Unique company response to confined space penalty

In 2007, according to the ABC news site,

“42-year-old Geoffrey Johnson [died after he] inhaled toxic fumes from paint stripper when he was cleaning the inside of a large chemical tank”.

On 16 December 2009, his employer, Depot Vic P/L, was fined half a million dollars over this breach of the OHS legislation.

Initial reports say that the company is no longer in business but it

“told the court is had put aside money to pay the fine.”

Wow.  What happened to phoenix companies?  – the business scourge that closes down to avoid paying outstanding debts and, often the costs associated with a worker’s death, and then starts up again under a different structure.

That a company will pay a fine for an OHS breach years after ceasing business seems a remarkable and admirable act.

Hyde Park Tank Depot’s assets were purchased by the Scott Corporation several months after Mr Johnson’s death, according to information SafetyAtWorkBlog obtained from Scott Corporation.  The current business and website listing was not operating at the time of Mr Johnson’s death.

WorkSafe Victoria provided background to Mr Johnson’s death in a prosecution summary in April 2009.  The full summary gives a clear indication why the fine was so high.

“Depot Vic Pty Limited (formerly known as Hyde Park Tank Depot Pty Ltd) undertakes cleaning, repair and maintenance of ISO containers for the chemical industry.  ISO containers are confined spaces, being portable tanks used to transport chemicals.  The tanks are usually cleaned purely by hydro-blasting, but on occasion the tanks were required to be cleaned more thoroughly.

The system of work was such that when this situation occurred, the cleaning of the tank required 2 stages. The first stage involved the application of a cleaning agent, usually a product known as ‘Selleys Renovators Choice’ stripper (which is not a dangerous good).

The second stage then involved the use of hydro-blasting on the internal walls to remove the stripper and clean the wall.  The company’s work instructions required that a confined space permit be issued and that appropriate PPE be worn.

On 16 August 2007, an employee of Depot Vic Pty Limited died whilst attempting to remove latex from the internal walls of a 25,500 litre ISO tank.  The deceased had entered the tank and instead of using the ‘Selleys Renovators Choice’ stripper, had used a product known as ‘Paint Stripper Gel GS 125’ that was suited to clean external components only (and not the inside of the tank).  The label of this product contained safety directions such as “do not breathe vapour” and “use only in a well ventilated area”.  This product is a dangerous good ‘class 6.1 (toxic substance) of packing group 111’.  It is also a hazardous substance according to the criteria of the Australian Safety and Compensation Council.

The deceased was located in the tank in an unconcious (sic) state, and when retrieved from the tank did not regain conciousness. An expert analysis of the atmosphere inside the tank concluded that that (sic) there was a lethal concentration in all or part of the tank (10 litres of the dangerous good was used).  At the time of the incident a confined space permit was not issued, the deceased was not wearing respiratory protection, gloves or a harness, and there was no ‘spotter’ in place to supervise the latex removal works.

Further, there was a lack of training and supervision of employees in relation to the work procedures for confined space entry.”

Kevin Jones

Director accountability for OHS reinforced by NZ penalty

On April 5 2008, a cool store in New Zealand exploded killing one firefighter and injuring 7 others.  Icepak Coolstore Ltd, according to the fire services investigation report

“[had] very large quantities of combustible material contained in the expanded polystyrene construction panels and also in the foodstuffs stored.

“There were no compliant fire detection or protection systems or hydrants, and very limited firefighting water.”

In July 2008, the New Zealand Department of Labour (DoL) issued a media statement and fact sheet concerning the explosive potential of flammable hydrocarbon refrigerants.

Language warning on the video below

On 15 December 2009, a New Zealand Court penalised two companies and a director with fines totalling over $NZ390,000.  The DoL has issued a media statement about the prosecution results.

The many reports and inquiries into the explosion and fire are very informative but one element that the DoL wants to focus on is the penalty applied to the Director of Icepak Coolstore, Wayne Grattan.  He was

“fined $30,000 on one charge that he acquiesced in the failure of the company to take all practicable steps to ensure the safety of its employees while at work.”

The Department of Labour’s Chief Adviser for Workplace Health and Safety, Dr Geraint Emrys said (click HERE for audio):

“The prosecution against the director of Icepak should serve as a reminder to officers, agents and directors of organisations that they can be held personally accountable for the failures of their organisation.

“Mr Grattan was charged with acquiescing in Icepak’s failure in respect of obligations to its employees.  The outcome of the case against Mr Grattan reinforces the requirements of directors to be proactive in health and safety matters.”

As many Commonwealth countries have a strong commonality of law, the Icepak Coolstore case should be an important case study in many jurisdictions.

Kevin Jones

Tasmanian mine safety review

Safety in mines in Tasmania has received great attention in the aftermath of Larry Knight’s death at Beaconsfield gold mine.  On 13 December 2009, the Tasmanian Workplace Relations Minister, Lisa Singh released a regulatory impact statement and information paper on proposed amendments to the Workplace Health and Safety Act 1995.

This legislative package, according to the Minister’s media release:

“The proposed package considerably expands upon existing legislation, by including both general duties and hazard specific regulations for the mining industry.

“A key focus is the requirement for each mine to implement a health and safety management system, which must include risk management processes and procedures.”

Any OHS review should be welcomed but what is this trend of short periods of public comment?  There were many complaints of the Federal Government for short periods of review on national model OHS laws and now the Tasmanian Government wants responses by 14 January 2010!!??

Just one month for responses and that month includes Christmas holidays and New Year.  This brings the consultation period to around 19 working days.

