TORONTO — Ontario’s Workplace Safety and Insurance Board says that it will not be able to achieve its original target of 2014 for full funding of the workplace safety and insurance system.

Like any other investor, the WSIB is blaming the global economic recession for its troubles.

Between end-of-year 2007 and 2008, the WSIB’s unfunded liability (UFL) is expected to have increased from $8.1 billion to $11.5 billion, meaning that elimination of the UFL won’t be happening in the next five years, as promised.

The UFL is about projected future costs of claims already in the system that can extend 30 to 40 years down the road.

As a result, the Ontario Trucking Association warns that another round of rate hikes for businesses loom.

After enjoying decreases in 2007 and 2008, Ontario truckers saw a modest hike to rates this year to $5.79/$100 of insurable salary from $5.70 the year before. 

Despite investment market declines, WSIB says the ability to fund the ongoing obligations of the workplace safety and insurance system remains secure. Benefits for injured workers are not impacted, and the WSIB remains committed to the retirement of the unfunded liability, said Jill Hutcheon, WSIB President and CEO.

“This long-term goal of a fully-funded system makes sense for the system, and it makes sense for the Ontario economy."

To meet the economic challenges, the WSIB says it continue sto look for administrative efficiencies that will help to reduce costs while maintaining the high levels of service."

WSIB administration costs, at 13 per cent of revenue, compare favorably with the average of 19 per cent for Canadian workers compensation boards, the agency noted.

Meanwhile, WSIB Chair Steven W. Mahoney has launched an extensive program of industry and stakeholder consultation to hear from employers and workers the issues facing the workplace safety and insurance system, including the UFL and premium rate setting.