2002/03 Annual Service Plan Report Ministry of Skills Development and Labour

Performance Reporting

Industrial Relations

The Labour Relations Board has undergone significant operational changes in 2002/03. Together with changes to the Labour Relations Code, this has meant that baseline data for 2003/04 have been substantially revised from the previous year's service plan. In doing so, the ministry has sought to identify anticipated improvements rather than specific targets. If the Labour Relations Code is further amended in the future, this may have impacts on the measures as well.

GOAL: Promote productive and competitive workplaces from which good relationships in the labour relations community can be developed.

Objective: Encourage mutual confidence between unions and employers.

Strategies:

• Provide information to LRB clients about LRC and industrial relations practices.
• Create an industrial relations environment that is responsive to the needs of employees, unions and employers.

Objective: Decrease lost workdays due to labour disputes.

Strategies:

• Encourage alternative dispute resolution processes.
• Encourage the use of resources in the community to develop quick resolution of disputes.

Objective: Decrease the number of LRC contraventions.

Strategies:

• Provide information to LRB clients about LRC and industrial relations practices.
• Ensure LRB operations are suited to today's work environment.
• Create industrial relations environment that is responsive to needs of employees, unions and employers.

Objective: Resolve appeals in a timely manner.

Strategies:

• Facilitate use of early intervention and alternative dispute resolution processes.
• Expedite LRB adjudication, including more focused decisions.

1	Figures for 2002 are projected and subject to change prior to publication of the LRB's 2002 annual report. Data is for calendar years.
2	Includes mediations and adjudications, does not include the Collective Agreement Arbitration Bureau.
3	"Disputes" that come to the LRB include: unfair labour practice complaints (Ss. 5–12); applications under sections 32 and 45; Part 5 applications (Ss. 57–70); and applications under sections 55 and 74 of the LRC.
4	In general, a case is seen as part of the "backlog" if it has been assigned for more than 90 days and no hearing will be held, or where a hearing has been completed and more than 45 days have passed.

Workplace Programs (Employment Standards)

Changes to the Employment Standards Act, as well as the restructuring of the Employment Standards Branch, have meant that the 2003/04 baseline data for this core business have been substantially revised from the previous year's service plan. The introduction of self-help materials, the shift from an investigative to a mediation and adjudication model, and compliance partnerships with industries are expected to substantially affect ministry measures. Similarly, the ministry has sought to identify anticipated improvements rather than specific targets. A case in point is the number of complaints received by the ESB. A decline in the number of complaints could be attributable to a number of factors, such as the improved effectiveness and efficiency of the self-help kits. Likewise, an increase in the number of complaints in the future may be attributable to a substantial upswing in the provincial economy. As the number of British Columbians finding work increases, the overall number of complaints may also increase even though on a per capita basis the number of complaints remains stable. More detailed output measurements will be developed in future years as the changes to employment standards become operational and established.

GOAL: Fair and balanced employment standards that allow mutually beneficial relationships between employees and employers.

Objective: Facilitate increased compliance with ESA.

Strategies:

• Increase employers' and employees' knowledge and understanding of ESA.
• Ensure contraventions of ESA are identified and corrected.

Objective: Create a fairer and more balanced employment standards system that benefits employers and employees.

Strategies:

• Ensure ESA is suited to today's workplaces and meets the needs of employers and employees.
• Increase employers' and employees' awareness of the employment standards system, including where they can go for assistance.
• Develop a vibrant relationship with industry that promotes joint responsibility for education and training.

Objective: Resolve employment standards disputes prior to formal complaint being filed with ESB.

Strategies:

• Provide advice and support services for employers and employees.
• Support early intervention and alternative dispute resolution in employment standards disputes.

Objective: Increase ESB efficiency and effectiveness.

Strategies:

• Support early intervention in employment standards disputes.
• Improve quality of ESB decision-making.
• Provide early intervention/dispute resolution processes.

Objective: Resolve appeals in a sound and timely manner.

Strategies:

• Ensure consistency and quality in decision-making.
• Facilitate use of early intervention and alternative dispute resolution process.
• Review on an ongoing basis the timeliness of decision-making.

1	A determination is an official written decision made by the ESB on an employee/employer issue. 2002/03 data includes corporate (880), directors (296) and penalty (278) determinations.
2	An intervention attempt is an attempt to resolve a problem between the employee and employer by providing information on basic requirements of the ESA, which eliminates the need to file a formal complaint. Early intervention after September 2002 is defined as "closed before mediation".
3	Based on 457 decisions that made findings with respect to Section 112 appeals — decisions were: confirmed (70%), varied (9%), cancelled (9%) or referred back to the ESB (12%).
4	The length of time to decide appeal (days). Data commenced in 2002/03.
5	The length of time from submission of complaint to closure (days). Data commenced in 2002/03.

