Mining fatalities and accountability

The 11 November 2008 edition of The Australian includes a page 2 story where the previous manager of the Beaconsfield Mine has been called on to be held responsible for the management failures that led to the death of Larry Knight in 2006.  The call was made by counsel for Larry Knight’s family and the Australian Workers’ Union in a submission to the Tasmanian inquest into the fatality.

According to the media report, the wrong decision was made in trying to stabilise the working area of the mine and that the risk assessment process was inadequate.  The latter comment should be of considerable interest to OHS regulators and safety professionals.

The importance of the Tasmanian Coroner’s findings are illustrated by comments in the submission by the counsel for the mine.  The media report says that 

“…Dr Neal tells the Coroner the mine had done all it reasonably could to guard against the risk of rockfall and to manage the mine’s notorious seismicity.” [emphasis added]

This is particularly important when considering the introduction of “reasonably practicable” into the OHS legislation throughout the Australian States being considered by the National OHS Law Review.

It is regrettable that the to-ing and fro-ing in the inquest is not getting as much media attention in the non-mining states, as there have been many risk management and accountability issues raised.  The media is likely to wait until the findings of the Coroner, Rod Chandler, and focus on the result rather than the journey.

There was a similar experience in New South Wales with the inquiry that followed the drowning of four mine workers at the Gretley mine in November 1996.  The information did not resonate to the rest of Australia except through the mining sector, yet there were important lessons from the inquiry.  Most OHS professionals, if at all, would recollect the prosecution of Gretley mine managers on matters of culpability, rather than the death of the four workers.

When the Tasmanian Coroner hands down his findings in the near future, it will be very useful to consider them in the light of the earlier reports, assessments and papers, among many others, listed below. 

SafetyAtWorkBlog is a strong advocate of learning new OHS management practices by looking beyond one’s field of expertise.  OHS professionals, safety managers and risk managers need to watch the action in Tasmania and other jurisdictions for themselves and not rely on a small group of OHS lawyers to bring matters to their attention and advise them how to avoid their responsibilities.  Accountability is a moral and legal responsibility.

Holding Corporate Leaders Responsible by Andrew Hopkins

The Impact of the Gretley Prosecutions by Andrew Hopkins

Mine Safety – Law, Regulation, Policy by Neil Gunningham

A submission by the Tasmanian Minerals Council on CRIMINAL LIABILITY OF ORGANISATIONS – ISSUES PAPER NO 9, JUNE 2005 to the Tasmanian Law Reform Institute

N Gunningham, ‘Prosecution for OHS offences: deterrent or disincentive?’ (2007) Sydney Law Review, 29 (3), pp 359-390.

R Guthrie and E Waldeck, ‘The liability of corporations, company directors and officers for OSH breaches: a review of the Australian landscape’ (2008) Policy and Practice in Health and Safety 6(1),
pp 31-54. 

N Foster, ‘Mining, maps and mindfulness: the Gretley appeal to the Full Bench of the Industrial Court of NSW’ (2008) Journal of Occupational Health and Safety – Australia and New Zealand 24(2),
pp 113-129.

Statements on Australia’s OHS review report

According to today’s The Australian, Australian trade unions has “panned” the first report by the National OHS Law Review.  Here is what the ACTU Assistant Secretary Geoff Fary said,

Geoff Fary
Geoff Fary

 

“We are pleased that the Panel Report has recognised that breaches of OH&S laws are criminal rather than civil matters. These recommendations are a step in the right direction, but need to go much further to protect working people by tightening up the rules on employers’ duty of care to their workforce.

“There is a real need to address the carnage that is taking place in workplaces by increasing fines and tightening up employers’ duty of care, but we are concerned that in NSW and QLD injured workers and their families will lose out because they already have laws that squarely put the onus of proof on employers when they allegedly breach the law.”

“Unions believe that the ability to fine companies a percentage of the turnover would be a better deterrent, because even a $3 million fine is a drop in the ocean for some big corporations. At the moment employers can get fined more for breaching trade practices law than for being found guilty of contributing to employees being killed or maimed in their workplace.

