The Yukon Workers' Compensation Health and Safety Board's annual report shows the number of claims and expenses related to them rose significantly during 2004.

Claims cost $19.5 million for 2004. This figure is up $3.8 million from the $15.7 million in expenses paid out in 2003.

'That number and that trend concerns us greatly,' Craig Tuton, chair of the board, told a press conference on Tuesday afternoon.

'It means more workers are getting hurt and employers are going to be facing higher assessment rates.'

In response to the rising costs, the board is establishing a one-time, $5-million prevention fund meant to be used by stakeholders to create programs that encourage workplace safety.

Tuton said this method should significantly reduce the number of injured workers.

'It's very clear to the board that the savings we expect from this investment are significant,' he said. 'We believe we have to take the action we have today now to make dramatic improvements to prevent workplace injuries and illnesses and to get injured workers back to work.'

The $5 million is not a reserve, he added. It's a fund that will provide seed money to develop safety management programs and methods for helping workers get back to work sooner after their injury.

Currently, the average length of time loss claims is 104.1 days. If that average can be reduced by just one day, it would save the board approximately $55,000, said Tuton.

'It's good news,' said Doug Rody, executive director of the Yukon Federation of Labour. 'The only way to reduce costs in the long run is to reduce injuries.'

Rody said he's impressed by the board's commitment to making workplace injury prevention its top priority.

However, the prevention fund is a one-time initiative.

'It's non-refillable, so when it's done, it's done,' said Tuton.

Because of this reality, Tuton said, one of the criteria for the funding will be to define how the program will be able to sustain itself after the grant money is gone.

The criteria for accessing the funding are still unclear, but the prevention committee is currently discussing the matter, said Rody.

He added he hopes the debate will be concluded by the next meeting in early September and that funding will be available to stakeholders by the beginning of 2006.

'Prevention is a good thing,' said Steve Cardiff, the NDP MLA for Mount Lorne. However, he said, with no details yet being released on how the funding will work, it's a matter of 'wait and see.'

The fund is meant to help create partnerships and accountability between the board and stakeholders, said Tuton. There is already evidence that the developing prevention programs does work. The Yukon Contractors' Association is an example of its success, he said.

Brian Monahan, the association's manager, said the focus has been on providing certificates of recognition to employees who have safety programming. Receiving the certificate is a lengthy process that involves two auditing phases and the actual program development, he said.

The certificate was adopted from a model in Alberta that has been very successful, he added.

There has been a positive response from Yukon employers with 20 companies in the process of getting the certificate. Arctic Power and Communications Systems Ltd. is the only Yukon company holding the certificate of recognition.

There is a drive to get the certificate because it ensures there is a safe workplace for both the employee and the employer, said Monahan, who added that it's meant to create a reduction in injuries.

Beyond the prevention fund, the board also will be taking action to improve the management of claims, increase prevention efforts and deal with shortcomings in claims management, safety enforcement and management, and quality assurance.

New staff will be hired to help with the changes, including an internal auditor, a quality assurance manager, medical personnel to help injured workers, a safety officer and an investigator.

The new positions will likely add approximately $800,000 to the board's operating costs over the next two years, said Tuton, but the positions will be permanent.

'We're now moving ahead with solutions that are long overdue,' he said.

The hiring process for the positions may take some time, because the board needs to go through the public service commission before the advertisements are posted.

'We're looking for professional people. They are not going to be easy to find,' he said.

The board has already hired a full-time doctor from Nunavut.

Having its own internal doctor will allow the board to more quickly assess workers' injuries.

'That early return to work is good for the worker, the worker's family, the employer and the overall work community,' said Tuton. 'We have plenty of evidence showing that the sooner a worker returns to the job safely, the more likely he or she will show a full recovery.'

Cardiff agreed that prevention is needed to reduce costs, but added that the human cost has to be considered in the process.

'There's not just a financial cost to injuries. There's a human cost too,' he said. 'It affects the worker's life and their family's life.'

Tuton said the goal of the prevention fund and the new strategic initiatives by the board are aimed at trying to change the way people think about workplace safety.