENT

May 23, 1995

EXECUTIVE SUMMARY

I    THE PROBLEM

Ontario's business community faces an enormous and unfair economic burden because of a flawed workers' compensation system that has created an unsustainable $11.4 billion unfunded liability.  Successive governments have added benefits without responsibly considering their impact on the mushrooming liability.  These developments threaten both the competitiveness of Ontario businesses and the long term viability of the workers' compensation system itself.  The time for action is now.

The urgent need for reform demands action beyond changes to the existing government mandated system.  It is unlikely that the government, which has presided over the burgeoning debt, will be able to effect the fundamental systemic changes required to both eliminate the debt and to reform the system.

II    THE GOALS

Marsh & McLennan, the world's largest insurance broker and Canada's leading injury management services firm, believes there are two fundamental goals Ontarians should seek in workers' compensation reform:

• The $11.4 billion unfunded liability, which grows by $2 million per day, should be eliminated as soon as possible.

• Ontario companies should have the right to choose a fully-funded private insurance option.

III    THE FIVE-YEAR PLAN

Marsh & McLennan has developed a workable five-year plan which will eliminate the unfunded liability while ensuring the principles of fairness and efficiency for workers and employers alike.  Among the recommendations:

• Reducing benefit levels

• Improving the ongoing review of long term benefits

• Strengthening definitions of compensable accidents

• Improving the review of worker recovery periods

• Implementing a fair an effective transition process for companies who opt for a private insurance plan

 

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