Gov’t responds to insulation installer’s death

Recently SafetyAtWorkBlog reported of the death of a worker installing insulation in a domestic home.  A staple for the foil insulation apparently pierced an electrical cable and electrocuted the worker.

The Queensland Government has introduced mandatory provisions to avoid the hazard in the future.  In a media release on 1 November 2009, the Industrial Relation Minister, Cameron Dick,

“… issued a ministerial notice under the Electrical Safety Act 2002 to prohibit the use of metal fastenings for ceiling insulation.”

The ban is effective from 1 November 2009.

It may already be the case, elsewhere in the world, that non-conductive fasteners are used for installing metallic insulation.  If not, the rules introduced by the government should prove useful references.

“The ministerial notice means that installers will have to use nylon or plastic fasteners (which are already in use within the industry), glue or tape to fix foil insulation in ceilings.

As well as banning metal fasteners, the notice also:

  • forces insulation installers to comply with the Wiring Rules with respect to the placement of any type of insulation near recessed downlights
  • makes electrical safety risk assessment training mandatory for all installers
  • forces installers to document their on-site electrical safety risk assessments and keep a record f or five years.”

Such a mandatory rule is clearly a necessary short-term fix but it does little to address the concerns of the Master Electricians Association.  Training and enforcement are the long-term solutions but policymakers must also anticipate the applications of their policies more closely.  New policies should not be announced in an industry that does not have the resources to meet the policy’s aims.

Kevin Jones

New approaches on OHS fines and penalties

At the moment Australian OHS professionals, lawyers and businesses are preparing submissions to the Government on the harmonisation of OHS laws.  One of the areas that the Government is seeking advice on is penalties.  The Discussion Paper asks the following

Q17. Are the range and levels of penalties proposed above appropriate, taking account of the levels set for breaches of duties of care by the WRMC?

Q18. What should the maximum penalty be for a contravention of the model regulations?

Q19. The intention is that all contraventions of the model Act be criminal offences. Is this appropriate or should some non-duty of care offences be subject to civil sanctions e.g. failure to display a list of HSRs at the workplace, offences relating to right of entry?

The amount of  any fixed financial penalty is not a big issue in my opinion.  There is an assumption that the threat of a large financial penalty imposed on one company will encourage other companies to improve safety.  Is anyone seriously saying that all of the financial penalties imposed over the decades are in some way responsible for an improving level of safety in workplaces?  The motivation to improve safety comes from elsewhere.

The threat of large financial penalties send companies to seek ways of insuring against having to pay a fine.  Often it is cheaper to pay an insurance premium on the slim chance of being prosecuted and fined.  I acknowledge that this has been a corporate and risk management approach primarily but there are cases where such options are being offered to small business.

Large financial penalties, such as the then record fine to Esso over its Longford gas explosion, are easily paid with little OHS improvement resulting from the fine.  It can be argued that the negative corporate exposure from the resulting Royal Commission, a reulting class action and the media coverage resulting from its unforgivable treatment of Jim Ward were stronger motivators for improvement.

In most Australian States, there is not a crime of industrial manslaughter.  This issue has faded from the political agenda but it remains very much alive in England.  On 27 October 2009, the Sentencing Guidelines Council wrote the following:

“Companies and organisations that cause death through gross breaches of care should face punitive and significant fines, a consultation guideline published by the Sentencing Guidelines Council proposes today.

Fines for organisations found guilty of the new offence of corporate manslaughter may be measured in millions of pounds and should seldom be below £500,000.

The new sanction of Publicity Orders forcing companies and organisations to make a statement about their conviction and fine introduced under the Corporate Manslaughter and Corporate Homicide Act should be imposed in virtually all cases.

The consultation guideline proposes that the publicity should be designed to ensure that the conviction becomes known to shareholders and customers in the case of companies and to local people in the case of public bodies, such as local authorities, hospital trusts and police forces.  Organisations may be made to put a statement on their websites.”

The Council recommends a minimum financial penalty and a publicity order that has teeth. More on the publicity order is below.

Council member Lord Justice Anthony Hughes clearly states the purpose of financial penalties and it is not preventative.  He said in a media statement

“Fines cannot and do not attempt to value a human life – compensation will be payable separately in these cases.  The fine is designed to punish and these are serious offences so the fines imposed should be punitive and significant to reflect that.”

Penalties as a Percentage of Turnover

Hughes says that the Council rejected a Sentencing Advisory Panel proposal that I believe should be floated in the current debate on penalties in Australia, even though it is likely to be similarly rejected.

The Panel recommended the following

“In order to achieve an equal economic impact on offending organisations of different sizes, the proposed starting points and ranges for offences of corporate manslaughter are expressed as percentages of the offending organisation’s average annual turnover during the three years prior to sentencing.  The relevant turnover is that of the company convicted of the offence or, where the offending organisation is a holding company, the consolidated turnover of the group of companies of which it is the holding company.”

