(Apr. 20/12) Last week, CRFA appeared before a committee reviewing Prince Edward Island’s workers’ compensation system to urge caution with any changes. We argued that drastic change is not needed – only some fine-tuning is necessary.
Why we need a stable and viable system
As one of the province’s largest private sector employers, the restaurant industry has a major stake in PEI’s workers’ compensation system.
CRFA believes a stable and viable system is important to a healthy workforce and a thriving employment environment. Given the labour-intensive nature of the foodservice industry, the rapid rise in industry wage rates and low profitability levels, restaurateurs are concerned by any initiative that could increase assessment levels for their businesses.
The system today
PEI’s workers’ compensation system is at a crossroads. Decisions made with this review could continue to stabilize and return the system to financial health, or force it back to the edge of a financial abyss.
Only a few years ago, the system had a huge unfunded liability, climbing accident and duration rates, and spiralling assessment rates. While CRFA believes there is still room for improvement, we support the true intentions of the “new Act” and the direction taken since the 2001 review. Steps taken then saved the system, and employers must be assured it will continue on this path.
Most indicators suggest the system is moving in the right direction. CRFA strongly urges the Review Committee to stay away from any quick fix intended to placate vocal, special interest groups. Any changes made should not undo the significant progress made to date.
Click here (PDF) to read our submission to the PEI WCB Review Committee.