OHS – Page 469 – SafetyAtWorkBlog

Global pressures on Australian workers compensation schemes

Around 18 months ago the Victoria Government launched WorkHealth, a health prevention program that would be funded from the interest generated from the pool of workers compensation funds. SafetyAtWorkBlog has previously questioned how the program will be funded when its income source is likely to have been severely reduced due to the global economic problems.

On 1 April 2009 WorkCover in South Australia reported a half-year net loss of $313 million. WorkCover CEO Julia Davison said in a media release that

“the global crisis is, as expected, taking its toll. In the last six months stock markets have declined, investors have experienced significant losses, and interest rates have fallen significantly,” she said “Like all investors, WorkCover has been hit hard by the global financial downturn.”

Earlier in March 2009, the Chair of the WorkSafe Board Elana Rubin said

“the significant downturn on the world financial markets and reduction in interest rates had combined to drive a net loss of $1.42 billion for the half year. Whilst interest rate reductions are good news for those of us with mortgages, they have the opposite effect on our scheme – in the half year to 31 December 2008, the unprecedented level of interest rate cuts negatively impacted our net result by $645 million.”

On 1 April 2009 SafetyAtWorkBlog asked John Merritt why WorkHealth was not mentioned as part of his keynote presentation at the Safety In Action Conference. He reiterated the importance of the program in easing the recovery time, particularly, for manual handling injuries but acknowledged that the program’s funding source was based on interest

“from the [$600 million of the assets of the] workers compensation scheme over the next five years ….well there used to be interest from assets – there should be one day, there will be again – around $40 million each year for the next five years will be invested in worker health.”

It is good to hear that the WorkHealth program is going to continue but the fragility of the program’s funding should have been evident in the planning phase. Governments around the world are pulling back on government funded programs in a wide range of areas. Ideas that seem good in the good times are now looking like luxuries. It will be interesting to see if WorkHealth continues in the WorkCover area or moves to Health, where many of its critics have always said it belongs.

Kevin Jones

BHP Billiton deaths – government intervention

The West Australian government has taken the extraordinary step of talking directly to the senior management of Australian mining corporation BHP Billiton about the recent spate of fatalities at BHP’s worksites. The cynic would say that we now know the number of workplace fatalities that it takes to gain a Minister’s attention however, the fact that this high-level meeting is occurring is a clear indication of the severity of the issue. It may also indicate just how effective a union safety campaign can be. It is just regrettable the campaign is generated from multiple fatalities rather than preventive issues.

According to the Minister, Nick Moore

“Mines inspectors will now issue prohibition notices to BHP under the Mines Safety and Inspection Act 1994 – basically a stop work notice – for any breach of work practices or work place conditions that may constitute a hazard to workers.”

Mr Moore went on to say, according to one media article, “…the policy would remain in force until he had seen the report of a Section 45 review currently under way into safety management systems at all of BHP Billiton’s Pilbara iron ore mine sites.”

The article noted that

“The review, requiring independent engineering studies of BHP worksites to be carried out, is expected to be completed by April 30.”

BHP, meanwhile, has given guarantees of the following safety improvements:

Reduce site access;
Improve contractor management;
Enhance existing strategies to prevent excess working hours;
Move rail operations from the Mine Safety and Inspection Act to the Rail Safety Act;
Enhance traffic management standards, and;
Suspend all non-essential work outside daylight hours

Kevin Jones

Professor Quinlan outlines the roles and approaches of the OHS inspectorate

The Safety in Action conference is lucky to have Professor Michael Quinlan as a keynote speaker, as he has seriously curtailed his conference appearances to favour those that benefit the safety profession over the commercial conferences. His, and Richard Johnstone’s, research on 1200 inspectors has provided useful insight into the effectiveness and roles of OHS inspectors. The project also interviewed HSRs and employers and visited a large variety of workplaces.

Michael Quinlan at Safety In Action Conference

Inspectorate activity focused on in the report was in the traditional areas initially. But although statistics overstate the effectiveness of the visits, the bulk of their activity relates to targeted strategies, as targeted enforcement provides a greater return. This may be important to remember when listening to presentations from the regulators about their performance indicators.

Less than half of an inspector’s time is spent in talking with workers. Most attention was on plant and documentation was low except in major hazard sites. Inspectors don’t ask about the participatory structures which Quinlan sees as a major deficiency.

Inspectors currently have much better communication skills than in previous incarnations.

In 50% of the cases studied there is no action taken by inspectors, 25% are verbal instructions, improvement notices issued in 34%.

The research also asked what standards were referred to by the inspectors with the most common being process or performance standards. Inspectors are very hesitant in providing advice on potential solutions yet they are often the best placed to provide advice.

Inspectorate training has greatly improved and inspectors do apply their enforcement skills selectively. Some employers want notices in order to gain the attention on safety matters from the executives.

“Zero Harm” often fades to zero injuries and becomes implemented more restrictively than intended due to the realisation of the workload in achieving the corporate goals.

