Legal advice and safety management

The legal commentaries have begun to appear following the release of Australia’s draft Work Health & Safety Act.

One of the first, as usual, is a response from law firm Deacons.  It should be noted before discussing the suggestions that in the last couple of months Australia’s OHS legal brains are now concentrated in this law firm since Barry Sherriff jumped ship from Freehills.  A month or two earlier, Sherriff’s protegé, Penny Stephens, left the firm and took several others with her to Hall & Willcox.  This brain drain sets Freehills’ OHS practice back considerably.

However, Deacon’s first missive on the new OHS laws has been released, under the bylines of Sherriff & Tooma, and identifies several issues.  The first, and very useful to know, is the definition of due diligence that is now included in the Act under Duty of Officers:

“…due diligence means to take reasonable steps:

(a) to acquire and keep up to date knowledge of work health and safety matters; and

(b) to gain an understanding of the nature of the operations of the business or undertaking of the body and generally of the hazards and risks associated with those operations; and

(c) to ensure that the body has available for use, and uses, appropriate resources and processes to enable hazards associated with the operations of the business or undertaking of the body to be identified and risks associated with those hazards to be eliminated or minimised; and

(d) to ensure that the body has appropriate processes for receiving and considering information regarding incidents, hazards and risks and responding in a timely way to that information; and

(e) to ensure that the body has, and implements, processes for complying with any duty or obligation of the body under this Act; and

Examples

A body’s duties or obligations under this Act may include:

  • reporting notifiable incidents.
  • consulting with workers.
  • ensuring compliance with notices issued under this Act.
  • ensuring the provision of training and instruction to workers about work health and safety.
  • ensuring that health and safety representatives receive their entitlements to training.

(f) to verify the provision and use of the resources and processes referred to in paragraphs (c) to (e).”

This should provide more tips to OHS professional associations about where their services fit in general business obligations but it also sets the bar much higher for professionals in how they must upgrade their own OHS skills to match expectations.

Curiously, Deacons continues with issues of concern with the Act which have little to do with improving worker safety.  Several items hark back to the OHS Model Act Review Panel which has little more than historical interest nowadays but may reflect the fact that Barry Sherriff was a Review Panel member.  The list of concerns further supports SafetyAtWorkBlog’s position that safety law often masquerades as safety management.

Deacons concludes its update with the following “7 steps”:

“There are 7 steps that every business needs to undertake to prepare for this new era in Work Health and Safety regulation:

  • Legal risk analysis…
  • Review contracts …
  • Implement interface coordination plans …
  • Develop robust consultation processes …
  • Develop dispute resolution processes …
  • Develop processes on right of entry and regulatory rights and obligations …
  • Develop an OHS Corporate Governance Statement …”

Unsurprisingly, the first two involve assistance from one’s legal advisers.  SafetyAtWorkBlog recommends that businesses wait and see what support documentation is supplied by the OHS regulators first as it is they who determine the parameters for OHS compliance.

Businesses need to remember that the Work Health & Safety Act is not yet law and, in fact, has a long way to go before States introduces this law into their own jurisdictions.  Western Australia is still objecting to the law so it is unclear if this Act will ever be introduced without substantial change.  So until then keep following the local OHS legislation but keep both ears open in anticipation of the future.

OHS debate is over, says Deputy PM

Deputy Prime minister and Workplace Relations Minister, Julia Gillard, has told the Australian Financial Review (only available online to subscribers) that the OHS law changes were finalised at the recent Workplace Relations Ministers’ Council.

Gillard again rejected the trade union movement’s concerns about weakened worker protection.  The Minister emphasised that substantial economic benefits would flow to business as a result of increased administrative efficiencies.

However, the likelihood of a nationally harmonised OHS system seems as far away as ever with the West Australian Government continuing to refuse to apply the new laws which it sees as too friendly to the unions.

Significantly, the Australian Government has backed down from its earlier threat to penalise any governments that do not support the changes.  This lets the WA Liberal Government off the hook and provides the New South Wales Liberal Party with an easy platform option for the 2010 State election.

The conservative forces in Australia can take heart but Minister Gillard’s position has the union movement facing difficult decisions.  It has strongly funded a campaign against elements of the OHS laws and branded the laws as “second-rate safety”.  It now needs to decide whether to give up the campaign totally as a lost cause or to pare it back so that, over time, the campaign fades away, as did the industrial manslaughter campaign of around five years ago.

