MGN410 Employment Relations

Lecture 11
Occupational Health and Safety

Agenda

What is occupational health & safety?

Extent of the OHS problem
OHS & the employment relationship
Government and OHS
OHS in Queensland
Different ways of thinking about OHS
Disciplinary explanations for
occupational injury & disease
Risk Management
Strategic importance of OHS
Workers compensation and
rehabilitation for injured workers

What is occupational health & safety?

Health is a state of complete

physical, mental and social wellbeing and not merely the absence
of disease and infirmity (WHO
1946).

Concepts & terms

Occupational injuries: those that develop or occur and

to which work processes or factors were a significant
contributing factor, or existing injuries that are aggravated
by the work process.

Occupational illnesses: disease significantly related to

work, workplace conditions, or workplace activity or plant,
or the recurrence, aggravation, acceleration, exacerbation
or deterioration of an existing illness to which work, or
related conditions, activities or plant were a significant
contributing factor.

Incident: occurrence or sequence of events with

outcomes ranging from near miss to injury, illness or death

Accident: event that is without apparent cause or

unexpected; unforeseen course of events. Term is not to
be used in relation to OHS in this unit.

Extent of the OHS problem

Worldwide every day at least

5000 workers die from work-related incidents or

diseases

Each year:

270 million occupational incidents

355,000 on-the-job fatalities approx. half occur in
agriculture
12,000 children killed on the job
Source: International Labour Organization (ILO)

Every year in Australia at least:

500 workers suffer traumatic deaths at work

between 2,200 & 7000 die of work related
diseases/cancers
650,000 workers are injured or become ill from work

The costs: Organisations

Direct costs: workers compensation insurance

premiums + lost productivity & additional O/T
(25% of total costs)
Indirect costs: (75% of total costs)

replacement and retraining costs + training of all

workers
investigation of incidents
fines/penalties by government
disruption of work
lost morale of workers
industrial action
improvements to systems
loss of good will
poor public image
repairs & replacements of plant & equipment

The costs: Workers

Direct costs: loss of income

Indirect costs:

inability to do same work

inability to find future employment
loss of skills through disability
pain and suffering from injury
family difficulties (financial, emotional etc)
worry
loss of enjoyment of life

The costs: Taxpayers & Economy

Direct costs: social security payments

Indirect costs: (not included in above)

lost productivity
poor reputation
industrial disputation
administration costs of

departments to enforce OH&S acts

police & public prosecutors
hospital and ambulance services
workers compensation schemes
industrial relations tribunals

OHS & the Employment Relationship

Initially seen as individuals responsibility

UK - from 1830s: employer to provide
compensation if negligence could be proven
UK/Australia - from 1860s: preventative
aspects increased + compensation if negligence
proven
From 1916 (in Qld): preventative aspects + no
fault compensation for injuries sustained at
work
From 1970s: preventative aspects (with
increased employer/employee consultation) +
no fault
compensation
From 1990s: preventative aspects associated
with risk management + no fault compensation

OHS & the Employment Relationship

The contract
Offer
Acceptance

Express terms may include

specify company policies
relating to OHS and behaviour

Consideration
Intention
Valid contract?

1. Implied terms
common law

duty of care for

employees and
neighbours
2. National/ State OHS legislation
+ 3. Workers compensation legislation

Common Law Duty of Care

All persons owe a general duty of care to others their

neighbours
Applies in all circumstances

In the workplace this relates to:

Backyard cricket, driving, walking your dog...

employer to his/her employees whether at the workplace or

elsewhere on business
employers to those entering the business premises for whatever
reason
employers to those living/working around the business who
might be affected by the businesss activities or emissions
employees to fellow employees

Persons injured or who suffer loss or damage through

the actions or inactions of others are entitled to sue for
negligence

Employer Duty of Care & Statutory Obligations

Employer has a common law duty of care

to:

provide
provide
provide
provide

safe and healthy working environment;

safe systems of work;
and maintain safe plant; and
safe/competent workers

Under the Qld Work Health & Safety Act

2011 the general duty of care becomes a
statutory obligation

S28(1) ensure each of the employers workers is not

exposed to risks to their H&S arising out of the
conduct of the employers business or undertaking
S28(2) to ensure other persons are not exposed to
risks to their H&S arising out of the conduct of the
employers business or undertaking.

