WSIB Recognizes Performance and Lowers the GC Premium Rate

OGCA regularly boasts to government and the public that we are very safe and one of the results is that we generate low costs for the cash-strapped WSIB. It was, therefore, a surprise to us that when Premium rates were announced in September, the WSIB determined our target rate had gone up and the ICI construction rate #723 would remain at $4.55.

OGCA’s David Frame with MCAO’s Les Liversidge confronted the WSIB concerning the questionable calculations. In the 6 years since target rates last were used to determine Premiums, the ICI construction LTI rate had dropped a spectacular 44%, but for some unexplained reason, the WSIB assigned higher costs for both past claims and administrative overhead.

WSIB responded to our objections by promising to organize a meeting with staff to do a deep dive on the calculations. On October 27, Chair Elizabeth Witmer and President Tom Teahen issued a letter to the Construction Advisory Council members. It stated, "when the 2017 target premium rates for Schedule 1 were calculated, a higher Past Claims cost was used than necessary, resulting in the published rates not being accurately determined." It also stated that "an analysis has been commissioned to identify improved controls to apply during the annual rate-setting process to ensure that there are no further miscalculations."

As a result, the General Contracting rate #723 will be $4.40 for 2017, a 3.3% reduction, the first of what we believe will be many decreases.

OGCA is working diligently with the WSIB to make sure your interests are heard. This not only includes premium rates but also the redesign of the revenue system that is being replaced with the Rate Framework reform. When implemented, the WSIB will generate individual premium rates. We are fully engaged in this process to assure that miscalculations or poor design don’t penalize general contractors, but instead reward strong performance.