Thank you, Mr. Speaker. Over the last three years, WSCC claims cost experience for the GNWT has more than doubled. Let me repeat that word: doubled. In my Member’s statement today we talked about the GNWT’s Safe Advantage penalties, which is the second part of these claims costs and penalties. Those have risen from zero dollars in 2009-2010 to over $508,000 in 2011-2012. It’s for this reason we just talked about, hearing about no money for midwifery, I’d like to say it’s very difficult to look at the whites of the eyes of midwives across the Territories and give them 508,000 reasons why there are competing priorities.
My questions are for the Minister of the Department of Human Resources in relationship to the Safe Advantage penalties as to why they are so high and why are they growing yearly.
Thank you, Mr. Dolynny. The Minister of Human Resources, Mr. Abernethy.
Thank you, Mr. Speaker. For the record, the Safe Advantage program is a program administered by the Workers’ Safety and Compensation Commission. The program is actually a fairly new program. It’s only been in place for, I think, five years.
The first couple of years were assessment years where they actually monitored what organizations were doing in order to set up the standards for the averaging to see who was above their average and below their average. The first couple of years there were no costs or penalties to anybody.
The GNWT has received some significant penalties in this area under the Safe Advantage program. The Department of Human Resources is working with the departments to make sure that they are continuing to put in occupational health and safety programs to ensure that people who work for the GNWT are safe and not getting injured.
Thanks to the Minister for that reply. As I indicated in my opening first question that claims experience has more than doubled for the GNWT, I guess the question I have for the Minister of HR is: Can he indicate which three departments are causing some of that claims growth that we’re seeing, especially in the last year?
There are certainly areas that have higher claims experience than others. In the GNWT the three areas that are experiencing high claims costs are the Department of Justice and the health and social services authorities.
I think the Minister mentioned three, but I think only two were given. That said, did the two departments that were given, in terms of Justice and Health, if one was to look at realistic comparison in these so-called rate sheets that are provided by WSCC, those areas, in terms of claims or what premiums are being paid by those related private sector industries are in the order of probably about, and in the case of health, about $1.61 per $100 of payroll, and in the issue of corrections, somewhere around the $2.58 mark per $100.
As I indicated earlier in my Member’s statement, the GNWT is paying about 79 cents per $100, much lower than a lot of these claims growths. My question to the Minister is: Why aren’t WSCC payroll premiums not broken down by department to reflect a more realistic comparison to industry rate classes and premiums that are being paid in the private sector?
I mentioned health authorities. The two highest claims areas in the Government of the Northwest Territories are the Stanton Territorial Health Authority and the Fort Smith Health Authority, followed closely by Justice. I indicated authorities and I should have said both.
With respect to claims, the claims change regularly. Every department is different. Some departments are higher; some departments are lower. By way of example, in 2011, HR had $3,400 in claims. So far, third quarter of this calendar year, 2012, they have $86. We do have a wide range of different fees per employment area.
With respect to the fee that we’re paying, the two of them don’t necessarily correlate the way I think the Member thinks they do. Rates are determined by the Workers’ Safety and Compensation Commission by the Board of Governors, as per the terms of the act. I don’t have the 2012 Rate Guide, but looking at the 2011 guide, there are eight classes, 83 subclasses, and they range anywhere from 48 cents per $100 all the way up to $4.98 per $100. The GNWT is Class 81, and in the old rate guide it’s 60 cents per $100.
The Safe Advantage program is actually assessed based on the total number of claims, not the fees that we pay under the rates. Last year the GNWT paid $2.3 million in rates, $1.1 million in claims were paid out, and then on top of that, under the Safe Advantage program, which is separate and apart, the GNWT received $600,000 in fines under the Safe Advantage. In total, the GNWT paid about $2.9 million and received about $1.1 million back in claims.
Thank you, Mr. Abernethy. Final, short supplementary, Mr. Dolynny.
Thank you, Mr. Speaker. Again, thank you to the Minister for more detailed numbers.
I believe the Minister indicated that the rate class for the GNWT was 60 cents, but I believe it was 66 cents in last year’s rate guide.
My last question, really, has to do with a barometer reading. Where are we sitting at right now with the GNWT currently in 2012? Are we seeing our claims costs still on a continued rise? Could we be subject to higher penalties or double penalties with respect to the Safe Advantage program? Can the Minister give us an idea as to where we’re sitting right now for the remainder of 2012?
As I indicated previously, every department is different. We are seeing a significant number of ranges within the departments. I know, for a fact, some departments look like they’re going down, some departments are staying the same, and there are some departments that have moved up slightly. I can share that information with the Member, what we’ve got up to the third quarter in comparison to 2009, 2010, 2011. I’ll share that with the Member and with committee.
Thank you, Mr. Abernethy. The Member for Hay River North, Mr. Bouchard.
