‘There is no financial argument left for denying injured workers a fair income replacement rate’
The Newfoundland and Labrador Federation of Labour (NLFL) is pressing the province to raise income replacement for injured workers after WorkplaceNL's 2025 Annual Report showed its Injury Fund funded at 139.5 per cent, well past target.
WorkplaceNL's target funding range is 100 to 115 per cent. Its 2025 figures show the fund nearly 25 points above that range, a gap the NLFL says removes any financial justification for current benefit rates.
"WorkplaceNL is not just meeting its funding target, it is now well past it," said Jessica McCormick, president of the NLFL. "There is no financial argument left for denying injured workers a fair income replacement rate." Injured workers currently receive 85 per cent of net earnings, among the lowest rates in the country.
Federation links income support to recovery outcomes
The NLFL argues inadequate income replacement can undermine recovery, as financially pressured workers may return before healed, raising the risk of re-injury.
"Adequate income replacement isn't a favour to injured workers, it's what makes recovery possible," McCormick said. "When workers are forced to choose between paying their bills and taking the time they need to heal properly, everyone loses."
The NLFL noted the province's last statutory review recommended no further discounts to employer assessment rates until income replacement was increased. The federation says rebates have continued while benefit rates lagged the cost of living; McCormick said the 139.5 per cent funded position makes that imbalance harder to defend.
WorkplaceNL reports record-low injury rates, fund growth
WorkplaceNL's 2025 Annual Performance Report states the lost-time injury rate held at an all-time low of 1.2 per 100 workers, with new claims at a record low of just over 3,800 and about 93 per cent of employers reporting no injuries.
The report credits investment returns for lifting the fund to 139.5 per cent, up from 131.6 per cent a year earlier. The average assessment rate stayed at $1.73 per $100 of payroll, which has included a $0.21 discount since 2019.
"A record-low number of new injury claims and a lost-time injury rate that matches a historical low demonstrates the strength of our province's safety culture," said John Peddle, chair of the WorkplaceNL Board of Directors. "Our Board remains committed to maintaining a sustainable workers' compensation system."
The report also cites progress on the PRIME Path 2 incentive program, expanded MyWorkplaceNL services and 94,000-plus training certificates. The province has launched an independent statutory review of the compensation system, required every five years by law.
NLFL's 2-part proposal
The federation is reiterating two changes: raising income replacement to 90 per cent of gross earnings, up from 85 per cent of net.
The second would remove the earnings ceiling on compensable earnings, set at just over $80,000, under which a $120,000 earner gets the same maximum benefit as an $80,000 earner — a structure the NLFL says disadvantages higher-paid workers.
"The principle behind workers' compensation is that injured workers should be made whole, to the greatest extent possible, so they can focus on recovery," McCormick said. "With the fund this strong, government has both the capacity and the responsibility to improve the system."
