Workers Compensation Board replaces CEO, directors ‘wanted to make a leadership change’

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This article was published 05/03/2024 (585 days ago), so information in it may no longer be current.

A change in executive leadership at the Workers Compensation Board of Manitoba is going unexplained after the arm’s-length government agency parted ways with its CEO last week.

Board chair Michael Werier refused to elaborate on the departure of Richard Deacon, who until Friday was CEO of the independent organization responsible for workplace injury and disability insurance.

“We operate in a dynamic environment as an important part of Manitoba’s economy,” Werier said in prepared a statement in response to questions from the Free Press. “The board determined it wanted to make a leadership change at this time and has done so.”

Werier, who has chaired the WCB board since 2009, was not made available for an interview.

“As a matter of policy, the WCB does not discuss personnel matters,” Werier said when asked if the board dismissed Deacon as part of its change in leadership direction. “I can tell you that any severance paid would be reported in due course, as per provincial legislation.”

The board appointed Catherine Skinner, WCB’s vice-president of legal, compliance and corporate services, as interim CEO.

The statement issued by Werier did not elaborate on the new leadership direction the board wants for the WCB.

However, a committee with representation from labour, employers and the public has been established and a search for a new boss is underway.

Deacon was named CEO in January 2021 after his predecessor Winston Maharaj “stepped down” in October 2020 after nearly nine years at the helm, according to the WCB. Deacon had previously been at Manulife Financial, where he was vice-president of strategy and transformation.

During his tenure, the WCB provided two premium rebates to employers valued at $166 million. He received $315,390 in compensation in 2022.

Meantime, unionized employees at the WCB voted overwhelmingly in favour of a strike in fall 2022 after going without a contract for more than a year. And in March 2023, the union issued notice staff would walk off the job following months of failed negotiations. Days later, the two parties announced a tentative agreement had been reached.

Deacon also spearheaded the launch of a major digital modernization project at the WCB, intended to update its information technology systems and improve customer experiences.

The program is currently in a two-year foundational phase with a $30-million budget attached. It is expected to be complete by the end of 2025. Later phases of the program are expected to require a considerable investment in the coming years, according to board minutes.

WCB’s board of directors raised concerns the program was delayed as recently as last June, owing in part to labour-relations issues.

As of Monday, Werier said the modernization project is back on schedule and on budget. Subsequent phases and budgets must be approved by the board.

Manitoba Labour Minister Malaya Marcelino said her office was informed of the leadership change Friday morning. However, Marcelino said she is not aware of the reasons for the departure and could not comment on the new leadership direction the board is taking.

“At this point they haven’t shared that with me,” Marcelino said.

The WCB was removed as a government reporting entity in 2018 and its operational and financial independence from government was formalized in legislation in 2020.

The WCB’s board is responsible for all decisions concerning the appointment of the CEO. The board includes representatives nominated by the Manitoba Federation of Labour and the Manitoba Employers Council, and appointed by the province.

Marcelino said no changes are anticipated for provincial appointees.

“We just want to make sure that this WCB is serving the rights, protections and, in this case, the compensation for workers,” Marcelino said. “I would hope that that’s going to be their focus going forward.”

danielle.dasilva@freepress.mb.ca