Workers' compensation rate drop praised by employer group

An employers organization is applauding the reduced rate for workers' compensation, but says more needs to be done to reduce what the business group calls a "payroll tax."

WorkplaceNL is cutting employer premiums by 25 cents per $100 of payroll.  

The Newfoundland and Labrador Employers' Council estimates that will add up to $20 million per year.

Executive director Richard Alexander said the change will be a relief to employers in the province.

"They've recognized what we've been saying, that this is making us uncompetitive, it's harder to employ people, increase wages, these types of things," said Alexander.

"So we're quite pleased with this announcement today."

However, he said there needs to be more done to reduce the rates being paid.

"Even with this drop we are still the third most expensive workers' compensation system in Canada, and that means that businesses in our province have to compete at a disadvantage."

The premiums will drop by the beginning of next year.