Staff Report #2
February 23, 2022
To All Commissioners
Re: 2021 Attendance and Disability Management Programs
Recommendation
That the report be NOTED and FILED.
Background
Absenteeism and disability management represent an onerous and costly challenge for all organizations. Success in meeting the challenge is dependent upon understanding and managing the many complexities and competing elements associated with absenteeism and disability management, including:
- trends and factors impacting the type and nature of illness leading to absenteeism. In 2020, the world was hit with a pandemic that significantly affected employee attendance in 2020, 2021 and continues in 2022;
- workplace demographics, i.e. aging workforce, availability and extent of health benefits, work/family issues;
- legislative requirements associated with the duty to accommodate;
- the organizational culture around disability and absence; and
- changes to the Employment Standards Act and other legislative requirements, including the introduction of the COVID-19 Putting Workers First Act, 2021.
The graphic below illustrates the five distinct categories of lost time utilized by London Transit. The colours associated with each category represent the traditional level of control the employer has over each category, with green being a relatively high level of control and red being little to no control. The associated bullets with each category represent the various programs and strategies currently in place to mitigate the lost time in each of the categories, the details of which are discussed later in this report. The pandemic affected both the Short Term Disability and Work-Related Disability categories, resulting in a temporary shift in the employer’s level of control on the claims during 2020 and 2021, which is discussed later in this report.
| Short Term Disability
(yellow with red dashes) |
• Return to Work Program
• Employee Assistance Program & Peer Support Program • Employee Wellness / Mental Health Resiliency Training |
| Work Related Disability
(green with yellow dashes) |
• Health & Safety Annual Work Program
• Hazard Recognition & Injury Investigation Process • Return to Work Program • Employee Assistance and Peer Support Programs • Employee Wellness / Mental Health Resiliency Training |
| Long Term Disability | • Long Term Medical Placement
• Employee Assistance and Peer Support Programs • Employee Wellnes / Mental Health Resiliency Training |
| LOA Statutory & Contractual | |
| Other Lost Time | • Attendance Management Program
• Culpable Absenteeism Program • Management Outreach to Employees • Employee Assistance and Peer Support Programs • Employee Wellness / Mental health Resiliency Training |
The various programs and training set out in the above chart have been successful to varying degrees over the past number of years in managing the extent of lost time in the workplace.
The declaration of a global pandemic in March of 2020 continues to restrict the employer’s ability to control lost time significantly. Due to the many uncertainties and the related impacts of the pandemic, London Transit’s focus has been and will continue to be to support employees through these turbulent times, focusing on employees’ mental health and providing support where needed. As noted in previous reports, in 2020, London Transit fast-tracked the Mental Health Resiliency Training Program’s rollout, and all active employees received this training. Regular communications continue to be shared with employees throughout the pandemic, including tips relating to mental health as a reminder of what was discussed in the training program. London Transit continues to work collectively with the ATU Local 741 Executive to assist and support employees, including the ability to move vacation and pausing the current Attendance Management Program so that a more focused approach was/is taken to ensure employees have the necessary support to attend work on a regular basis, recognizing that in the current environment London Transit employees have demonstrated their ongoing commitment to the organization while faced with challenges both in the workplace and at home due to the pandemic.
Public health guidance, coupled with the employers’ desire to ensure a safe and healthy workplace for all employees, resulted in changes to attendance management so significant that comparing 2020 and 2021 results to previous years is not reasonable. Notwithstanding the inability to directly compare to previous years, data for the years 2018 through 2021 is provided in the interest of transparency.
In the fall of 2020, London Transit implemented daily COVID-19 assessments for all employees to screen for the illness before entering any London Transit facility. The focus since the onset of the pandemic remains today “stay home if you are unwell.” In addition, London Transit introduced a Proof of COVID-19 Vaccination Policy, an additional element in protecting employees against the hazard of COVID-19. This policy is designed to maximize COVID-19 vaccination rates among LTC employees as a control measure that will reduce the transmission of COVID-19 in the workplace and protect employees against serious illness. Non-compliance to the Policy impacted lost time in 2021 and has continued into 2022, illustrated in the “Other Lost Time” chart, noting employees in non-compliance were placed on unpaid leaves.
