Under The Workers Compensation Act, the Workers Compensation Board has the responsibility to provide compensation coverage for workers in the logging industry. Much logging activity is performed on a contract basis. Accordingly, the WCB has an independent contractor policy which determines responsibility for workers compensation coverage in logging contract relationships.

In the logging and pulpwood industries, the person or firm who holds the Timber Sales Agreement, Timber Permit or Sawmill License is considered to be the principal of any person cutting timber or performing associated work (i.e. building roads). The principal is responsible for paying the assessment on the labour portion of the work performed.

What services does the WCB provide?

1. Provides a no-fault insurance program in which workers cannot sue their employers for loss of income due to workplace injuries. In return, the WCB provides workers with wage loss benefits, benefits for permanent impairment, benefits to dependents in the event of a fatal injury, payment of medical expenses related to the injury and reimbursement for loss of certain personal effects.
2. Ensures competing employers have compensation coverage for their workers.

Who is considered a worker, and are there other categories?
A person or firm is considered a worker for WCB purposes unless registered with the WCB as an employer or labour contractor as defined by the independent contractor policy.

To register with the WCB the person or firm must be able to demonstrate they operate a bona fide business enterprise and is:

1. An employer; employs and pays workers more than $16,741.00 in total in 2004; or
2. A labour contractor; obtains personal or director coverage with the WCB, covers any workers that may be hired throughout the year, and works for more than one person or firm in a season/year.

The principal is responsible for paying the assessment on the labour portion of a deemed worker’s contract. Deductions from a deemed worker’s earnings to offset WCB, premiums are prohibited by The Workers Compensation Act.

What are my responsibilities as a timber sale/timber permit holder?

1. Provide compensation coverage for sub-contractors and their workers who do not qualify for their own compensation coverage.
2. Ensure qualifying sub-contractors and any workers they employ are registered and in good standing with the WCB.

How and when can I determine who is properly registered with the WCB?
By obtaining a clearance from the WCB Clearance Request System before hiring the contractor. Otherwise, you may be liable for the assessment for any individuals or firms considered to be your workers. See the example below.

The WCB Clearance Request System operates 24 hours a day, 7 days a week. The system can be accessed 3 different ways:

1. Online directory: Search a comprehensive list of businesses by firm number, company or trade style name and immediately see their standing with the WCB. Enter as many names as you want and get immediate information on each one. The Online Directory is available on the WCB website at www.wcb.mb.ca.
2. Interactive Online List: Using a secure Internet connection, registered users can create customized, interactive lists for firms and sub-contractors. If a company’s status changes, the Clearance Request System will automatically flag the company’s name in your file and email you about the change in status the next business day. To register, call 954-4803 (in Winnipeg) or 1-866-751-9245 (toll-free outside Winnipeg).
3. Automated Phone and Fax Back Service: Use your phone to get clearance information on a single company or firm by dialing 954-4988 (in Winnipeg) or 1-800-362-3340 (toll-free outside Winnipeg). Enter the 7 digit firm number for the business you want clearance information on. You’ll also be given the option of entering a fax number to receive confirmation.

Please note: Everyday there are employers who open new registrations, cancel an old registration or do not pay their assessment. Therefore you should obtain a clearance before making final payment on any contract. Otherwise, if the sub-contractor is not registered or owes the WCB money, you will be liable for the assessment on the labour portion of the contract.

Sometimes final decisions on contracts are made outside of regular business hours. If a sub-contractor tells me that he has compensation coverage and I find out later that he did not, can R0I hold him financially responsible?
No, you cannot. The Workers Compensation Act states contractors are not to deduct monies to offset WCB premiums. Therefore, it is in
your best interest to delay final decisions until you have verified the sub-contractor’s status with the WCB

If a firm is deemed my worker, am I assessed on the entire contract value?
No. The WCB will charge you on the labour portion of the contract. You will not be assessed for the supply of equipment.

The WCB has a schedule for contract labour, which sets our a standard labour percentage of the total contract or piecework price for various industries and types of equipment. The labour percentage reflects an average for the industry or the type of equipment. Should a deemed worker or contractor demonstrate that the labour percentage is not an accurate reflection of earnings, an adjustment can be made. Information required includes suppliers’ invoices, financial statements, earnings records and receipts.

Examples:

The following are examples of how earnings for assessment purposes and initial benefit payment are calculated on the basis of this schedule:

1. 1. A faller operating a chain saw cuts 1,000 cords per year and is paid $60.00 per cord by the timber permit holder.