Here is the penalty table

Manslaughter table

Lawyers argue extensively about the use of manslaughter in relation to deaths in workplace but the public jumps across the legalese by repeatedly asking how the death of their loved one is not manslaughter when the actions of a director or company led directly to the death?  No level of legal explanation is going to counter this need for accountability, some would say revenge.

Similarly the penalty rate listed in the table above is easier for the public to understand conceptually compared to a judge’s or lawyer’s explanation of why a financial penalty for a workplace death was less than the maximum.

Sentencing options are complex and SafetyAtWorkBlog has no legal contributors but on 30 October 2009 within a public discussion period on national OHS laws and at the end of Safe Work Australia Week, it seem thats penalties imposed from a percentage of turnover may be an attractive concept to many safety advocates and one that needs to be considered in the Australian context.

Publicity Orders

On the issue of publicity orders, many Australian jurisdictions have had this option for a while.  Indeed, the issue of enforceable undertakings is getting a broader hearing after some of the recent actions by Comcare against John  Holland Group and others.

It is always important to look at the most recent actions and decisions in OHS law and regulation from outside one’s own jurisdiction so that innovations are not overlooked.  It seems that the Sentencing Advisory Panel has looked at lots of  jurisdictions in making the following requirements.

The Sentencing Advisory Panel listed specific requirements of a publicity order to be applied within a specified timeframe:

  • a quarter-page advertisement in a local or regional newspaper, in the case of an organisation operating in one area; or
  • an eighth-page advertisement in three specified national daily newspapers, in the case of an organisation operating nationally; and
  • an eighth-page notice in a relevant trade publication; and
  • a prominent notice in the organisation’s annual report (also in electronic format where applicable); and
  • where applicable, a notice on the homepage of the organisation’s website for a minimum period of three months.

The panel also closed a possible (out) for offending companies.

” The making of a publicity order does not justify a reduction in the level of fine imposed on an organisation for an offence of corporate manslaughter.”

The ads on home pages, local newspapers and trade publications (if there are any) seems very reasonable but the media option that may be most influential is the inclusion in the company’s annual report.  Acknowledging a workplace death and expressing regret in an annual report is admirable but “a prominent notice in the organisation’s annual report” goes straight to the shareholders who often have the ear of the corporation.  Just look at the influence being applied by them at the moment on executive salaries.

Now is the right time for Australia to consider alternative OHS penalty options.

Kevin Jones

Australian AGMs mention workplace deaths

Australia’s corporations are busy releasing their annual reports in October 2009.  The outgoing managing director and CEO of Boral Limited, Rod Pearse, provided his comments on the company’s safety performance to shareholders on 28 October 2009.

“Since demerger [January 2000], Boral’s safety outcomes have delivered steady year-on-year improvements and compare well with both ASX100 and industry benchmarks. Employee lost time injury frequency rate of 1.8 and percent hours lost of 0.06 have both improved by 80% since 2000 and are better than those of our competitors in like industries and in the top quartile of companies in the ASX100.”

Boral is, according to the executive statements, “a resource based manufacturing company with low cost manufacturing operations.” Continue reading “Australian AGMs mention workplace deaths”

The OHS obligations of global corporations

BHP Billiton has issued a media statement concerning the death of a miner, Gregory Goslett, at its coalmine in Khutala in South Africa.  Due to the number of deaths the company has had over the last two years, attention on any safety issue at BHP is intense.  BHP’s short statement reads:

“It is with deep regret and sadness that BHP Billiton announces a fatal incident at its Khutala Colliery opencast operations in South Africa. At approximately 05:02 am on Tuesday, 20 October 2009 Gregory Goslett (27), Mining Operations Supervisor, was fatally injured whilst driving a light vehicle at the mine.

An initial investigation indicates that Gregory was travelling in a light vehicle when a piece of coal fell from a loaded 25 ton haul truck travelling in the opposite direction. The piece of coal went through the windscreen of the light vehicle and struck Gregory causing fatal injuries to him.

The company is offering all comfort, assistance and support to Gregory’s fiancée Tarryn, his parents and those affected at the operations. Our thoughts are with Gregory’s family, friends and colleagues at this difficult time.

Mining at the opencast area has been suspended and investigations are underway.”

The Age newspaper points out that

“The accident was of the type that BHP has previously moved to eliminate from its Pilbara iron ore mines in Western Australia after several deaths last year…..”

“A key safety change made by BHP in the Pilbara in response to last year’s run of fatal accidents was the improved management of the interaction of light vehicles with heavy vehicles.”

The circumstances of Goslett’s death illustrates the obligations, some would say challenges, that multi-jurisdictional corporations need to ensure that safety improvements are consistently applied across their workplaces, regardless of location or remoteness.

BHP Billiton has been tragically reminded of this but BHP is only one corporation in the global mining industry.  Safety solutions and initiatives must extend beyond jurisdictions, countries and commercial entities to each workplace where similar hazards exist.  (The oil refinery industry was reminded of this with the Texas City Refinery explosion) The communication and sharing of solutions is a crucial element of the safety profession around the world.