On March 19, 2020, Ontario amended the Employment Standards Act (Ontario) emergency leave provisions to provide new leaves relating to infectious diseases and declared emergencies (e.g. COVID-19). Employees have utilized these protected leaves to care for ill family members, children during school closures, and isolation due to pre-existing conditions, leaving them vulnerable to COVID-19, etc. On April 29, 2021, the Ontario Government amended the Employment Standards Act, 2000 (ESA) to require employers to provide employees with up to three days of paid infectious disease emergency leave because of certain reasons related to COVID-19.
Throughout 2021, public health guidance evolved as additional data relating to the virus was gathered, and new variants emerged; this resulted in changes in protocols with respect to when someone should be tested, what was considered a close contact, how long they should remain in isolation if they had been in close contact, etc. Additionally, insurance companies altered their adjudication course several times with respect to what would be considered an approved COVID-19 claim and how long it would be approved. While the nature and frequency of the changes are understandable given the evolving nature of the pandemic, it resulted in the employer’s ability to manage lost time being severely restricted, and the knowledge that lost time would increase and remain at a significantly higher rate throughout the pandemic period. Notwithstanding this, the employer’s underlying principle of all decisions throughout 2021 relating to the pandemic was to ensure the employee’s health and safety to the extent possible, noting the service needed to continue to operate.
The remainder of the report provides commentary with respect to the impacts the pandemic declaration, and resulting program and policy changes had on lost time, noting, as set out in the table below, lost time in total for 2021 was approximately 37% higher than the average pre-pandemic years.
Summary of All Lost Time – Average Days Per Employee 2018 to 2021
| Year | Short Term Disability | Work-Related Disability | Long Term Disability | LOA Statutory & Other | Other Lost Time | Total |
| 2018 | 7.9 | 0.6 | 2.7 | 4.1 | 3.9 | 19.2 |
| 2019 | 9.5 | 0.2 | 1.6 | 3.3 | 4.7 | 19.7 |
| 2020 | 12.2 | 0.2 | 2.9 | 5.9 | 5.4 | 26.6 |
| 2021 | 8.9 | 1.8 | 1.7 | 6.6 | 6.6 | 25.6 |
As indicated in the chart above, the average lost days per employee dipped slightly compared to 2020, with shifts in each of the categories that will be discussed in greater detail in each of the respective sections following.
Aside from lost time associated with and/or affected by COVID-19, Human Resources continued to manage absenteeism and disability management through dynamic approaches, strategies and evolving initiatives combined with the consistent application of same. Such ongoing initiatives include:
- continue to communicate attendance management policies and programs consistent with practical and legal realities;
- analyze incidents and causes of disability and absenteeism, and identify and implement initiatives to reduce same;
- effectively integrate the duty to accommodate within the organization’s culture, relevant policies and programs; and
- continue to ensure a culture that encourages all parties to work cooperatively and effectively respond to the collective attendance issues.
The rapid spread of the virus in the fifth wave resulted in significantly higher infection rates in the general population, which impacted all sectors of the economy. During the fifth wave, which began in December 2021, an estimated 20% of LTC employees lost time due to impacts from COVID-19, whether they were infected, required to isolate due to close contact, or needed to be away from work to care for family members. Similar impacts were experienced by the Commission’s Employee Benefits provider, with decreased employee resources leading to longer lead times for claims approval, reduced availability of return-to-work specialists to assist in getting employees back in the workplace, and reduced oversight in general, leading to extended claims. While the impacts are understandable, Administration has held several discussions with the benefits provider to ensure that claims management remains on track and consistent with employer expectations.
Disability Management
Disability management encompasses both compensable sickness and injury (i.e. job-related, and therefore subject to the Workplace Safety and Insurance Act) and non-compensable (i.e. non-job-related, and subject to the terms and conditions of London Transit’s wage replacement insurance program as provided under the current insurer, Desjardins Financial Services – DFS).
