Tag: politics

Corrosion at Varanus Island

In mid-July 2008, the West Australian Liberal Party detailed leaked correspondence concerning the maintenance program at the Apache Energy facility at Varanus Island.  In the letter from July 2007, the director of petroleum and major hazard facilities, Richard Craddock, said

“The Five-Year Integrity Review report does not objectively demonstrate that the … pipeline complies with the conditions of … licence PL17, the variations under PL17 and the primary technical standard AS2885.”

The letter identified several areas of attention – pipeline integrity, corrosion and safety management.

A spokesman for Energy Minister Fran Logan said the issues raised were about a mainland pipeline however he also said that the Department of Industrial Relations “did raise the issues that were raised with Apache.”

Economic forecasts by the Chamber of Commerce and Industry WA said the pipeline explosion on Varanus Island had lead to a $6.7 billion reduction in business production and a $2.4 billion negative impact on the general WA economy.   

Other reports are emerging over interdepartmental disputes in the area of enforcement of pipelines.

Other reports on the Varanus Island explosion are available in this blog by search “Varanus” in the search field on this page.

OHS Law Review and the International Labour Organisation

Several submissions, from those currently publicly available, to Australia’s National OHS Law Review have referenced OHS conventions of the International Labour Organisation (ILO). It is early days in the process of assessing submissions and one would expect more details on ILO Conventions to come from submissions of the ACTU and ACCI, both members of the…

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Likely Process of State OHS Legislation

As part of the COAG meeting in early July 2008 the Ausralain governments have signed an Inter-Governmental Agreement for Regulatory and Operational Reform in Occupational Health and Safety. For those of you interested in how the replacement body for the Australian Safety & Compensation Council will operate and be funded, this is the blueprint.

However, part of the agreement on OHS reform does not sit right with the commitments we have heard from the government over the last 6 months or so.  Perhaps our interpretations and expectations were a little unrealistic.

Part 5 of the inter-governmental agreement says

PART 5 – OCCUPATIONAL HEALTH AND SAFETY REFORM
5.1 Model OHS Legislation
5.1.1 The Parties commit to work cooperatively to harmonise OHS regulation through the adoption and implementation of model OHS legislation.
5.1.2 The Parties support the National Review into Model Occupational Health and Safety Laws, announced by the Commonwealth Minister on 4 April2008.
5.1.3 Model OHS legislation will comprise a model principal Act supported by model OHS regulations and model codes of practice. Model OHS legislation will be developed by [ASCC replacement body] in accordance with the terms of this Agreement.
5.1.4 The development process for model OHS legislation will allow for interested persons to make representations concerning any proposed model legislation. Prior to submitting any proposed model legislation to WRMC, [ASCC replacement body] will give due consideration to any representations duly made to it and make such alterations to the proposed legislation as it sees fit.
5.1.5 The Parties agree that a national compliance and enforcement policy will be developed to ensure a consistent regulatory approach across all jurisdictions.
5.1.6 For the purpose of ensuring that model OHS legislation applies throughout Australia, each Party to this Agreement will, subject to its parliamentary and other law-making processes, take all necessary steps to enact or otherwise give effect to model OHS legislation within its jurisdiction within the timeframes agreed by WRMC.
5.1.7 For the purposes of subclause 5.1.1, the adoption and implementation of model OHS legislation requires each jurisdiction to enact or otherwise give effect to their own laws that mirror the model laws as far as possible having regard to the drafting protocols in each jurisdiction.
5.1.8 The adoption and implementation of model OHS legislation is not intended to prevent jurisdictions from enacting or otherwise giving effect to additional provisions, provided these do not materially affect the operation of the model legislation, for example, by providing for a consultative mechanism within a jurisdiction.
5.1.9 [ASCC replacement body] will make model OHS legislation publicly available on its website when it is agreed by WRMC. [ASCC replacement body] will hold and maintain all original copies of agreed model OHS legislation, including any subsequent amendments.

Clearly, there is not going to be one OHS Act and jurisdiction for Australia.  Many OHS organisations and businesses advocated for a single administrative structure but there was always the Constitution in the way.  The Workplace Relations Ministerial Council (WRMC) has suggested that each State structures its own OHS legislation “subject to its parliamentary and other law-making processes” (5.1.6 above)

Certainly States could not implement something that conflicts with the core obligations and conditions but the quote above clearly allows State politics to affect OHS operations within the State.  However you look at there is clearly room for the States to move.

However this movement will be tempered by having amendments and new legislation “approved” by the WRMC and then have each of the States amend their own OHS legislation to accommodate the other State’s changes, in order to keep close to national uniformity

5.5.2 Any Party that proposes to amend its legislation or introduce new legislation so as to materially affect the operation of model OHS legislation will submit the proposed amendments or new legislation to WRMC for decision. Each Party agrees that it will not progress implementation of any such amendment or such new legislation unless WRMC has endorsed the proposed amendment or new legislation.
5.5.3 Where WRMC approves an amendment to legislation or new legislation that affects the operation of the agreed model OHS legislation, all Parties will (unless otherwise agreed by WRMC) undertake all necessary steps to introduce appropriate changes to their legislation with a view to ensuring that OHS legislation remains nationally consistent.

In no way does any of this diminish the level of political activity related to OHS law making over the next few years.  In fact I would be surprised if the lobbyists are not revising their strategies now.