Employee Duty of Care & Statutory Obligations

Employee has common law duty:

to obey lawful and reasonable orders (including H&S

rules)
not to harm others at workplace

QWH&S Act (2011) S36 a worker or anyone

else at a workplace has the following obligations

(a) to comply with the instructions given for WH&S by

the employer at the workplace (or principal contractor if
construction site)
(b) to use personal protective equipment (PPE) if
provided by employer and worker properly instructed in
its use
(c) not to wilfully or recklessly interfere with or misuse
anything provided for WH&S
(d) not to place at risk the H&S of any other person
(e) not to wilfully injure themselves

Government responsibility for OHS

Australian State govts have traditionally held

responsibility for OHS for workers within
individual state
Federal govt responsible for own employees
Since early 2000s has been concerted effort to:

achieve significant & continual reductions in the

incidents of death, injury and disease in workplaces
achieve national uniformity of OHS legislative framework
Improve national workers compensation schemes

Federal Work Health and Safety Act 2011

provides the framework and all states (except
WA) have amended their legislation to mirror it
so largely uniform OHS legislation throughout
Australia

OHS in Queensland

The Qld Work Health and Safety Act 2011 is

consistent with the federal WH&S Act
General duties for ensuring WH&S are imposed on
the following parties (apart from employers and
employees):
Self-employed persons
Persons in control of workplaces
Principal contractors
Designers, manufacturers and suppliers of plant or
substances
Erectors and installers of certain plant
Owners of high-risk plant
Duties include ensuring H&S of themselves and others in the
workplace, that plant & substances used are safe, and that
risks of injury or illness are minimised.

Different ways of thinking about OHS different

disciplinary explanations for injury & disease

Medical

Technical

medicine,
epidemiology
ergonomics,
occupational
hygiene,
safety engineering

Psychological
Sociological

These
are the
theories
of OHS

Different ways of thinking about OHS different

disciplinary explanations for injury & disease
Medical approaches
Medicine

individualist approach
little knowledge of workplace conditions or processes
concerned with treatment of symptoms not prevention

Epidemiology

explores pathways of diseases by studying patterns of

illness
links potential hazards to observed disease
not conducive to rapid interventions
concerned with treatment and prevention

Explanations for occupational injury and disease

Technical
approaches

Ergonomics

assumes injury/disease
occurs from mismatch
between worker
capabilities & work
environment & processes
focuses on prevention
-redesigns tools,
equipment & processes to
match human abilities

Occupational hygiene

focus on prevention by
identifying, measuring,
evaluating, and seeking
to control or eliminate
environmental factors or

wider brief than ergonomics

focuses on physical
environment to contain or
prevent its effects on workers

Safety engineering

focuses on design &

modification of tools,
equipment & work processes

modifies machinery so
workers can safely work
around it & with it
machine guarding
machine operating
controls
lockout procedures

Explanations for occupational injury and disease

Psychological
approaches

early psych approaches

focused on individual
behaviour as single cause of
injuries
led to concepts such as
accident proneness &
machismo

used
persuasion & peer pressure
training
posters and signs
incentives

recent research recognizes

multiple variables affect
behaviour & incidents

Sociological
approaches

injury/disease are outcome of

organisation of work,
technology & working
environment not individual
behaviour

key factors in causation are:

payment methods
worker autonomy
authoritarian
management
inter-worker
communication
possibilities

Putting disciplinary views into practice

All explanations have limitations

and/or weaknesses
Best to take a multi-disciplinary
approach - appropriate for:

risk-management; and
strategic approach

Consequences of poorly managed OHS

Will require HRM initiatives

Will create ER conflicts that will need

resolution, either at company level or through
tribunals
Will possibly result in legal action

civil action by injured workers or actions by

government agencies /inspectorates

Will require additional expenditure

such as workers compensation, rehabilitation,

training, recruitment

replacement staffing, repairs or alterations, increased

compensation premiums, recruitment costs,
training/re-training costs, investigations, fines

Will unsettle shareholder confidence

What to do about it?

