PCBUs have begun appearing

A reader has drawn SafetyAtWorkBlog’s attention to one State regulator in Australia who has already begun to apply the broader definition for “employer” in their OHS guidance material.

In September 2009, the ACT Safety Commissioner published a Guidance on “Safe Structures, Systems and Workplaces“.  In that guidance, the Commissioner refers to

…”New general duties to ensure work safety by managing risk apply to a person:

…carrying on a business or undertaking;…”

This anticipates the definition put forward in Australia’s OHS model Act in relation to PCBUs (Peek-A-Boos).

The matter of a “business or undertaker” was also used in the ACT’s Work Safety Act 2008 (effective from 1 October 2009) throughout the document but with slight variation.  Of most interest here are the definitions of employer, worker and “business or undertaking”:

“employer, of a worker, includes a person who engages the worker to carry out work in the person’s business or undertaking.”

“worker means an individual who carries out work in relation to a business or undertaking, whether for reward or otherwise, under an arrangement with the person conducting the business or undertaking.”

“business or undertaking includes—

(a) a not-for-profit business; and

(b) an activity conducted by a local, state or territory government.”

The logic of such an inclusive term is understandable but needs greater clarity which is likely to some from regulations or supportive documents.

Having a Peek-A-Boo is one thing, let’s just hope that the jargon does not develop to start referring to “undertakers”.

Kevin Jones

Justice in workers’ compensation reforms

A South Australian colleague has pointed out some interesting elements in WorkCover SA’s review of employer incentives discussed earlier.

The following text are some of the aims of South Australia’s Workers Compensation and Rehabilitation Act.

(1) The objects of this Act are—

(a) to establish a workers rehabilitation and compensation scheme—

(i) that achieves a reasonable balance between the interests of employers and the interests of workers

(iv) that reduces the overall social and economic cost to the community of employment-related disabilities

(2) A person exercising judicial, quasi-judicial or administrative powers must interpret this Act in the light of its objects without bias towards the interests of employers on the one hand, or workers on the other.

My colleague points out that a review of employer incentives is well and good but what are the incentives for employees, given the objects of the Act concerning balance and bias?

She also criticises

“…the current incentive for employers of paying the first two weeks of the injured workers income payments if the employer supplies the claim agent with the employer section of the injury/incident report goes against the intent as outlined in Objects of the Act, as there is not any corresponding incentive offered to the injured worker.”

Whether the injury report is valid or useful is irrelevant to the incentive as it is the lodgment of the form that generates the incentive rather than any rehabilitation action for the injured worker.

There is no doubt that the workers compensation scheme needed a review.  The recent Return-To-Work (RTW) conference in Adelaide had an atmosphere of hope after the introduction of the RTW coordinator requirements for businesses.

South Australia is different from most other Australian States where a single company handles workers compensation insurance, Employers Mutual.  Not only is there a huge lack of competition in South Australia but the government and the insurer are close.

There is also a political element with Paul Caica being given the portfolio in order to fix it.  In June 2009, the Minister announced a range of projects from a fair pool of funds but many of them are focused on the workers rather than providing structural change to the system.  It is hard not to speculate how workers may benefit if the insurance industry in the State had competition.

The need for reform was clear as the South Australian workers’ compensation scheme was bleeding money but it must have been politically attractive to try to postpone an analysis of the system until the Federal Government started its national review of workers’ compensation system in a few years’ time.  It may have been that such a strategy was planned until the global financial crisis changed the public’s tolerance for government debt forcing the SA government had to act.

Kevin Jones

Coincidence or unique perspective?

Since the end of the end of the public comment phase on Australia’s national model OHS laws, Safe Work Australia has been daily uploading submissions to their website.  Within the last lot of uploads was a block of around 100 submissions, all of which are marked confidential and have, apparently, been submitted by individuals.

One confidential submitter shares his name with a person who has been associated with some peculiar industrial relations behaviour.  In August 2009, during a heated industrial dispute concerning work on the West Gate Bridge, a trade unionist pleaded guilty to dangerous driving and to carrying a piece of pipe without lawful excuse, according to one media report.

A person with the same name is also listed in an order issued by the Federal Court of Australia in March 2009 that places restrictions on several people in relation to the West Gate Bridge project and the premises of contractor John Holland.

It is not possible to determine if this is a coincidence because the submission is confidential and submissions do not include contact details.  But if it is the same person, it is a shame that the OHS submission is not publicly available because a person who may have been involved in an intense industrial dispute and who may have been legally restrained would surely provide an interesting perspective on the relationship between OHS and industrial relations.

