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Poverty

Question

Occupational injury or disease can devastate a worker’s household income. Policy changes  to workers’ compensation have increased claims denials and cut benefits, forcing an increasing number of injured workers onto taxpayer-funded social assistance. Many – the true number unknown because the government does not track such statistics – are forced to rely on welfare because their claims were denied or delayed.

The links between poverty and health are well-known. For injured workers, financial insecurity compounds psychological and physical harm; WSIB policies such as deeming create only phantom jobs and empty pockets; the Board’s failure to apply required full cost-of-living adjustment to benefits forces tough decisions particularly in times of high inflation.

Employment barriers consistently pose challenges for those able to return to work. According to the most current Statistics Canada data (2017 Canadian Survey on Disability) the employment rate of working-age persons with disabilities is 59% compared to 80% for those without disabilities.  During economic downturns including that of the COVID-19 pandemic, injured workers and persons with disabilities are  particularly vulnerable in the labour market. Age-based discrimination in the workers’ compensation system further contributes to poverty among older and retired injured workers.

The depth of injured worker poverty

A study led by Peri Ballantyne  “Poverty Status of Worker Compensation Claimants with Permanent Impairments” (Critical Public Health) provides an in-depth look at the level of poverty among Ontario injured workers and families, health and social characteristics, income and employment changes. The Thunder Bay & District Injured Workers Support Group’s 2022 submission to the government’s pre-budget hearings details the impact of growing income inequality on this community.

The second of two RAACWI-funded ONIWG surveys on injured workers and poverty  confirmed that injured workers take the risks and pay the price:

  • Injured workers experience nearly 4 times the rate of poverty for Ontario
  • 1 in 5 workers are living in extreme poverty after injury (less than $10,000 per year). Just over 40% reported an income of less than $15,000/year
  • only 7 of the injured workers surveyed had used a food bank before they were injured. After injury, the number rose to 77
  • 1 in 5 workers lost their home after injury
  • over 50% were unable to afford the prescriptions they needed
  • before injury almost 90% were employed full-time, after injury only 9% still were

A call for real poverty reduction

The federal government’s new Canada Disability Benefit (Bill C-22, 2022) aims to provide some relief to financial insecurity, though many questions are still to be answered. The Ontario government’s 2020-2025 Poverty Reduction Strategy continues the previous 5-year poverty strategy commitment to supporting employment for persons with disabilities and to helping employers overcome misconceptions. However the new strategy falls short in addressing key concerns:

…Many people, particularly women, racialized groups and people living with disabilities, experience poverty because they work low-income and precarious jobs. The Strategy could benefit from greater acknowledgement of this reality and by including measures to help Code-protected groups overcome the systemic barriers to employment they often face and gain meaningful jobs despite current labour market conditions…

Ontario Human Rights Commission, Jan. 26 2021
More resources and links

Updated March 3, 2025