On reading the article “WCB $11 billion in hole, and mining companies pay” (T.N.M., Mar. 29/93), where you draw on the most recent experience of Bill Mracek of Royal Oak’s Pamour mine concerning Workers’ Compensation Board (WCB) costs, I thought you may be interested in knowing how this problem affects the whole industry.
The main point is that the WCB administration has been permitted to move the system to the brink of bankruptcy with impunity since the 1920s. So the present crisis is not so much the fault of just the current management but, collectively, of the governments which permitted the system to drift to its place in history.
What we have is a system which, administratively, is floundering. Recent speeches and articles by the administration clearly demonstrate that they do not know what to do to stop the bleeding, other than to charge employers more money, or collapse the system into a universal disability insurance plan. From the perspective of the Ontario Mining Association, what is needed is a royal commission or commission of inquiry to review critically the WCB and the administration of the system.
The industry is facing an unfunded liability of $1 billion, which is growing at the rate of $10,000 per month. With a workforce of about 21,000, this equates to a $47,619 liability for every person working in mining today. Mining has had 12 years of continuous decline in its accident rate and is now the third-safest industry in Ontario. With decreasing accidents but skyrocketing costs, something must be wrong. The kinds of studies requested would uncover the flaws noted in the article and provide guidance as to where the changes need to be made.
John Blogg
Secretary, Manager
Industrial Relations
Ontario Mining Assoc.
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