It is relatively easy to determine the politics of organisations that make submissions but when lodged by individuals political perspectives or professional connections cannot be determined, even when the submission is not confidential.  That such a large number of confidential submissions have been lodged is curious but due to due process, it is likely to remain so.

Kevin Jones

Fixing what is broken

WorkCover in South Australia has released a discussion paper for public comment on 9 November 2009.  The paper is called “Consultation on a new framework for employer incentives” and poses the following questions:

  • Do you think there should be any financial incentives for employers in relation to workers rehabilitation and compensation?
  • What do you think about the proposed design principles?
  • Do you have any specific ideas for employer incentives that encourage return to work?

cover Employer incentivesThis discussion paper is part of the review process by the WorkCover Corporation and should be supported.  Public comments close on 18 December 2009.

The paper itself has some points of considerable interest.  The existing incentive scheme is called a Bonus/Penalty Scheme which has existed for almost 20 years.  PricewaterhouseCoopers undertook a review and below are the findings, according to WorkCover:

“WorkCover has been working with PricewaterhouseCoopers (PWC) to gain a better understanding of the effectiveness of the Bonus/Penalty Scheme in South Australia.  Only very weak links were found between the Bonus/Penalty rate and claim outcomes.  No evidence was found to suggest that the Bonus/Penalty Scheme has delivered better health and safety outcomes for workers in South Australia.”

That last sentence seems to be a phenomenally honest statement about a scheme that has existed since 1990, been so persistent and continues to be so popular with employers.  Such forthrightness from a government authority about one of its own programs is rare.

At some point in the past there may have been some logic in the scheme as similar elements existed under the WorkCare scheme in Victoria many years ago.  But since the preventative arm, Safe Work SA, split from WorkCover around 2005, the incentive scheme has not sat comfortably with the government’s RTW focus.

The discussion paper goes on to state:

“WorkCover has not seen much evidence that the Bonus/Penalty Scheme has either reduced injury rates or made workplaces safer.  If anything it appears to have had some adverse side-effects, such as encouraging stakeholders to focus excessively on claim costs, the claim costs ‘window’ and coding, instead of return to work.”

Regardless of pointing out the difference between “no evidence” and “much evidence”, WorkCover’s comments illustrate a reality that OHS and RTW professionals have been wrestling with for years, companies have been encouraged to focus on financial cost of Return-To-Work rather than on the injured worker.

As part of WorkCover’s analysis of the existing incentive scheme, it undertook a literature review on experience ratings systems and found the following

“There were some noteworthy findings about experience rating systems, for example:

  • there is no clear consensus that they have reduced injury rates or made workplaces safer;
  • they have created perverse motivations, for example to suppress claims, dispute the coding of claims, or only focus on reducing claims within the ‘experience window’;
  • they may reduce claim numbers but not average claim costs, and average claim severity tends to increase – this is further evidence that the reporting of small claims is sometimes ‘suppressed’; and
  • there is no obvious link between experience rating bonuses/penalties and an employer’s commitment to safety and return to work.”

The Productivity Commission in 2004 (as discussed in Alan Clayton’s workers compensation review for the Tasmanian Government) recommended experience ratings for large employers as a contributor to the full funding of workers compensation schemes. ( p.44)  It is strongly suggested that those wanting to comment on this South Australian WorkCover paper should closely look at the recent changes to workers’ compensation made by the Tasmanian Government.

But it is not all gloom and doom as WorkCover SA has set the parameters for the next scheme.  In the discussion paper, they list 11 proposed design principles for consideration:

  • Focus on return to work
  • Be affordable and sustainable
  • Have a direct and substantial effect
  • Target the right employers
  • Tailor to specific employer groups
  • Loss matters
  • Be simple to explain and run
  • Use a mix of solutions
  • Capitalise on the tools and resources we already have
  • Be transparent
  • Use an evidence-based approach

In anticipation of the Federal Government’s plans to harmonise workers compensation once OHS is out of the way, such discussion papers, reviews and, more importantly, the public submissions, may provide some clues to how Australia workers compensation and RTW programs may look in ten years time.

Kevin Jones

How to make positive training programs attractive to OHS professionals

Yesterday’s article on positive training programs and behaviour-based safety (BBS) has generated a great deal of interest and attention.

The article’s title should maybe have specified the “OHS context”.   Like with Return-To-Work, OHS professionals need BBS and positive training to be explained to their understanding so they see how it fits with their own safety management systems.    They need to have their own “light-bulb moment on the relevance of the training not be convinced of the need by a sales person.

