In 2009, British Columbia's WorkSafeBC imposed a record total penalty amount of more than $4.4 million against employers for violations of the Occupational Health and Safety Regulation and the Workers’ Compensation Act.
In 2009, 211 penalties were imposed against 190 employers, totaling $4,465,313.40. Individual penalties ranged from $1,000 up to $250,000. The previous record amount was a total of $4,256,516 for 221 penalties imposed in 2007.
The highest penalty in 2009 was imposed against Canadian Natural Resources Limited for an incident in which a young worker fell from a work platform on a drilling rig after it was engulfed in flames following an uncontrolled release of gas from a wellbore.
The firm failed to ensure the health and safety of its own workers and other workers where work was being done. In particular, it failed to analyze the risks arising from work activities and to implement safe work procedures as required under the Regulation. Workers 15 to 24 years of age are classified as young workers by WorkSafeBC.
A total of 16 incidents for which an employer was penalized in 2009 involved a fatality (two employers were penalized separately for a single incident, and there was more than one fatality in two incidents).
“Employers must take seriously their responsibility to ensure their workplace is healthy and safe for all workers,” said Roberta Ellis, vice president of the Policy, Investigations and Review Division at WorkSafeBC. “A penalty is not imposed if an employer is found to have taken all reasonable care to prevent a violation.”
Employers from 67 industry classifications received penalties. Companies in five construction-related classifications accounted for more than half (58.7%) of the penalties imposed in 2009. Those companies were in the following industry classifications:
1. Steep Slope Roofing – 29% (62)
2. House or Other Wood Frame General Contracting, Construction or Renovation Work – 10% (21)
3. Framing or Residential Forming – 8% (17)
4. Low Slope Roofing – 7% (15)
5. Industrial, Commercial, Institutional or Highrise Residential General Contracting or Construction – 4.2% (9)
“WorkSafeBC increased its inspection and investigation capacity, directing a more intense focus toward industries and employers presenting the highest risk to workers, including construction sites, and employers where compliance is a known issue, such as roofing,” Ellis said. “In 2008, we developed a team of 16 prevention officers to focus on residential construction.”(workersxzcompxzkit)
Penalty amounts vary from year to year due to the size of employers penalized (employers with larger payrolls are assessed higher penalties) and the seriousness of the violations. In certain circumstances, claim costs may be applied in addition to the penalty; and in extraordinary circumstances, WorkSafeBC has the ability to go beyond prescribed limits and increase the penalty amount. The maximum penalty amount is adjusted yearly. The maximum penalty amount for 2009 was $565,329.86.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers' Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers' comp issues.
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