Ontario’s Workplace Safety and Insurance Board (WSIB) will cut its average premium rate again in 2027, prompting criticism from the union representing its staff, which says the savings should go to injured workers.
The WSIB announced on October 22 that its average premium rate will fall from $1.23 to $1.18 per $100 of insurable payroll on January 1, 2027. More than 80% of premium-paying businesses will receive a reduction, saving employers an estimated $160 million next year. The average rate has fallen by almost half since 2018, when it was $2.35, and the province said it is now almost 30% below the national average.
WSIB president and chief executive Jeffery Lang linked the cut to better outcomes and lower costs. He said the WSIB had improved results and reduced administrative costs, meaning more money could stay in Ontario’s economy. The WSIB said nearly nine in 10 workers who miss work because of an injury now return within three months.
The provincial government framed the reduction as relief for employers facing US tariffs.
“As Ontario businesses face pressures from U.S. tariffs, lowering costs helps them stay competitive,” said Trevor Jones, Ontario’s minister of labour, immigration, training and skills development.
The cut builds on about $4 billion in WSIB rebates returned to eligible employers since 2024, according to the government.
The Ontario Compensation Employees’ Union (OCEU/CUPE Local 1750), which represents WSIB staff, said the money should instead go toward restoring compensation levels for injured workers.
“Injured workers have lived with cuts to their compensation for years, and now the government is celebrating another round of handing money back to bosses,” said OCEU president Harry Goslin.
The union also criticized staffing cuts. It said hundreds of WSIB employees face layoffs and 10 regional offices are closing, leaving fewer staff to handle claims and hurting service for injured workers. It called on the government to reverse the layoffs and cancel the rate cut.
The union cited several figures to support its case. It said employers had paid about $21.5 billion less since 2018 through rebates and lower premiums, and that about 1.56 million Ontario workers, almost one in five, aren’t covered by the WSIB. Citing data from the Association of Workers’ Compensation Boards of Canada, it said compensation paid to injured workers in Ontario is the second lowest of the 10 provinces and 38% below the national average.
The union also pointed to 2021 legislative changes that allowed the WSIB to return surplus funds directly to employers as rebates.
For brokers advising Ontario employers, the immediate impact is lower workers’ compensation costs for most clients. Individual 2027 rate statements will be available through WSIB online services from November, and rates will still vary by industry classification and claims history.
The union’s objections point to longer-term questions about the system, including service levels as the WSIB cuts staff and whether benefit levels will become a policy issue. Some critics have also asked whether repeated rate cuts leave the system with less room to absorb rising claims, an issue employers with workplace injury exposure may want to watch.
