Elgin-Middlesex-London PC MPP Jeff Yurek said the price of doing business in the construction industry has climbed too high.
The St. Thomas & Elgin Home Builders? Association and area contractors are joining Yurek in condemning newly imposed insurance coverage for those employed in the industry.
A spokesperson from the Ministry of Labour, however, said the new coverage plan is about protecting Ontario workers and businesses.
Beginning this year, the Ontario government mandated nearly everyone who works in the construction industry must have Workplace Safety and Insurance Board coverage, even if they?re covered under other insurance plans.
The law already required most employers to cover their workers under WSIB and coverage will now extend to independent operations, sole proprietors, members of partnerships and executive officers of corporations.
?This is an added cost for them to do business and it?s going to make it harder to compete and will be driving business underground,? Yurek said.
?The owners of these small businesses, they already have insurance coverage that covers them 24/7 and they?re able to get it at a cheaper rate, so the idea that forcing them to join the Workers? Compensation Board, pay their premiums is not a step in the right direction.?
Ministry of Labour senior communications adviser Bill Killom said the regulation is a means of protecting provincial construction workers and their businesses.
?Bill 119 (which imposes the coverage) is about improving health and safety in the construction industry and reducing underground economic activity,? he said in an e-mail.
?We heard from stakeholders that the underground economy puts businesses that play by the rules at a competitive disadvantage. With this legislation, Ontario will be better equipped to prevent workplace accidents and diseases.?
He added more workers will now have access to coverage.
?This act will ensure more individuals operating in the construction industry have access to workers? compensation benefits and workplace safety and insurance coverage, making Ontario?s workplaces safer,? Killom stressed.
But, St. Thomas & Elgin Home Builders? Association executive officer John Gundry said the new regulation has the potential to increase activity in the underground economy.
?I think it has the possibility of having the absolute opposite impact,? he said.
?If I?m a guy who is a sole practitioner and I?ve been doing the work and paying my taxes and doing everything above-board and now I?ve got an additional payroll tax that is going to cost me whatever it?s going to cost me, there is every incentive now to start doing jobs for cash so I don?t have to pay WSIB.?
HMR Construction owner Keith Buckley, of St. Thomas, said he?s anticipating the new regulation will result in problems.
Buckley said his employees were already covered with WSIB before the change but now he has to insure himself.
?It was high enough as it was. It?s just another hit when the economy?s not that great as it is,? he said.
?It?s basically a scam as far as I?m concerned, a way to get more money.?
Yurek and Gundry both suggested the real reason for the change is to help cover the WSIB?s more than $10 billion unfunded liability, something Killom said was not part of the motivation.
London?s Whole Homes Renovations owner Dan Nantais said he?s now responsible for WSIB coverage for himself when doing work for other contractors, about 25% of his total business.
?I paid WSIB for my employee but not for myself but now with the new bill, all self-employed contractors have to pay WSIB on their own wages as well as their employees if you work for other contractors,? he explained.
?I?ll have to either lose that income or pay WSIB on 100% of my income.?
Yurek is circulating a petition calling on the government to eliminate the requirement for WSIB coverage on all independent contractors and small business owners in the construction industry.
The petition is available at his Canada Southern Railway station office at 750 Talbot St., or online at jeffyurekmpp.com/wp-content/uploads/2013/01/WSIB-Petition.pdf.
Source: http://www.lfpress.com/2013/01/16/insurance-changes-under-fire
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