Unions question WCB’s $122M rebates to employers

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This article was published 02/05/2025 (257 days ago), so information in it may no longer be current.

WINNIPEG — Manitoba’s unions are questioning the decision by the Workers Compensation Board to distribute $122 million in rebates to employers — and the NDP’s decision to tout the rebates as a way to support those employers during a trade war.

“There are very clear needs for the WCB to do much more to prevent workplace injuries and deaths,” the Manitoba Federation of Labour said in a news release.

The provincial government issued a news release Thursday announcing that it has provided approximately $962 million in relief and support for workers and businesses impacted by tariffs from China and the United States.

Kevin Rebeck, president of the Manitoba Federation of Labour, said the WCB surplus would be better spent on preventing workplace injuries, illnesses, deaths and supporting injured workers.

It said payroll and retail sales tax deferrals announced March 10 provided businesses approximately $840 million of liquidity for February, March and April. In the release, Finance Minister Adrien Sala said the Workers Compensation Board is issuing $122 million in rebates “for all employers to support businesses and help keep workers on the job.”

“We are concerned that the NDP government is touting this payout as some sort of business-support program,” MFL president Kevin Rebeck said.

“Last time I checked, the WCB does not have a mandate to provide business subsidies or economic development support. Instead, the WCB’s job is to keep workers safe and to support workers and their families with workplace injuries and deaths.”

Sala was not available to comment Thursday.

The WCB was established in 1917 after passage of the Workers Compensation Act. Injured workers gave up the right to sue employers in exchange for guaranteed no-fault benefits, and employers agreed to fund the system in return for protection from lawsuits. The WCB insures more than 40,000 employers and covers 73 per cent of Manitoba’s workforce. It’s governed by a board of 10 directors appointed by the provincial government from nominations submitted by labour, employers and the public.

The WCB said Thursday eligible employers will receive a credit equivalent to 50 per cent of their 2024 premium. Individual premiums are, in part, based on each employer’s claims experience, it said.

The $122-million surplus is the result of WCB “maintaining financial stability due to strong investment and financial management,” the board said.

Labour Minister Malaya Marcelino, the minister responsible for the WCB, said the province doesn’t tell the board what to do with a surplus.

“This decision was made by the WCB board,” Marcelino said.

The government news release touting tax deferrals and WCB rebates “was an acknowledgment that Manitoba businesses are going through a difficult time right now,” she said.

“It’s no secret that there might be a recession coming and it’s not an easy time for Manitoba businesses,” she said.

Businesses are facing rising input costs, labour shortages and low consumer demand, said Brianna Solberg, Prairie spokesperson for the Canadian Federation of Independent Business.

The CFIB wants legislation mandating that all WCB surplus funds are returned to employers.

“Workers’ compensation premiums are one of the most burdensome taxes for small firms because they’re profit-insensitive,” said CFIB policy analyst Tyler Slobogian. “Business owners appreciate getting some of that money back, but they shouldn’t have to wait and hope for discretionary rebates.”

The federation also wants Manitoba to get rid of the payroll tax, not just defer it.

The province is preparing for a 10-year legislative review of the Workers Compensation Act that will hear from workers, the board and employers, Marcelino said.

“Our goal is always to have labour peace. We can accomplish that by working together and having proper consultation,” she said.

“We do get a lot of concerns from workers about whether or not the WCB is fairly compensating them. It’s important that we’re standing up for workers’ safety, health, their rights.”

In 2024, Manitoba recorded 18 workplace-related deaths, the MFL said. In the last decade, there have been 236 fatalities. Manitoba averages about 25,000 workplace injuries a year. In 2023, 25,624 were reported.

Rebeck said the WCB surplus would be better spent on preventing workplace injuries, illnesses, deaths and supporting injured workers.

» Winnipeg Free Press