The ACTU has expressed disappointment but must have realised, privately at least, that some union powers, considered to be extreme by business and industry groups and over which the business complaints have been load and long, were going to be sacrificed in any harmonisation process.

Former Prime Minister and ACTU President Bob Hawke achieved many industrial relations reforms in the early 1980’s by pushing “consensus”.  This negotiation process had strong similarities to the current OHS harmonisation however big C Consensus is now rarely spoken by the Australian trade union movement.  One of the few contemporary outings was when current ACTU Secretary Jeff Lawrence, who expressed the disappointment above, speaking about industrial relations said on 14 June 2007:

“I’m tough enough but I’m also a person who likes to work by consensus”.

To operate constructively at the big tripartite table of OHS, the unions will need to accept a defeat and gain whatever they can from the new rules.  This is doubly important in the lead-up to the planned harmonisation of workers compensation.  Australia will see some fiery union rhetoric when harmonisation threatens to reduce the income and entitlements of workers who are already injured.

Kevin Jones

Accident Comp changes put to Victorian Parliament

According to the WorkSafe Victoria website, changes to the Accident Compensation Act were introduced to the Victorian Parliament on 10 December 2009.

WorkSafe is very confident that the changes will be passed.  The summary only talks about “when” the bill is passed.  There is every likelihood it will be passed but the summary has a tinge of arrogance to it.

A summary of the proposed changes is available online.

It all sounds positive and most of it seems about financial improvements.  There are always concerns when a government move from prescriptive- to performance-based practices.  The summary describes the Return-To-Work benefit:

“Prescriptive return to work requirements will be reframed as performance based duties to improve flexibility.”

Usually this sort of change is a red flag for rorts and abuse.

The summary does say that enforcement activities will be increased:

“The Return to Work Inspectorate will have a wider range of tools to improve the effectiveness of compliance activities in relation to return to work obligations, maintaining a fair and consistent application of the law.”

However with the government’s recent spate of administrative mistakes, sloppiness and oversights exposed through the Auditor-General’s reports, accountability in this important area will need to be carefully watched.

The Minister for Workcover, Tim Holding‘s speech to the Bill’s second reading concluded (according to the draft Hansard):

“This bill providers (sic) fairer and better benefits to injured workers and their dependents, recognises that getting injured workers back to work is a central pillar of the scheme, and provides greater transparency for employers in their interactions with the scheme.  The benefit enhancements in this bill are financially responsible, affordable, and consolidate Victoria’s position as the leader in workers compensation in Australia.”

Kevin Jones

News on Australia’s OHS model Act

Safe Work Australia (SWA) has released the latest communique following the Workplace Relations Ministers’ Council meeting on 9 December 2009.  Various amendments have been made to the draft Act following the public submissions period.  Those amendments that SWA consider significant are:

  • adoption of the definition of ‘officer’ in accordance with the Corporations Act 2001 and the definition of ‘due diligence’ to clarify officers’ duties
  • a duty for the persons conducting a business or undertaking (PCBU) to consult not only with workers directly affected by the health and safety matter, but with other duty holders who have a duty in relation to the same matter
  • the requirement for a PCBU to provide training to a health and safety representative (HSR) within three months of a request for training
  • removal of compensation orders as a sentencing option
  • removal of requirements for union right of entry which are already prescribed under the Fair Work Act 2009
  • restructuring of the most serious category of offence to a reckless endangerment offence when a duty holders’ conduct has exposed a person to a risk of death or serious injury of another person
  • monetary penalties, not penalty units, used to ensure consistency between jurisdictions
  • a 14 day timeframe for commencing negotiations between a PCBU and workgroup
  • allowing a PCBU to refuse entry on ‘reasonable grounds’ to a person chosen by the HSR to provide assistance, if no relevant assistance could be provided by the nominated person
  • being subject to a criminal penalty regime, except in relation to right of entry offences in Part 7. Right of entry offences in Part 7 would be subject to a civil penalty regime consistent with that in the Fair Work Act 2009. A framework will need to be established for civil penalties, and
  • penalties for the non-duty of care offences for corporations, ranging from a maximum of $500 000 for serious breaches to a maximum of $10 000 for minor administrative breaches.