Disability management is an increasingly important and complex area to manage given the significant financial exposure associated with actual claims and the myriad of legislation (i.e. Workplace Safety and Insurance Act, Occupational Health and Safety Act, Ontario Human Rights Code, and the Employment Accessibility portion of the Integrated Accessibility Standards Regulation under the AODA). Additionally, the Collective Agreement includes provisions pertaining to the Return to Work program, which is critical to disability management.
London Transit’s Return to Work Program
A progressive Return to Work (RTW) program for both compensable and non-compensable disabilities is a key element of London Transit’s Disability Management Program. Employees who are off work are required to provide functional ability information from their attending healthcare practitioner. This information is compared to the employee’s pre-disability position’s physical and cognitive demands. If the employee cannot be accommodated to return to his or her pre-disability position, temporary alternative work is explored. A range of value-added temporary alternative work, such as interior bus cleaning, customer service work, light-duty work in Fleet and Facilities and/or administrative areas, is considered. Costs and progress are monitored with the ultimate objective of returning the employee to full and normal duties. The RTW program is critical in that it provides an alternative to employees remaining on income replacement benefits pending a return to full and normal duties. The program supports employees performing productive work (versus not working) even if it is outside their normal classification. The RTW program offers benefits to both the employee (e.g. reduces or eliminates lost earnings, helps reduce social isolation, helps maintain a sense of confidence and value) and the employer (e.g. retention of experienced employees, better productivity, effective management/containment of non-attendance cost).
The RTW program is implemented in response to the duty to accommodate disabled employees arising from the Ontario Human Rights Code. The program continues to evolve as case law in this area expands in terms of what is considered a reasonable and suitable accommodation for a disability. As such, managing these programs while still complying with legislative requirements can be a challenging exercise. Three-component parts define the RTW program:
- Modified work – any job or bundle of tasks within an employee’s pre-disability position which he/she may perform without the risk of re-injury to themselves or others. This work may consist of regular tasks that have been changed, redesigned or physically modified. If necessary and if it can be reasonably accommodated, there may be a reduction in time or volume of work performed.
- Work Hardening – involves tasks within an employee’s pre-disability position designed to condition the body and gradually improve strengths and tolerance, to the point where he/she can once again be considered able to perform the essential duties in his/her pre-disability position.
- Alternate work – involves temporary short-term alternate work, which will be considered for employees who cannot perform the essential duties of their pre-disability position or cannot be accommodated by way of modified work and/or work hardening. Alternate work that may be available temporarily will not exceed 12 weeks, except by approval of the General Manager, in consultation with Human Resources.
There continues to be increased reliance on London Transit’s RTW program for both compensable and non-compensable disabilities, and it is anticipated that this trend will continue. The overall program’s annual costs in 2021 were $257,500, which was lower than prior years primarily due to public health restrictions resulting in work-from-home requirements, which led to the suspension of some RTW programs throughout 2021. Notwithstanding the suspension of some RTW programs in 2021, there continues to be significant value in the alternate work programs and job tasks associated with same. In 2021, full interior bus washes and daily bus disinfection were two critical alternate work programs directly tied to reducing exposure to COVID-19.
Short-Term Disability (STD)
The following table summarizes the change in lost time associated with Short Term Disability (STD) over the past four years.
Short Term Disability & Employment Insurance (1) Lost Time – 2018 to 2021
| Operations | Fleet & Facilities | Admin & Mgt | Total | |||||
| Year | Total Days | Avg per Employee | Total Days | Avg per Employee | Total Days | Avg per Employee | Total Days | Avg per Employee |
| 2018 | 4,390 | 9.0 | 645 | 6.4 | 92 | 1.7 | 5,127 | 7.9 |
| 2019 | 5,409 | 10.9 | 550 | 5.2 | 290 | 5.3 | 6,249 | 9.5 |
| 2020 | 7,019 | 14.3 | 803 | 6.3 | 549 | 8.0 | 8,372 | 12.2 |
| 2021 | 5,316 | 10.4 | 447 | 3.7 | 507 | 7.1 | 6,269 | 8.9 |
- Under the wage replacement program, employees have a period between eligibility for STD benefits and LTD benefits which they are eligible for Employment Insurance sick benefits.
