Ontario Tories call for end to WSIB 'slush fund'

Ontario's Workplace Safety and Insurance Board has operated a "slush fund" for years without proper oversight to make sure its getting value for money, the Progressive Conservatives charged Tuesday.

The WSIB gave the Ontario Federation of Labour $12.3 million over 10 years to help prevent accidents, but a 2014 audit found the grant program's "link to prevention is weak" and it should be shut down, said PC labour critic Randy Hillier.

"There has never been any oversight of this fund whatsoever, no applications, no reporting and zero value for money," Hillier told the legislature. "KPMG has told you that this program is worthless. It's just a slush fund for the OFL, and it's political pressure on your ministry that is keeping that slush fund going."

Documents obtained under freedom of information show some of the grant money was spent on car allowances, gym memberships and a $44,000 staff training session at the Bayview Wildwood resort in Muskoka, added Hillier.

"That's where the money is going," he said. "It's not going to help injured workers."

'No clear focus'

Documents prepared by the WSIB show there is "no clear focus for the (grant) program" and funds were used for capital expenditures and IT maintenance in contravention of the grant agreement.

"Unfortunately, due to political issues, this special condition in the grant agreement has not been enforced," said the WSIB. "Attempts to discontinue funding or to increase oversight have been unsuccessful due to the political issues surrounding the grant."

Labour Minister Kevin Flynn said he was unaware of the audit raised by Hillier, but added the WSIB did review its grant program and plans to introduce new guidelines next year to ensure it gets the value for money it should be getting.

"There appeared to be information that came forward that said there was a better way of doing some of these things," Flynn told reporters. "The WSIB had acted on them and will be implementing new guidelines in 2016."

Flynn said "it's out of the question" for anyone to expect government or its agencies to pay for things such as gym memberships in an era of restraint.

The WSIB said the OFL gets the largest single chunk of its accident prevention grants, roughly 29 per cent of the available money, or over $1 million a year.

The agency said it sent letters for grant requests only to current or recent grant recipients, and not to the health and safety sector, which it admitted "stifles opportunity to identify and fund alternate or innovate programs."