“The courts should also be encouraged to use the maximum penalties. At the moment they don’t.

“Unions will continue to campaign for laws that put an unqualified duty of care on employers to provide a healthy and safe workplace.”

For balance, below are the relevant statements from Mr Scott Barklamb, Director of Workplace Policy
with the Australian Chamber of Commerce & Industry:

“Whilst there is significant detail to be analysed across the report’s 75 separate recommendations, the review panel appears to have taken a sound approach on critical issues such as ensuring that the core safety obligation on employers is limited to doing that which is reasonably practicable, and that the prosecutor must bear the onus of proving any breach of OHS law beyond reasonable doubt.”

Michael Tooma, a partner with Australian law firm Deacons, was commenting on a survey that his firm undertook which indicated that the respondents would prefer a “clean sheet” approach to OHS regulations in this country rather than trying to reconcile laws from nine jurisdictions.  

At this point in the review process, any change in direction is highly unlikely and may not fit with the Review Panel’s terms of reference.  The risk in doubts about the process is that an unstable OHS legislative structure could be imposed on Australia that nobody will be happy with and, of course, longevity and continuing relevance is an important consideration in legislative development.

The cautious comments by Scott Barklamb are wise in that the really contentious elements of reform are due in the second report on broader OHS matters due in early 2008.

Safety professionals should be the “child in the crowd”

One of Hans Christian Anderson’s most popular tales is The Emperor’s New Clothes.  For those unfamiliar with the story an English translation is available.

But in summary, an emperor hires two swindlers to make him the finest clothes.  The swindlers pretend to create a gown from the best material and tell their client that it happens to be invisible to fools.  The emperor parades through the town in his new outfit an a young child yells out that the emperor is, in fact, naked.  The townsfolk see through the swindle.

It is the job of OHS professionals and advisors to be the ones to point out the obvious to business or to burst the preconceptions that are hampering safety improvements.  Interestingly, there are no repercussions for the child in the tale and, once shown the fallacy of his beliefs, the emperor continues with the parade.

It is also worth bearing the many lessons of the Emperor’s New Clothes in relation to the purchase of personal protective equipment, project briefs, verification of qualifications and the sycophancy of colleagues.

It is helpful to think that once back at the palace, he revoked the contract with the swindling tailors but that is outside the original tale.

National OHS Law Review – First Report released

The first report of the National OHS Law Review panel was presented to the Australian Government yesterday. The best initial assessment of the report can be found at a safety blog operated by Deacons law firm.  In that report by Michael Tooma and Alena Titterton, the following points are made:

  • there should be a general duty of care for health and safety
  • “worker” is defined more broadly as ‘person who works in a business or undertaking’
  • “the Report recommends that a defined ‘reasonably practicable’ be built into the offence in the model OHS Act which reflects the current approach taken in all jurisdictions except New South Wales and Queensland.”
  • The prosecution will bear the onus of proof beyond reasonable doubt on all elements of an offence”
  • Offences could be indictable and heard in front of a Judge and jury. 
  • Increased penalties in line with those for environmental breaches – Corporation = $3 million,  Individual = $600,000 Imprisonment – up to five years  
  • An appeals process where cases could be taken to the High Court of Australia

“Reasonably practicable” remains a concept with a floating meaning for most business owners and OHS professionals.  For a type of legislation that is intended to be readily understood by a layman, this legalese is disappointing however it is likely that clarification will come from the OHS regulators as it has already in some States.  The review panel supports this type of clarification.

Interestingly, the report says on “the primary duty of care” that it “should not include express reference to control” and that 

‘Control’ should not be included in the definition of reasonably practicable.

The panel says that “control” will be discussed in the second report as will the definition of a “workplace”.

The Deacon’s authors remind us that reports of this type are not automatically implemented by governments and that the review process has several months to run.

The report needs to be read carefully by OHS professionals as the recommendations will set the scene fro OHS law in Australia for, perhaps, decades.  Also, going beyond the list of recommendations allows readers to see which of the issues considered were contentious and which had uniform acceptance.

The trade union movement is yet to release public statements but according to one media report, Geoff Fary of the Australian Council of Trade Unions is

“disappointed that a qualified duty of care would continue to rest with the employer”.

That same report is headed “Prison time for unsafe bosses” raising the spectre of industrial manslaughter.  That does not seem to be case and may say more about the readership of The Australian or the politics of the sub-editors.  However, it will be interesting to see the responses of the employer associations over the coming days.

nationalreviewintomodelohslaws-cover1


Physical activity, mental health, alcohol consumption and productivity

The Victorian Government’s workplace health strategy may be “coughing up blood” but health promotion continues.  Last week, Australian health insurer, Medibank Private, released some statistics and cost estimates related to physical inactivity.

According to the media release, physical inactivity costing the Australian economy $13.8 billion a year. The findings are based on research conducted in conjunction with KPMG-Econtech which builds on Medibank’s 2007 research and “captures the healthcare costs, economy wide productivity costs, and the mortality costs of individuals passing away prematurely as a result of physical inactivity.”

Craig Bosworth of Medibank Private says, 

“Most Australians are aware of the benefits of physical activity but this latest round of Medibank research has revealed some alarming effects of physical inactivity. An estimated 16,179 people die prematurely each year due to conditions and diseases attributable to physical inactivity and that is frightening. And whilst the majority of these are from the older population there is also a large number of people dying under 74 years of age due to physical inactivity, particularly in the male population.”

Bosworth goes on to say:

“Like other health risk factors, physical inactivity can have an adverse effect on organisations as well as individuals. Specifically, physical inactivity can impact on employee productivity by causing increased absenteeism and presenteeism, which impose direct economic costs on employers. The Medibank research has found that productivity loss due to physical inactivity equates to 1.8 working days per worker per year.”

Three audio statements on this research are available – physical-inactivity-telephone-grabs-edit

The SuperFriend Industry Funds Forum Mental Health Foundation has also released statistics on mental health in the workplace. The survey also found that 50 per cent of Australians admit to often feeling stressed and a quarter often feel depressed. 

John Mendoza, Chair of SuperFriend’s Mental Health Reference Group, said, “There is increasing evidence of a link between stress in the workplace and mental illness. The cost of workplace stress to Australian business is potentially crippling.” Listen – workplace-mental-health-edit

The Superfriends survey found

StreetWise
StreetWise
  • One in two Australians believe that having a few drinks is a good way to maintain or improve their mental health;
  • 80 per cent of Australians believe watching TV has a positive impact on their mental health;
  • Australians are putting their bodies ahead of their brains, with three-quarters of Australians engaged in activity to maintain or improve their physical health, while only 50 per cent are actively engaging in activity to maintain or improve their mental health.
  • Older Australians are more likely to heed the call ‘use it or lose it’. While 57 per cent of all Australians feel they take good care of their mental health, 68 per cent of those over 50 feel they are looking after themselves emotionally.
  • Australians aged 40 to 49 are the unhappiest and unhealthiest. Those in this age group are more likely to feel stressed and depressed and less likely to look after their physical and mental health.

A good starting point in planning to manage stress is the StressWise publication by WorkSafe Victoria.

For many decades, perhaps centuries, unhappiness at work was countered, to varying degrees, through the consumption of alcohol.  According to the latest Australian Unity Wellbeing Index people who drink everyday are the happiest, whereas non-drinkers have a lower sense of wellbeing.

Amanda Hagan of Australian Unity summarises some of the research findings and supports the link between physical activity and positive wellbeing. Listen – australian-unity-wellbeing-index-aap-medianet-edit

Worker’s Compensation Funds and global financial problems

(Particularly) since the fall of Lehman Brothers, the returns on investments throughout the world have dived.  Australia has been relatively unaffected but the signs are starting to look bad and if it wasn’t for China and India buying the country’s resources, Australia’s economy would more closely resemble Europe and the United States.

 

Martin Hamilton-Smith talking with listeners on 5AA radio
Martin Hamilton-Smith talking with listeners on 5AA radio

This turmoil provides a free-kick for opposition political parties who can question governments on their economic performance and foresight.  For some time the South Australian opposition leader, Martin Hamilton-Smith, has been attacking in just this manner.  Last week the WorkCover Corporation released its annual report.  It happened to be during a sitting of Parliament so question time was peppered with WorkCover-related questions.

