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Government cannot simply ignore the WSIB’s $11.5 billion unfunded liability while increasing benefits, CME tells Ministry of Labour

Published on October 06, 2009

CME wrote to the Ministry of Labour time regarding the Temporary Indexation of Benefits introduced in the 2007 budget, voicing our objections to any further extension of these benefits beyond their expiration this year, without further meaningful consultation.


Amendments were made to the Workplace Safety & Insurance Act by way of the 2007 budget process.  This was an unprecedented action by the government as amendments to legislation are not normally done through the Budget process.  The government, at that time, also gave itself the sole authority to prescribe future benefit increases as it related to partial benefits for permanently disabled workers.


The outcome was increasing of benefits for injured workers receiving partial disability benefits, resulting in an increase of almost $3 billion dollars to the WSIB’s Unfunded Liability.


Given that the automatic increases have not been approved by government beyond 2009, we are very concerned that the government again will use its authority to approve increases while WSIB copes with an $11.5 billion unfunded liability during a financial crisis.


Read the full letter sent to Minister of Labour.



Earlier this month, CME also wrote to the Ministry of Labour expressing concern about the future of workers’ compensations in Ontario, and addressing the need for a review of the relevance of the current fully employer funded workers’ compensations system in the province. Read the letter here.


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