HR professionals may be more receptive to positive training concepts because they are more familiar with the psych babble but OHS still has engineering as the basis for the profession.   Only in the last 10 years have OHS professionals accepted (not universally) the legitimacy of psychosocial hazards and that, primarily, because the OHS regulators released guidance on the hazards.

Don’t try to apply leadership and training to OHS through HR because the jargon confuses.  Introduce yourself to some OHS people and listen to them talk of their profession.  Research the attitudes of the OHS people directly.  Do not rely on external research surveys as it is more important for you to understand OHS people than for a survey to report “47% of OHS professionals think resilience training programs are twaddle”.

Once you have listened, go personally to other OHS professionals and practitioners with training programs that can be readily integrated into safety management systems.  Don’t expect your potential clients to exert effort to understand you, it’s your job to understand them.

And don’t expect a quick decision.  Good OHS professionals will ask their colleagues and peers what they think of your programs and concepts before getting back to you.  They may even approach their OHS associations for an opinion.

iStockphotos evangelist

Past approaches to OHS professionals on BBS and similar training have been embarrassing.  One notable BBS advocate from the US spoke around five years ago to about 400 OHS people in Australia.  At morning tea time around half left the (expensive) seminar convinced that BBS was a crock.  That advocate is still highly regarded in the US but Australians just didn’t “get it”.

Slapping up a couple of pictures of the Sydney Opera House in a presentation, or  walking the room like an evangelist, does more harm than good.  Come prepared and prepared to listen and the OHS professional may “get it”…..even just a little bit.

Kevin Jones

Gas leaks at Esso’s Longford plant

WorkSafe Victoria is investigating two gas leaks that occurred on 6 November 2009 at the Longford gas plant owned by Esso.  This plant was subject to a fatal explosion in 1998 and was recently written about on SafetyAtWorkBlog.

According to an ABC news report on 11 November 2009, repairing one leak led to a consequent leak and a “plant operator suffered minor injuries when he fell during the incident.”

A WorkSafe Victoria spokesperson told SafetyAtWorkBlog that inspectors have been on site for several days, the area of the incident is still not operational and that any restitution work in the area will need WorkSafe’s approval.

Kevin Jones

Working remotely does not mean it has to be unsafe

Australia is a big country and people work in very remote locations.  However OHS obligations do not apply only when it is convenient.  The law and duties apply equally wherever work is undertaken.

One example of safety improvements for remote work has been illustrated by the Community & Public Sector Union (CPSU).  On 10 November 2009 CPSU informed its members of amendments to the “Remote Travel Standards Operating Protocols”.  Some of those changes include

“Travel is twin engine aircraft is usual practise, but staff may be required to fly in single engine aircraft from time to time.  Employees will have the choice not to fly on a single engine aircraft if they have legitimate concerns for their personal safety.”

This acknowledges that in the Outback there are not always options but that union members can exercise whatever is available.  This also supports the individual’s OHS obligation to keep themselves safe.

Vaccinations for Hep A and B will be offered to employees before their first field trip, during orientation to remote servicing.

This is a standard travel safety option but often applied only for international travel.  To offer this domestically is sensible.

The union has also managed to introduce a

Dedicated section in the post trip report for all OH&S issues, including issues in office accommodation, and living quarters.

Traditional wisdom is “be seen, be safe” but this also applies to reporting an OHS matter.  If a form does not state that OHS is included, then it is increasingly likely that an incident or issue will not be reported.  Organisations also cannot be seen as deterring the reporting of hazards and incidents.

The next option is curious and a trial seems appropriate

Management agreed to a 3 week trial beginning the 6 December 2009 for the use of personal alarms in case employees are confronted with acts of customer aggression, or other dangers in the field. Management will be asking staff for feedback on this, which will inform their decision on whether to provide or not provide personal alarms to employees into the future.

The issues of safety when travelling remotely have been negotiated for many months and the CPSU website posted regular updates on negotiations.

CPSU members and public servants need to travel to remote locations to provide a range of services.  For instance, Centrelink’s Annual Report for 2008-09 says that

“Centrelink Mobile Offices, including the Murray-Darling Basin Assistance Bus, continued to travel around rural Australia to provide information and assistance to farmers and small business owners, their families and rural communities.”

These mobile offices covered 40,000 kilometres in one year.

Australia is a big country and urban safety professionals and policy makers need to be regularly reminded that a desk in an office is not a default workplace.

The “Remote Travel Standards Operating Protocols” are not publicly accessible by SafetyAtWorkBlog will provide a link, whenever possible.

Kevin Jones