Ontario Employers have been critical of the cost of WSIB premiums for the last 30 plus years. Ontario has usually enjoyed one of the best safety records but premium costs have been amongst the most expensive. A few western provinces could often boast of premiums close to half of Ontario’s. The difference is that Ontario has been dealing with an unfunded liability (UFL) that topped out at about $15 Billion in 2009. The past claims charge on construction assessments were typically about 45% of the rate, resulting in the current average construction rate of $5.32.
The Canadian Government's Public Services and Procurement Canada has released the report and recommendations to build a federal framework for prompt payment and adjudication. (click here to access)
It is solid set of recommendations in that it recommends a Federal prompt payment and adjudication legislation that is consistent and supportive of the Ontario plan. It was written by Bruce Reynolds and Sharon Vogel, both of whom wrote the Ontario recommendations and then supported the drafting of the legislation and regulations.
The Federal Report recommends that the government work with all provinces who wish to implement prompt payment to develop consistent models based on the Ontario legislation.
The General Contractors Alliance of Canada (GCAC) has met and developed an initial response to the paper which will be submitted in the next few weeks.
The government will need to decide if this is a legislative priority, and if so, should be introduced as legislation by this October in order to move through the legislative process before they rise for the National election in 2019.