A spokesperson for Workplace Standards Tasmania (WST) said that the various reviews and coronial reports over recent years have put pressure on the Government to improve mine safety legislation.  She also said that comments on the Regulatory Impact Statement is an important and necessary step in drafting the relevant legislation.

The spokesperson said that WST is effectively closed down between Christmas and New Year but has an emergency response.  Any enquiries from the public about the RIS will be handled by the WST Helpline on other working days untill relevant staff return.  The Helpline is being briefed on the RIS this week.

WST emphasised that the consultation on the legislative amendments has been occurring for months.  SafetyAtWorkBlog acknowledges this is the case but the Public Comment period is very tight.

The Minister, Lisa Singh, has said in her media release that

“I encourage comment from persons connected with the mining industry, including workers, mine operators and contractors.”

SafetyAtWorkBlog contacted the Minister’s Office and a spokesperson said that the timing of the Public Comment period is unfortunate but that the Government does not want to delay the process any longer than it has too.  She advised that the minimum time period for comments on an RIS is three weeks and that the comment window on this particular process is four weeks.

There is no accusation of a conspiracy here but the unfortunate scheduling highlights a legitimate conflict between the aims of an effective public comment phase and legislative development that seems endemic through Australian politics.

Kevin Jones

The future of the School of Risk & Safety Science

It was good to hear the President of the Safety Institute of Australia (SIA), Barry Silburn on the radio on 7 December 2009. The SIA has traditionally been very hesitant about going public on safety issues but clearly the potential disappearance of the School of Risk & Safety Science from the University of New South Wales is important to the SIA.

The closure of this school seems absurd, particularly, when the fact of its profitability is shown.

The university’s decision appears wrong and, from the evidence of the radio interview, it seems that the decision has occurred recently.  Dropping a school, regardless of the prominence claimed by the SIA, which has a problem with prominence of its own, is a harsh decision if there has not already been a consultative process or a strategic program for improvement and increased relevance.

It is not as if the school does not have access to top talent.  Names familiar to Australian OHS professionals, researchers and regulators include

Professor Chris Winder

Dr Anne Wyatt

Dr Jean Cross

Michael Tooma

In the University of New South Wales’ Australian School of Business, there are several other prominent OHS academics.  Most familiar to SafetyAtWorkBlog are

Professor Michael Quinlan

Professor Stephen Frenkel

Barry Silburn (a video of Barry Silburn talking about the SIA is available online) accuses the University of New South Wales of sacrificing the safety profession for short-term gain:

“They’re not looking at the overall picture of OHS within Australia they’re looking at very short-term money considerations on their courses that they’re conducting within the university”.

This seems an odd accusation when compared with the fact that the school has made a profit two years running.

It seems to SafetyAtWorkBlog that the limitations of the University’s review are clear in the statement of Deputy Vice Chancellor, Richard Henry:

We had an external review of the Faculty of Science by a committee of internationally respected scientists and their recommendations to the university were that the Faculty of Science should concentrate on its strengths; areas such as maths, physics, chemistry, psychology, biology.

The university wants to focus on pure science rather than applied science after a  review undertaken by “a committee of internationally respected scientists”.   HMMMM?

OHS academics are often less dependent on government funding than other schools and departments because the skills and knowledge can be more readily applied in a practical way and they live closer to the economic realities of business and workplace safety.

Silburn’s accusations of greed are too narrow.  The safety profession can continue without the School of Risk & Safety Science.  There are many sources of OHS graduates still in Australia and, from the activity of the University of Queensland, these opportunities are increasing.

It seems that the university may have been too narrow in its selection of the review panel for the Faculty of Science.  But if we take the panel’s recommendations seriously, Richard Henry does not see the School of Risk & Safety Sciences as fitting in the Faculty of Science.  Surely it could fit in the university’s School of Organisation and Management.  Going from this School’s profile in the website:

“The School of Organisation and Management is a multi-disciplinary unit comprising 32 full-time academics.  Our mission in the School of Organisation and Management (O&M) is to conduct high quality applied research and to prepare students for employment in diverse organisational settings.  Our main areas of research and teaching include: Organisational Behaviour, International Business, Human Resource Management, Industrial Relations, and social and psychological aspects of Management.”

Anne Wyatt researches the psychosocial issue of workplace bullying.  Chris Winder researches occupational toxicology and his most recent academic paper is “Managing hazards in the workplace using organisational safety management systems: A safe place, safe person, safe systems approach.”

If the University of New South Wales cannot see the continuing relevance of its profitable School of Risk & Safety Science, it should perhaps get examined at its own School of Optometry and Vision Science.

Kevin Jones

The School of Organisation and Management is a multi-disciplinary unit comprising 32 full-time academics. Our mission in the School of Organisation and Management (O&M) is to conduct high quality applied research and to prepare students for employment in diverse organisational settings. Our main areas of research and teaching include: Organisational Behaviour, International Business, Human Resource Management, Industrial Relations, and social and psychological aspects of Management.

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

“Suitably qualified” looks dead

In many submissions to the Australian Government’s development of a Model OHS Act, there was a request, sometimes passionately made, for the inclusion of a legislative provision for “suitably qualified” OHS advisers.

This week’s Communique from the Australian, State, Territory And New Zealand Workplace Relations Ministers’ Council (WRMC) included no mention of “suitably qualified”.  So where does this leave the safety professionals?  What is the future of the WorkSafe-promoted Health & Safety Professionals Association?

For those safety professionals who wish to pursue the “suitably qualified” matter below is a list of the members and attendees of the latest WRMC meeting  (taken from the Communique) for you to follow-up.  However, it may be quicker to accept the reality and plan for professional credibility with the legislative crutch.

Kevin Jones

Apologies: