Insurance over OHS prosecution hits the deterrence effect

In response to proven breaches of occupational health and safety laws, judges usually apply financial penalties to companies and individuals.  These penalties, like all court-ordered punishments are to deter the offenders from re-offending but also to show others the consequences of their actions.  But what if an insurance company would pay for that penalty in return for regular premium payments?  If the offender does not pay the penalty, deterrence is gone.

On 27 June 2013, a company and its director were fined $A200,000 each in relation to workplace incident that resulted in the gruesome death of one man and a near miss for another but the director had taken out a general  insurance policy and the insurance company paid out!!??.  A fine of $A200K awarded but the offender may pay no more than $A10K. Continue reading “Insurance over OHS prosecution hits the deterrence effect”

Nitpicking or forensic analysis?

It is common for regulators, major clients and accreditation bodies to require copies of a detailed health and safety management plan so that they can be assured the contractor is complying with OHS laws and contract safety obligations. Over the years, part of my job has been to assess these plans to determine their quality, validity and applicability. Some have accused me of nitpicking, others have appreciated the pedantry but my perspective is that such plans are a crucial method of establishing and communicating OHS practices and providing a base from which a positive safety culture can be constructed.

I would argue that any company that has a carelessly written OHS management plan is unlikely to fully understand its own OHS commitments.  That company would also be providing conflicting and confusing safety information to its own workforce and its subcontractors.

Inaccuracies and inconsistencies

One example that comes to mind was a large company who submitted an OHS management plan which detailed many safety commitments, what I consider “promises”. However, there were inconsistencies such as the person who was responsible and accountable for safety at the start of the plan, let’s say a “safety manager”, and who was not mentioned any further. Continue reading “Nitpicking or forensic analysis?”

Federal Safety Commissioner begins review of SWMS info

Recently, the issue of Safe Work Method Statements was discussed at a construction safety conference in Canberra.  SafetyAtWorkBlog reported that:

“Several delegates stated their belief that the Office of the Federal Safety Commissioner (OFSC) is largely to blame for the over-emphasis on SWMS in the construction sector and for the bloating of SWMS into a document that does little to improve safety and is more related to meeting the audit criteria of the OFSC”

Last week, the Office of the Federal Safety Commission (OFSC) removed the webpage that led to its Fact Sheet – Guidance for producing Safe Work Method Statements.  The webpage now says that

“The Guidance for producing Safe Work Method Statements (SWMS) Fact Sheet is currently under review.”

What’s going on? Continue reading “Federal Safety Commissioner begins review of SWMS info”

No one is mentioning OHS prosecution in Telstra/NBN asbestos stoush

Australian politics is currently embroiled in a dispute generated by a contractor entering the telecommunications pits of the asset owner. Some, or many, of the pits contain asbestos and the contractor’s work, the laying of new fibre-optic cables, may disturb the asbestos. There are many other concerns but that is the nub.

The Australian newspaper has been running on this issue for many weeks but one article in today’s edition called “Tak​ing a dig: will Bill come up short?” (page 9 – online paywall), by David Crowe, caught my attention. Crowe reports that:

“The Aus­tralian has been told Tel­stra chief ex­ec­u­tive David Thodey wrote to Shorten in De­cem­ber 2009 to ar­gue against his pro­posal for a ‘‘proac­tive’’ pro­gram to re­move as­bestos from the com­pany’s pits. Thodey gave three rea­sons for not pro­ceed­ing: the cost; the risk of re­leas­ing as­bestos; and the fact plans for the NBN were in train but had not been locked in.”

I realise that the OHS legislative concept of “reasonably practicable” does not extend to all facets of life but if it were applied to the current asbestos exposure (and I think it could) Thodey’s three reasons given above would be crucial in any potential prosecution, particularly if the reasons in Thodey’s response to Bill Shorten were listed in order of priority. In OHS law, cost is the last element to be considered in determining a reasonably practicable hazard control measure.

Continue reading “No one is mentioning OHS prosecution in Telstra/NBN asbestos stoush”

Serious questions raised over the role of Safe Work Method Statements

Any safety conference involving the Australian construction industry will have some discussion on Safe Work Method Statements (SWMS) and this weekend’s Building Safety conference was no different. During the presentation on Saturday by the Federal Safety Commissioners, SWMS was bubbling along underneath many of his words and statements. Sadly, the audience (now) seems to have been too polite to ask him questions about the elephant in the room. There was no such hesitation following the presentation by Brookfield-Multiplex’s Paul Breslin on the Sunday.

Several delegates stated their belief that the Office of the Federal Safety Commissioner (OFSC) is largely to blame for the over-emphasis on SWMS in the construction sector and for the bloating of SWMS into a document that does little to improve safety and is more related to meeting the audit criteria of the OFSC.

Continue reading “Serious questions raised over the role of Safe Work Method Statements”

“Rule #1 – No Poofters”

The Building Safety conference this weekend had one or two underwhelming speakers but these were overshadowed by some brilliant presentations, and by brilliant, I mean challenging. I had no indication of what was to come from the presentation by Dr Dean Laplonge on gender. His presentation has caused me to begin to reassess my own (male) perceptions and those of the safety profession.

The title of this article is a Monty Python reference where a professor from England joins the Philosophy Faculty of the University of Woolloomooloo. He is inducted into the faculty by being told the rules and he even has his name changed to Bruce. This sketch is a good example of humour through hyperbole but over the decades this sketch has become more disturbing as, amongst others, it shows a gender perspective of the early 1970s that, in some industries, still echoes.

Continue reading ““Rule #1 – No Poofters””

Six years jail for injury reporting fraud

B0000187“If it can’t be measured, it can’t be managed”* has been a mantra of business for decades but all measurement can be corrupted.  One of the most contentious elements of occupational health and safety (OHS)  is the measurement of safety performance and a recent prosecution in the United States provides an important lesson for OHS managers everywhere, even though details are scarce.

“On Apr. 11, 2013, Walter Cardin, 55, of Metairie, La., was sentenced to serve 78 months in prison followed by two years of supervised release…. after being charged by a federal grand jury with eight counts of major fraud against the Tennessee Valley Authority (TVA), an agency of the United States.” [link added]

According to the US Attorney’s Office

“Cardin generated false injury rates which were used by the Shaw Group to collect safety bonuses of over $2.5 million from TVA. … Cardin was convicted of providing the false information about injuries by underreporting their number and severity… The evidence presented at trial encompassed over 80 injuries, including broken bones, torn ligaments, hernias, lacerations, and shoulder, back, and knee injuries that were not properly recorded by Cardin. Some employees testified that they were denied or delayed proper medical treatment as a result of Cardin’s fraud. Evidence showed that Cardin intentionally misrepresented or simply lied about how the injuries had occurred and how serious the injuries were.” [link added]

There are many safety management issues related to the conduct of Walter Cardin. Continue reading “Six years jail for injury reporting fraud”

Concatenate Web Development
© Designed and developed by Concatenate Aust Pty Ltd