In 2021, there was an 11% increase in the number of STD claims filed compared to 2019. Based on the insurance carrier’s information, a significant portion of the increased claims were directly tied in some aspect to COVID-19. The majority of these cases were resolved within two weeks. Notwithstanding the relatively short timeframe of these claims, they are large in number and are anticipated to impact the employer benefit renewal in 2022 significantly.
In addition to the claims resulting from COVID-19, individuals on disability for non-COVID-19 related reasons have remained off longer than anticipated given delays in required services, surgeries, treatment, etc., because of the pandemic. Consistent with experience across the Province, London Transit experienced an overall increase in the number of STD claims and the overall duration of same in 2021 compared to pre-pandemic experience.
Long-Term Disability (LTD)
The following table summarizes the change in lost time associated with Long Term Disability (LTD) claims over the past four years.
Long Term Disability (1) Lost Time – 2018 to 2021
| Operations | Fleet & Facilities | Admin & Mgt | Total | |||||
| Year | Total Days | Avg per Employee | Total Days | Avg per Employee | Total Days | Avg per Employee | Total Days | Avg per Employee |
| 2018 | 1,745 | 3.6 | 6 | 0.1 | 0 | 0 | 1.751 | 2.7 |
| 2019 | 840 | 1.7 | 192 | 1.8 | 0 | 0 | 1,032 | 1.6 |
| 2020 | 1,722 | 3.5 | 165 | 1.3 | 111 | 1.6 | 1,998 | 2.9 |
| 2021 | 558 | 1.1 | 205 | 2.9 | 407 | 5.7 | 1,171 | 1.7 |
- Cases where COD has been approved, and no likelihood of RTW are not included in the above
On average, the number of approved LTD claims has been relatively consistent over the four years. The 2019 report noted that a number of more difficult Short Term Disability claims were likely to transition to LTD claims in 2020. Combined with delays in treatments for those on STD due to COVID-19, LTD cases continued this increasing trend in 2021. When reviewing the average days per employee in the table above, consideration needs to be given to the relative size of the employee group in question; noting a long claim in a small group can significantly skew the average days per employee.
Compensable Injuries and Illness – Workplace Safety Insurance Board
London Transit’s Health and Safety Program has a clear mandate/objective to prevent work-related injuries, illnesses and related absences. Notwithstanding the program and various initiatives in place, compensable injuries and illnesses do occur. Such claims must be promptly and properly investigated, processed and monitored. This begins with a feedback loop to the Joint Health and Safety Committees in terms of investigating and understanding the event giving rise to the injury or illness, taking preventative steps in the future, and where warranted, enlisting the assistance of an ergonomic consultant. It also includes active management of claims, including liaising with the Workplace Safety Insurance Board (WSIB) and appealing approved claims that administration feels are not compensable under the Act. In addition, London Transit utilizes an outside consultant’s services for more complex claims management and representation when claims appeals are heard.
The following table summarizes the change in lost time associated with compensable injuries and illnesses over the past four years.
Workplace / Job-Related Injuries / Illness Lost Time – 2018 to 2021
| Operations | Fleet & Facilities | Admin & Mgt | Total | |||||
| Year | Total Days | Avg per Employee | Total Days | Avg per Employee | Total Days | Avg per Employee | Total Days | Avg per Employee |
| 2018 | 290 | 0.6 | 82 | 1.5 | 0 | 0 | 372 | 0.6 |
| 2019 | 135 | 0.3 | 25 | 0.5 | 0 | 0 | 160 | 0.2 |
| 2020 | 155 | 0.3 | 9 | 0.1 | 0 | 0 | 164 | 0.2 |
| 2021 | 1,280 | 2.5 | 7 | 0.1 | 0 | 0 | 1,287 | 1.8 |
As indicated earlier in this report, this area of lost time is where the employer has the most control, through safe work practices and procedures and the effective implementation of annual Joint Health and Safety Work Programs. In addition, the existence of a progressive RTW program and a significant investment in claims management, assessment, and prevention has helped keep these numbers down.
