Short-sighted redefinition of worker

In May 2013, Workcover Queensland supported the government’s intention to change the definition of worker to match that of the Australian Taxation Office (ATO).  The definition re-emphasises the significance of the employer/employee relationship.  Workplace health and safety laws through most of Australia have recently changed to remove the reliance on the employer/employee relationship with the intention of clarifying the lines of responsibility for preventing harm.  The diversity between workers’ compensation and OHS definitions unnecessarily complicates the management of a worker’s health through the linear experience of employment.

The government believes such changes will reduce “red tape” but only in the narrow context of workers compensation.  The Work Health and Safety Act expands the definition of worker but another piece of legislation in the same State restricts it.  Inconsistencies of concepts are likely to lead to duplications, confusion and arguments that may generate as much unnecessary business and legal costs as the initiatives were intended to save. Continue reading “Short-sighted redefinition of worker”

Latest review into workers compensation provides OHS clues

Cover of src_act_review_reportThe Australian Government has released its report into a review of its national workers’ compensation scheme, Comcare, and the Safety, Rehabilitation and Compensation (SRC) Act.  Some of the media (and politicians), as it often does, has focused on the seemingly absurd compensation claims.  Few cases have gained the same degree of national and international attention as the sex case for instance, and although most workers’ compensation reports focus on post-incident treatments, there is a glimmer of  hope on occupational health and safety (OHS) in this latest review.

The report, the latest undertaken by Peter Hanks QC, states that one of the guiding principles of the SRC Act should be an acknowledgement that

“The benefit and premium structure should promote incident prevention and reduce risk of loss.” (page 25)

This would be a wonderful benchmark to apply but is likely to be overshadowed by the compensation and rehabilitation issues of the review, unless OHS professionals and practitioners continue to remind regulators that prevention is better than cure.

Peter Hanks admits in a 2012 video interview on his review that injury prevention is not part of the terms of reference but there are elements of his report that require serious consideration by OHS professionals in consultation with their Human Resources (HR) colleagues. Continue reading “Latest review into workers compensation provides OHS clues”

Insurance may diminish a director’s commitment to their positive OHS duty

Neil Foster of the University of Newcastle is known to SafetyAtWorkBlog for his work looking at the legal liabilities of company directors and officers.  Recently Foster released a paper called “You can’t do that! Directors insuring against criminal WHS penalties” which provides an additional legal context to an earlier blog article.

Foster acknowledges that

“…provisions of the criminal law imposing personal liability for company breach of workplace health and safety provisions provide one of the strongest ‘drivers’ for company officers to use due diligence to see to the implementation of company safety policies.”

and asks

“… what if the officer knows all along that, should they be subject to such a penalty, the company, or an insurance policy, will come to the rescue?”

This is a concern that relates to insurance policies or indemnities that are being offered in some industrial sectors.  Insurance could dilute the diligence of officers and directors on a range of matters including workplace safety. Continue reading “Insurance may diminish a director’s commitment to their positive OHS duty”

More safety indemnities offered but with similar limitations

In August-September 2012 a media release was circulated in Australia promoting an

“…an Australian industry first – leading construction & mining workplace safety provider RIS offers to indemnify operators against non compliance prosecution.”

This may be a first for RoofSafe Industrial Safety (RIS) but not for Australia.  SafetyAtWorkBlog has reported on a smaller but similar system that originated in the automotive repair industry.

RIS’ Syncron system has several steps to compliance

  • Safety Audit
  • Assessment and Priorities
  • Coordinated actions aimed at maximum cost savings
  • Indemnification
  • Ongoing Monitoring and Continuous Improvement

It seems to be popular in the mining sector, according to the RIS website and clearly, from the media release, RIS is expanding its application from its fallprotection base into construction.

Indemnification

There are lots of issues of concern in the media release, if not in the Syncron system itself.  The indemnification is of particular concern and although these sorts of safety management systems are apparently cleared through legal advisers they need a great deal of explanation in order for businesses to feel comfortable.

One of the potential traps of these systems is that indemnification only exists when the assessment and management system is followed absolutely, as highlighted below.  Although the advisory resources exist outside the customer’s business, checking and monitoring still comes from the customer and adequate resources are required.

The legalese through all Syncron brochures and statements needs forensic analysis.   Continue reading “More safety indemnities offered but with similar limitations”

More details of the costs of managing safety required from OHS regulators

In a recent edition of Safety Express, a newsletter from WorkSafe Victoria, Clarke Martin outlined the benefits of WorkSafe’s Owner Visit program to one regional company.  This good news story needed more depth and detail so Clark Martin provided SafetyAt WorkBlog with additional information.

The Safety Express article outlined that a company of over 200 employees gained advice through WorkSafe’s free 6-hour consultancy service and has

“…made significant savings in insurance premiums over a two-year period. The financial and safety benefits are continuing today.”

“The company agreed to make significant changes to the way the business managed its OHS and RTW, and the financial management of premium costs.”

“WorkSafe worked with the company for two years and in this time the EPR dropped to just 34 per cent above average and work is continuing to further improve its performance. The company advised WorkSafe that savings achieved from reduced insurance premiums was equivalent to the profits on producing and selling an additional $16m of product.” Continue reading “More details of the costs of managing safety required from OHS regulators”

Another salary survey shows increased demand for OHS professionals

Australian recruiting company, Hays, has released its annual salary surveyin which it says that there is increasing demand for OHS professionals in Australia however the salary levels seem comparatively low, particularly at the entry-level. The survey says that the introduction of harmonised OHS laws in most Australian States has:

“…led to increased accountability and thus demand for high risk safety experts.”

It could be said that many safety experts have been “high risk” but the quote above places safety in a risk context.  Safety professionals must be able to understand and deal with business risks in the broader context.  In some sectors risk management integrates OHS but in others, where risk management is almost exclusively concerned with insurances and safety is the purview of a Health and Safety Representative, OHS is shunned as a foreign concept or a poorly under threat. Continue reading “Another salary survey shows increased demand for OHS professionals”

Victoria’s Workcover Minister reveals more of the “secret” inquiry into Workcover and the Transport Accident Commission

The terms of reference of the Victorian Government’s review of the Victoria Workcover Authority and the Transport Accident Commission remain hidden in the inquiry by the Essential Services Commission but some hints about the review are appearing in the press and official records.

The Australian Financial Review of 21 May 2012 reported that the Victorian Minister for WorkCover, Gordon Rich-Phillips would not rule out the option of merging the two organisations.  A reading of the transcript of the budget estimates inquiry conducted by the Public Accounts and Estimates Committee (PAEC) illustrate the reasonableness of Rich-Phillips statement – an inquiry has commenced and he should not pre-empt the inquiry findings.

Rich-Phillips said that the inquiry will be looking at

“how [the functions of both organisations] can be improved and how the two agencies can work together better.”

The concerns, principally raised by the Shadow Finance Minister, Robyn Scott, seem to be over potential changes to the TAC, including the use of private insurance companies to manage injuries from motor vehicle accidents, and not about the VWA or WorkSafe. Continue reading “Victoria’s Workcover Minister reveals more of the “secret” inquiry into Workcover and the Transport Accident Commission”

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