2020 ANNUAL REPORT2020 WCB ANNUAL REPORTThe Honourable Scott Fielding Minister of Finance Room 103, Legislative Building Winnipeg, MB R3C 0V8Dear Minister Fielding:We are pleased to present our 2020 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, 2020. It includes the statements of accounts required to be kept under the Act.Respectfully submitted,Michael D. Werier ChairpersonLetter To The Minister35 About the WCB6 Message from the Chairperson7 Vision, Mission and Values8 Message from the Acting President and CEO10 Board of Directors and Board Committees12 Enable Successful Return to Work14 Deliver Excellent Service16 Grow Our People18 Year at a Glance20 Statistics and MeasuresSAFE Work Manitoba26 Note from the Chief Operating Officer 28 Create a SAFE Work Culture30 SAFE Work Manitoba Operating ExpensesFinancial Report 34 Management’s Responsibility for Financial Information35 2020 Management Discussion and Analysis42 Actuarial Opinion43 Actuarial Review44 Independent Auditor’s Report46 Consolidated Statement of Financial Position84 Five Year PlanTable of ContentsServices and Benefits for Injured WorkersIf 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 and help ensure a safe and suitable return to work. Some of the benefits offered include:• replacement of lost income• payments for healthcare treatments and medication• employment retraining• lump sum payments for permanent impairments• financial support for 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.The Workers Compensation Board (WCB) is a mutual workplace injury and disability statutory corporation funded by employer premiums. With approximately 600 employees, 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 the integrity of the system.Preventing Workplace InjuriesTime loss injury rate per 100 full time workers201620172018202020192.92.92.62.5 *12.52020 WCB ANNUAL REPORT5About the WCB* Estimated, to be confirmed mid-20211 If COVID-19 claims are excluded: Time loss injury rate would be 2.3*6As the Board of Directors for the WCB, it is our role to approve and oversee the WCB’s strategic direction and support its journey to deliver quality services to customers. The Board of Directors accomplishes this by bringing representative voices to the table, which include employers, workers and the public interest, and drawing on Board members’ years of expertise, knowledge and insight in these areas to work in partnership with the WCB’s administration.In 2020, the composition of the Board of Directors was stable, reinforcing its consistent and expert oversight of the system. During the year, we welcomed Scott Greenlay as a second external member of our Audit Committee. We look forward to working with all members to build a safer Manitoba and support Manitobans when they need us the most.We also bid farewell to Winston Maharaj, who served as President and CEO for almost nine years. Winston’s guidance and leadership was instrumental in the successful achievement of important strategic initiatives and supporting the organization’s long-term vision during his career with the WCB. Darren Oryniak temporarily restarted his 35-year career at the WCB to serve as Acting President and CEO while the Board of Directors undertook a search for a new President and CEO. Of course, 2020 was a year like no other. The COVID-19 pandemic forced us all to make changes to the way we work. The Board of Directors has been no exception, as our meetings moved online to ensure our members stayed safe and healthy. Despite the challenges, it was rewarding to see the resilience and dedication demonstrated by the WCB’s board members and the incredible efforts made by staff to ensure continuity of service to employers and injured workers. On be half of the Board of Directors, I would also like to recognize and thank all of the many workers who continued to provide care and service to their fellow Manitobans during this unprecedented time. This year, the WCB implemented a new funding model for industry-based safety programs (IBSPs), which will contribute to Manitoba’s safety culture in important ways. The funding model will now include a cap on the amount that employers pay to access an IBSP and the valuable services they provide. Employers with access to an IBSP are proven to have fewer injuries and reduced premiums. These important changes will not only help the WCB meet its goal to expand employer access to safety programs and services, but also help strengthen the organization’s partnership with IBSPs – a key stakeholder.In a constantly-evolving technological landscape, protecting our customers’ information and privacy is a priority. In 2020, we continued to review and update our corporate processes to safeguard and enhance customer privacy and ensure greater transparency.Message from the ChairpersonOur VisionA safer Manitoba that fosters prevention and return to work.Our MissionWe provide our customers with valued services for insurance, prevention, compensation and return to work, while maintaining the integrity of the system.Our ValuesIntegrity: We treat our stakeholders fairly and honestly, while being accountable and transparent.Caring: We understand the unique needs of our customers and treat them with compassion, dignity and respect.Innovation: We continuously strive to make our systems more responsive, efficient and effective.Collaboration: We work together with our stakeholders