WHS Considerations for 2014 and Beyond Christian Frost Head of Workplace Health and Safety John Makris Partner – K&L Gates

Agenda 1.The Safety Problem 2.Red pill or blue pill thinking? 3.Legislative Landscape 4.The Changing Safety Paradigm 5.The Red Pill Prescription

The Problem Transport and manufacturing are two of the top three industries that seriously injure people In fact, driving is the #1 cause of workplace fatalities 150, Incident rates increase with age $60 billion Four weeks absence from work 1,100 Inspectors who issued 45,000 improvement notices and 4,500 prohibition notices 320 prosecution cases are finalised each year with about $22 million in fines issued

What Do You Answer?

The Anatomy of an Incident Cost cutting Production Skills shortage Aging workforce Cost cutting Production Skills shortage Aging workforce Operator put hand in machine Lack of governance over maintenance program Purchasing strategy included cost cutting Maintenance and inspection did not occur as planned Guard broken and not repaired Guard was removed Procedure not followed Worker was fatigued Lack of supervision Worker was doing overtime Accountability framework doesn’t include WHS HR systems don’t recognise WHS Procurement systems don’t recognise WHS This isn't the first time this has happened

Who Has Obligations? Primary duty lies with Persons Conducting A Business or Undertaking (PCBU) to ensure, so far as is reasonably practicable: 1.the health and safety of workers engaged by the person, and 2.workers whose activities in carrying out work are influenced or directed by the person 3.“other persons” not be put at risk from the work carried out by the business Your businesses are a PCBU. Your “workers” include employees and contractors. Other persons include visitors, members of the public, contractors, contributors and work experience people. Legislative Landscape

What is Reasonably Practicable? That which is or was reasonably able to be done weighing up factors such as: likelihood of hazard/risk occurringdegree of harm from hazard/risk what a person knows or ought to know of hazard/risk availability and suitability of way to eliminate or minimise the risk after assessing the risk and controls, the costs of eliminating or minimising the risk Legislative Landscape

Are you an Officer? The definition of an Officer includes: a director or secretary of a corporation? or a person: ‒ who makes, or participates in making decisions that affect a substantial part of the organisation? ‒ who has the capacity to affect significantly the corporation’s financial standing? Officers of a company must exercise due diligence (at all times) to ensure that the business complies with its WHS responsibilities Legislative Landscape

Due diligence includes: To acquire and keep up-to-date knowledge of WHS To gain an understanding of the nature of the operations and associated risks Provide resources and processes to eliminate or minimise risks To ensure processes are in place for complying with any duty or obligation To ensure appropriate processes are established for receiving and considering information regarding incidents, hazards and risks and responding to this information in a timely manner Verify the resources and processes referred to above are in place and working Legislative Landscape

Nature of Offences Maximum Penalty – corporationMaximum Penalty – individual Category 1The most serious offences – causing death, or serious injury or high risk of death or serious injury involving recklessness. $3 million$600,000 and/or 5 years imprisonment for officers $300,000 and/or 5 years imprisonment for workers or other persons Category 2Offences involving a high risk of death or serious injury without recklessness $1.5 million$300,000 for officers $150,000 for workers or other persons Category 3Less serious offences placing persons at risk of injury or illness $500,000$100,000 for officers $50,000 for workers or other persons Penalties

Safety Management System Risk Management Training Instruction Information Supervision Monitor, Audit & Review Consultation Cooperation Coordination The Changing Safety Paradigm

The Exciting Role of the HR Professional WHS Professional RecruitmentAccountability Performance Management Training Embedding practices in various systems Analysis Systems and reporting Your Prescription for the Red Pill

Thank you