Report on the Yukon Workers' Compensation System

System fundamentally sound but some improvements needed

Whitehorse, 10 September 2002 — In a special examination report released today by the Board of Directors of the Yukon Workers' Compensation Health and Safety Board, the Auditor General of Canada, Sheila Fraser, concluded that the Yukon workers' compensation system is fundamentally sound and responsive to the needs of those who are injured in the workplace, but several areas need improvement.

"For the most part, the Board is aware of the important issues it faces and is taking action to address them," said Ms. Fraser. "However, it needs to improve governance, its administration of workers' compensation and occupational health and safety programs, and performance measurement and reporting."

The Board manages the Yukon Compensation Fund in the interests of some 13,400 workers and 2,240 employers in the territory. During 2001, total revenues were $16.6 million and total expenses were $24.5 million.

The Board of Directors requested the examination as required under its Act. The examination looked at how well the various elements of the workers' compensation system are working, including the Yukon Workers' Compensation Health and Safety Board, the Workers' Compensation Appeal Tribunal, and the Workers' Advocate. The Auditor General recommends that the members of the compensation system work to do the following:

• Address governance issues, such as improving the process of appointing Board members and clarifying accountability and reporting relationships. Legislative amendments may be needed.
• Improve claims management and demonstrate control of increasing costs of claims and administration.
• Demonstrate to stakeholders it is operating economically, efficiently and effectively, particularly with regard to its Achieving Better Customer Service Project.
• Give higher priority to prevention activities and take action on the enforcement of occupational health and safety regulations.
• Develop and implement creative and appropriate ways of attracting and retaining key personnel.
• Strengthen performance measurement and reporting, both to management and to stakeholders.

"Making the system work better should be the overall goal," said Ms. Fraser. "It won't be easy unless all the parties involved work together in the best interests of the system as a whole."

- 30 -

The Auditor General's "Report on the Yukon Workers' Compensation System" was provided to the Yukon Workers' Compensation Health and Safety Board and is available on their Web site (www.wcb.yk.ca).

Information:

Media Relations
Tel.: (613) 952-0213, ext. 6292
E-mail: communications@oag-bvg.gc.ca