to achieve our vision.Our Strategic PrioritiesCreate a SAFE Work Culture – Reduce the number and severity of injuries.Enable Successful Return to Work – Reduce days lost and improve the return to work experience.Deliver Excellent Service – Strive to improve customers’ satisfaction with their WCB experience.Grow Our People – Attract, retain and develop our people to align with our evolving needs.2020 WCB ANNUAL REPORTThe WCB moved seamlessly to a virtual environment during the pandemic, and the Board of Directors has closely monitored the pandemic’s effects on the workers compensation system as a whole and on the WCB’s workforce.The Board of Directors has also focused on policy and system changes required by proposed amendments to The Workers Compensation Act, approving new policies on the Adjudication of Psychological Injuries, Average Earnings, and Payments in Special Circumstances, to name a few.In 2020, The Workers Compensation Act was amended to provide a new system for Board appointments, which will give the Board and its stakeholders a more significant role in determining the composition of the Board and the future of workers compensation in Manitoba. Other statutory amendments are pending that will help the WCB address the challenges and opportunities of a modern and evolving Manitoba workforce, and help reinforce the WCB’s position as an independent entity. These changes will also help lead the WCB into the future as a stronger organization, with a continued focus on improving its compensation system.On behalf of the Board of Directors, I’d like to thank the WCB staff for their hard work and dedication this past year. We look forward to continuing our work in the coming year to deliver valued services in insurance, prevention, compensation and return to work, while maintaining the integrity of the system for all Manitobans.Michael D. Werier ChairpersonOur Customers38,073Registered Employers775%Workers Covered8The year 2020 was like no other with the arrival of COVID-19. For the WCB, the pandemic made it a challenge to maintain our excellent service standards, while also ensuring the safety and health of our staff and customers. Our staff rose to the challenge of working remotely and providing service continuity to injured workers and employers. By pulling together, we continued to meet our goals during an incredibly difficult year.Despite multiple challenges, work continued on many fronts in 2020. However, the way we went about it fundamentally changed with more than 95 per cent of our staff working from home for a significant portion of the year. I am proud of the organization’s ability to be creative and to ensure we continued to strive towards delivering our high service standards.Staying true to our vision of putting our stakeholders at the centre of everything we do, we undertook a variety of initiatives to support Manitoba employers who were facing an uncertain future. For example, we extended payment terms and eliminated late payment penalties. We continued to make strides on the prevention front, strengthening the services available to employers while providing support to Manitoba’s workers. Finally, in the interest of safety, we encouraged our customers to utilize the multiple channels of contact including phone and email and, for employers the added convenience of online chat.Although some initiatives were delayed and reprioritized, we are confident in our long-term strategy and vision for the future by continuing to promote safe and healthy workplaces to help prevent and reduce the occurrence of workplace injuries and illnesses. We also remain committed to facilitating recovery and return to work and providing compassionate and supportive compensation services for workers and employers.There is no doubt that 2020 was an unprecedented year for all of us, the impacts of which were felt across the entire economy and the WCB was no exception. Due to the implications of the lockdown and resulting economic slowdown many businesses temporarily closed, which reduced premium Message from the Acting President and CEO2020 WCB ANNUAL REPORTrevenues. However, with some workers facing temporary layoffs and with less workers in the workforce, the number of injuries declined as well, reducing claims costs. On the investment front, capital markets had significant challenges early in 2020 but recovered, providing positive returns in the latter part of the year. Overall we managed to maintain our strong financial position while also providing support to employers through a surplus distribution in 2020 of $36 million.Moving forward, it is now more important than ever to support workers and employers in their recovery from the impact of the pandemic. Integrity, caring, innovation and collaboration are all key elements to successfully restoring and improving upon our pre-pandemic customer service levels. Importantly, we are delivering on our goal of becoming a more flexible and resilient organization as our experiences in 2020 have demonstrated. We will continue building on what we have learned to grow and evolve our organization for the future so that we can continue to fulfill our vision of A safer Manitoba that fosters prevention and return to work.Darren Oryniak Acting President and CEOReducing Employer PremiumsAverage assessment rate per $100 of assessable payroll$1.10$1.25$0.952017$0.95201920162018$0.9520209Next >