ON -- The Canadian Federation of Independent Business (CFIB) responded with outrage to today's announcement that the government will make workers compensation mandatory for all Ontario's construction industry, calling the proposed legislation crazy and disturbing.

In the current system small construction companies pay WSIB on their employees, but not themselves. The problem with an owner-employee getting coverage is that the person submitting the claim will be the same person that receives the benefits.

High risk of fraud if legislation pushed through

Due to the high risk of fraud, given that an owner or relative could claim benefits and continue to work, an arm's length rule prevents company owners and their relatives from participating in the employment insurance (EI) program. They do not pay into the system, nor can they collect if their business fails to generate an income.

CFIB spokespersons are saying that the proposed legislation will do nothing to the underground economy it is intended to target and will be be costly for independent operators and small companies.

It will also expose the Workplace Safety and Insurance Board (WSIB) to more fraudulent claims for benefits.

Announcing the legislation on a Friday is a sign that the government is trying to "... sneak through a poor policy and avoid controversy" says Judith Andrew, director of provincial affairs.

Broken Promises

CFIB is upset that the McGuinty government failed to consult with them in the drafting of the legislation, despite their promise during the last election to review the "Named-Insured System" that CFIB believes is the best solution for all.

They believe WSIB should use a better system, the "Named-Insured System". If this option is not seriously investigated, says CFIB vice president Judith Andrew, the premier's pre-election commitment to small- and medium-sized business has been violated in an extraordinarily devious way.

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