Notwithstanding the employer’s traditional control on this type of claims, in late 2020, the Province announced that a COVID-19 infection that occurred in the workplace was to be considered a WSIB claim and should be reported as such. With limitations on contact tracing, many COVID-19 cases occurring in the Operations group were claimed through WSIB (versus short-term disability), which is reflected in the increased numbers in the table.
WSIB Premium and Rebate Costs
London Transit was a Schedule I employer, and as such, the annual WSIB premiums had historically been performance-based, referred to as the NEER Program. Historically premium rates were set annually by the industry sector. Employers were retrospectively either surcharged for poor performance or rebated for favourable performance at the end of each year (based on the WSIB’s September to September calendar).
Effective January 1, 2020, the WSIB NEER Program has been replaced with a “Rate Framework Program”. The NEER program ended December 31, 2019, with the final NEER rebate or surcharge applied in 2020. The final NEER rebate received in the fall of 2020 was $347,000.
The following provides a high-level summary of the “Rate Framework Program”, noting that until such time as the employer has experience with this new program, the impacts of same on annual costs will be difficult to estimate.
- Under the new system, rather than having employers pay premiums based on their business activity, then calculating premium rebates or surcharges based on experience rating on a retrospective basis, the WSIB will be adjusting each employer’s premium rate in the fall of each year based on past experience rating and providing a projection as to whether the employer is trending upward or downward with their premium rate. Depending on their experience rating over a rolling six-year period, an employer’s premium rate will move up or down based on risk bands established as part of the program.
- London Transit’s premium rate for 2020 was $1.70 (per $100). In 2020, WSIB advised that all employer costs associated with COVID-19 relating to claims will not be allocated at the employer or class level. Instead, they will be allocated on a Schedule-wide basis. Further, WSIB advised that the premium rate for 2020 would not be subject to change in 2021.
Given this change in program and the additional changes in 2020 and 2021, administration will be assessing the new program’s potential impacts concerning the RTW Program, disability claims management, and the expanded active claim period from four to six years.
Leave of Absences (LOA) per Statute and/or Employment Contract/Agreements
Absences due to leaves can be paid (e.g. bereavement) or unpaid (e.g. pregnancy and parental), and the employer has little or no control over this lost time. As such, these absences are considered statutory/legislative in nature. The following table sets out the Leaves of Absence for the four years 2018 through 2021.
Leaves of Absence – per Statute and/or Employment Contract/Agreement – 2018 to 2021
| Operations | Fleet & Facilities | Admin & Mgt | Total | |||||
| Year | Total Days | Avg per Employee | Total Days | Avg per Employee | Total Days | Avg per Employee | Total Days | Avg per Employee |
| 2018 | 2,069 | 4.2 | 419 | 4.1 | 189 | 3.4 | 2,677 | 4.1 |
| 2019 | 1,883 | 3.8 | 275 | 2.6 | 13 | 0.2 | 2,171 | 3.3 |
| 2020 | 3,625 | 7.4 | 398 | 3.1 | 38 | 0.6 | 4,060 | 5.9 |
| 2021 | 3,867 | 7.6 | 674 | 5.5 | 100 | 1.4 | 4,641 | 6.6 |
In 2021, lost time under this category experienced a historic high to almost double that of a normal year, directly attributable to the pandemic. Three primary factors attributed to this increase:
- The decision by the employer at the onset of the pandemic declaration to allow employees to take short-term leaves of absence for reasons relating to the pandemic;
- The Employment Standards Act (Ontario) amendment in March of 2020 to emergency leave provisions providing for new leaves relating to COVID-19. Employees could utilize these protected leaves to care for ill family members, care for children during school closures, etc.; and
- The Employment Standards Act (Ontario) amendment in April 2021 requires employers to provide employees with up to three days of paid infectious disease emergency leave because of certain reasons related to COVID-19.
Other Lost Time
Non-attendance captioned as other lost time (no disability benefits are payable) has increased slightly over the four years. Non-attendance in this category covers such cases as one-day illness and/or sporadic illnesses, non-job related injury, book-off personal, absence without leave, late to work and non-compensable days in which approval for an STD/LTD claim is either pending/denied/withdrawn/no further action. Absences in this category also have a negative impact on the organization’s ability to provide service. The following table summarizes the lost time associated with this category for the four years 2018 through 2021.
