Ontario MPP accuses labour federation of receiving “slush fund” from WSIB

An opposition Member of Provincial Parliament (MPP) in Ontario has charged that the Workplace Safety and Insurance Board (WSIB) has been operating a virtual “slush fund” for the Ontario Federation of Labour (OFL) – but the federation has responded that the accuser isn’t up on the facts.

On March 24, Conservative MPP Randy Hillier stated in the provincial legislature that WSIB had given $12.3 million in grants to the OFL over the previous decade, but that there was little link between the grants and accident prevention. “There has never been any oversight of this fund whatsoever, no applications, no reporting and zero value for money,” Hillier reportedly said.

“KPMG has told you that this program is worthless,” Hillier added in the legislature, referring to a report on the federation by auditing corporation KPMG. He claimed that some of the grant funds had gone to gym memberships, car allowances and staff-training sessions at the Bayview Wildwood Resort in Severn Bridge. “That’s where the money is going. It’s not going to help injured workers.”

Hillier did not respond to COHSN’s request for an interview. But OFL president Sid Ryan dismissed Hillier’s charges as “outrageous” and completely mistaken.

“The man hasn’t a clue what he’s talking about,” Ryan said.

Backgrounder information from the OFL stated that the WSIB money funds a program called the Occupational Disability Response Team (ODRT), which trains workers and employers on the rights and responsibilities of those making workers’ compensation claims. Automobile expenses for this program cover travel around the province for trainers to reach employees in numerous communities.

“This is a program that’s been in existence for 25 years. It’s not the preventative health and safety program that he alleged,” said Ryan. “We train in excess of 1,000 workers every single year to represent millions of workers in Ontario.”

He added that the KPMG report included only one reference to the ODRT. “And it actually says it’s a good program that’s actually helping workers and good value for money,” he said. “He’s completely misrepresenting the KPMG report.”

Ryan also scoffed at Hillier’s accusations regarding gym memberships and resort hospitality. “There’s a wellness program in the collective agreement of all employees of the OFL, and that wellness program can be used for gym membership,” he explained, adding that the WSIB had stopped funding this program years before.

In addition, the Bayview Wildwood Resort was used merely for a weekend training seminar, according to the OFL.

“It’s a two-and-a-half-star resort, with normal occupancy. It’s $130 a night, and for the $130, you get three meals,” said Ryan, calling the deal a great value for the money spent.

“He talks about money being spent in the Muskokas, makes it sound like all the people are living high on the hog,” said Ryan about Hillier. “But he’s completely wrong.”

According to WSIB public-relations specialist Christine Arnott, the Board acknowledged that its grants program needed improvement in 2010, when it took measures to strengthen grant contracts to comply with government directives on travel, meal and hospitality expenses.

“We also initiated a Value for Money Audit (VFMA) on the Grants and Research Program in 2012,” said Arnott. “The VFMA concluded that the grants program did exhibit value and produced notable results at the individual research project or grant-funded activity level. It also acknowledged that improvements to some elements of the program could be made, including overall strategy and governance.

“The WSIB is legislated to support training and research.”

Ryan speculated that Hillier’s charge was a reaction to the Conservative party’s loss in last year’s provincial election. “Sour grapes, there’s no question about it,” he said.

“Here’s a guy that was measuring the drapes to become the Minister of Labour in the Tim Hudak government, and the Ontario Federation of Labour mobilized their members, so we basically cleaned their clocks,” said Ryan.

“And he’s smarting from that.”

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