1. Occupational Health & Safety Council of Ontario Roles Review and Realignment Executive Summary September 05, 2008

2. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 2 This report summarizes findings and recommendations from the OHSCO Roles Review and Realignment project conducted by RPO Management Consultants from April – July 2008

3. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 3 Study Objectives To enable system partners to: −leverage scarce resources to advance the system on an ambitious new prevention strategy, within each of the four primary thrusts: 1.Creating a national habit of safety by driving transformation in values & behaviours 2.Providing leadership to align prevention partner efforts and achieve improved outcomes 3.Instilling an evidence-based, priority-focused and outcome measurement mindset 4.Developing prevention partner capabilities, information management tools, and communications technology −build effective alliances and partnerships, strong leadership and improved capacity and capabilities The project was undertaken with the objective of aligning Ontario’s prevention system to the new Prevention strategy through a reassessment of current structure, roles and responsibilities Objectives:

4. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 4 Engagement Process The engagement followed a comprehensive and inclusive approach to ensure an unbiased and objective outlook Interviews with each system leader (CEO/General Manager/ADM) ensured that all perspectives were incorporated Focus groups included frontline managers and staff from each organization Interviews and focus groups involved over 50 representatives from across the system Information gathering Fact-based analysis Required data was collected using: strategy documents, annual reports, product catalogues, financial reports and performance reports The baseline analysis was validated across each system partner to ensure we had a solid fact-base Objective evaluation Consultative workshops were conducted with participation from all system leaders to evaluate change opportunities Objective evaluation criteria were determined through broad-based participation Comprehensive and inclusive approach: Customer centric approach The reassessment was grounded by a customer centric point of view Redesign criteria incorporated considerations for improved customer focus

5. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 5 Background System Background The prevention system has undergone significant change since inception – the current state is the result of both reactive and proactive change  The system originated in the early 20 th century:  The Workmen’s Compensation Act, passed in 1914, led to the creation of the Workmen’s Compensation Board  The first group of Safety Associations was created in 1915 – to serve Electrical and Utilities, Forest Products, and Pulp and Paper sectors  The Department of Labour was established in 1919 with the responsibility of safety-related legislation  Over subsequent years, the system underwent considerable change in response to emerging workplace needs, with the creation of new safety associations, mergers of existing organizations, and changes in organizational mandate  Individual organizations have been largely independent and have optimized locally, at the cost of system-wide collaboration  In response to a cost imperative from WSIB (then WCB), back office consolidation was considered in 1997 – this led to the creation of CHSI and the successful co-location of 4 HSAs  OHSCO was established in 2000 as a forum for increased collaboration and sharing – recent successes in working together (e.g. High Risk – Last Chance, MSD guidelines, etc) have lead to significant improvements in the level of trust between partners  In 2008, the WSIB adopted the “Road to Zero”, a prevention strategy that aggressively targets zero fatalities, injuries and illnesses for workplaces in Ontario

6. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 6 Successes Major successes achieved SuccessDescription The system has achieved considerable successes in the promotion of health and safety in Ontario’s workplaces We have achieved major successes over the last 10 years  Ontario’s LTI rate is well below the Canadian average – we are ranked 3 rd among all jurisdictions in Canada  The LTI rate has been declining at an average annual rate of 5.1% since 1997, and the total number of LTIs decreased considerably in 2006  However, the number of nLTIs have increased considerably over the last decade, while the nLTI rate has declined at an average annual rate of 2.1% since 1997 LTI rate reductions 1 The system has demonstrated successful collaborative efforts, such as:  The High Risk-Last Chance targeting initiative lead by the Ministry of Labour  Collaborative product development – MSD guidelines, heat stress, confined spaces, violence in the workplace, etc  Shared service delivery in northern Ontario – FSA leveraging MHSA/OFSWA staff Collaborative efforts 2 Faced with multiple constraints (e.g. changing workplaces, flat-line funding), system partners have resorted to innovative ideas, such as:  Leveraging volunteer networks for grassroots influence  Utilizing contract/third party trainers for fluctuating/unmet demand  Structured, proven, best practice programs such as ZeroQuest  Training blitzes through hiring halls targeted at transitory workforces Innovation 3 We have successfully lowered our LTI rates over the past decade We have achieved successes through collaboration System partners have demonstrated the ability to innovate

7. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 7 Challenges Major challenges currently faced ChallengeDescription The study identified three major challenges that present a significant barrier on the Road to Zero, which cannot be effectively addressed by the current structure The current system structure does not adequately leverage the breadth and depth of the prevention partners’ skills, capabilities, experience and knowledge  The world of work is changing – economic changes, new technology, demographic changes, etc  The system does not cover all workplaces in Ontario  Vulnerable groups and small businesses need specific focus  Insufficient attention for Occupational Diseases Insufficient Coverage 1  There is unrealized potential through information sharing across system partners  Multiple points of contact with workplaces  Overlaps in responsibilities, areas of focus, services, training and products Lack of Coordination 2  Differences in approach for service delivery models and revenue generation  Independent development of products and services  Lack of measurement standards for leading action or H&S impact  Need for increased accountability and controllership Lack of Standardization 3 We do not reach out to everyone, or address all issues We are not working together as efficiently or effectively as we could We are doing things differently and lack consistent measures

8. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 8 Themes  There is consensus on the need for change −System leaders recognize the need for change in light of the challenges facing the system, the increasing difficulty in achieving further LTI rate reductions, and the unacceptable social cost of the status quo −Potential change involves all three system pillars: the MOL, WSIB and HSAs  We must recognize sector uniqueness and cross-sector commonalities −Unique needs for clients in some sectors demand industry-specific knowledge and experience −A need for a labour focused organization −Notwithstanding unique needs, there are many common system challenges, such as small business, vulnerable workers, and non-commercial drivers  A redesigned system must increase responsiveness to client needs and be adaptive to continuous change −Substantial benefits can be achieved by transitioning to a system with fewer distinct organizations and a consolidated back office to provide efficiency increases for reinvestment in the front-line −Increased collaboration, integrated planning and standardization are key to improve system effectiveness −A less distributed system can be more flexible and adaptive to continuing change, while maintaining sector- specificity in the front-line  Change will be difficult, but we can build on past successes −There may be a varying appetite for change among Boards and senior executives of some organizations −As we move towards standardization, initial steps may be seen negatively from a local perspective, but downstream successes can justify change −Trust is key to a successful transition – though we have experienced significant improvement in recent years, building trust remains an important issue −Realizing the benefits of a more integrated system requires fact-based decision making, strong leadership, sound planning and thoughtful execution Themes The following themes emerged from the discussions and workshops with system leaders Significant progress has been made, however, building on current momentum will be key to success

9. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 9 Future State Vision Through the workshop, the OHSCO members collectively developed a clear vision for the future  “One system that responds in a flexible, active way to all emerging problems”  Smaller, more integrated, focused system  Consolidated back-office  Integrated planning  Maintain sector-specificity in the front lines  A plan for the north, schedule 2 and federally-regulated firms  One door in and out for the employer, unions, and vulnerable workers

10. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 10 Model for discussion MOL WSIB – Prevention Prevention Services Operations Disability Prevention System Collaboration Primary Support - Back Office Services to the Ontario Health & Safety System WHSC Prevention Services A Prevention Services - Public & Broader Public Sectors Illustrative Future State Model The Road to Zero demands a customer-centric, cost-efficient model that is adaptable to our changing economy and fully aligned with prevention goals Integrated planning, centralized standard setting, reporting and accountability Policy, program development & dispute resolution Standards & Incentives Intelligence & Innovation Note: this chart does not represent hierarchical relationships * Revised body of 10 individuals representing all three pillars Education Municipalities & Water Utilities Healthcare Transportation Telecomm. All Gov’t levels: - Municipal - Provincial ministries & ABCs - Federally regulated industries First Nations Construction Electrical Natural Gas Landscaping Farming Pulp & Paper Mines, Metals, Minerals Aggregates Forestry Prevention Services B Industrial / Manufacturing, e.g. –Metal / Print Trades –Food & Beverage – Agri Businesses – Chemicals / Plastics Retail / Wholesale Tourism / Hospitality Restaurant / Food Services Vehicle Sales / Services Small & Micro Business Sector Prevention Services** Prevention Services - North*** Multi-sector scope with specialized focus on: - Pulp & Paper -Mines, metals, minerals -Aggregates - Forestry Field inspectors Disability Prevention Specialists Auditors Mining Healthcare Industrial Construction OHSCO* Leveraging work-to-date, we have provided an illustrative future state model to orient discussion DRAFT – for discussion ** Each entity of Prevention Services will have a Board of 10 people including representation from the CEO & WSIB *** All employers & workers geographically located in north-western Ontario 780k FTE 22k Firms 29 Fatalities 32k LTI; 44k NTLI $585M premiums 375k FTE 66k Firms 37 Fatalities 7k LTI; 21k NTLI $780M premiums 2,820k FTE 124k Firms 35 Fatalities 42k LTI; 102k NTLI $1,600M premiums 65k FTE 2k Firms 11 Fatalities 1K LTI; 4k NTLI $160M premiums - High level estimates - FTE counts Sched. 1 only 430 FTE87 FTE 350 FTE OHCOW Field Staff Labour Designated Entities Trainers Diagnostic Specialists

11. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 11 Model for discussion Key Design Features of the Illustrative Future State Model Integrated planning, standardization and increased collaboration 1 A consolidated back office function, providing support services to four entities of Prevention Services 2 A less distributed system with increased adaptability to changing needs, serving underserviced groups, small businesses and vulnerable workers 3 Sector specificity in front-line roles 45 Recognition of the need for a labour focused organization 6 Increased alignment with customers and across system partners 7 A more streamlined and transparent governance structure across the entire system The revised OHSCO model proposes to include IWH and involvement from the employer community

12. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 12 Alignment The illustrative model achieves alignment in each of the four thrusts within the Prevention Strategy Future State – Alignment with the Prevention Strategy Creating a national habit of safety by driving a transformation in values and behaviours A central marketing effort, leading to consistent messaging to a broader audience, providing the capacity to launch effective social marketing campaigns Standardization of incentives and rewards for workplaces across the system 1 Providing leadership to align prevention partner effort to achieve improved outcomes 2 Integrated planning and increased collaboration across partners, aligning effort towards system priorities and increasing efficiency A new structure aligning MOL and HSA field staff Increased clarity on organizational roles and responsibilities Increased accountability through performance management and enhanced governance structures A less distributed system capable of focusing on system priorities, and adapting to changing workplace needs Instilling an evidence-based, priority focused and outcome measurement mindset in the system 3 Integrated planning to enable prioritization on a system-wide basis and the sharing of best practices A consolidated back office for HSAs enabling the standardization of activity tracking and information collection Increased accountability, transparency, enhanced performance management and competence based boards Developing capabilities, information management tools & communications technology 4 A consolidated back office enabling efficient capture and storage of information, standardization of IT systems and technology, and supporting system performance management Sector specificity in the front-line and the delivery of specialized services A joint effort in marketing, research and product development improving effectiveness and providing system-wide access to expertise Strategic ThrustsModel attributes supporting the thrust* *Not intended to be a comprehensive list

13. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 13 Considerations  System Integration & Alignment − Fewer individual organizations as we move to a less distributed system − Role transitions incorporating new reporting structures, modified responsibilities and accountabilities − Reliance on standardized central delivery of support services while maintaining front-line sector specificity − Cultural challenges and potential resistance to change associated with organizational realignment  Leadership − Realignment of system leadership to future state organizational structures − Clear direction and leadership to ensure a successful transition  Accountability − Transition to a system-centric accountability structure, with a focus on integrated planning and enhanced performance management  Stakeholder Impact − Significant organizational change has the potential to disrupt service continuity during transition The future state vision will require fundamental changes across the system and will have implications for all partners This raises a need for: Opportunistic Restructuring (e.g. expiring office leases, vacant support positions, retirements, etc) Strong leadership and a willingness to set the right incentives for change Sound planning and thoughtful execution to ensure a smooth transition Key implications & considerations for the transition mitigation

14. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 14 Next Steps To move towards the envisioned future state, the following next steps are recommended Explore future-state structure & processes  Explore new model details, including considerations for the structure, associated roles & responsibilities, process changes, enhanced performance management and system-centric accountability frameworks Four working groups are currently underway, each focusing on a specific part of the new model 1 Conduct stakeholder consultation  Consult major stakeholder groups and incorporate feedback/input into design considerations for the new model, to ensure a comprehensive and balanced outlook in creating a future state driven by the goal of improved outcomes (rather than being inward focused) 2 Evaluate options for implementation  Develop options for consideration based on findings from 1 & 2 (above), conduct detailed cost-benefit-risk analyses and finalize the new model  Develop a sound business case for change  Create a high-level implementation plan 3

15. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 15 High level timeline Proposed Timeline: Explore future-state structure & processes Conduct stakeholder consultation Evaluate options for implementation Aug Explore back office consolidation options 2008 SepOct NovDecJan 2009 Create a plan for northern Ontario Explore opportunities for integrated planning across system partners Create a strategy for Schedule 2 & Federally regulated firms Develop framework Explore additional opportunities Synthesize findings Set and communicate opportunistic restructuring requirements 1 2 3 Develop high level implementation plan Develop business case for change Jul Execute implementation Prepare for implementation Conduct detailed cost-benefit-risk analyses for options Conduct focus groups Chamber of commerce survey Consultations also include an Ipsos-Reid survey in November We have put forward a timeline that ensures appropriate momentum – it requires focused effort by all participants Four working groups are currently underway Evaluate options and design recommended model

16. RPO MANAGEMENT CONSULTANTS Appendix – Model details  Functional description

17. RPO MANAGEMENT CONSULTANTS CONFIDENTIAL Not for Distribution 17 Model for discussion – functional view The illustrative model provided allows for increased collaboration between system partners Governance Minister of LabourWSIB Board of DirectorsBoards of Directors Strategic Planning Integrated Planning (e.g. targeting, marketing strategy, etc) Individual plans Research and Product Development Generic products, best practices, etc Customized R&D Set H&S Standards MOL policy branch WSIB & HSAs provide input to standards Information provision Centralized website for information All client interactions Enforcement Field inspectors WSIB & Prevention services orgs provide input for targeting workplaces Incentives Prevention – Standards and Incentives; Auditors Guidance and education Shared delivery of basic services; collaboration and hand-offs between WSIB and individual Prevention Services organizations Disability Prevention Specialists Field staff – consulting, training & specialized services Marketing Centralized marketing effort and cohesive branding Individual marketing initiatives Support services (Finance, IT, HR, Admin support, etc) MOL back officeWSIB back officeConsolidated back office *not intended to be a comprehensive list Functional Area*MOLWSIBPrevention Services Individual deliveryShared deliveryFunction not delivered Legend DRAFT – for discussion Future State – Illustrative Model for discussion Service Delivery Support