Other Lost Time – No STD, LTD or WSIB Benefit Payable – 2018 to 2021
| Operations | Fleet & Facilities | Admin & Mgt | Total | |||||
| Year | Total Days | Avg per Employee | Total Days | Avg per Employee | Total Days | Avg per Employee | Total Days | Avg per Employee |
| 2018 | 2,012 | 4.1 | 319 | 3.2 | 161 | 2.9 | 2,492 | 3.9 |
| 2019 | 2,544 | 5.1 | 282 | 2.7 | 226 | 4.1 | 3,052 | 4.7 |
| 2020 | 3,262 | 6.7 | 194 | 1.5 | 272 | 3.9 | 3,728 | 5.4 |
| 2021 | 3,968 | 7.8 | 283 | 2.3 | 393 | 5.5 | 4,644 | 6.6 |
In 2021, lost time under this category increased to the highest level over the four years, again directly attributable to the pandemic. Employees who experienced COVID-19 symptoms were staying home (noting the list of symptoms expanded throughout the year), ensuring their safety and their co-workers’ safety, per the Ontario guidelines and Health Unit guidelines recommending same. In addition, employees deemed to be in non-compliance with the COVID-19 Vaccination Policy were placed on unpaid leave, which is reflected in the table above.
Normally the majority of these types of absences are managed through the Attendance Management Program (AMP) as “monitored absences”, separate and apart from the disability management process noted earlier in this report. However, as mentioned earlier in the report, the program was paused so that a more focused approach was/is taken to ensure employees had the necessary support to attend work on a regular basis. Enhanced communications were distributed, reminding employees that support, including their supervisors, are available if needed and encouraging those having difficulties to reach out.
The Cost of Non-Attendance
The cost of absenteeism is generally defined from three perspectives:
- productivity cost, i.e. impact on available productive hours, workload allocation issues and related opportunity costs addressing the allocation issues;
- administrative cost relating to staff time managing absences and the impacts of same; and
- financial costs relating to increased complement requirements, overtime costs and impact on employee benefit costs.
The annual cost associated with non-attendance, considering the above, ranges between $2.2 million and $2.7 million. The estimated cost accounts for approximately 5% of the $52.7 million in annual personnel expenditure, which includes all earnings and employee benefit costs. Personnel costs account for approximately 64% of the $82.8 million total operating budget for conventional and specialized services.
Given the nature of the service provided, an average of approximately 80% of all non-attendance is managed via increased complement, with the balance being replaced at overtime or not replaced at all. The need to replace the lost time defines the nature of public transit, i.e. providing scheduled service to customers noting the majority of employees are Operators whose responsibility is to deliver on-road service. The decision to replace non-attendance with the hiring of additional staff or replace at overtime is predicated upon an assessment of key inputs, namely:
- the nature and extent of service requirements, which are variable by time of day, day of week and time of year;
- the number, timing and duration of periods of absences;
- the impact on efforts and capacity to fill work assignments;
- efficiency considered work rules/requirements – the cost of hiring/employing replacement staff vs. applying overtime;
- the impact of legislative changes, and
- the impact on the quality of work life.
A complement assessment is undertaken on an annual basis in an effort to determine the appropriate Operator complement to ensure service requirements can be met while at the same time mitigating the extent of the need for personnel to be available to fill shifts for same day absences.
Conclusion
Consistent with the Canadian workforce in general and the transit industry at large, London Transit continues to experience increases in lost time, recognizing that disability management is multi-faceted and challenging. COVID-19 has further exacerbated the ability to manage lost time, and in 2020 and 2021, increases were directly attributable to the pandemic, which is expected to be the case in 2022 for the period that pandemic-related lockdowns and protocols remain in place.
Recommended by:
Julie Hall, Manager of Human Resources
Joanne Galloway, Director of Human Resources
Concurred by:
Kelly S. Paleczny, General Manager