2017 ANNUAL REPORTand 2018 – 2022 FIVE YEAR PLANLETTER TO THE MINISTERThe Honourable Blaine Pedersen Minister of Growth, Enterprise and Trade Room 358, Legislative Building Winnipeg, MB R3C 0V8Dear Minister:We are pleased to present our 2017 Annual Report and Five Year Plan in accordance with the provisions of The Workers Compensation Act. This report covers the 12-month period from January 1 to December 31, 2017. It includes the statements of accounts required to be kept under the Act.Respectfully submitted,Michael D. Werier ChairpersonTABLE OF CONTENTSAbout the WCB .......................................................................................05Vision, Mission and Values ......................................................................06Message from the Chairperson..............................................................07Message from the President and CEO ...................................................08Board of Directors and Board Committees ............................................10Our Customers .......................................................................................12Our System .............................................................................................14Our Partners ............................................................................................16Our People .............................................................................................18Year at a Glance ..................................................................................20Statistics and Measures .........................................................................22SAFE Work Manitoba ...............................................................................26SAFE Work Manitoba Operating Expenses ..............................................33Financial Report .....................................................................................34Management’s Responsibility for Financial Information .....................… 362017 Management Discussion and Analysis ..........................................37Actuarial Opinion ...................................................................................42Actuarial Review .....................................................................................43Independent Auditor’s Report ................................................................44Consolidated Statement of Financial Position ........................................45Five Year Plan .........................................................................................78REDUCING EMPLOYER PREMIUMSAverage assessment rate per $100 of assessable payroll2013 - $1.502014 - $1.502015 - $1.302016 - $1.252017 - $1.102018 - $0.954 | WCB 2017 ANNUAL REPORTABOUT THE WCBThe Workers Compensation Board of Manitoba (WCB) is a mutual workplace injury and disability insurance agency funded by employer premiums. With a mandate to prevent workplace injuries and illnesses, the WCB and its approximately 620 staff are committed to building a culture of health and safety throughout Manitoba.Services and BenefitsIf people are hurt or become ill as a result of their work, the WCB is here to help, offering a wide range of benefits to assist injured workers in returning to health and meaningful work as soon as safely possible. Some of the benefits offered include:• replacement of lost income• healthcare treatments and payment of medication costs• employment retraining• lump sum payments for permanent impairments• benefits to partners and children in the event of a workplace fatality.As part of the WCB’s commitment to quality service and fair process, injured workers, their dependants and employers may contact the Fair Practices Advocate (FPA), an independent office that works to ensure fair practices at the WCB. Further information is available at www.fairpracticesofficemb.ca.PREVENTING WORKPLACE INJURIESTime loss injury rate per 100 full time workers* Estimated, to be confirmed mid-20182013 3.22014 3.12015 3.02016 2.92017 2.9*WCB 2017 ANNUAL REPORT | 5Our VisionA trusted partner, insuring today and building a safer tomorrow. Our Mission We are here to insure and support safe and healthy work and workplaces. We put workers and employers at the centre of all we do. We provide them with valued services for injury prevention, compensation and return to health and work while maintaining system integrity. Our Strategic Priorities Our Customers – Understanding the diverse needs and expectations of workers and employers. Providing proactive and relevant services. Our System – Protecting the integrity of the compensation system. Honouring our governing principles and delivering on our mandate. Our Partners – Collaborating with our partners to deliver superior services and build a safer Manitoba. Our People – Engaging our employees to harness their commitment and passion. Developing our capabilities and our capacity to excel. Our Values Integrity • Compassion • Innovation • Accountability • Collaborationourcustomers6 | WCB 2017 ANNUAL REPORTThe Workers Compensation Board of Manitoba (WCB) continues to serve Manitoba employers and workers through an established insurance system that is a valued pillar of the Manitoba economy. As the Board of Directors, we collaborate to create the strategic direction of the WCB, approve policies that provide direction and continuously monitor the organization’s successes in achieving its strategic goals.It is our mission to ensure the WCB continues its journey of making Manitoba a leader in injury prevention while providing timely and compassionate compensation services to injured workers.In 2017, the Board welcomed Ron Koslowsky as an employer representative