Poor OHS affects all organisations operations &

requires a strategic focus providing more than
just cost reduction by:

integrating OHS into all organisational planning &

decision-making
including OHS responsibilities in all positions
operational planning by supervisors & ER department
consultation with workers, representative & committees

OHS legislation provides the framework for

organisational approaches through risk
management

What is Risk Management?

Risk management is a systematic process for

considering threats & opportunities inherent in a
situation or activity and taking steps to achieve
the best outcome
In terms of OHS, risk management is the
application of management policies, procedures
and practices to the tasks of:
Identifying workplace hazards;
Assessing risks of those hazards;
Deciding on control methods
Implementing control measures
Monitoring & reviewing effectiveness

Defining Hazard and Harm

Hazard - any situation with the

potential for harm to life, health or
property (injury or damage waiting to
happen the how)

Harm - adverse effect that may arise

from exposure to hazard (damage done
to a person or loss they sustain the
what)

Categorizing Hazards
Work

environment: eg confined spaces, noise,

ergonomics
Energy: eg electricity, motion, radiation,
thermal, lighting
Work processes: eg manual handling, working
at heights
Hazardous substances: eg chemicals, dusts,
bacteria
Plant: eg machinery, equipment, tools
People-based: eg workplace violence,
harassment, bullying, stress, fatigue

Hazard identification

look for things which have potential to cause

harm to persons or property - not how likely it
is that dangerous event will occur

Methods

Inspections (both by workplace & by inspectors after incidents)

Hazard reporting (including damage to plant/property)
Engaging independent experts to conduct reviews
Reviewing incident, illness, workers comp. records
Reviewing existing risk assessments
Updating compliance improvements (codes of practice etc)
Consulting with workers and unions
Consulting industry employers or industry associations
ABS data, government reports
international reports (ILO/WHO)
Supplier data

What is risk?

Risk is the chance of a particular situation or

event, which will have an impact upon an
individuals, organisations or societys
objectives, occurring within a stated period of
time (Miller & Vessie).
Risk can have positive or negative outcomes
negative outcomes = adverse event.
In OHS management risk always refers to the
chance of a negative outcome.
Risk is the likelihood of a hazard resulting in an
injury or disease.

Assessing Risk

Risk Analysis focuses on 2 key questions:

How frequently does a given event occur?

highly unlikely; unlikely; may happen; likely; highly

likely; certain or imminent

How severe are the consequences of a given

event?

unlikely to cause injury or property damage

marginal incident - minor injury/illness/damage
critical incident, may cause severe injury or major loss
almost certain to cause death or serious property
damage

OR
delay only; minor injury; lost-time injury; major injury;
single death; multiple deaths
OR

Monetary amount specified for each level

Factors affecting Frequency & Severity

Frequency

times a given situation

occurs
number of people exposed
special characteristics of
people involved
position of hazard
distractions
duration of exposure
amounts of materials or
multiple exposure points
involved
environmental conditions
competence of people
condition of equipment

Severity

numbers who may be

affected in one incident
special characteristics
which place individuals
at increased risk
concentration of
substances
volumes of materials
speeds of projectiles and
moving parts
heights and distances
weights
forces and energy
values

Prioritising risk & implementing controls

Use of calculating tools to determine

if risk is acceptable or not

what unacceptable risks are more important/require more
immediate attention

Risk control is the next step in risk management

Controls adopted are dependent upon various aspects of

an organisations resources.
Consideration of risk minimisation should always aim at
implementing the highest level of control possible.
Formal risk control is based on the Hierarchy of Control.

Hierarchy of controls

Eliminate & Substitute

Elimination is the most
effective control
measure
Examples:
plan power & computer
outlets for offices to avoid
crawling under desks or
moving furniture to plug
things in
design photocopy rooms
with exhaust fans or with
large window for cross
ventilation
Pelletise powders to reduce
dust hazards

Substitution involves the

replacement of a
hazardous product or
material with a safer one
Examples:
replace glass with plastic

replace 240v power tools with

rechargeable tools
replace toxic substances with
less toxic or non-toxic

Isolate & Redesign

Control by
isolation
involves
separating the
hazard from the
person, or the
person from the
hazard
Examples:
shield dangerous
machinery
enclose noisy or
unsafe equipment

Work processes &

equipment can often be
redesigned to reduce
or eliminate hazards
Examples:
redesign & install safety
features such as guards or
switches
modify exhaust systems to
reduce noise
introduce water sprays to
suppress dust or paint
spray

install insulation to reduce

heat

Administration & Personal Protective Equipment

Administrative
controls involve
limiting the
duration or the
conditions of
exposure.

