Work Health and Safety Forum 25.09.2018
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CCF Qld Safety Forum Nathan Cecil, Partner - Transport, Shipping & Logistics 1 October 2018
CoR recap 5
CoR – a SHARED responsibility
You are a party in the Chain Prime Consignor Operator Driver Scheduler contractor Loading Consignee Unloader Loader Packer Manager 7
You are a party in the Chain • • Anyone who: And/or anyone who operates: • Consigns • A heavy vehicle • Packs/prepares • Heavy vehicle loading/ unloading • Schedules premises. • Loads • Carries • Unloads • Receives goods transported by heavy vehicle by road. 8
CoR recap Components Mass Dimension Load restraint Fatigue Speed Vehicle maintenance 9
Safety duties Every Party in the Chain: Ensure, so far as is reasonably practicable, the safety of the party’s transport activities relating to any vehicle Executives: Exercise due diligence to ensure that their business complies with its duties 10
Business practices • The new CoR laws define ‘ transport activities ’ to include ‘ business practices ’. • Business practices are an essential compliance component. • If you don’t have them in place (and/or can’t demonstrate them), you won’t be taking all reasonably practicable steps to ensure the safety of your transport activities . 11
CoR risk management framework Risk Control Monitoring Reporting
CoR risk management framework (cont’d) Contracts Compliance Awareness/training monitoring CoR risk Policy/procedures Executive reporting management
Penalties – How much? $3M $300K + 5 years
Control and influence 15
You are also responsible for others in the Chain Control/influence Responsibility Legal liability 16
Compliance risks – key business input/output processes Contractors Contractors Suppliers YOU Customers 17
Compliance risk sources 3P You Third parties = suppliers, contractors/subcontractors, service providers, customers 18
Getting the balance right Pre-engagement screening/assurance Post-engagement compliance monitoring and rectification 19
CoR and the Civil Construction sector 20
Collaboration, as essential part of effective CoR management Courtesy of Peter Wells, Director – Safety & Compliance, RMS - 2015 19 21
(Courtesy of Peter Wells, Director – Safety & Compliance, Roads 22 and Maritime Services, Inform CoR Conference 2015)
Significant construction sector prosecutions: • RMS v South Penrith Soil and Sand (2014) – quarried materials - $88,750 (plus costs) • RMS v Sims Group, Delta and Kreidies Management (2015) – steel waste - $381,200 (incl. costs) • RMS v Metropolitan Demolitions and Recycling (2017) – construction waste - $1.55M (incl. costs) plus prohibition order 23
Satisfying customer diligence requirements • = = (Compliance = Assurance = Engagement/Award of work) • Increased customer focus on: • Pre-engagement screening and due diligence • CoR compliance questionnaires • CoR KPIs • CoR compliance audits
Nathan Cecil Partner T 02 8083 0429 E Nathan.Cecil@holdingredlich.com Disclaimer The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this publication is accurate at the date it is received or that it will continue to be accurate in the future. We are not responsible for the information of any source to which a link is provided or reference is made and exclude all liability in connection with use of these sources. 25
CoR and Safety Management Systems 2018
Agenda 1. Safety Duties and CoR under the HVNL 2. Safety Management Systems 3. Guides, Templates and Worked Examples 4. Industry Codes of Practice, NHVAS and other support 28 CoR and SMS
Safety Duties and CoR under the HVNL
Safety duties The safety of transport activities relating to a heavy vehicle is the shared responsibility of each party in the Chain of Responsibility for the vehicle. The responsibility depends on the function the person performs, the nature of the risk and the person’s capacity to control, eliminate or minimise the risk. 30 CoR and SMS
Primary duty Each party in the Chain of Responsibility (CoR) must ensure, so far as is reasonably practicable, the safety of their transport activities. Employer Prime Contractor Operator Scheduler Consignor Consignee Packer Loading Manager Loader Unloader 31 CoR and SMS
Primary duty Each party must, so far as is reasonably practicable: eliminate or minimise public risks not cause or encourage a driver of a heavy vehicle or another person to contravene this Law 32 CoR and SMS
Primary Duty - So far as is reasonably practicable Reasonably practicable means something that is, or was at the time, reasonably able to be done to ensure health and safety. What is the What is the What should What are the Are the costs degree of likelihood of you know about ways to proportionate to harm that the risk the risk? remove the the risk? could be occurring? risk? caused? Likelihood Harm Knowledge Solutions Cost
Duty of executive of legal entity Executives of legal entities must exercise due diligence to ensure the safety of the legal entity’s transport activities. An executive means: • For a corporation – an executive officer • For an unincorporated partnership – a partner • For an unincorporated body – a management member 34 CoR and SMS
Due Diligence for executives Gain and maintain knowledge about safe conduct of your transport activities Understand the hazards and risks associated with your transport activities Have appropriate resources to implement processes to eliminate or minimise your hazards and risks Respond to information received about your hazards and risks in a timely manner Verify that your resources and processes are provided, used and implemented
Prohibited requests and contracts A person must not enter into contracts or arrangements that encourage, reward or give incentives to the driver or other parties in the supply chain to breach the law. 36 CoR and SMS
Alignment of HVNL with WHS laws Benefits of alignment Common Systems - Manage safety risks across the entire business with same systems/practices Integration - Create safety synergies across parties in the CoR with common approaches and strategies Economy - Reduce costs by using the same processes and similar practices 37 CoR and SMS
Common breaches of CoR obligations X Applying business practices or demands that cause a driver to breach fatigue management requirements, or speed limits X Failing to weigh, measure or secure loads X Setting schedules with unrealistic timeframes X Causing unreasonable delays in loading and unloading X Packing goods incorrectly X Entering terms in contracts and arrangements that encourage, reward or give incentives to the driver or other parties in the CoR to breach the law 38 CoR and SMS
Safety Management Systems
One of the most effective ways of meeting your safety obligations under the Heavy Vehicle National Law (HVNL). Adopting and actively using an SMS has proven to help reduce safety-related incidents in other transport industries, such as maritime, rail and aviation. 40 CoR and SMS
What is a Safety Management System (SMS)? An SMS is a systematic approach to managing safety, including the necessary organisational structures, accountabilities, policies and procedures – integrated throughout the business.
Why have an SMS? Manage your safety responsibilities under the HVNL Demonstrate your ability to manage risk and ensure safety Reduce costs associated with incidents and accidents Become an employer of choice and preferred supplier
Components of an SMS 43 CoR and SMS
Components and Elements of an SMS • • Management commitment Hazard identification • • Safety responsibilities Risk assessment and • Key safety personnel mitigation/treatment • • Documentation Risk monitoring and review • • Third party interactions Incident reporting • • Safety training and education Internal safety investigations • • Safety communication Safety performance monitoring and • Positive safety culture measurement • Change management • Continuous improvement 44 CoR and SMS
Tools, Templates and Support
Visit www.nhvr.gov.au/sms Checklist Quick Guides Templates Worked Examples 46 CoR and SMS
SMS Checklist Helps you identify any safety management system elements you may already have in place and enable you to focus on those SMS elements you need to develop. 47 CoR and SMS
Quick Guides Short, easy to read format, answering: What? Why? How? Topics include risk registers, hazard and incident reporting 48 CoR and SMS
Templates Editable Microsoft Word documents Insert your own logo Modify to meet your business needs 49 CoR and SMS
Worked examples
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