Category: insurance

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”

The social context of OHS laws is being poorly handled

Australian lawyer Michael Tooma is mentioned regularly in the SafetyAtWorkBlog, mostly because Tooma is one of the few who consider workplace safety in the broader social context.  In The Australian newspaper on 10 February 2012 Tooma wrote that new work health and safety laws being introduced in Australia present

“…a march … into the traditional heartland of the public safety, product safety and professional liability territory, and it brings with it a criminalisation of what was once an exclusively civil liability domain.  The new laws did not invent this trend, they just perfected it.”

Right-wing commentators would jump on this and declare “nanny state” but it is vitally important to note that this trend of “protectionism”, or the “compensation culture” as described in the United Kingdom, did not originate in occupational health and safety (OHS) laws.  The OHS profession, business operators and workers will need to learn to accommodate and manage this social trend that has been imposed.

Tooma writes that ”

“…we have not had a proper debate about the incursion of the laws into nontraditional areas and its impact on the resources of firms, regulators and ultimately work safety standards.”

The debate may already be over. Continue reading “The social context of OHS laws is being poorly handled”

UK’s approach to OHS reform is flawed by short-term political strategy

England’s Prime Minister, David Cameron, has described OHS as a “monster” in a speech to small business owners on 5 January 2012. It is important to note the PM’s comments prior to his monster reference that have not been repeated in the mainstream press. He refers to

“… a great big machine of health and safety that has built up over years.”

Cameron feels that he needs to address an OHS regulatory system and enforcement strategies that have become too complex for, particularly, small business to comply with. Part of his solution is to exempt the self-employed, in some specific sectors, from OHS laws. This is a questionable decision as it effectively establishes a two-tier safety management regime and sets a precedent for other similar sectors to lobby for an exemption from other, perceived, onerous laws.

It may be that OHS laws in the UK have become overly complicated over time but the role of the media must be considered in that it has focussed on many absurd managerial decisions that have resulted from a skewed understanding of OHS and risk. Frequently the media reports have no relation to OHS laws and all to do with an increasing litigious society and the pursuit of money through, potentially spurious, public liability insurance claims.

In the 5 January 2012 speech Cameron states that

“…the key about health and safety is not just the rules and the laws and the regulations – it is also the culture of fear many businesses have about health and safety.” (emphasis added)

Cameron explains his answer for reducing this fear of health and safety, the capping of fees that lawyers can earn from legal action against businesses on behalf of their clients, usually, employees. There is no fear of health and safety, it is a fear of litigation. Cameron is not on about OHS law reform, his concern is about “unnecessary” litigation costs. This is unlikely to be reduced by cutting the budget of the Health & Safety Executive (HSE) which must reduce services as the HSE resources have been contracting for some time. Continue reading “UK’s approach to OHS reform is flawed by short-term political strategy”

Work-related suicide gains some fresh media recognition

On 4 November 2011, Victoria’s 7.30 program broadcast a heart-rending story about the suicide of a woman who, her mother believes, took this action after suffering chronic pain due a work-related incident and being given insufficient support from her employer and workers’ compensation bodies.  The story of Rebecca Wallis (spelling uncertain) apparently generated sufficient communication to the Australian Broadcast Corporation for 7.30 to undertake a follow-up and more broad look at the relationship between workers compensation and suicide.

One of the people interviewed in the 11 November 2011 program was John Bottomley of the Creative Ministries Network.  Bottomley has published several research reports on work-related deaths and suicides.  The figures he mentions in the report, that around 30% of the work-related suicides identified in his research had a “work injury or work-related mental illness” as a contributory factor, are included in the online publication from 2002, “Work Factors in Suicide“.  What is not mentioned is another statistic in his report:

“Nine people (8%) were on workers’ compensation when they committed suicide.” (page iii) Continue reading “Work-related suicide gains some fresh media recognition”

Australian OHS experts call for a single OHS regulator and a unified insurance system

Some of Australia’s top work health and safety experts have stressed, to Safe Work Australia, the need for a single national OHS regulator.  Many also called for a radical overhaul of workers’ compensation and insurance structures to achieve a combined insurance/compensation similar to that of New Zealand, the Accident Compensation Commission (ACC).

These calls were made in a  whole day workshop, conducted by Safe Work Australia on 30 August 2011, on the development of the next ten-year national OHS strategy.  This was the latest of around ten consultative sessions whose notes will be summarised and posted online.  The notes from an earlier seminar list the following discussion topics:

  • “The need to focus on work health and safety prevention.
  • Engagement with target groups and industries to ensure advice and support is relevant to enable them to effectively respond to hazards.
  • Engineering hazards out through good design.
  • Influencing the supply chain inside and outside Australia.
  • Prioritising key work health and safety hazards and focusing national attention.
  • Creating opportunities for innovation in work health and safety particularly within the regulatory framework.
  • Enhancing the culture of safety leadership (promoting highly reliable organisations).
  • The importance of safety culture.
  • Enhancing the capability of workers to return to work following accident or illness.
  • Influencing or assisting academia to undertake research – focusing on intervention effectiveness.
  • Developing a shared communication strategy to promote the new principles of the new Strategy.”

These echo many of the comments in today’s seminar and illustrate what was a major missed opportunity.  The theme of today’s workshop was to imagine what OHS (or work health and safety or work health safety & environment, as some suggested) will be like in 2022 but there were few futuristic suggestions.  This was the opportunity to extend some of the practices currently undertaken by ten years. Continue reading “Australian OHS experts call for a single OHS regulator and a unified insurance system”

Australian IR Minister mentions international OHS conventions action

Chris Evans, the Australian Minister for Workplace Relations issued a media statement on 28 April 2011 concerning the World Day for Safety and Health at Work.  As well as some generalities about OHS harmonisation and government commitment, he said

“The Australian Government is also in the process of ratifying the ILO Asbestos Convention 1986 (convention 162) and the ILO Protocol of 2002 to the Occupational Health and Safety Convention 1981 (Protocol 155).

These ILO instruments will give Australians a world class OHS regime, by entrenching best practice in protecting our community from the harmful effects of asbestos and enhancing data collection and publication to support policy making and research.

“Australia has long been a member and supporter of the ILO in its efforts to promote safe work environments and raise the quality of labour and social standards throughout the world,” said Senator Evans.” [links added]

This seems a positive move but it is significant that no deadline for ratification is identified by Minister Evans.  There are also a couple of obvious limitations or problems with these conventions and protocols. Continue reading “Australian IR Minister mentions international OHS conventions action”

WorkCoverSA CEO faces hard tasks as new report damns WorkCover’s performance

Late April 2011 is becoming a period of turmoil in the South Australia’s WorkCover Corporation, on top of the government’s political turmoil from the sudden resignation of the Industrial Relations Minister, Bernard Finnigan, and a minister being charged with child pornography offences.  According to inDaily on 21 April 2011, WorkCover’s Deputy CEO, Jeff Matthews, and Chief Financial Officer, Ian Rhodes, left the organisation suddenly.  CEO Rob Thomson (ex-Workcover New South Wales) says that the positions were axed as part of a restructure.

On 27 April 2011, the most recent review into WorkCover’s operations was released.  The March 2011 report finds that the state’s workers compensation scheme

“…shows little evidence of improved return to work performance, in spite of very heavy referrals to and cost of vocational rehabilitation compared to comparable scheme.” Continue reading “WorkCoverSA CEO faces hard tasks as new report damns WorkCover’s performance”

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