PPE use acceptable only

where higher levels of
control cannot be
implemented - hazard still
exists, and if the PPE fails
the worker will be exposed.

Examples:

respirators

Examples:

organise job rotation

goggles

restrict entry to
hazardous work areas

safety boots

earplugs or ear muffs

introduce a permit to
work system

gloves

helmets

aprons

do not allow people to

work alone (buddy
system)

General Problems with PPE

May not provide

the degree of
protection
obtained during
laboratory testing
of the equipment
may be
uncomfortable and
make working
harder
may create a
hazard in itself
protection offered
is extremely
difficult to monitor

PPE transfers the

responsibility for safety
from the employer to
the worker
effectiveness often
depends on a good fit
with workers
reliance on PPE may
inhibit the development
of new control
techniques and
technologies

Issues in controlling risks

Risk control measures must
adequately control the risk
allow workers to do their jobs without undue
discomfort or stress
NOT create new risks
protect every person who has any risk of
being exposed
eliminate the risk for the surrounding
community as well as for the workforce

Legislative Requirements for Risk Management

Queensland WH&S Act 2011 & Regulations

(2008) specifies particular ways in which OHS
must be ensured
Advisory Standards

Guidelines to good practice that provide flexible

methods of minimising risk
are not legislation
do not have to be followed

Codes of Practice

Not legislation & not enforced in same way

Additional to Act & regulations
Provide details on safe practice in specific areas
Expire 10 years after commencement
If Code of Practice not followed and injuries/illnesses
result, can be used as evidence
Defence: if better or equally effective methods used

Strategic importance of OHS

Successful organisations actively manage all

aspects of business and integrate OHS into
strategic plans
Well managed and integrated OHS will:

improve communication between workers and employers

result in continuity of production
reduce costs
increase worker confidence & commitment
improve compliance with legislation
develop appropriate corporate safety culture
assist in economic security of organisation
create competitive advantage
improve organisations reputation
increase organisations ability to attract & retain
personnel

OHS & Workers Compensation: the links

There is an unacceptably high level of

injury and disease in workplaces around
the world
Workers compensation is only required
if there has been a failure in the OHS
management system
The only way to reduce workers
compensation costs for organisations &
the community, and the level of injuries
and disease is to improve OHS policies
and practices.

Avenues for gaining compensation

Statutory

Workers
Compensation System

Provides framework for insurance premiums,

payments, reviews, appeals etc.

Common

Law

Provides framework for individual workers to sue

employers for injuries sustained

Workers Compensation Regulation:

Australian No fault system

All Australian States and Territories

operate no fault workers compensation
schemes.
Concept of no-fault insurance
provides:

Compensation will be paid whether or not the

employer was negligent
Any fault on the part of the worker is
generally disregarded
Exceptions: intoxication or deliberately selfinflicted injuries are often excluded
Rights to workers compensation CANNOT be
limited, excluded or bargained away in
individual contracts

Objectives of workers compensation &

rehabilitation legislation
Provide medical treatment and
income security to injured workers
Ensure employers meet the costs
associated with injuries and
disease arising at workplaces
under their control
Encourage greater preventative
measures on part of employers
Ensure earliest possible return to
work

Administrative Framework for

Compensation in Qld
Four players in Queensland system
1.
2.
3.
4.

Government Department legislative

administrator
Q-Comp regulator; dispute resolution
and appeals
Workcover Queensland government
insurer; covers 85% of employers
Self Insurers cover balance of insured

Defining injury
An injury is personal injury arising out of, or in
the course of, employment if the employment
is a significant contributing factor to the
injury [Chapter 1, Part 4, Div. 6, Subdivision 2, S32 (1)]

Injury includes the following:

disease contracted in course of employment
aggravation of a personal injury, disease, or
medical condition if it becomes a disease or
injury because of aggravation
Loss of hearing resulting in industrial deafness
Death from injury
Death from disease as noted above
Death from aggravation as noted above [Chapter 1,
Part 4, division 6, Subdivision 2, s32 (3)]

Defining injury

Injury does not include

A psychiatric or psychological disorder arising
out or, or in the course of, any of the following
circumstances
Reasonable management action taken in a
reasonable way by the employer in connection
wit the workers employment
The workers expectation or perception of
reasonable management action being taken
against them
Action by the Authority or an insurer in
connection with the workers application for
compensation

Claims Procedure
1.

