Victory means better benefit coverage for contract employees.

The Red River Local (Dynamex workers) and the Winnipeg Local have worked with the Delivery Drivers Association of Manitoba (DDAM) to change the way benefits are calculated by the Manitoba Workers Compen-sation Board (WCB) for people employed as couriers. In Manitoba, as with most other compensation jurisdictions in the country, benefits for people employed as couriers differ from the benefit calculations for traditional hourly rate workers.

The calculation of benefits for couriers falls under the WCB Independent Contractor policy in Manitoba. This policy takes into consideration the fact that people who are self-employed or classified as independent contractors can underwrite a portion of their income for business purposes with the Canada Customs and Revenue Agency. WCB has developed a formula referred to as a "labour percentage" to establish a percentage or set amount of gross commission income that is used as a base for benefit calculations.

When the WCB initially extended coverage to the courier industry in 1989, the labour percentage was set at 75 per cent. Employers in the courier industry opposed the extension of coverage because of the cost of paying assessments to the compensation board. United Messenger launched a court challenge over the right of the WCB to extend coverage to the industry. Courier employers formed the Messenger Courier Association of Manitoba (MCAM) to lobby the WCB and government.

There is a direct correlation between the labour percentage and compensation assessments paid by employers. The MCAM convinced WCB to reduce the labour percentage from 75 per cent to a two-tier system with levels set at 60 per cent and 50 per cent, effective May 1, 1993. Employer assessments were reduced by 20 per cent and 33 per cent respectively; more importantly, so were employee benefits. Although this change had a negative effect on workers, the WCB met only with employers to discuss the change.

The Winnipeg Local started working with couriers to address inequities in the calculation of benefits in August 1998. At that time, the labour percentage was 60 per cent of gross earnings for couriers who operated their own vehicle where the vehicle weight was under five tons, and

50 per cent for couriers with vehicles over five tons.

The labour percentage figure would then be calculated a second time, using the 90 per cent of net wage loss benefit formula to reach the compensation benefits payable. For example, if a courier earned $2000 gross pay per month and the labour percentage was 60 per cent, the labour percentage earnings figure would be $1200. The 90 per cent of net calculation would apply to the $1200 and the person would be left with approximately three-quarters of this amount as actual WCB benefits, or $900 a month.

Unlike traditional workers, couriers have ongoing work-related costs that must be paid during periods of disability and approved time loss with compensation, expenses such as vehicle payments, insurance payments and vehicle repairs. Failure to keep up with these payments may result in loss of vehicle, loss of route and, ultimately, loss of employment.

To make matters worse, benefits were calculated a second time after 12 weeks. This is referred to as the average earning calculations. The calculation was based on a courier's Net Business Income (NBI) as shown on their tax return, rather than using the labour percentage. In this situation, benefits for some couriers were reduced even further. For example, if a courier had a significant work-related cost, like major vehicle cost or replacement of a vehicle, the cost could be written off as a business expense under the income tax provisions, thereby lowering the NBI significantly. In one case, someone's NBI was reduced to slightly over $3,000 for the tax year. In this case, the WCB would then calculate benefits using the 90 per cent of net benefit calculation, leaving the worker with benefits of only $200 monthly.

Over the last thirty months, the Red River Local has achieved major and significant victories and changed the way WCB calculates benefits. WCB has been convinced to stop using the average earning calculation after twelve weeks on benefit. Effective January 1, 2001, the Independent Contractor policy will change and the two-tier courier labour percentage (of 50 and 60 per cent) will be replaced by a single 65 per cent labour percentage.

The efforts of the Red River Local have had a positive impact for all workers in that industry, whether organized or unorganized. Members of the Red River Local involved with this project have developed valuable lobbying skills and more importantly, used those skills to successfully lobby the government and government agencies, and to mobilize labour support for positive social change.