TADA Statement on the Elimination of the WSIB’s Unfunded Liability

Elimination of the WSIB’s Unfunded Liability

Statement from Frank Notte of the Trillium Automobile Dealers Association on the Elimination of the WSIB’s Unfunded Liability

Toronto – October 9, 2018 – “The Trillium Automobile Dealers Association applauds Labour Minister Laurie Scott’s announcement that the Workplace Safety and Insurance Board (WSIB) has eliminated its unfunded liability which had been as high as $14.2 billion. As a result, the average WSIB premium rate for all sectors will decrease by nearly 30 percent. This provides much needed tax relief for new car dealers and other employers.

For the retail side of Ontario’s automobile and truck dealerships, lower premiums will result in an estimated savings of approximately $1.3 million for 2019. The repair and service sector will save approximately $40 million per year. This significant reduction provides immediate tax relief for our members who directly employ over 45,000 people across Ontario. They can now re-invest this freed up capital back into their business and help grow the economy.

For too long, a massive WSIB unfunded liability meant employers were paying artificially high premiums to fund a system that was chronically mismanaged over the years. A fully funded WSIB means stability and lower premiums for the employers who fund the system, and peace of mind for injured workers who rely on benefits.

We thank the strong leadership of WSIB Chair Elizabeth Witmer, and President and CEO, Tom Teahen for this great achievement. We look forward to continue working with them to ensure a financially stable and accountable WSIB going forward.”

2019 WSIB Rate Group Premium Reduction on $100 of Insurable Earnings:

  •  657 (Automobile and Truck Dealerships) – 7.1% decrease ($.85 to $.79)
  • 630 (Vehicle Service and Repairs) – 32.3 % decrease ($3.71 to $2.51)

 

Since 1908, the Trillium Automobile Dealers Association has been the voice of Ontario’s new car dealers. Our 1,100 member dealers directly employ over 45,000 people and generate $37 billion in retail sales annually.

 

Contact:

Frank Notte, Director of Government Relations

905-905-2225

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