Worker notifies employer as

soon as possible after suffering
injury or detecting illness

2.

Workers sees medical

practitioner

3.

Medical practitioner completes

workers comp medical
certificate

4.

In case of serious injury

employer must notify local OHS
agency and insurer (usually
within 48 hours)

5.

6.
7.

Worker completes prescribed

claim form + med cert &
supporting documents to
employer
Employer accepts &
acknowledges claim in writing
Employer sends claim form etc
to insurer, who assesses claim

8.

Insurer notifies employer if claim

is accepted employer pays
worker up to amount of excess
in policy

9.

Insurer notifies worker within

specified time limit if claim is
refused has right to have case
refusal considered by
conciliation tribunal

10.

Insurer pays wages and medical

costs and/or compensation for
specific permanent injury or
disease

11.

Insurer may require worker to

attend medical exams

12.

When fit to do so, worker enters

rehab program leading to return
to work

Benefits & Entitlements

Income replacement (weekly compensation)

Up to 26 wks: workers receive 85% of normal weekly

earnings if covered by industrial agreement; others
receive 70% of Qld Ordinary Time Earnings (QOTE was
$1,263.20 pw as of 1/7/2011)

Medical expenses (unlimited, linked to table of costs)

Incidental travel expenses (necessary and reasonably
incurred)

Permanent disability benefits (Table of Maims)

Death benefits

Maximum entitlement: $497,285 approx (with

dependant/s)
Only about $80,000 without dependants

WorkCover Premiums

WorkCover sets the premium payable based on

the size of the payroll
the claims history of the employer
the premium rate (notified in Industrial
Gazette)
Average levy in most States is between 1.5 and
3% of payroll.
High risk industry could be 4x the average
Low risk industry could be half the average
Premium discounting
Some WC schemes provide for premium
discounting for employers who implement
programs to improve OHS and return to

Rehabilitation
Definition
a strategy to maximise an individuals
potential for return to their pre-injury physical,
psychological, education and vocation levels
(Q-Comp 2004)

combined and co-ordinated use of medical,

social, educational and vocational measures
for training and retraining the individual to the
highest possible level of functional ability
(Johnstone 1997:606)

Obligations for Rehabilitation

Employers:

To appoint a Rehabilitation &

RTW Co-ordinator (RRTWC) if
the employer employs 30 or
more workers at a workplace
( s. 226)
To have a workplace rehab
policy & procedures in place
if employs 30 or more
workers at a workplace (s.
227)
To take all reasonable steps
to assist or provide rehab to
worker entitled to worker
compensation (s. 228)
If in high risk industry and
paid $1.63 million in wages
in previous year to have
RRTWC on staff + policies.

Employees:

Worker must participate

in rehabilitation as soon
as practicable after injury
is sustained and for the
duration which worker is
entitled to compensation.
Failure to comply will
result in suspension of
benefits until the worker
satisfactorily participates
(ss.231 232)

Benefits of Rehabilitation

Workers
Rehab promotes faster recovery and
prevents loss of income, long term
incapacity and loss of employment
also reduces psychological effects of
injury/illness
Employers
Rehab reduces the costs associated with
injury such as loss of skilled workers,
replacement costs and workers
compensation premiums

Injury Management and Return to Work

Most workers compensation schemes require

an injury management plan to be established
for an injured worker
To enable worker to return work on selected
or lighter duties, or to suitable employment
as far as is reasonably practicable
Work is to be the same or equivalent to
work prior to injury
Can involve structured plan of part time
work increasing over time to full time
Requires close liaison between insurer or
claims manager and rehabilitation provider or
coordinator

Successful Return to Work

Progressive safety,
rehab and
compensation
legislation

Incentive driven
system
Effective
RTW Plan

Skilled Injury
Management
Sense Knowledge
Suitable
of control of injury
duties

Proactive
case managnt

Supportive Workplace Culture

Ongoing
Co-operative Commitment
Employee
employment options wplace relations
to action
valued

feels

Common Law Claims for Damages

Common law claims generally require:

