< PreviousSAFETY AND HEALTH INFORMATION PACKAGES SENT TO NEW EMPLOYERSSAFE WORK MANITOBA NOTE FROM THE CHIEF OPERATING OFFICER2015 was a year of incredible growth at SAFE Work Manitoba. We began the year with some lofty goals and I’m proud to report we’ve made great progress.The expansion of industry-based safety programs was one of our most important objectives. With their unique ability to provide training, tools and services for their industry members, these associations have a critical role to play in preventing workplace injury and illness. In May, we helped launch the Motor Vehicle Safety Association of Manitoba and in September, we joined the Manitoba Trucking Association in celebrating its new safety program. As the year drew to a close, we entered into an agreement with the Canadian Manufacturers and Exporters to host an expanded association that will be known as Made Safe. We’re just getting started – our goal is for all Manitoba workers to have access to a safety program designed for their needs.We’ve also been working hard on a comprehensive, new province-wide safety certification program called SAFE Work Certified. This program will meet the needs of workplaces across all industries and sizes. Building on the strengths of existing certification programs, the program will foster a culture of safety and health, and ultimately offer financial rewards to workplaces that demonstrate their commitment to safety.One of my personal highlights was moving into our new offices on the 16th floor of 363 Broadway in September. Our new space is not only modern and ergonomic, but it also features spacious training rooms that allow us to offer our prevention workshops at our SAFE Work Manitoba location, completing the transition from Workplace Safety and Health and the WCB.We ended the year with the launch of our strategy to reduce injuries among workers aged 15 to 24. This age group has the highest incidence of workplace injury. Our plan will influence not only youth themselves, but also parents, educators and employers in encouraging safety and health in the workplace.We know there is much more work ahead as we continue our plan to reduce injury and illness in the workplace. Our vision is straightforward – safe and healthy work and workplaces. Our many safety partners around the province have been essential to our success. We remain committed to this spirit of teamwork and collaboration as we carry on building a safer Manitoba.Jamie W. Hall Chief Operating Officer SAFE Work Manitoba20 | 2015 WCB ANNUAL REPORT 13,699NUMBER OF LEARNERS IN SAFE WORK MANITOBA WORKSHOPS***3,241SAFE WORK ON WHEELS51PEOPLE VIEWED DEMONSTRATIONS4,9997,057SITES VISITEDKILOMETRES TRAVELLEDTARGET: REDUCE SERIOUS INJURIES AND FATALITIES201122 FATALITIES2,778 SERIOUS INJURIES31,706 TOTAL INJURY CLAIMS201236 FATALITIES2,740 SERIOUS INJURIES31,017 TOTAL INJURY CLAIMS201324 FATALITIES2,762 SERIOUS INJURIES29,777 TOTAL INJURY CLAIMS201415 FATALITIES2,587 SERIOUS INJURIES**30,202 TOTAL INJURY CLAIMS201519 FATALITIESSERIOUS INJURIES N/A**28,969 TOTAL INJURY CLAIMSTIME LOSS INJURY RATE PER 100 WORKERSTarget: Reduce Time Loss Injury Rate to 3.0RESULT 3.0**Estimated, to be confirmed in mid-2016. For a five year historical trend, see page 25.**2015 serious injuries will be available in mid-2016.***May to December, 2015.PERCENTAGE OF WCB-COVERED WORKERS THAT HAVE AN INDUSTRY-BASED SAFETY PROGRAM2015 WCB ANNUAL REPORT | 21SAFE WORK MANITOBA FINANCIALSYear ended December 31 (in thousands of dollars)20152014Salaries, employee benefits and training$2,509 $1,668 Office supplies, services and projects112 128 Communications2,190 2,074 Professional fees35 68 SAFE Work Manitoba Program Costs4,8463,938SAFE Work Manitoba InitiativesRWIP - Prevention Grants563 939 WCB Sponsorships90 87 Safety Associations3,651 3,539 Investment in Injury and Illness Prevention$9,150$8,503 The primary focus of SAFE Work Manitoba is to implement Manitoba’s Five-Year Plan for Workplace Injury and Illness Prevention. The investment in safety during the second year of delivering the plan grew to $9.1 million.22 | 2015 WCB ANNUAL REPORT WCB YEAR AT A GLANCE20152014Number of registered employers34,20434,121Average assessment rate (per $100 of assessable payroll)$1.30$1.50Assessment revenue, Class E employers$230,059,000$253,733,000Investment income$111,520,000$127,286,000Investment rate of return (gross)7.9%9.9%Total injury claims28,96930,202Time loss injury