Inspectors are more cynical on audit tools because the tools in many cases have become checklist compliances with insufficient resources to improve safety in reality.

Inspectors struggle with psychosocial issues but the general opinion is that managing the issues will evolve in a similar way to that of manual handling over the last 20 years. Often bullying cases can take up a lot of inspector’s time with less than perfect outcomes.

Inspectors are beginning to see safety within the business/management context and provide more assistance with managers. Inspectors are very aware of the risks associated with paper compliance management systems.

Inspectors don’t interact sufficiently with unions and HSRs. Well-managed worksites are prepared to include a second opinion on safety, often from unions. Those sites that are not inclusive should raise a red flag.

Repeat visits by inspectors are the most effective technique in safety improvement but under-resourcing hampers this technique.

Kevin Jones

Impressions of Australian safety

At the Safety In Action conference in Melbourne Australia, SafetyAtWorkBlog was able to catchup with John Lacey, a past President of the Institute of Occupational Safety and Health in England. John has attended ten of the conferences and has some interesting comments on the conference, how Australian safety differs from the UK and who he would nominate as an example of safety leadership.

The short interview is available at delegate-day-1-02

Forklift truck safety marketing

On 30 March 2009, WorkSafe Victoria released a suggested traffic management plan for forklift trucks. It basically reiterates the regulators calls over many years of separating pedestrian walkways from traffic areas.

WorkSafe is, justifiably, concerned over this type of workplace machinery and the risks presented by its inappropriate use, as seen by its response to forklift high-jinks recently.

Tomorrow in the Safety In Action Trade Show there will be a forklift driving competition. This will involve

“Obstacle course tests forklift driver hand-eye coordination and skills. Thousands in prize money”

and there will be

“Colour, movement, competition, clumsy forklifts moving with grace and speed”

Let’s hope they move safely.

Kevin Jones

Safety conference protest

Janet Holmes a Court speaking at the Safety In Action Conference 2009

On 31 March 2009, Australian trade unionists (pictured below) protested outside the Safety In Action Conference. The crowd was objecting to the presence of Ms Janet Holmes a Court, the chair of John Holland, as a keynote speaker. As Dave Noonan, CFMEU Construction Division national secretary, put it

“It is an outrage that a company with a dismal safety record is the key note speaker at a major safety conference,” Mr Noonan said. “John Holland needs to stop talking about safety and start working with the unions to make their worksites safe.”

Many of the conference delegates who were attended a breakfast seminar were oblivious of the protest outside. According to a media statement from the Safety Institute of Australia national president, Barry Silburn

“We share the same goal as the unions – to bring safety failures into the public arena and work towards preventing more deaths – so we wholeheartedly support their efforts and were pleased to see them at the conference today,” Mr Silburn said. “We certainly don’t condone the systems failures at John Holland. Janet Holmes a Court’s presentation was an opportunity to hear what went wrong and of her plans to improve those systems. She acknowledged that John Holland had made mistakes and gave delegates the opportunity to learn from them.”

Recently, the trade union movement has become more strident in its protests about John Holland’s move to the national workers compensation scheme, the only construction contractor to choose this option. The union argues that safety on John Holland sites has deteriorated since the move. They also complain over John Holland restricting union access to their worksites.

protest1mb-2

Safety In Action Conference – Part One

Following two short messages from international representatives of the Institute of Occupational Safety and Health (IOSH) and the American Society of Safety Engineers (ASSE), the Governor of Victoria, Professor David de Kretser AC, officially opened the Safety In Action Conference for 2009. The Governor made several pleas or suggestions. One was for the application of a duty of care at music concerts towards patrons just as there is a duty towards members of the public at workplaces. Another was that the contributions to reproductive ill-health from work practices be more thoroughly investigated and researched.

Barry Sherriff of Freehills law firm provided a personal perspective on the harmonisation of Australia’s OHS Model Law. He spoke of the benefits of enforcement policies and resource sharing that could eventuate from the model law review, should the government accept the recommendations (a long way from a done deal from the rumours in the safety profession).

It should come as no surprise that the major benefits from the review seemed to be for lawyers even though Barry insisted that the model law improved the application of OHS for the people. It certainly sets the context for safety to be improved but there are so many political steps in the process before safety improvements flow from the model OHS law review through to the shopfloor. There is still a strong disconnection between streamlining OHS law and implementing safety management. There are codes of practice, state government sign-off, trade union acceptance just to mention a few of the potential barriers to be overcome in the very tight implementation timeframe set by the Australian government.

What took the punch out of Barry’s presentation is the current silence on the model OHS law review from the government.

Kevin Jones

Category: OHS

Global pressures on Australian workers compensation schemes

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BHP Billiton deaths – government intervention

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Professor Quinlan outlines the roles and approaches of the OHS inspectorate

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Impressions of Australian safety

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Forklift truck safety marketing

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Safety conference protest

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Safety In Action Conference – Part One

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