Structure of the WCB
The Workers Compensation Board (WCB) is a statutory corporation that administers the system of workers compensation in Manitoba. The Workers Compensation Act (the “Act”) outlines the existence of the WCB, along with its rights and responsibilities.
The Board of Directors of the WCB are responsible for setting and overseeing the strategic direction of the WCB. By law, it consists of 10 members appointed by the Government of Manitoba, based on nominations submitted by labour, employers, and the public. The President and Chief Executive Officer (CEO) of the WCB also sits on the Board of Directors as a non-voting member.
The Board is responsible for making and amending policies. WCB policies and administrative guidelines provide further detail about how the WCB fulfils its mandate, exercises its authority, and makes decisions under the Act and regulations.
While the Board of Directors is responsible for the strategic direction, the Executive Management Committee (EMC) of the WCB is responsible for the daily operations of the WCB. EMC is led by the CEO and consists of several Vice Presidents of operational areas.
There are many divisions of the WCB. Each division plays a role in implementing the workers compensation system. Two core divisions of the WCB are compensation services and assessment services.
Compensation services is responsible for administering and managing all aspects of injured workers’ claims. This includes receiving injury reports, making decisions on entitlement, paying benefits, and supporting treatment, recovery, and return to work.
Assessment services is responsible for the administration of employer accounts, including collecting employer premiums that fund the workers compensation system, classifying employers based on industry, registering new employers and managing employer accounts, administering billing, and responding to employer inquiries.
A worker (or their dependants in the case of fatality claims) or an employer may appeal decisions they do not agree with. The WCB uses a multi-step appeal process that may involve internal or external reviews.
The first step to an appeal is typically done by contacting the original decision maker to attempt to reach a resolution. If a resolution cannot be reached, the impacted individual or employer may request reconsideration by the Review Office.
The Review Office is an independent department of the WCB that reviews primary decisions.
If the individual or employer is not satisfied with the decision of the Review Office, they can appeal that decision to the Appeal Commission, an external and independent body from the WCB. The Appeal Commission is the highest level of appeal for any compensation claim, compliance issue, or assessment issue. Further review is available only in very limited circumstances.
Who is covered by the Act?
The WCB covers approximately 73% workers in the province of Manitoba. Unless excluded by regulation, coverage is mandatory for all employers, industries, and workers in Manitoba.
The Act and regulations identify industries that are exempt from having workers compensation coverage. Any employer in the Province of Manitoba that is not required to have coverage can apply for optional coverage.
The Act divides employers into two classifications for the purposes of assessment. There are what are known as Class E employers; and there is a group of employers in Classes B through D, collectively referred to as “individually assessed employers”. The terminology has a history behind it, explained below. These classifications determine how they contribute to the system.
- Class E Employers
Class E are employers in all industries in Manitoba that are not excluded by regulation and are not individually assessed. The Act divides employers into classes. Class A was repealed in 2022. Classes B through D refer to individually assessed employers as described below. Class E are all employers who are required to have coverage but do not fall within classes B through D.
Most of the employers participating in the workers compensation system are class E employers. There are over 39,000 Class E employers registered with the WCB.
Class E employers are subject to collective liability provisions of the Act. This means that they must pay premiums (calculated by the WCB) into a general accident fund from which benefits to workers are paid.
- Individually Assessed Employers
The Act, together with the Individually Assessed Employers Regulation, specifies the Manitoba employers that fall within this category.
Class B employers are those specified by regulation. These include Air Canada, Canadian National Railway, CPKC, and Via Rail. Class C refers to the Province of Manitoba and its agencies and crown corporations. Class D is the City of Winnipeg.
Individually assessed employers are responsible for their actual WCB claims costs, plus their share (based on the number of claim transactions) of what the WCB calls “administrative costs” of the workers compensation system.
If a worker is injured while working for an employer that is required to have coverage but has failed to obtain such coverage, that worker’s claim is still compensable so long as it would be compensable had their employer obtained coverage. In other words, the worker in this scenario does not suffer because their employer failed to pay their required premiums.
If an injured worker’s employer is not required to have workers compensation coverage, and has not obtained optional coverage, that worker is subject to Part II of the Act. Workers in this scenario are not entitled to compensation from the WCB. Their recourse for damages resulting from a workplace injury is to sue to their employer. Part II effectively addresses the Unholy Trinity that in the past made it very difficult for workers to sue their employers.
The WCB does not have jurisdiction over Part II of the Act. That jurisdiction lies exclusively with courts.
How is the WCB Funded?
The Act requires an accident fund to provide “for the payment of compensation, outlays, and expenses” associated with the workers compensation system.
Assessments from employers, investment income, and any other revenues of the WCB, are all paid into the accident fund. All compensation benefits and administrative expenses are paid out of the accident fund.
The Act requires that sufficient funds be available for the payment of all current and future liabilities, so that the WCB maintains reserves sufficient to ensure the financial security of the system in the long term.
Each year, the WCB budgets how much revenue is required to pay claims and operate the WCB system. This includes claims costs, administration costs of operating the WCB, and other programs funded by the WCB such as Workplace Safety and Health, industry-based safety programs (IBSPs), the Worker Advisor Office, and the Employer Advisor Office.
Once the WCB determines its revenue needs, Assessment Services collects the appropriate premium revenue from the Class E employers by using the WCB rate-setting model. You can read about how WCB calculates premiums here. Claim costs paid by individually assessed employers are paid into the accident fund.