to the Prevention Committee. The Board, with the support of the Prevention Committee, endorsed a number of new initiatives, including the Psychological Health and Safety in the Workplace strategy and the Occupational Disease and Illness Prevention strategy. The Board also approved the process for certifying employers under the SAFE Work Certified program and consulted with stakeholders on the funding model for alternate industry-based safety programs. The Board also closely monitored the rate model enhancements and in 2017 we approved a number of policies that operationalize the new rate model. Overall, the rate model outcomes for employers will improve fairness and balance between collective and individual employer liability. The Board also continued to monitor the investment portfolio and reaffirm the policy asset mix.On a personal note, I was honoured to chair The Workers Compensation Act Legislative Review Committee that was charged with consulting with Manitobans to ensure The Workers Compensation Act meets the needs of current and future employers and workers. I was privileged to review many important submissions from stakeholders and the public and the final report has been submitted to government for consideration. In closing, I thank our dedicated Board members for their keen insights and their commitment to the organization. 2018 promises to offer new challenges as we develop the next chapter of our strategic vision which will have Return to Work as its focus. As well, in June 2018, we look forward to hosting our compatriots from across the country at the Association of Workers Compensation Boards of Canada Board Governance meeting in Winnipeg.On behalf of the Board, I offer my thanks to all of the staff for their energy and commitment in support of the Board’s vision of being A trusted partner, insuring today and building a safer tomorrow. Michael D. WerierChairpersonMESSAGE FROM THE CHAIRPERSONOUR CUSTOMERSWorkforce covered77%Registered employers36,246WCB 2017 ANNUAL REPORT | 7The WCB continues on its trajectory of becoming a more modern and focused service provider that delivers real value for the Manitoba economy and its stakeholders. Our ambitious re-engineering of the workers compensation system is nearing an end and we can see the tangible benefits for workers, employers and their families. We are an organization that touches the lives of workers and employers in the public and private sectors and we play a crucial role in our society and our economy. Investments in the compensation system over the past five years have brought about improvements in both the effectiveness of services and the efficiencies within the compensation system itself. As a result, employers paid $18 million less in 2017 to fund the workers compensation system and we are on track to have the system cost employers $29 million less in 2018 while still maintaining the comprehensive benefits and services that injured workers rely on. We strengthened our Return to Work efforts by building on best practices, supporting both injured workers and employers. We are now into the third year of phasing in changes to the way we calculate employers’ premiums. We are continuing to move towards a rate model that is more fair and balanced, responsive, and unique to the needs of different-sized employers. All of the changes that we are making are part of our commitment to modernizing the workers compensation system in order to meet the evolving needs of both employers and workers. Ultimately, the most effective way for employers to reduce their WCB costs is through the prevention of injuries in the workplace and effective and collaborative Return to Work programs.Progress in Manitoba workplaces on injury prevention and Return to Work continues to be beneficial to both the WCB and our customers. We are proud to announce that we will have 2013 - 62%2014 - 64%2015 - 63%2016 - 74%2017 - 83%MESSAGE FROM THE PRESIDENT AND CEOSTRENGTHENING WCB SUPPORT FOR RETURN TO WORKWorker satisfaction8 | WCB 2017 ANNUAL REPORTCanada’s lowest average assessment rate in 2018, falling below one dollar at $0.95, a 14 per cent decrease from the 2017 rate of $1.10.Improving health and safety in the workplace falls under the purview of SAFE Work Manitoba, a division of the WCB, and they continued to reach milestones in their journey of making Manitoba one of the safest provinces in Canada. The journey is one in which employers and workers have enthusiastically joined as their commitment and participation is integral to reducing injuries and building safer workplaces. One noticeable result is the SAFE Work Certified program which has gained momentum as 130 employers achieved their certification with many more employers working their way through the program.There’s now greater awareness of psychological injuries and the need for maintaining a psychologically safe work environment. At the WCB, we introduced specialized training for our own staff on mental health awareness within the workplace.As well, we continued to support and provide technical assistance to The Workers Compensation Act Legislative Review Committee 2016-2017 (LRC). We look forward to the outcomes of the LRC’s work as they link to modernizing the workers compensation system in Manitoba.We continue on our path of reducing workplace injuries and illnesses and creating a system that is fair and balanced. Our customers, stakeholders, partners and our staff are integral to our success and I thank them all as we continue on our journey of being A trusted partner, insuring today and building a safer tomorrow. Winston MaharajPresident and CEOEmployers paid $18 million less in 2017 to fund the WCB system.WCB 2017 ANNUAL REPORT | 9Next >