Workers' Compensation

As an independent statutory agency, the WCB identifies and measures performance against its own major objectives. This includes measures for the recently established Review Division, which will be the first level of appeal for workers' compensation matters in a revamped appeal system. Please visit the WBC's website at www.worksafebc.com to view the agency's annual reports, statistical reports and strategic plan.

As a result of changes to the Workers Compensation Act, the new independent Workers' Compensation Appeal Tribunal (WCAT) began operations in March 2003. WCAT will be the second and final appeal level in the new system, which was introduced to address delays, complexity and lack of consistency in the present system. The ministry has identified anticipated improvements for the appeal system to ensure fair, timely and consistent decisions. Several legislative changes are designed to assist WCAT with these objectives, such as maximum time frames for decisions, a new role for medical advisors, and policy that will be binding on the workers' compensation system as a whole. It is premature to provide measures and targets at this point, given that WCAT has only been operating since March 2003. However, WCAT will be measuring its progress in 2003 to assist in establishing appropriate measures and targets for subsequent years.

GOAL: Safe and healthy workplaces and a workers' compensation system that is responsive to the needs of workers and employers alike.

Objective: Fewer workplace injuries, illnesses and deaths.

Strategies:

• Support employers in managing the risks and consequences of workplace illnesses and injuries; encourage workplaces to improve their safety practices.
• Provide information, education and training programs.
• Target employers and industries with poor safety records.

Objective: Better compliance with WCA and Occupational Health and Safety (OSH) regulations.

Strategies:

• To inspect for compliance, order corrective action and levy administrative penalties when there is repeated non-compliance or where workers have been exposed to serious risk of injury or death.
• Ensure workers' compensation system is responsive and meets the needs of employers and employees.
• Ensure WCA and OHS regulations are suited to today's workplaces.

Objective: Decrease numbers of appeals filed.

Strategies:

• Facilitate employers' and employees' understanding of the workers' compensation system, including appeal procedures.
• Streamline appeal system.

1	As an independent statutory agency, the WCB identifies and measures its own major objectives. Please visit the WCB's website at http://www.worksafebc.com to view the agency's annual reports, statistical reports and strategic plan.
2	Includes advice and assistance provided to new clients that fully addressed their needs at point of contact.
3	Includes employers, workers, safety committee members and professionals who attend EAO seminars on various components of workers' compensation legislation.

Pension Standards

Responsibility for the Pension Standards Branch and the administration of the Pension Benefits Standards Act was transferred to the Ministry of Finance as of April 1, 2003.

The Branch ensures that all B.C. pension plans meet the minimum standards set out in the Act, and provides advice and information to pension plan members and plan administrators.

GOAL: Retirement income security for British Columbians.

Objective: Well managed, secure pension plans; compliance of B.C. pension plans with the Pension Benefits Standards Act (PBSA); and, pension plan members and administrators receiving expert advice in an efficient and effective manner.

Strategies:

• Review plans registered by the Superintendent thoroughly to ensure plans comply with the PBSA, which sets minimum standards for B.C. pension plans.
• Continue to make efficient, effective service a priority.
• Provide expert advice and information to pension plan members and plan administrators.
• Regular consultation with the Pensions Advisory Council, made up of pension experts, for advice and expertise on pension policy issues.

• The average funded ratio is an indicator of the aggregate financial health of B.C. pension plans. The funded ratio of pension plans is affected by many factors, including interest rates, investment markets, employment, and the decisions of pension plan administrators.
• The funded ratio is beyond the direct control of the Pension Standards Branch. However, if the average funded ratio declines, it is a signal to the Pension Standards Branch to increase monitoring efforts, and intervene where there might be pension plans that are not complying with the funding rules in the legislation.
• The decline in average funded ratios in 2002/03 flows from two significant factors: investment losses and more conservative assumptions used by actuaries in projecting long-term rates of return. The former reduces the value of plan assets and the latter increases the value of plan liabilities.

Deregulation

Cross-government deregulation initiatives, which seek to reduce the overall regulatory burden by one third, will impact all core businesses of the Ministry of Skills Development and Labour.

By the end of 2002, the ministry had reduced its regulatory requirements by over 15 per cent and the Workers' Compensation Board had reduced its regulatory requirements by almost five per cent.

The ministry will continue its analysis to streamline regulations and eliminate unnecessary requirements throughout 2003 to 2004. Specifically, legislative reviews of the Workers Compensation Act and the Employment Standards Act will continue with changes to legislation through 2004. The ministry anticipates that the deregulation efforts of the Workers' Compensation Board will result in substantial reductions. As a result, the ministry anticipates achieving its goal of reducing its regulatory requirements by one third by June 2004.

While efforts will continue to reduce the number of requirements imposed on the public, the ministry will also seek to ensure that the more qualitative impacts of deregulation also proceed. For example, while employers are still required to maintain records for employment standards, the length of time has been reduced from five to two years. This is a substantial lessening of a government-imposed obligation though it does not alter the 'count' of regulations.