WorkSafeNB boss clarifies remarks about missed hearings

The CEO of WorkSafeNB says his presentation to a legislative committee last week was "truthful, informative and complete," though he's also clarifying some of his comments.

Tim Petersen explained to MLAs last week why WorkSafe had not shown up for several hearings by an appeals tribunal. Some of the tribunal's decisions led to higher costs now being passed on to employers through their new 2017 WorkSafe premiums.

That's on me for misuse of some legal terminology.- Tim Peterson, WorkSafeNB CEO

But Petersen's explanation was challenged by the tribunal chair, Daniel Theriault, who said the CEO was wrong about several aspects of the appeal process.

Petersen told CBC News on Tuesday that Theriault was right to point out WorkSafe gets automatic standing to appear at appeal hearings and doesn't have to seek standing, as Petersen had said.

"That's on me for misuse of some legal terminology," Petersen said.

Theriault also disagreed with Petersen's assertion last week that showing up for a lot of appeal hearings would "bog down" the process and delay workers being awarded benefits. Theriault said appeals have fixed deadlines so they can't be slowed down.

"It's fair," Petersen said. "Mr. Theriault is correct in that those hearing times are set."

But fighting appeals still "adds a level of complexity to the situation," he said. "We felt we would rather avoid doing that unnecessarily."

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The Workers' Compensation Appeals Tribunal hears appeals by workers or employers of WorkSafeNB decisions on benefits for injured workers.

In a small number of cases, appeal rulings have dramatically increased what WorkSafe must pay out in benefits to a large number of claimants. That cost must be borne by employers, who pay premiums.

Premiums rise 33%

This year, employers saw their premiums jump 33 per cent and Petersen is predicting another "significant" increase next year, in part because of those costly rulings.

Petersen said Tuesday that only "a handful" of rulings, probably fewer than 10, have had that kind of effect. Of those, WorkSafe appeared at four appeals but not at the others, he said.

We still have some improvements we could make to the processes.- Tim Petersen, WorkSafeNB CEO

He said the Crown corporation has been "challenged" on being able to identify which worker cases may have broader cost implications.

"We're still in a transition period. We still have some improvements we could make to the processes."

The appeal tribunal has been operating independently since April 2015. Before that, appeals were handled within WorkSafe.

Petersen said last week that WorkSafe "did not have notification" of one appeal relating to how retirement benefits invested in the markets are calculated. He said it was because the new tribunal was just getting started and "there are sort of bumps along the way" during a transition.

WorkSafe not at 6 hearings

Theriault said Monday that six different cases had touched on that issue, and WorkSafe had been notified of each one.

Petersen confirmed Tuesday there had been a notification. On his comments about the transition to the new tribunal, he said, "Some of these bumps certainly on our side."

Theriault also disagreed with Petersen that it had to miss most hearings because it has only two staff lawyers. Theriault said WorkSafe wasn't required to send a lawyer to an appeal.

Petersen said he'd look at sending case managers instead, as Theriault suggested, but "we're equally challenged from a resourcing standpoint in terms of our case managers."

The apparent disagreement between Petersen and Theriault prompted one business group to call for changes at WorkSafe.

Louis-Philippe Gauthier of the Canadian Federation of Independent Business said the new higher premiums would deter employers from hiring people. He said WorkSafe should make sure it fights any appeal that could lead to higher costs.

'Not showing up is not an option'

"From a CFIB perspective, WorkSafe New Brunswick needs to get its priorities in order," Gauthier said. "There's an evident need for internal process and policy changes at WorkSafe when it comes to attending the tribunal hearings. … Not showing up is not an option."

WorkSafe New Brunswick needs to get its priorities in order.- Louis-Philippe Gauthier, CFIB

He said it appears there's an "issue of communication" and "understanding of each player's role" between WorkSafe and the appeal tribunal, something he said should have been worked out by now.

The Gallant government has passed one bill in the current session of the legislature to undo an appeal ruling and keep costs under control. But Gauthier said several requests for other such changes are still being considered by the Liberals.

If they're not passed soon, he said, it'll be too late to affect the 2018 rate increase.

"Somebody just needs to make a decision on that," he said.

War of words 'concerning'

Progressive Conservative MLA Bill Oliver, the opposition labour critic, said the war of words was "concerning."

"I think it's time that the minister stepped in," Oliver said. "I think he's got to take them aside and say, 'Look fellas, we've got to come to an agreement here and make it work.'"

Oliver said he didn't believe Petersen was trying to mislead the committee last week but "it begs the question as to who's right or wrong here."

Petersen said he spoke to Theriault Tuesday morning.

"We have both been very frank with each other," he said. They both agree that the priority is to help injured workers, he said.

"Dan's interests and my interests are very much aligned."