 

Often, the discussion is empty argy-bargy but Liberal Party leader Hamilton-Smith asked the most important question based on the 2008 Annual Report.

Can the Minister for Industrial Affairs explain to the house why WorkCover Corporation’s income from investments appears to have fallen by a quarter of a billion dollars in one financial year?

One has to remember that that Annual Report covers 2007-2008 and the financial crisis has only really cranked up in 2008.  WorkCover Corporation lost $238 million.  WorkCover Minister Paul Caica responded by blaming global problems so Hamilton-Smith asked another question, how much has been lost in the current financial year?

Paul Caica, understandably, did not have those figures available but the question highlighted the importance of chronology in the management of workers compensation funds.  When the international investment market started to fail, how did the fund managers of WorkCover Corporation react?

This will become increasingly important as other State Governments in Australia begin releasing their departmental annual reports over the next few months.  The Victorian Government has a habit of releasing their annual reports in such a way that adequate scrutiny is impossible.  The honour and trustworthiness of governments will be shown by how open and accountability they can be in the next 12 months.

But don’t allow them the easy “out” of blaming the global financial crisis for underperformance.  In the area of workers compensation, it is our premiums that provide them their economic base.

New South Wales Safety Awards Night

On the night of the 29 October 2008 over 570 people attended the WorkCover NSW Safety Awards.  The awards are in their fifth year and the ceremony was professional, well organised and, perhaps most importantly, an excellent opportunity for safety professionals to meet others.  There were clients and advisers, ergonomists and hygienists, health and safety reps, regulators and employer groups in the audience.  As the CEO of WorkCover NSW, Jon Blackwell said, there were over 570 safety advocates and believers.

The award winners were all worthy of the awards but there needed to be more innovation and there needed to be a spark of inspiration in the nominees and the award winners.  Of the winners, the Dorsal Boutique was a standout for several reasons.  The solution was innovative, quirky and applicable to a wide variety of hospitality worksites.  The boutique won the award for the “Best Solution to an Identified Workplace Health and Safety Issue with bed lifting system that reduced the manual handling hazards associated with making a bed.

Many of the other finalists were often tweaks on existing technology but none were breathtaking.  And it is this extreme that such award processes should aim to reward.  It may be that the pool was small although there were more applications in 2008 than in previous years.

The shallowness of the pool was also indicated by many on the systems awards coming from companies undertaking the legislative OHS duties that have existed for decades.  They were not in new industry sectors or challenging sectors which would have added value. 

This is not to belittle the personal achievements of the finalists and award winners.  Speaking to several on the night, their efforts and sacrifices were clear and in some cases, life-changing for themselves and others but the consultative, compliance standards being rewarded were where the businesses should have been already.

There were several award finalists who, it was stated in the introductions in the Leadership category, had already participated closely in WorkCover’s Assist and mentoring programs.  Participation should not exclude companies from eligibility for a WorkCover Award but the WorkCover involvement would provide a considerable leg-up in the stakes and provide a prominence that other companies may not have access to.

However, it is acknowledged that these are the WorkCover Awards.  The judging panel has three WorkCover representatives, one union representative and one form the employers.  There were no independent safety professionals, ergonomists, engineers or hygienists.

Over the last few years in OHS awards around the country there have been many solutions that have gone on to The New Inventors and many have come through that show.  It’s judging criteria is just as questionable as any other but at least that program is from outside the industry sectors of the inventors, there is some effort for independence, and some understanding of the commercial reality facing many of the applicants.

WorkCover is to be congratulated for providing as much judging criteria as it has on each award.  This adds value and veracity to the award winners and finalists but perhaps with the harmonisation of OHS laws and processes, it is time to save each State regulator big dollars and to put finalists onto a proper national platform by putting all our efforts into the national award process

 

WorkCover New South Wales Safety Awards 2008
WorkCover New South Wales Safety Awards 2008
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