The Canadian Federation of Independent Business (CFIB) has urged the board of WorkSafeNB to reassess its performance refund policy and timely return all excess funding beyond its basic target to New Brunswick businesses in the rate-setting decisions for 2025.
According to a media release from CFIB, with the first refund to businesses announced in 2024, the WorkSafeNB board implemented Policy 37-100, a revised performance refund policy.
Once the fund exceeded its basic target of 125 percent, the board would transfer items previously considered into a new envelope, which could grow until the fund climbed up to 150 percent, CFIB noted.
“Premium stabilisation, financial circumstances, current and future expected economic conditions, future business requirements, planned investments or changes to the system are all regular going concerns that the Board used to manage within its funding range,” said Louis-Philippe Gauthier, CFIB’s Atlantic vice president of advocacy, in the media release.
Gauthier added that removing these usual factors from the decision-making process and shifting the goal post to new funding levels amounted to “a cash grab.”
CFIB asked the WorkSafeNB board to abolish the discretionary margins it set above its basic funding target range to ensure fairness and transparency in its work.
“If the Board can justify the need for more money to ensure the stability of the workers’ compensation fund, then they should change the basic levels,” Gauthier said. “Outside of that, all surplus funding beyond what is needed should be returned to businesses in a timely manner.”
In its media release, CFIB acknowledged the efforts of WorkSafeNB’s board and management in recent years, which resulted in “record funding surpluses.”
CFIB report
According to the latest data cited in CFIB’s recent report titled “Funding Fairness: State of Workers’ Compensation Funding in 2024”:
- Six boards were overfunded: BC, Manitoba, Ontario, New Brunswick, Prince Edward Island, and the Yukon
- Small businesses would get a $4.9 billion boost if all six overfunded boards offered rebates, including $396 million for New Brunswick
- New Brunswick, the Yukon, and BC had the most significant potential rebates per employee
- New Brunswick had the highest potential rebates for a business with one employee ($1,072) and a business with five employees ($5,360)
CFIB is the country’s biggest association of small and medium-sized businesses. It has 100,000 members across all industries and regions, including 3,700 members in New Brunswick. It aims to help business owners succeed by pushing for policy changes at all government levels, offering relevant advice and tools, and negotiating exclusive savings.
As a Crown corporation, WorkSafeNB oversees the implementation and application of New Brunswick’s Occupational Health and Safety Act, 1983; the Workers’ Compensation Act, 1973; and the Workplace Health, Safety and Compensation Commission Act, 1994.
According to WorkSafeNB’s LinkedIn page, it administers no-fault workplace accident and disability insurance and accident prevention health and safety initiatives, funded exclusively via employer-paid premiums.