Expect job losses & business closures with mandatory WSIB

Canadian Federation of Independent Business
News Release

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Toronto – According to the latest results of a survey conducted by the Canadian Federation of Independent Business (CFIB), Ontarians can expect huge ramifications if mandatory Workplace Safety and Insurance Board (WSIB) coverage is imposed on the struggling construction industry. Taking part in the study were owners of 852 construction firms from across the province.

The survey asked business owners to indicate which adjustments they would need to make under the McGuinty government’s Bill 119, which would impose mandatory WSIB premiums on owners, executive officers and independent operators in construction, and result in an average tax hike of $11,000 per year. Allowing for multiple responses, 70 per cent of respondents indicated that they would need to raise their prices, 34 per cent would take a pay cut, 25 per cent would cut employee wages, while 19 per cent said that they would be forced out of business.

“These grim prospects are devastating for the thousands of Ontario families that rely on the construction industry for their livelihood,” said CFIB’s Ontario Director Satinder Chera. “With the economy in recession, and many Ontarians worried about their jobs and dwindling savings the last thing we need is to make it harder for the job creators in the economy to survive and grow.”

87 per cent of owners said that mandatory WSIB coverage will do nothing to flush out the cheats in the underground economy. In fact, with this increased incentive to hide – higher taxes –underground operators will likely dive deeper. Making above ground operators subsidize the cheats is wrong. It will do nothing to improve the system.

“What we have here is a thinly veiled excuse for a tax grab that will be detrimental to an industry in need of relief, not hindrance. With the implementation of Bill 119 slated for 2012, there is still time for government to withdraw this misguided policy and pursue other sensible strategies for tackling the underground economy,” said Chera.

He concluded that Labour Minister Peter Fonseca says that he is interested in what small businesses have to say. “For the sake of thousands of small firms struggling to hold on their employees and their livelihood, let’s hope that he is prepared to act on to those concerns.”

To view the report in full, please visit: www.cfib.ca

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