TADA Supports WSIB Unfunded Liability Elimination
The Trillium Automobile Dealers Association (TADA) has said that it applauds Ontario Labour Minister Laurie Scott’s announcement that the Workplace Safety and Insurance Board (WSIB) has eliminated its unfunded liability.
This unfunded liability, which had been as high as $14.2 billion, is seen as adding a significant tax burden for businesses in the province.
With its elimination, 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,” said Frank Notte, Director of Government Relations, TADA.
Additionally, lower WSIB premiums will also help result in estimated savings of $1.3 million for car and truck dealers on the retail side, while the repair and service sector is expected to see savings of $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,” said Notte.
Notte added that, “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.”