< PreviousOur PartnersManitobans Who Believe the WCB Makes a Positive Contribution to the Province2021202020192018201770%75%75%74%72%Percentage of WCB-Covered Payroll that is Served by an Industry-Based Safety Program2021202020192018201742%42%47%46%45%30 2021 WCB ANNUAL REPORTSAFE Work ManitobaTime Loss Injury Rate per 100 Full Time Workers 202120202019201820172.71,22.52.52.62.9Number of Time Loss Injuries2021202020192018201712,97412,04412,75513,03514,204Severe Injury Rate per 100 Full Time Workers 202120202019201820170.7410.650.480.470.51Number of Severe Injuries202120202019201820173,51213,0512,4132,3612,529Injury Rate per 100 Full Time Workers 202120202019201820175.014.85.55.65.7Number of Injuries2021202020192018201724,00322,64527,49527,92028,254Days Lost to Workplace Injury or Illness per Full Time Worker202120202019201820171.6411.661.501.591.65Number of Days Lost to Workplace Injury or Illness20212020201920182017785,559778,770758,807798,567826,348Percentage of WCB-Covered Payroll that is SAFE Work Certified2021202020192018201714%13%12%10%9% 1 Estimated, to be confirmed in mid-2022. 2 Injury rates have increased during COVID-19 due to a significant drop in the number of full time workers employed during the pandemic.2021 WCB ANNUAL REPORT 31Fair Practices Office32 2021 WCB ANNUAL REPORT2021 WCB ANNUAL REPORT 33The Workers Compensation Act directs the Board of Directors to appoint a “Fair Practices Advocate” that “may investigate and make recommendations relating to any matter under the Act, including claims or assessment matters in which a worker, dependant or employer is or may be aggrieved.” The FPO operates at arm’s-length from the WCB administration and reports directly to the Board of Directors. Its role and mandate are set out in the WCB Policy 21.90, Fair Practices Office. The policy articulates three main guiding principles of the FPO: impartiality, confidentiality, and independence.Role and MandateThe FPO investigates complaints about practices and procedures at the WCB. Where it finds a practice, act or omission is clearly wrong or unreasonable from a fairness perspective, the Director of the FPO will make recommendations for improvement. The FPO has a duty of impartiality and does not act as an advocate for individual interests. It does not have the right to make or change decisions of the WCB or the authority to determine rights under The Workers Compensation Act.2021 ResultsThe FPO considers complaints under four broad categories: disagreement with WCB decisions, communications, timeliness, and general information/other. The following table shows the types of complaints/inquiries received in 2021, and over the previous four years. FPO Inquiries20212020201920182017Disagreement with Decisions171135115144132Communication/Service10038546595Timeliness3930352527General Information/Other5850514898TOTAL368253255282352FPO contact numbers in 2021 were up 45 per cent overall compared to 2020. However, 2020 numbers are anomalous due to the COVID-19 pandemic and the smaller number of claims in the system. Compared to the four-year average (2017-2020) of 285, numbers in 2021 were up 29 per cent. “Disagreement with decisions” accounted for 46.5 per cent of all FPO contact in 2021. This is consistent with Message from the Fair Practices OfficeThe Fair Practices Office (FPO) was established in 1989 as a WCB customer service initiative; the first of its kind in Canada. The FPO has since become an organizational ombudsman required by statute.34 2021 WCB ANNUAL REPORTthe historical average for the period 2017-2020 (46.7 per cent).The FPO made recommendations in 42 per cent of cases in 2021. Typically, the recommendation was to further investigate the issue. Summary of Recommendations The COVID-19 pandemic continued to present challenges to the adjudicative process in 2021. The FPO made recommendations on such matters as: timeliness of decision-making, particularly with regard to psychological injury claims; issues with communication and service delivery; and adjudicative practices around medical evidence. It also identified opportunities to improve the WCB decision letter writing process. The WCB administration is responsive to the FPO’s recommendations and is taking steps to address several of these areas of concern including addressing ongoing training opportunities across the organization.2021 WCB ANNUAL REPORT 35Financial 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 consolidated financial statements and other financial information included in this annual report on April 20, 2022.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 consolidated 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 consolidated financial statements of the WCB and reported thereon in accordance with accepted actuarial practice in Canada. 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 48. Eckler Ltd.’s actuarial review is provided on page 49.Grant Thornton LLP, the external auditors of the WCB, has performed an independent audit of the consolidated financial statements of the WCB in accordance with Canadian generally accepted auditing standards (GAAS). Their Auditor’s Report, on page 50, outlines the scope of this independent audit and includes their opinion expressed on the 2021 consolidated financial statements.Richard Deacon President and CEOApril 20, 2022Andria McCaughan, CPA, CMA Chief Financial Officer38 2021 WCB ANNUAL REPORT2021 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.2021 Financial HighlightsThe Manitoba economy continued to be impacted by the COVID-19 pandemic in 2021. The pandemic manifested in waves of relaxed and enhanced restrictions compared to the widespread slow down or shut down many Manitoba businesses experienced in 2020. As vaccination campaigns hit their stride, many employers were able to adapt and return to business. As a result, employer payroll increased significantly from the previous year and with more workers returning to the workforce, unfortunately the number of reported claims also increased. These factors, combined with positive outcomes for investment income, produced an operating surplus of $78 million (budget, $10 million loss). After recording surplus distributions of $71 million and a remeasurement gain of $65 million on the WCB retirement plan, total comprehensive income was $72 million. Premium revenues of $221 million were $5 million above budget. Investment returns were 9.9 per cent, resulting in $165 million of investment income ($88 million budgeted). In 2021, the number of time loss claims increased by 7.7 per cent compared to 2020. A smaller workforce in 2020 due to COVID-19 shut downs resulted in lower claim volumes. When comparing to pre-COVID time loss claim volumes, 2021 time loss claims were down in most industries with the exception of healthcare which has been significantly impacted by the pandemic. These higher claim volumes resulted in more claims in pay with a higher average cost per claim and longer claim duration. The WCB’s accident fund reserve increased from $777 million to $783 million, exceeding the accident fund reserve target level (calculated at $496 million for 2021). The WCB is fully funded with a funding ratio of 150.4 per cent versus target of 130.0 per cent. 2021 WCB ANNUAL REPORT 39Next >