claims14,44215,052Fatality claims1915Time loss injury rate (per 100 full time workers)3.0*3.1Days lost to workplace injury (per full time equivalent)1.681.78Average days paid for all wage loss claims31.431.8Claim costs incurred$211,550,000$222,100,000Operating expenses$90,612,000$81,323,000Funded position$565,195,000$457,130,000Funded ratio143.3%136.0%* estimated, to be confirmed in mid-20162015 WCB ANNUAL REPORT | 23HISTORICAL TRENDSDays lost to workplace injury or illness (per full time worker)201520142013201220111.681.781.902.032.00Customer satisfactionEmployer results2015201420132012201171%71%71%64%71%Injured worker results2015201420132012201177%77%77%79%79%Worker satisfaction with WCB support for return to work2015201420132012201163%64%62%65%64%Claims paid within 14 days of injury2015201420132012201166.0%68.0%70.6%65.8%67.6%Claim duration (days)2015201420132012201131.431.833.934.935.9Review Office reconsiderations – adjudicative decisions confirmed2015201420132012201173%71%71%71%68%24 | 2015 WCB ANNUAL REPORT Reserves and funding – funding ratio20152014201320122011143.3136.0134.0126.6121.3Manitobans who believe the WCB makes a positive contribution to the province2015201420132012201179%72%69%69%69%Service culture index201520132011200968%67%71%73%Innovation index201520132011200960%62%62%N/AEmployee engagement201520132011200965%67%68%75%Time loss injury rate (injuries per 100 full time workers)201520142013201220113.0*3.13.23.33.2*estimated, to be confirmed in mid-20162015 WCB ANNUAL REPORT | 2526 | 2015 WCB ANNUAL REPORTManagement’s Responsibility for Financial InformationThe consolidated financial statements of the WCB were prepared by management, who are responsible for the integrity and fairness of the data presented, including significant accounting judgments and estimates. This responsibility includes selecting appropriate accounting principles consistent with International Financial Reporting Standards. Financial information contained elsewhere in this annual report conforms to these financial statements.Management believes the system of internal controls, review procedures and established policies provide reasonable assurance that relevant and reliable financial information is produced and that assets are properly safeguarded. Management also believes that the WCB’s operations are conducted in conformity with the law and with a high standard of business conduct. The internal auditor performs periodic audits designed to test the adequacy and consistency of the WCB’s internal controls.The Board of Directors is responsible for overseeing management in the performance of its financial reporting responsibilities and approved the financial statements and other financial information included in this annual report on April 19, 2016.The Audit Committee assists the Board of Directors in its responsibilities. This Committee reviews and recommends approval of the consolidated financial statements and annual report. Internal and external auditors and actuaries have unlimited access to the Audit Committee. The Committee reviews the financial statements and other content of the annual report with management and the external auditors, and reports to the Board of Directors prior to their approval for publication.The Chief Actuary of the WCB completed an actuarial valuation of the benefit liabilities included in the financial statements of the WCB and reported thereon in accordance with accepted actuarial practices. The firm of Eckler Ltd. has been appointed as a peer reviewer to the WCB. The Chief Actuary’s opinion on the valuation of the benefit liabilities is provided on page 33. Eckler Ltd.’s actuarial review is provided on page 34.Grant Thornton LLP, independent auditors appointed as a sub-agent to the Provincial Auditor General, has performed an independent audit of the consolidated financial statements of the WCB in accordance with Canadian generally accepted auditing standards. Their Auditor’s Report, on page 35, outlines the scope of this independent audit and includes their opinion expressed on the 2015 consolidated financial statements.Winston Maharaj President and CEOLorena B. Trann, FCPA, FCMA Chief Financial OfficerApril 19, 20162015 WCB ANNUAL REPORT | 272015 Management Discussion and AnalysisAs an integral part of the annual report, the management discussion and analysis provides further insights into the operations and financial position of the WCB and should be read in conjunction with