Local Government and Related Operations Classification Unit (753004)

Statistical Overview2005-2009

Prepared by: Business Information & Analysis

July 14, 2010

2

Summary

In 2009, the Local Government & Related Operations classification unit saw a decline in the number of claims (dropped by 4%) and injury rate (dropped by 10%). This paralleled the decline in these measures for the province over all. These measures have been impacted by the recession, resulting in a drop in claims registered, and recent business process changes coinciding with the implementation of CMS.

The classification unit’s assessable payroll and employment both increased by 7%, although the number of employers in this classification unit actually declined slightly.

The number of claims dropped by 4% resulting in a 10% drop in injury rate and an 8% drop in serious injury rate. But the workers who were injured tended to be off work for a longer period, as the STD duration increased from 38 to 41days. Overall, the CU’s benefit cost rate increased 50% in 2009.

Young workers saw a 4% drop in claims, as junior workers might have less opportunity to work in Local Government & Related Operations during the economic downturn.

Prevention activity increased with 41% more inspections and a 16% increase in other contacts with employers. There was no penalties imposed and was only 1 warning letter sent in this classification unit in 2009.

The classification unit’s STD duration continues to climb through the first half of 2010, negating much of the benefits of the other positive performance trends.

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Statistical Overview

2005 2006 2007 2008 2009STD/LTD/Fatal Claims 1,800 1,820 1,819 1,905 1,830FRCC ($ million) $15.1 $17.0 $14.5 $17.1 $27.4Work Days Lost 50,329 53,015 56,807 56,797 61,746Injury Rate 5.2 5.4 5.2 5.0 4.5Serious Injury Rate 1.3 1.3 1.3 1.3 1.2STD Duration 34 35 39 38 41Benefit Cost Rate (Raw) $0.99 $1.06 $0.87 $0.93 $1.40 Employers 530 523 520 524 521Assessable Payroll ($ million) $1,526 $1,599 $1,660 $1,834 $1,955Person Years 33,460 32,951 34,142 37,105 39,630

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Statistical Overview cont’d

Year Over Year Growth 2006 2007 2008 2009STD/LTD/Fatal Claims 1% 0% 5% -4%FRCC 13% -15% 18% 60%Work Days Lost 5% 7% 0% 9%Injury Rate 4% -4% -4% -10%Serious Injury Rate 0% 0% 0% -8%STD Duration 3% 11% -3% 8%Benefit Cost Rate (Raw) 8% -18% 7% 50%Employers -1% -1% 1% -1%Assessable Payroll 5% 4% 10% 7%Person Years -2% 4% 9% 7%

In 2009, Local Government & Related Operations saw a 4% drop in claims, resulting in a 10% drop in Injury Rate and a 8% drop in Serious Injury Rate. Duration increased in 2009 by 8%.

The benefit cost rate increased by 50%, resulting from a 60% increase in 2009 fully reserved claims costs (FRCC). The Vocational Rehabilitation, Health Care, and Long Term Disability costs were the major contributors to the increase.

Although the number of employers dropped slightly in 2009, their total payroll and the classification unit’s employment increased by about 7%.

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Assessment Rates

The Local Government & Related Operations Assessment Rates had a moderate decline from 2003 through 2007, and increased slightly in the past few years

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Injury Rate

The drop in the Local Government & Related Operations injury rate was less than the drop in the All-BC injury rate in 2009.

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Serious Injury Rate

The drop in the Local Government & Related Operations serious injury rate was less than the drop in the All-BC injury rate in 2009.

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Accepted Fatalities

Fatality Type 2005 2006 2007 2008 2009

MVI 1 0 0 0 0

Other Injury 1 0 0 1 0

Total Single Incident 2 0 0 1 0

Asbestos Exposure 0 0 0 4 0

Other Disease 1 7 2 7 2

Total Disease 1 7 2 11 2

Total Fatalities 3 7 2 12 2

Over the 5 years, disease claims account for 88% of the fatalities in Local Government & Related Operations.

