The Honourable Blaine PedersenMinister of Growth, Enterprise and Trade Room 358, Legislative BuildingWinnipeg, MB R3C 0V8Dear Minister:We are pleased to present our 2018 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, 2018. It includes the statements of accounts required to be kept under the Act.Respectfully submitted,Michael D. Werier ChairpersonLETTER TO THE MINISTERWCB 2018 ANNUAL REPORT 3About the WCB .........................................................................................5Vision, Mission and Values ........................................................................6Message from the Chairperson................................................................7Message from the President and CEO .....................................................8Board 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 .........................362018 Management Discussion and Analysis ..........................................37Actuarial Opinion ...................................................................................43Actuarial Review .....................................................................................44Independent Auditor’s Report ................................................................45Consolidated Statement of Financial Position ........................................47Five Year Plan ........................................................................................80REDUCING EMPLOYER PREMIUMSAVERAGE ASSESSMENT RATE PER $100 OF ASSESSABLE PAYROLLTABLE OF CONTENTS2014 - $1.502015 - $1.302016 - $1.252017 - $1.102018 - $0.952019 - $0.954 WCB 2018 ANNUAL REPORTThe Workers Compensation Board of Manitoba (WCB) is a mutual workplace injury and disability statutory corporation funded by employer premiums. With a mandate to prevent workplace injuries and illnesses, the WCB and its approximately 600 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 Office (FPO), 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-20192014 3.12015 3.02016 2.92017 2.92018 2.6*ABOUT THE WCBWCB 2018 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 2018 ANNUAL REPORTThe Workers Compensation Board of Manitoba (WCB) provides a valued service in promoting safe workplaces and delivering appropriate and compassionate benefits and services to injured workers. As the Board of Directors, our mission is to work in partnership with the administration to develop a strategic direction, review and confirm policies and continuously oversee and provide feedback on the operations of the WCB.The Board is focused on the future of the WCB and as such, we had a busy year on a number of fronts. Firstly, we welcomed four new members to the Board: Ron Koslowsky as a representative of employers, Marc Lafond as a workers representative and as public interest representatives, Sonya Penner and Elizabeth (Liz) Roberts. All four bring fresh ideas and new perspectives to the Board which are important as we focus on building a safer Manitoba.We added further depth to our Board committees by welcoming new members to our Investment and Prevention Committees. Nestor Theodorou joined our Investment Committee and Neal Curry joined the Prevention Committee as a representative of employers.In 2018, the Board consulted with our stakeholders to begin developing the next five-year (2019-2023) prevention plan for SAFE Work Manitoba, whose objective is to prevent workplace injuries and illnesses. As well, by the end of the year, we created a new five-year strategic framework for the WCB. A key part of our strategic planning process in 2018 was the development of a Return to Work (RTW) roadmap that will be used in the coming year to establish key RTW initiatives and targets.In the policy area, we dealt with a number of policy issues, with an emphasis on clarity, transparency and modernity. We confirmed updated policies on medical aid and impairment rating for mental health, passed a new accessibility policy and reviewed the penalty regulation. As part of good governance, we also enhanced our by-law relating to processes to deal with potential conflicts of interest.The Board also approved a policy framework that establishes an annual process and methodology for the distribution of surplus reserves. As well, we confirmed a revised mandate for the Fair Practices Office which reports directly to the Board on issues of quality and fairness. As we look to the future, the Board will continue its focus on Prevention and Return to Work based on the development of a new five-year plan in Prevention, our RTW Roadmap and the WCB’s overarching Strategic Planning Framework. The Board also looks forward to supporting and overseeing the recommendations of the Legislative Review Committee should they be endorsed by the Manitoba government.Continuous learning and networking are also important and we used the theme of “Sowing the Seeds of Knowledge” when we welcomed colleagues from across the country at the annual Association of Workers Compensation Boards of Canada’s Board Governance Summit. The work we do at the Board level hinges on the day-to-day work carried out by the dedicated group of WCB employees who serve our employers and injured workers with such care and commitment. On behalf of the Board, I thank them for their continued good work as they support the Board’s vision of being A trusted partner, insuring today and building a safer tomorrow.Michael D. Werier ChairpersonREGISTERED EMPLOYERS37,131OUR CUSTOMERSWORKFORCE COVERED78%MESSAGE FROM THE CHAIRPERSONWCB 2018 ANNUAL REPORT 7As the Workers Compensation Board of Manitoba (WCB) entered into the final year of its current five-year plan, many of the related multi-year initiatives are coming to a close. As such, we are starting to see the positive results of a system that has been re-engineered to meet the changing needs of employers and workers today and into the future. In 2018 we remained focused on the future as the Board of Directors and administration worked together in developing a new five-year strategic planning framework that is positioned around Return to Work and Prevention.Our strategic planning efforts include the work undertaken by SAFE Work Manitoba and our safety stakeholders who work together to lay the foundation and provide input for the next five-year Prevention Plan that will be developed in 2019. While we look to the future in our next five-year plan, over the past year we have also continued with the implementation of the final stages of many multi-year initiatives.We are nearing the completion of our transition to a more fair and balanced assessment rate model. In 2018, we introduced an experience factor that more fairly balances individual versus collective risk based on an employers’ size. Overall system and process improvements allowed us to deliver our rate letters two months earlier than in previous years. We know that employers use this information to estimate their WCB costs and plan for the future and now, through our improved processes, that planning can happen sooner and hopefully be even more effective. We are committed to delivering service that meets our customers’ needs. Whether it’s introducing best practices in case management, offering more online services, including the new option for workers to report injuries online, or creating a team of dedicated Return to Work specialists, we are focused on working with both employers and workers to create a world class compensation system in Manitoba.MESSAGE FROM THE PRESIDENT AND CEO8 WCB 2018 ANNUAL REPORTIt has been five years since SAFE Work Manitoba was formed and the work they have accomplished is truly remarkable. In 2018, SAFE Work Manitoba launched a Prevention Rebate program that rewards employers for demonstrating that they meet the SAFE Work Certified standard. At the end of 2018, one in every 10 workers in WCB-covered workplaces was employed in a workplace that met this standard, resulting in 882 employers being eligible for $5.6 million in Prevention Rebates.Investments made to the system over the past five years are intended to deliver long term improvements to injury and illness prevention. The safety performance provincially in 2018 is an indication that this investment is beginning to provide returns. There was an eight per cent reduction in WCB time loss claims in 2018, driven largely by reductions in healthcare, manufacturing and public administration.We have a bedrock of financial stability. While volatility in the investment market produced lower investment returns in 2018, we have maintained a healthy reserve and developed a framework to return a portion of the surplus to employers next year. Our Compliance Services department is charged with ensuring employers and workers follow and adhere to their rights and responsibilities. Our Compliance activities over the past year continue to focus on education. In 2018, we launched a pilot program to work with employers who may be at risk of non-compliance. By being proactive with inspections we are able to give recommendations to employers to help them be compliant with The Workers Compensation Act of Manitoba and our policies and procedures. All of our efforts over the past years have been about meeting our vision of being A trusted partner, insuring today and building a safer tomorrow.I thank our Board of Directors for their continued guidance and I thank all the staff of the WCB for their continued efforts to put our customers at the centre of all we do.Winston Maharaj President and CEOSTRENGTHENING WCB SUPPORT FOR RETURN TO WORKWORKER SATISFACTION201464%201563%201674%2018 82%201783%WCB 2018 ANNUAL REPORT 9Next >