If proven damages are awarded for:

Proving employer was negligent/breached OHS laws or

Injury was reasonably foreseeable
Pain and suffering
Loss of bodily functions
Loss of future earnings

Rights to sue have been restricted in some

jurisdictions & abolished in others

In Queensland, injury must have resulted in a permanent

disability resulting in 20% or more loss of function

(s237:a(ii) B)

If case is won, any WC payment received must be

repaid

Current issues in OHS

Impact of organisational size

Australia-wide incidence of serious claims per
1000 employees by business size shows
(2007/08)
1-4 employees:
14.4
5-19 employees: 13.8
20-99 employees:
18.4
100-499 employees: 20.8
500 + employees:
7.0

small businesses reduce possibility of

committees or consultation
large organisations as private insurers

Current issues

Impacts of changing employment types

more workers not covered by workers compensation

more workers fin precarious employment
increased use of sub-contractors, part-time & casual
work makes participation difficult and confusing

Impacts of changing employment conditions

longer or more intensive working hours

continual change, restructuring, doing more with less
restrictions on compensation for psychological illnesses
changes to union density, training etc affect level of
participation & knowledge as well as ability to raise &
enforce issues

Current issues

Enforcement

long standing arguments between employers and those

wanting greater enforcement over consequences

inspectors have wide-ranging powers to check compliance,

issue fines, improvement notices or prohibition notices

employers argue increased penalties affect investment,

bankrupt SMEs, and force business off-shore
opponents argue size of workplace deaths & injuries requires
punitive action, and that advise & persuasion has not effected
significant change

however - inspectorates have adopted advise and persuade

methods rather than more prosecution tactics

industrial/corporate manslaughter legislation introduced in

some jurisdictions to impose responsibility
many jurisdictions using enforceable undertakings

Summary

Risk assessment is the cornerstone of OHS

management - provides a method for eliminating
or minimising hazards & improving quality of
working life
Hazards surround us on a daily basis

Risk control should start at the top of the

hierarchy of controls
Worker participation is crucial to success of
workplace OHS programs
changed employment practices can reduce potential for
this to occur.
Men and women experience different injuries/diseases from
occupational segmentation & different work patterns

risks they pose need to be calculated, prioritised

&controlled

Summary

Workers compensation takes effect for many (but

not all) workers when OHS management systems
fail.
All employers in Australia have a legislated
obligation to pay workers compensation
premiums.
Workers compensation schemes are no fault
schemes except in the instance of deliberate or
willful injury.
Workers compensation schemes provide
methods to assist when injuries/diseases are
sustained

but changed employment practices may affect worker

eligibility for compensation, and whether an
injury/disease will be reported or compensation claimed.

Summary

Risk assessment is the cornerstone of OHS

management - also a legal requirement Qld
WH&S Act 2011
Risk management provides a method for
eliminating or minimising hazards & improving
quality of working life
Hazards surround us on a daily basis

risks they pose need to be calculated, prioritised &

controlled

Risk control should start at the top of the hierarchy

of controls with attempts to eliminate the hazards
Worker participation is crucial to success of
workplace OHS programs

changed employment practices can reduce potential for

References

Bluff, E., Gunningham, N. & Johnstone, R. (eds) (2004) OHS

Regulation for a Changing World of Work, Federation Press:
Annandale.

CCH (2006) Planning Occupational Health & Safety: a guide

to OHS risk management, CCH Australia Ltd: Sydney
Bohle, P. & Quinlan, M. (2000) Managing Occupational
Health and Safety: a multi-disciplinary approach, Macmillan:
Melbourne [more recent edition with Felicity Lamm]
Johnstone, R. (2004) Occupational Health and Safety Law
and Policy, 2nd edition, LBC Information Services: North Ryde

McDonald, W. (2012) Workers Compensation, in CCH

Australian Master Human Resources Guide, 9th edition, CCH:
Sydney.
QCOMP (2012) Annual Statistical Report 2011-12, GoPrint:
Brisbane.
Toohey, J., Borthwick, K. & Archer, R. (2005) OH&S in
Australia, Thomson: South Melbourne.