The structure sounds workable while there is a friendly relationship between State and Federal governments.  If one of the States changed to a conservative government the timelines or processes could vary considerably.  There has already been persistent questioning about New South Wales Premier Morris Iemma’s tenure over the last week.  For the reform process to work, the NSW Labor Party would need to provide a strong leader before the next election so as to avoid a conservative government.  New South Wales has some of the most (according to business groups) draconian OHS legislation.  If a Liberal government came into power, and with a clear mandate, OHS will become a battleground.

Workplace Safety Reforms and “Red-Tape”

As well as the National OHS Review Panel, there are several other reviews and investigations that are occurring that will change how OHS is managed and enforced in Australia. One process is under COAG (Coalition of Australian Governments) which met in early July 2008 and provided an update on its actions.

Sadly, most of the media reporting focussed on the issue of water in the Murray-Darling Basin and only a day or two later, a major draft report on climate change was released. OHS didn’t get much of a look-in.

OHS law reform is occurring under regulatory reform intending to reduce business “red tape”. I am not comfortable with this categorisation because there is no cut-off point. When is there too much red tape and when is there the right amount of red tape to ensure compliance or a good safety management scheme?

In brief, the National OHS Review is looking at harmonising the government legislation so that the administrative costs are lessened in those companies that operate across jurisdictional boundaries.

People see red tape as principally unnecessary paperwork and not the big picture of legislative reform. And, if their company operates only within one state, as most companies do, the reforms may seem of little relevance. OHS professionals may be putting emphasis on the review outcomes and processes way beyond what the public cares about.

The COAG processes, the red-tape review, gives OHS a paperwork image, an image where OHS is an unnecessary cost rather than an activity that minimises harm, saves lives and increases productivity and profitability. Marketing strategies or OHS promotions should include elements that counter this growing perception.

What annoys me the most is that the majority of the paperwork associated with OHS has been generated by lawyers and insurers who have advised that everything should be documented. “You don’t comply unless you can show that you comply”. The need for OHS paperwork has been imposed on business by forces outside that business and yet the business has to pay for the cost of preparing the paperwork. I don’t see the lawyers and insurers helping reduce red tape by saying that business needs less documented procedures and compliance.

Paperwork is an unavoidable business cost but we must remember that the decisions of other companies and organisations have generated that cost and are often unwilling to accept for that cost to be passed on to them, or deducted from their fees or premiums.

Business, by and large, in Australia will be unaffected by the various review processes into OHS management and OHS laws. The effect will be felt in the five years after the legal changes when the definition of compliance will change and systems will need to be changed to accommodate this.

OHS lessons from investigations into the US poultry industry

Earlier this year, the Charlotte Observer began researching avian influenza but ended up with an expose about occupational health and safety in the US poultry industry, called “The Cruelest Cuts”. A recent podcast, and vodcast (I recommend the vodcast), highlights many safety management issues that are relevant to other industries and other jurisdictions

  • Migrant labour
  • OHS regulation
  • Musculo-skeletal disorders
  • Reportable incidents
  • Inspectorate priorities
  • The Bush government approach to OHS
  • The Ergonomics Standard
  • Activity rather than safety results
  • Misusing Lost Time Injuries

The arguments generated by the Charlotte Observer’s articles continue. A recent article reports on the House Education and Labor Committee hearings and the issues summarised in the above vodcast.

Some of the issues raised may bring “Fast Food Nation” to mind but Eric Schlosser had a broader agenda in his book than in the Charlotte Observer reports.

The articles and the video remind us to question and to ask and to prod and probe when any government department report on OHS management is released. They also illustrate how easy it is to make a company look like it is safe.

In Australia at the moment there is debate about migrant workers and soem employers have recently been prosecuted on OHS matters related to these workers. In fact, today (2 July 2008 ) according to WorkSafe Victoria, a Victorian Magistrate will sentence Lakeside Packaging over OHS issues.

The case involves injuries to two Chinese guest workers on s 457 visas. One man was hurt on two occasions – both arms broken. Lakeside Packaging Pty Ltd pleaded guilty to 7 charges.

The incidents:

• Guoping Cai (35) was hurt on 16 March 2006 at the company’s Dennis St, Campbellfield premises, when his arm was crushed in an unguarded printing machine as he cleared a paper blockage. Both bones in his right forearm were broken and he was in hospital for 2 weeks Plates and bolts were put in his arm and he required a skin graft.

• Zhi Hong Fu (52) fell from a ladder which had been placed on top of a steel working platform on 5 April 2006 at the Rex Road, Campbellfield premises. He was doing electrical work for which he was not qualified. He broke his right wrist and suffered other injuries He returned to work four days later with his arm in plaster. On 30 June, with his dominant right arm now in a brace, he suffered a second injury while using a drill with his left arm and steadying it with his chin. The drill kicked and his other (left) arm was broken. The company pleaded guilty to 5 charges in relation to these incidents.

Australia does not have a Mexico on its border, and the governments have heavily regulated the migrant intake but, as the court action has shown, the safety management approaches of some employers are the same the world over.

Employer concerns over National OHS Review

In February 2008, I interviewed  Garry Bracks of the Australian employer association, Employers First.  Garry has been prominent in the industrial relations and OHS debates for some time and it was a pleasure to finally catch up with him.

The podcast of the interview illustrates some of the general concerns of employers with the government’s announce review into OHS law.

Construction site deaths and union calls for manslaughter charges

Last weekend two Queensland workers fell 26 storeys from swing scaffolding to their deaths.  They were patching concrete on a building from a platform similar to those used by high-rise window cleaners. According to a 24 June 2008 ABC news report: “The Construction, Forestry, Mining and Energy Union (CFMEU) says the men were wearing harnesses…

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