Significantly, all the submissions that pushed for the inclusion of a “suitably qualified” OHS professional seem to have missed out.  Clarification or confirmation of this is being sought from Safe Work Australia.

Kevin Jones

UPDATE – 11 December 2009

The Model Work Health and Safety Act has now been posted on the Safe Work Australia website and is available for download HERE

Managerial federalism?

There are some OHS professionals in Australia who follow the harmonisation of the country’s OHS laws closely.  The current status is that the various public submissions are being analysed and discussed by the Government.

But for those who are hankering for some pre-Christmas reading the New South Wales Parliament has released a report called “Managerial Federalism – COAG and the States” written by Gareth Griffith.  This is not a report about OHS, although the topic does get a brief mention on page 25.

OHS harmonisation is perhaps one of the simpler reform processes compared with tax or the legal sector.

The report provides a very good summary of the various consultative structures that the Federal and State Governments operate within as the country changes to a process of “managerial federalism”.  The report summary defines “managerial federalism” as

“…defined to be administrative in its mode of operation, pragmatic in orientation, concerned with the effective and rational management of human and other resources, and rich in policy goals and objectives.  The States play a creative and proactive part but are, to a substantial degree, service providers whose performance is subject to continuous scrutiny and oversight.”

(“Rational management”?  Has everyone in the Australian government been told to read the book by Kepner and Tregoe?  Let’s hope it’s not the 1965 edition.)

Being familiar with some of the concepts and rationales in the report may help those lucky enough to be consulted on government decision-making to know their place in the wild scheme of bureaucratic policy-making.  It may even prove invaluable if you are the safety coordinator on one of the Governments’ many infrastructure projects.

Kevin Jones

Recent WorkSafe Victoria prosecutions

Over the last two weeks, WorkSafe Victoria has released over a dozen reports and summaries about prosecutions over OHS breaches.  Some have been highlighted in SafetyAtWorkBlog posts but there are too many for us to cover in detail or to expand upon.

Below is a list of those prosecution summaries

A Bending Company Pty. Ltd. – 8/12/09
Summary: Crush injury

Compass Recruitment Australia Pty Ltd – 8/12/09
Summary: Unguarded Plant/Labour Hire

McCain Foods (Aust) Pty Ltd – 7/12/09
Summary: Lack of isolation procedures, instruction and training

Barro Group Pty. Limited – 7/12/09
Summary: Fatality (crush injury) and a failure to provide and maintain for its employees, a safe working environment that was without risks to health.

Alan Mance Motors (Melton) Pty Ltd – 1/12/09
Summary: Explosion

Victorian State Emergency Service Authority – 30/11/09
Summary: Fatality, Volunteers, Employer, Drowning

Dynamic Industries Pty Ltd – 25/11/09
Summary: Fall from height – Fatality

The Inflatable Event Company Pty Ltd – 25/11/09
Summary: Failure to inform, instruct, train and supervise

Transglobal Shipping & Storage (Vic) Pty Ltd – 25/11/09
Summary: Forklifts, Failure to comply with a Prohibition Notice

Andrew Irvine – 25/11/09
Summary: Fall from height – fatality

Canningvale Timber Sales Pty Ltd – 25/11/09
Summary: Unguarded Plant

John Mavros – 25/11/09
Summary: Unguarded Plant

Shane Grigg -v- The Precast Company Pty Ltd – 16/11/09
Summary: Fail to provide suitable employment

OHS for volunteers is still not working

Most Australian States’s OHS laws have encompassed workplace risks fro those who enter the enter the workplace and for volunteers.  The issue came up again with the recent review process on model OHS laws.  However a recent national survey by Volunteering Australia found that

“30% of [over 1400 volunteer] organisations surveyed have not been able to access adequate information about the protection of volunteers under occupational health and safety legislation.

Although individual volunteers overwhelmingly see OHS resources as having been positive.

“467 (26%) volunteers reported that OHS had a positive impact on them in the past 12 months, while only 130 (7%) reported that it had a negative impact.”

The positive position was slightly lower than the 2008 survey results (30%)

Volunteering Australia should be applauded for considering OHS in its survey.  Many organisations, particularly community organisations, are not so upfront on the issue.

Volunteering Australia is aware of the national OHS model review and are preparing for the additional overt relevance of volunteers in OHS law, but Volunteering Australia tells SafetyAtWorkBlog that they chose not to make a submission on the OHS model laws.

Kevin Jones

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