< PreviousReduce Workplace InjuriesSAFE WORK ON WHEELSSAFETY AND HEALTH INFORMATION PACKAGES SENT TO NEW EMPLOYERS: LEARNERS IN SAFE WORK MANITOBA WORKSHOPS: TARGET2.928,96028,100TARGETRESULTTARGETRESULT2,548*2,450RESULT2.9* RESULT 825,740TARGET 801,000Per 100 full time workersTIME LOSS INJURY RATEDAYS LOSTReduce Severe InjuriesINJURIES11,496846,424PEOPLE VIEWED DEMONSTRATIONSSITES VISITEDKILOMETRES TRAVELLED12,2013,801*ESTIMATED, TO BE CONFIRMED IN MID-2017. FOR A FIVE YEAR HISTORICAL TREND, SEE PAGE 24.20 2016 WCB ANNUAL REPORTSAFE WORK MANITOBANote from the Chief Operating Officer2016 was another eventful year at SAFE Work Manitoba. We made progress on numerous initiatives and launched several others, all with the goal of keeping Manitobans safe and healthy in their workplaces.We continued to support and expand industry-based safety programs. These programs are providing training, tools and services that cater to the needs of their industry members. Early in 2016, we joined Canadian Manufacturers & Exporters Manitoba in launching the Made Safe program. In November, we partnered with Keystone Agricultural Producers in the launch of a new program aimed at bringing safety information and resources to Manitoba farms. These two programs join others we previously helped to establish – RPM Trucking Industry Safety and the Motor Vehicle Safety Association of Manitoba. Partnerships with other industries are in the works, with the goal of providing every Manitoba worker the opportunity to take advantage of an industry-based safety program.In 2016, we also made strides in the development of SAFE Work Certified. Our province-wide certification program provides workplaces with a benchmark for safety and health performance, while promoting a culture of safety. We provided assistance for industry-based safety programs to create their own safety and health certification programs that meet the SAFE Work Certified standard. In 2017, workplaces that meet this standard can begin to qualify for financial rebates, which will be distributed starting in 2018. This rebate is the result of work undertaken by a stakeholder group that spent six months on its development.There was no shortage of work on the promotional campaign front either. In the latter part of 2016, we launched our WorkedUp campaign, part of our strategy to increase awareness of workplace safety and health among young workers. This campaign highlighted the safety risks that young people are willing to take to secure a job that pays well. It was very well-received, with media and the general public responding enthusiastically to this topic being brought to the forefront of everyday conversation. Work began last year on a strategy for psychological health and safety in the workplace, which launches in 2017. In November, we held a successful first-time conference that brought together more than 200 people to learn and share ideas on this subject. We have also created a strategy to reduce musculoskeletal injuries that launches in 2017.There is much more to come, and we are encouraged by yet another drop in workplace illness and injury rates. For the second consecutive year, fewer Manitoba workers experienced illness and injury on the job. For 2016, the time loss injury reduction was two per cent from the previous year. The landscape of safety and health in Manitoba is changing – with results that we expect will benefit all Manitobans and that will continue for many years to come. Jamie W. HallChief Operating OfficerSAFE Work Manitoba2016 WCB ANNUAL REPORT 21SAFE WORK MANITOBA FINANCIALS20162015Salaries, employee benefits and training$ 3,438$2,509 Office supplies, services and projects 128112 Communications 2,3802,190 Professional fees 11135 SAFE Work Manitoba Program Costs6,0574,846SAFE Work Manitoba InitiativesRWIP - Prevention Grants 918563 WCB Sponsorships 10890 Safety Associations 5,1643,651 Investment in Injury and Illness Prevention$12,247$9,150Year ended December 31 (in thousands of dollars)22 2016 WCB ANNUAL REPORT* estimated, to be confirmed in mid-2017YEAR AT A GLANCEFinancial Information20162015Funded position$601,301,000$565,195,000Funded ratio 145.9%143.3%Number of registered employers35,42734,204Average assessment rate (per $100 of assessable payroll)$1.25$1.30Assessment revenue, Class E employers$226,639,000$230,059,000Investment income$48,628,000$111,520,000Investment rate of return (gross) 3.5%7.9%Operating expenses$95,716,000$90,612,000Claims InformationTime loss injury rate (per 100 full time workers) 2.9*3.0Days lost to workplace injury (per full time equivalent) 1.671.68Total injury claims 28,96028,969Time loss injury claims 14,16714,442Severe injuries2,548*2,524Fatality claims 1619Average days paid for all wage loss claims 32.531.4Claim costs incurred$168,057,000$211,550,0002016 WCB ANNUAL REPORT 231 In 2016, the WCB revised its survey questions to better gauge the results of its efforts to improve customer satisfaction and return to work practicesHISTORICAL TRENDSDays lost to workplace injury or illness (per full time worker)201620152014201320121.671.681.781.902.03Customer satisfactionEmployer results2016201520142013201272%71%71%71%64%Injured worker results2016201520142013201272%77%77%77%79%Employers and injured workers likely to speak positively about the WCBEmployer results2016201520142013201279%80%n/an/an/aInjured worker results2016201520142013201272%n/an/an/an/aWorker satisfaction with WCB support