OTA: Get house in order before raising WSIB rates

TORONTO — The Workplace Safety and Insurance Board (WSIB) announced that it will raise 2011 payroll premiums paid by trucking companies while also raising, then, the ire of the Ontario Trucking Association.

Although trucking rates have held steady in recent years, the WSIB, whose system currently has a $14 billion unfunded liability, will hike the General Trucking (group 570) rate by 11.1 percent, going from $5.79/$100 of insurable earnings to $6.43.

Warehousing and Courier Services will see even bigger increases, 18.4 percent from $2.77 to $3.28 and 17.5 percent, from $2.46 to $2.89/$100, respectively.

Overall, average WSIB premiums were increased by only 2 percent.

OTA president David Bradley responded strongly to the news, saying that the WSIB should work on getting costs under control and eliminating fraudulent claims before raising truckers’ rates.

"This is the worst possible time for the government to be increasing payroll taxes," OTA president David Bradley said in a press release. "The economic recovery is still fragile and anything that discourages hiring is only going to prolong the pain."

Bradley noted how the WSIB should follow Dalton McGuinty advice, citing how the Premier chided the federal government for possibly slowing economic recovery by increasing EI premiums. 

"The WSIB should take the Premier’s advice and do everything in its power to keep rates stable rather than hiking them when businesses are still so economically vulnerable."

WSIB also indicated that it would be undertaking a comprehensive review of funding for the WSIB system. Bradley said any decision on rate hikes should wait until after the completion of the review.