Montreal – Gaps in insurance coverage, poorly coordinated income support programs, and an outdated approach to disability are leaving too many workers behind when they become sick. These problems will intensify as the workforce ages and episodic and chronic health conditions become more prevalent, argues a new report from the IRPP. A new approach is needed.

In any given year, 6 percent of Canadian workers will experience a personal health issue that will require them to adjust their work status. Authors Tyler Meredith and Colin Chia note that, without proper support, employers will face significant lost productivity costs, while workers and their families may see their standard of living fall.

Building on a roundtable discussion with experts convened by the IRPP, the report finds that close to half of the labour market is not adequately covered by private disability insurance. These workers must rely on public programs that are less generous, more rigid and less proactive to support a return to work than some private programs.

“This situation is neither fair nor effective if we are to support all Canadian workers in realizing their potential” say the authors. “It reflects problems of design, coordination and inflexibility, such that where one works and the nature of one’s impairment can dictate how effectively income and employment needs will be supported during illness.”

The report identifies a number of overlapping problems, including:

• Inconsistent job protection and sick leave entitlement between provinces.
• Major gaps in insurance coverage.
• Rigid definition of “disability” within some public programs (e.g. Canada Pension Plan Disability), making it difficult to accommodate individuals with chronic and episodic conditions.
• Lack of coordination and consistency between public programs in determining who is eligible and when.
• Strong disincentives to employment within some public programs
• Relatively low levels of awareness and HR capability among some employers.

The authors argue that these problems cannot be resolved by any one level of government alone. What is required is a genuine process of engagement that brings together governments, employers and insurance carriers to revisit definitions of eligibility, and establish an integrated, comprehensive approach to address workers’ needs.

To help inform this process, the authors propose a series of short- and longer-term actions. For example, they urge the federal government to introduce employment support services to help facilitate a return to work through the EI sickness program, and, over the long term, potentially expand the program from 15 to 26 weeks of coverage (under certain conditions). Additionally, they say, the government should establish a centre of expertise to provide information and resources for employers when a worker experiences a health shock. Several knowledge gaps and research priorities are also identified.

Leaving Some Behind: What Happens when Workers Get Sick can be downloaded from the IRPP’s website (irpp.org).

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The IRPP thanks the MS Society of Canada, the Canadian Cancer Society and the Can­adian Caregiver Coalition for their financial support in organizing the roundtable discussion.

The Institute for Research on Public Policy is an independent, national, bilingual, not-for-profit organization based in Montreal. To receive updates from the IRPP, please subscribe to our e-mail list.

Media Contact: Shirley Cardenas tel. 514-594-6877 scardenas@nullirpp.org