for return to work2016201520142013201274%163%64%62%65%Claims paid within 14 days of injury2016201520142013201265.0%66.0%68.0%70.6%65.8%Claim duration (average days paid)2016201520142013201232.531.431.833.934.9Reserves and funding (funding ratio) 20162015201420132012145.9%143.3%136.0%134.0%126.6%24 2016 WCB ANNUAL REPORTReview Office reconsiderations – adjudicative decisions confirmed2016201520142013201276%73%71%73%71%Manitobans who believe the WCB makes a positive contribution to the province2016201520142013201272%79%72%69%69%Percentage of Manitoba workers served by an industry-based safety program2016201520142013201232%22%21%16%10%Customer focus index201520132011200968%67%71%73%Innovation index201520132011200960%62%62%n/aEmployee engagement 201520132011200965%67%68%75%Time loss injury rate per 100 full time workers 201620152014201320122.923.03.13.23.3Number of severe injuries201620152014201320122,54822,5242,5872,7622,740Number of workplace injuries2016201520142013201228,96028,96930,20229,77731,017Total number of days lost 20162015201420132012825,740815,666849,587895,631926,9992 Estimated, to be confirmed in mid-20172016 WCB ANNUAL REPORT 2526 2016 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, 2017.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 2016 consolidated financial statements.Winston Maharaj President and CEOLorena B. Trann, FCPA, FCMA Chief Financial OfficerApril 19, 20172016 WCB ANNUAL REPORT 272016 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.2016 ResultsIn 2016, positive results for claim costs incurred produced an operating surplus of $42 million (budget, $9 million). After recording unbudgeted losses on the WCB retirement plan, total comprehensive income was $36 million. Investment returns were 3.5 per cent, resulting in $49 million of income ($37 million under budget). Premium revenues of $257 million were $8 million over budget due to higher assessable payrolls from Class E employers.The 2016 cost of claims of $168 million were $57 million under budget due to positive outcomes arising from the benefit liability valuation.Other comprehensive loss of $6 million was experienced, an outcome of recording a loss on the WCB retirement plan.The WCB’s accident fund reserve increased from $621 million to $663 million, exceeding the accident fund reserve target level (calculated at $455 million for 2016). The WCB is fully funded with a funding ratio of 145.9 per cent versus target of 130.0 per cent. 28 2016 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 $257 million in 2016 ($285 million in 2015), versus the budget of $249 million. The final average assessment rate per $100 of assessable payroll was $1.24 (budget, $1.25). Premiums are derived from Class E and self-insured employers:• 2016 Class E employers’ premiums were $227 million, down two per cent from 2015 as a result of a four per cent drop in the average assessment rate (2016, $1.25 versus 2015, $1.30).• 2016 self-insured employers’ premiums, which are calculated based on claim costs incurred, were $30 million ($55 million in 2015), decreasing as a result of changed claims experience in 2016. The chart below shows the components of the 2016 premium revenue:Self-insured EmployersClass E EmployersPremium Revenues2016201505010015020025030030.2226.6230.155.32016 WCB ANNUAL REPORT 29Investment Income In 2016, the WCB experienced investment income of $49 million from its investment portfolio ($112 million in 2015). Investment income was budgeted at $86 million for 2016. The investment portfolio is comprised of a variety of asset classes as set by policy. At December 31, 2016, the portfolio had a market value of $1.6 billion ($1.6 billion at the end of 2015) and an asset mix of 38 per cent fixed income, 45 per cent equities and 17 per cent real assets in 2016 (40 per cent fixed income, 42 per cent equities and 18 per cent real assets in 2015).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.2016 Returns by Manager Mandate% Return (Gross)Benchmark IndexCanadianEquitiesU.S.EquitiesEurope,Australasia,& Far EastEquitiesEmergingMarketsEquitiesFixedIncomeInfrastructureMortgagesRealEstateTotal17.5%21.1%5.9%8.6%-3.2%-2.0%5.8%7.9%2.5%1.6%0.5%5.6%3.1%2.3%-7.8%6.6%3.5%6.4%The investment portfolio’s gross rate of return was 3.5 per cent in 2016 (benchmark 6.4 per cent) and 7.9 per cent in 2015 (benchmark 5.4 per cent). In 2016, the portfolio’s exposure to Alberta real estate had a significantly negative impact on the 2016 performance.In 2016, despite a weak start, equity markets rebounded. Contributors were the strength in the U.S. economy and the continued recovery in energy and material prices. Overall earnings growth improved along with economic momentum. The Canadian market, in particular, performed well in 2016.As expected, the U.S. Federal Reserve (the Fed) raised the target range of its benchmark interest rate by 0.25 per cent in 2016, indicating some concern about the return of inflation, and resulting in an increase in longer term rates as well.Outlook: The outlook generally is that modest global economic growth will continue, and further rate increases by the Fed are likely. 2017 could be a year of good returns for stocks in sectors such as banking and insurance that will perform well in an environment of increasing interest rates.However, as political events in 2016 demonstrated, there is always the risk of an unexpected geopolitical event that could change the outlook.Next >