The concept of workers' compensation had its origins in
Germany, Great Britain and the United States between
the late 1800s and early 1900s.
In Germany, Chancellor Otto Von Bismarck introduced
a compulsory state run accident compensation system
between 1884 and 1886. This initial system was
financed by workers and employers.
In the United States, between 1908 and 1915,
several states enacted compensation legislation. The state
of Washington enacted an exclusive mandatory system
based on collective liability.
As compensation was given state jurisdiction, the
US developed a mixed bag of WCBs, mandatory insurance,
self-insurance and combinations.
Workers' compensation in Canada had its beginnings in the province of Ontario. In 1910, Mr. Justice William Meredith was appointed to a Royal Commission to study workers' compensation. His final report, known as the Meredith Report was produced in 1913.
The Meredith Report outlined a trade-off in which workers' relinquish their right to sue in exchange for compensation benefits. Meredith advocated for no-fault insurance, collective liability, independent administration, and exclusive jurisdiction. The system exists at arms-length from the government and is shielded from political influence, allowing only limited powers to the Minister responsible.
The WCB of the NWT was created in 1977, modelled
after the Meredith Principles. In 1999, after the
creation of the new Nunavut territory, the governments
of Nunavut and the Northwest Territories agreed
to maintain a shared Workers' Compensation Board
for the two territories. This arrangement continues
to this day.
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