the consolidated financial statements and supporting notes.2015 ResultsIn 2015, positive results in investment returns and claim costs incurred produced an operating surplus of $95 million (budget, $16 million). After recording unbudgeted gains on the WCB pension plan, total comprehensive income was $108 million.Investment returns were 7.9 per cent, resulting in $112 million of income ($32 million over budget). Premium revenues of $285 million were $24 million over budget due to higher revenues from self insured employers.The 2015 cost of claims of $212 million were $21 million under budget due to fewer claims and lower costs per claim.Other comprehensive income of $13 million was experienced, an outcome of recording a gain on the WCB pension plan.The WCB’s accident fund reserve increased from $527 million to $621 million, exceeding the accident fund reserve target level (calculated at $448 million for 2015). The WCB is fully funded with a funding ratio of 143.3 per cent versus target of 130.0 per cent.28 | 2015 WCB ANNUAL REPORTRevenueThe WCB’s revenue is derived from two sources: premium revenue and investment income.Premium Revenue Premium revenue is the largest revenue stream for the WCB. Premium revenue was $285 million in 2015 ($286 million in 2014), versus the budget of $263 million. The final average assessment rate per $100 of assessable payroll was $1.29 (budget, $1.30).Premiums are derived from Class E and self insured employers:• 2015 Class E employers’ premiums were $230 million, down nine per cent from 2014 as a result of a 13 per cent drop in the average assessment rate (2015, $1.30 vs. 2014, $1.50).• 2014 self insured employers’ premiums, which are calculated based on claim costs incurred, were $55 million ($33 million in 2013), increasing as a result of changed claims experience in 2015.The chart below shows the components of the 2015 premium revenue:Self insured EmployersClass E EmployersPremium Revenues2015201405010015020025030055.3230.1253.732.72015 WCB ANNUAL REPORT | 29Investment Income In 2015, the WCB experienced investment income of $112 million from its investment portfolio ($127 million in 2014). Investment income was budgeted at $80 million for 2015.The investment portfolio is comprised of a variety of asset classes as set by policy. At December 31, 2015, the portfolio had a market value of $1.6 billion ($1.5 billion at the end of 2014) and an asset mix of 40 per cent fixed income, 40 per cent equities and 20 per cent real assets (41 per cent fixed income, 41 per cent equities and 18 per cent real assets in 2014).The WCB has engaged a number of professional investment managers. Each of these managers has a mandate as well as a benchmark rate of return to achieve. The gross returns before expenses by manager mandate and a comparison of this result to the benchmark returns are displayed in the following chart.2015 Returns by Manager Mandate% Return (Gross)Benchmark IndexCanadianEquitiesU.S.EquitiesEurope,Australasia,& Far EastEquitiesEmergingMarketsEquitiesFixedIncomeInfrastructureMortgagesRealEstateTotal-5.3%17.8%20.7%19.5%20.6%3.5%5.8%5.6%7.9%5.4%2.7%3.4%9.2%3.7%3.4%4.8%21.1%-1.0%The investment portfolio’s gross rate of return was 7.9 per cent in 2015 (benchmark 5.4 per cent) and 9.9 per cent in 2014 (benchmark 9.9 per cent). In 2015, the portfolio benefitted from exposure to non-Canadian equity markets and currencies.In 2015, weak commodity prices, particularly oil, had a significantly negative impact on the Canadian economy, stock market and the Canadian dollar. In the U.S., the Federal Reserve raised the target range of its benchmark interest rate by 0.25 per cent in late 2015, the first increase since the 2008 financial crisis. This rate increase suggests confidence in the U.S. economy. The Bank of Canada cut the overnight rate twice in 2015, reflecting the Bank’s concern over the impact of low oil and gas prices on the Canadian economy.Outlook: The Canadian economy is faced with serious challenges due to the unfavourable outlook for commodities, especially oil. However, Canada should benefit from monetary easing, the low Canadian dollar and the ongoing U.S. recovery. Market reaction to further rate increases in the U.S. is uncertain. Volatility in equity markets is likely to continue. It is unlikely that interest rates will increase in Canada in 2016, but there is risk that the Bank of Canada will lower rates further if oil prices do not stabilize.Next >