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Claim Duration

The Local Government & Related Operations STD duration rose at a lower rate than the All-BC STD duration in 2009.

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2010 Emerging Performance Trends:12 Month Rolling STD Duration to June 2010

December,

1996

March, 1

997

June,

1997

Septem

ber, 19

97

Decem

ber, 19

97

March, 1

998

June,

1998

Septem

ber, 19

98

December,

1998

March, 1

999

June,

1999

Septem

ber, 19

99

December,

1999

March, 2

000

June,

2000

Septem

ber, 20

00

December,

2000

March, 2

001

June,

2001

Septem

ber, 20

01

Decem

ber, 20

01

March, 2

002

June,

2002

Septem

ber, 20

02

December,

2002

March, 2

003

June,

2003

Septem

ber, 20

03

December,

2003

March, 2

004

June,

2004

Septem

ber, 20

04

December,

2004

March, 2

005

June,

2005

Septem

ber, 20

05

December,

2005

March, 2

006

June,

2006

Septem

ber, 20

06

December,

2006

March, 2

007

June,

2007

Septem

ber, 20

07

Decem

ber, 20

07

March, 2

008

June,

2008

Septem

ber, 20

08

December,

2008

March, 2

009

June,

2009

Septem

ber, 20

09

Decem

ber, 20

09

March, 2

010

June,

2010

20

25

30

35

40

45

50

Local Government & Related Operations Classification Unit12-month Rolling STD Duration - June 2010

Day

s Pe

r Cl

aim

The BC 12-month rolling STD duration shows a slight decrease between March and April 2010 and a slight increase between April and May 2010. The decrease between March 2010 and April 2010 can be attributed to the exclusion of the April 2009 data from the 12-month rolling period. April 2009 is the month in which we prepaid STD claims in order to provide income-continuity during the CMS transition period. Similarily, the increase between April and May 2010 can be attributed to the exclusion of the May 2009 data from the 12-month rolling period. During the CMS transition period, in May 2009 we paid approximately about 36% of the number of STD days paid in May 2010.

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Claim Characteristics - Accident Type

Overexertion is the most significant accident type, which alone accounts for about 34% of Local Government & Related Operations claims and 27% of costs paid.

Fall from Elevation is the fifth prevalent accident type, accounting for 10% of the claims, but is the second largest contributor to costs paid.

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Claim Characteristics - Source of Injury

Bodily Motion and Working Surfaces are the greatest sources of injury in Local Government & Related Operations when ranked by both claims and costs paid.

Although Hand Tools is the fifth most prevalent source of injury by claim count, it is not in the top 5 contributors to the costs paid. Instead, Miscellaneous is the third most significant source of injury in terms of costs paid.

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Claim Characteristics - Nature of Injury

Although Fractures make up only 4% of Local Government & Related Operations claims, they account for 12% of all claim costs.

Strains (both Back and Other) make up 54% of Local Government & Related Operations claims, and account for 59% of claim costs.

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Claim Characteristics – Body Part Injured

Back is the most significant body part injured, which accounts for about 28% of Local Government & Related Operations claims and 18% of costs paid.

Shoulders injuries account for only 8% of the claims but account for 12% of costs paid.

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Claim Characteristics – Injured Worker Occupation

Public Works and Maintenance workers comprise the largest Local Government & Related Operations occupation for claims while Fire-Fighters is the most significant occupation for claim costs paid.

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Claim Characteristics – Injured Worker Age

Young Workers comprise 8% of injured workers in Local Government & Related Operations , but only incur 4% of the claim costs.

Workers aged 45 and above comprise 45% of injured workers, and incur 50% of the claim costs.

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Young Workers – SLF Claims

Young workers made up 9% of the claimants in Local Government & Related Operations in 2009, consistent with 9% in 2008.

The number of claims for young workers dropped by 4% in 2009, consistent with the drop for other workers.

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Young Workers – Serious Injuries

Young workers made up 6% of the serious injury claimants in Local Government & Related Operations in 2009, consistent with 6% in 2008.

