The Newfoundland and Labrador Federation of Labour says now is the time to give people who are unable to work because of injury a pay raise.

The federation says Workplace NL’s Injury Fund is now funded at nearly 140 per cent, meaning that it has a considerable surplus.

President Jessica McCormick says the fund’s own target range was initially 110 to 115 per cent.

She says there is no financial argument left for denying injured workers a fair income replacement rate.

Currently, they endure a 15 per cent reduction in pay as the compensation rate is 85 per cent of their net earnings – one of the lowest in the country.

McCormick says the financial strain does more than create hardship – it can actively interfered with recovery as workers may return to work before they have healed.

The federation is asking that the replacement rate be increased to 90 per cent of gross income as opposed to 85 per cent of net, and that the cap on earnings be removed entirely.