N.S. has the lowest compensation for injured workers in the country, report says

A new report on Nova Scotia’s compensation program for injured workers says the system is the only one in Canada that is not fully funded, and that more work is needed to help people return to the workforce.

Released on Friday, the report makes recommendations for improving 10 priority areas in the first review of the Workers’ Compensation Board of Nova Scotia since 2002.

The report says the compensation system has the highest average employer premiums across Canada — at $2.65 per $100 of assessable payroll — and the lowest benefits available to injured workers. It is 95 per cent funded, but the report says it’s the only worker compensation program in Canada that is below 100 per cent.

Nova Scotia’s compensation board insures about 353,000 workers in the province and provides financial help and benefits in the event of a workplace injury or illness. In 2022 there were more than 20,000 claims made to the board.

Injured workers in the province spend the longest time away from work compared to workers elsewhere in the country, the report says.

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In a news conference Friday, Douglas Glass, review committee chair, stressed that timely return to work is of critical concern.

He said the province should work with employers to reduce bureaucracy in the system and get workers back on the job more quickly. Other provinces force collaboration between the employer and injured worker in the return-to-work process and have the power to impose penalties for non-compliance for either party, he said.

He said the review committee recommends establishing legislation outlining an employer’s obligation to return injured employees to the workplace, and the responsibilities of employees to participate in return-to-work plans. The report also suggested the possibility of implementing financial penalties if either workers or employers fail to co-operate.

Karen Adams, CEO of the Workers’ Compensation Board of Nova Scotia, said that injured workers should maintain some kind of connection to their jobs, which she said can help reduce the amount of them they are off.

“The employer needs to make sure they have work for (employees) to do and there’s some accommodations around that work because they can’t do their regular job,” Adams said in an interview.

In the fishing industry, for instance, fishers who used to head out on the water can return to work in another capacity, such as to train recruits on shore. “You don’t have to be out on the boat, but you’re helping others when it comes to safety or other areas of training in the industry that are required,” she said.

Jill Balser, minister of labour, skills and immigration, said the government will phase in the recommendations in the report, but didn’t offer a timeline.

This report by The Canadian Press was first published Aug. 30, 2024.