Worker’s compensation in B.C. is failing to serve small businesses in key areas, according to Canadian Federation of Independent Business (CFIB) research released this morning.
“Where [B.C.] really did poorly was in terms of coverage and in terms of customer service,” Doug Bruce, CFIB’s vice-president of research, told Business in Vancouver.
Bruce noted that that B.C.’s poor results on coverage indicates that employers are required to pay worker’s compensation premiums for a very high proportion of staff.
“[Coverage is] very high in B.C. – in fact, I think it’s the highest in the country,” he said. “Over 86% of private sector payroll is subject to worker’s compensation.”
Overall, the CFIB ranked B.C. the third best jurisdiction in Canada for worker’s compensation, sitting at 6.3 on a 10-point index. P.E.I. was the top jurisdiction in Canada, ranking 6.9 on the index; Ontario was the worst, at 4.0.
Bruce said the CFIB decided to study the subject because of the high costs it can present to small-business owners.
“It depends on the sector, but if you’re in a higher-risk sector – for example, construction – [the cost of worker’s compensation] can be quite significant,” he said. “And it is mandatory.”
He added that the premiums can be particularly onerous for businesses because they aren’t linked to profitability; employment insurance payments are.
“It can be quite a hard cash-flow issue for small employers because it doesn’t really depend on their profitability – they have to pay it regardless.”
Jenny Wagler
@JennyWagler_BIV