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Section II Analysis of program activity by strategic outcome

Strategic Outcome

Trade secret exemptions are provided in a way that balances the right of industry to protect their confidential business information with the right of workers to receive accurate information concerning the health and safety hazards posed by chemicals in the workplace.

Program Activity by Strategic Outcome



Program Activity: Claims Exemption Process
2008-2009 Financial Resources
($ thousands)
2008-2009 Human Resources (FTEs)
Planned Spending Total Authorities Actual Spending Planned Actual Difference
3,565 5,275 4,921 35 52 17




Expected Results 5 Performance Indicators5 Targets5 Performance Status Performance Summary
Claimants are able to sell their products without disclosing confidential business information within an appropriate amount of time Percentage of claims registered within 7 days 100% Met all 100% of claims containing all the necessary information (275) were verified and registered within 7 days, in compliance with the HMIRC service standard. 6
Workers are provided with corrected health and safety information within an appropriate amount of time Percentage of claims for which the elapsed time between the registration of the claim and the issuance of the decision and order in within the target period 90% within 548 days Not met 7 21% 7
Disputes are resolved prior to appeal Percentage of disputes resolved prior to appeal 100% Almost met One appeal received (representing less than 1% of total claims processed). This was the first appeal in 8 years.

5 Note, these expected results, performance indicators and targets have been updated to reflect those established in the MRRS in spring 2008, and not those appearing in the RPP 2008-2009.

6 Of the 347 total new and refiled claims registered in 2008-2009, 72 (18%) applications required additional information in order to complete registration.

7 It should be noted that the current year's result of 21% included a large proportion of backlog claims which extended beyond the 548 day target.

Benefits for Canadians

Canada places the health of its population high on the list of key priorities for Canadians. Canada's public health system exists to safeguard and improve the health of Canadians. The responsibility for public health is spread across federal, provincial and territorial governments. An essential part of any occupational health and safety program is ensuring that those employed in workplaces requiring the use of hazardous materials have the information they need to use those materials in a safe manner to minimize any risk of injury and any threat to their health, either in the short term or in the long term. This is particularly applicable to the Commission's mandate, which provides the WHMIS trade secret exemption mechanism on behalf of the federal government and also on behalf of the provinces and territories. The Commission's work continues to support improved occupational health and safety for Canadian workers, a key element to achieving a healthy Canadian population.

The Commission also continues to provide a mechanism for protecting the trade secrets of those companies which manufacture, supply and/or use hazardous materials. This part of the Commission's work supports the Government of Canada's strategic outcome of a fair and secure marketplace, which is directed at ensuring that the marketplace continues to foster competitive conditions to attract investment, encourage innovation, and protect the public interest. The Commission's mandate protects bona fide trade secrets and allows the marketplace to function competitively while at the same time, the Commission protects the public interest by ensuring that workers required to use hazardous materials have the information they need to use those materials safely.

Performance Analysis

The claim exemption process, the Commission's program activity, has shown a clear improvement over the past year. Claims were processed more efficiently and the backlog of claims was systematically reduced (See Table 1, 2 and Figure 1). This can be attributed to the successful implementation of several initiatives, including revised HMIRC legislation to streamline operations, additional financial resources to hire more scientific staff, a shorter intensive training program for these recruits, and new reference tools. The MSDS review checklist introduced at the start of the claim application process is one example of new procedures intended to increase efficiency and expediency. The importance of this activity is evident in the first performance indicator selected for this program activity, the goals of which are dependent to a large degree on claim applications being completed correctly. The Commission can build on this success by keeping stakeholders informed and engaged. HMIRC will need to continue to evaluate its information sources and communication formats for clarity and usefulness, as well as soliciting client feedback on a regular basis.


Table 1
Claim Processing 2008-2009
Backlog - March 31, 2008 512
Claims already in process 196
New Claims Registered 223
Refiled Claims 124
Claims Withdrawn (68)
Claims Completed (504)
Claims in Process at year end (226)
Backlog - March 31, 2009 257



Table 2
Backlog Elimination - Year 1 of 3
Backlog of Claims at March 31, 2008 512
Backlog of Claims at March 31, 2009 257
Backlog Reduction (%) 255 (49.8%)



Figure 1


Backlog Elimination Plan graph showing actual and planned claims in backlog from 2007-08 to 2010-11

Following established practice at the Commission, claims have been processed on a priority basis according to the degree of hazard present. This supports the goal to deliver important, necessary health and safety information to Canadian workers as fast as possible while protecting the chemical industry's confidential business information. In 2008-2009, high-priority claims represented 50% of total claims processed. A review of identified MSDS violations indicates the type and percentage of hazardous elements which were identified and subsequently corrected in order to reach the workplace without delay (See Table 3). An MSDS which has been corrected by Commission staff to accurately reflect hazardous material information can have significant correlation and application to other MSDSs across WHMIS.



Table 3 - Number and Percentage of MSDS Violations corrected in 2008-2009
Violations Category Number of Violations in 2008-2009 Percentage
Toxicological Properties 825 28.8
Hazardous Ingredients 571 20.0
First Aid Measures 339 11.8
Preparation Information 240 8.4
Physical Data 128 4.5
Hazard Classification 91 3.2
Fire or Explosion Hazard 112 3.9
Headings/Format, etc. 302 10.6
Reactivity Data 183 6.4
Preventive Measures 37 1.3
Product Information 33 1.2
Total 2,861 100
Number of claims 504  
Average number of violations per claim 5.7  


The Commission is committed to shortening the time it takes to correct and improve health and safety information following registration. The goal is to issue a decision or order for at least 90% of claims within 548 days (1.5 years) after registration; however this target will not be reached until after the elimination of the backlog. It should be noted that the current year's result of 21% included a large proportion of backlog claims which extended beyond the 548 day target. Various strategies have been in place, however, beginning in 2008-2009, to achieve this target in the next two years.

Lessons Learned

In the course of Commission's work in the last year, the importance of keeping claimants informed and prepared for changes has been obvious. Not only was it necessary to communicate the amendments to the Hazardous Materials Information Review Act and Regulations, but also to explain the significant procedural improvements this entailed.

The effective use and regular review of the communication tools available to HMIRC will enhance the claim exemption process. A case in point is the electronic application form which, following an initial launch in 2008-2009, is now is being revised using a new platform and feedback from staff and clients. It is necessary to be responsive and resourceful in promoting and facilitating the Commission's work.

The hiring process, in both corporate and operational areas, needs to be carefully considered and revised to make sure HMIRC maintains the complement of staff it needs. Too frequently in the past year highly-qualified candidates have been hired for term positions to address the claims backlog but have subsequently left for permanent positions elsewhere in the government. This means more hours spent on the training and development of staff than can easily be accommodated by a small agency. This situation will necessarily have an impact on the claims process in the long run. A human resources strategy will be developed that takes into account the specific nature of the restraints as well as the appeal of the Commission and makes it a workplace of choice.