Kevin Jones

Unintended consequences of inadequate preparation

The Australian Government instigated a rebate scheme for ceiling insulation for domestic homes in order to the climatic impacts of heating one’s home.  The rebates effectively make insulation free and, as a result, there is a boom in insulation installation.

As with any boom in any industry, there is an influx of new workers.  The Australian newspaper reports the death of an installer in Brisbane in mid-October 2009 and the shortcomings this death illustrates.

The article says that the rebate scheme has been so popular that fibreglass batts are not available so installers are using foil-based reflective insulation.

Master Electricians Association president Malcolm Richards said the foil-based products should be banned in established homes because untrained installers were stapling foil on to live electricity wires.  He said the practice was the cause of last week’s tragedy in Brisbane and electricians were being increasingly called on to repair dodgy work.”

Firstly, electricians are always being called on to repair the botched electrical work of others.  Secondly, it’s not the fault of the foil suppliers so it seems unfair to ban a legitimate insulation product.

The Master Electricians Association is facing the problem that others face every day, unqualified workers doing the work normally undertaken by qualified workers.

The political opportunism by some in this article is regrettable.

The Australian Government should have learnt from its computers-in-schools initiative/debacle that there are ancillary costs with any government program and that these costs should be considered in the policy development and/or have relevant organisations consulted so that the necessary support services are prepared for the plan’s launch and operation.

The computers-in-schools program did not consider the software costs to use on the free computer for ever secondary school student.  The LPG conversion rebate did not consider the scale of demand.  The solar panel rebate scheme was cancelled even though the demand was great.  The home insulation scheme has drawn inexperienced installers into the industry.  All good intentions harmed through poor planning and some of that harm can be the death of workers.

Kevin Jones

Two forklift cases in Australia – one death and one fine

On 19 October 2009, SafeWorkSA released details of a court case against Macbar Nominees Pty Ltd trading as Southern Cross Trailers .  The company has been fined over $A15,000 due to the incapacitating injury of a worker from a load falling off a forklift.  The event, described below, occurred in July 2007.

“A man aged 38 at the time had been with the firm just two weeks in his job as a labourer. He and two colleagues had been instructed to clean a work area: a job, which involved lifting several large items by forklift.

In the process of this task, a drum that was part of an unsecured load raised aloft by the forklift, fell about two metres onto the man as he moved a second pallet beneath.

He suffered a head wound, which required stitches and a finger injury that required surgery. In a Victim Impact Statement, the court heard that the worker had been unable to resume his work as a labourer as a result of the finger injury.”

A forklift-related incident occurred in Queensland on 5 October 2009 and details of the incident are being reported in the media.  According to Queensland Emergency Services

“Firefighters and paramedics responded to a business on Riverview Road at Dinmore around 10.50pm after a man became trapped under a forklift.  The 18-year-old suffered from crush injuries to his head, neck and chest and was declared deceased at the scene.”

According to media reports, the man had been working at the abattoir for only two months and was not licenced to operate a forklift.  Clearly the management of the site has some very serious questions to answer to the family and the Government.

It is still too early to make more than basic recommendations from this case as the available information is conflicting or not yet released.

  • Licences for driving forklifts or for operating any specialised plant  must be produced and verified, regardless of the size of the site or the complexity of the task.
  • Whether the man was specifically given the task to drive the forklift or whether he was “skylarking”, still raises the issue of supervision.
  • The matter of communication with the family of workplace victims, whether by the Government or the company, is also very relevant.

Kevin Jones

Changing weather conditions can present unexpected hazards

In the south-east corner of Australia, a drought has existed for over a decade.  This week in Melbourne, it has rained on and off for several days, changing the way the community is feeling.  Farmers are happy, owners of rain water tanks are happy, gardeners are happy, even commuters who have to relearn how to drive in the wet are less complaining.

Some months ago, I spoke to a mother whose two-year-old daughter had never seen a heavy rainstorm, thunder or lightning.  Early last year, a colleague and I looked out of an office building window on a 13th floor and saw smoke swirling round the city.  It turned out to be rain but we had not seen rain for so long that we mis-identified it.

This morning, I was removing money from an automatic teller in the street and I was dripped on from the leaking roof of the bank for the first time ever.  A local chemist had buckets on its floor to catch drips from the ceiling that they had never seen before.

Yesterday, 15 October 2009, a concrete pumper at a housing development site in Coburg sunk in some mud just enough to swing the pump’s hose into a worker, killing him.  Other media reports say that a stand of the pumper may have malfunctioned.

There are always many lessons from workplace deaths but one to be taken from this incident is that external factors to the actual tasks in hand must be considered.  Those factors, in this case weather and soil stability, can change within a work period and this variability of environment must be watched and anticipated.

Mud on a construction site is not a new hazard.  But if a hazard is not always  present or regularly encountered, it is easy to give it less attention.

Kevin Jones

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