The number of serious injuries for young workers increased by 12% in 2009, compared to a 1% drop for other workers.

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Prevention Activity

2005 2006 2007 2008 2009

Inspection Reports 383 440 466 526 741

Other Contacts 707 582 577 616 713

Initiating Orders 294 349 267 367 556

Follow-up Orders 132 272 296 366 491

Penalties Imposed 0 1 2 1 0

Warning Letters Sent 4 1 4 5 1

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SLF Claims refers to the number of short term disability, long term disability, and fatal claims (STD/LTD/Fatal claims) accepted in the year (for all years of injury). It does not include health-care-only claims.

Assessable Payroll is the payroll used by the WorkSafeBC in calculating the employer’s assessment. It is the sum of the year’s payroll for each employee, limited by the year’s Maximum Assessable Wage. Claim Costs Paid is the total health care payments, short term disability (STD) payments, vocational rehabilitation payments, long term disability (LTD) reserves and one-time cash awards, and survivor benefit reserves and one-time cash awards charged in the year regardless of year of injury.

Classification Unit (CU) is the lowest level of industry grouping used by the WorkSafeBC.

Benefit Cost Rate is FRCC (Fully Reserved Claim Cost) charged per $100 of assessable payroll.

Work Days Paid is the total short term disability (STD) days and rehabilitation income continuity (code R) days paid in the year regardless of year of injury.

Employer Count refers to the number of employers registered with the WorkSafeBC in the Classification Units indicated and reporting payroll in the year specified.

Fatalities are the number of fatality claims accepted for survivor or fatal benefits.

Injury Rate is the number of Non-Health Care Only (Non-HCO) claims per 100 person years of employment (estimated FTEs).

Glossary

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STD (Short-term Disability) Duration represents an estimate of the average number of STD Days paid for each STD claim. It is calculated according to the methodology developed by the Association of Workers' Compensation Boards of Canada (AWCBC), and is based on all STD days paid in the year including days lost on injuries that occurred prior to the start of the 12-month period. Days arising from rehabilitation payments are excluded from the calculation.

MSI or Musculoskeletal Injury refers to a combination of overexertion and repetitive motion accident types.

Non-HCO Claims refers to the total number of Non Health Care Only claims. A Non-HCO claim must have a Short Term Disability (STD), Long Term Disability (LTD) or Fatal benefit in the year of injury or in the following 3 months.

Person-Years are an estimate of employment. One person-year is the equivalent of one person working all year on either a full-time or part-time basis. Estimates of person-years are based on gross payrolls submitted by employers and on matching wage-rate data. In the past, wage-rate data was based on Statistics Canada information published on the 1980 Standard Industrial Classification basis. The wage-rate data is now primarily based on the wage rates of short-term disability claimants.

Serious Injury Claims are the number of non-health-care only claims first-paid in the month of injury or in the following three months which also meet at least one of the criteria: 28 or more days of wage loss in the period; health care costs in the period equivalent to 28 or more days of wage loss; fatal claim; one of 275 selected ICD9 codes representing serious injuries.

Glossary cont’d

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Inspection Reports are the number of documents that record Safety and Health Inspections and related activities. A Safety and Health Inspection usually involves a visit by a Prevention Officer to a jobsite to assess compliance with the regulations and to observe procedures and conditions at the site, or to communicate assessed non-compliance with the employer.

Other Contacts are the number of Education Presentations, Employer Contacts, Accident Investigations and Program Reviews conducted by an authorised WorkSafeBC employee.

Initiating Orders are the number of new corrective orders issued to an employer as a result of conducting an inspection.

Follow-up Orders are the number of corrective orders issued as a result of a follow-up to determine compliance.

Warning Letters Sent are the number of warning letters issued to an employer due to workers being exposed to a serious hazard or previous non-compliance.

Penalties Imposed are the number of additional assessments applied against an employer due to workers being exposed to a serous hazard or previous non-compliance.

Glossary cont’d