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Sent:                               Wednesday, 14 February 2018 6:07 PM

To:                                   Jones, Helen (Legal)

Subject:                          Occupational Health News 1239: Steel firm ruled liable for $1.389m in damages in WA; Senate ctee to probe offshore petroleum WHS; 'Extensive system overlooked risk'; & More...

 

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Thomson Reuters Australia

Issue 1239 , Wednesday 14 February 2018

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In this issue

Steel firm ruled liable for $1.389m after 'notorious' danger manifested

 

Ctee to probe WHS in offshore petroleum; govt opposed move

 

Firm's enforceable undertaking replaces NT WHS prosecution

 

'Extensive system overlooked risk'

 

Veolia fined $200k, no conviction recorded after fatal gas explosion

 

'Serious misconduct' in leaving early

 

NTC improves Load Restraint Guide

 

FWC remits safety breaches sacking

 

Diary

 

Editorial team

 


[1]

Steel firm ruled liable for $1.389m after 'notorious' danger manifested

WA District Court Judge Audrey Braddock has entered a $1.389 damages verdict for a former steel reinforcement factory worker after he sustained a back injury at work in May 2013.

Before assessing damages for Best Bar Pty Ltd's former employee John Elliot Warn, now aged 36, Judge Braddock heard he'd undergone three significant spinal surgeries after he was injured.

Warn didn't strike the judge as a man generally given to complaining. He was made redundant a year after his last operation in May 2015, when he was still undergoing a staged return to full, but alternative, duties. At the trial "he continued to suffer significant residual disability and pain and had not obtained any other employment".

Best Bar asserted Warn had been instructed in using a Robo 45 machine, that the task was simple, not dangerous or physically onerous and required no warnings to be given.

But Judge Braddock agreed with Warn that Best Bar had breached its common law duty of care. She was satisfied it failed to assess the safety risks and/or warn him of the risks involved in a task that involved him physically lifting steel bars out of a machine. The judge also found Best Bar "failed to give appropriate instructions and training in light of those risks and/or provide other lifting assistance whether mechanical or human".

In finding Best Bar liable, Judge Braddock said the danger of back injuries resulting from lifting heavy items was "so notorious" she believed "no expert evidence is required to establish that there is a foreseeable danger in doing so".

"Repeated actions are likely in a factory processing large orders for reinforcing bars which are to be bent. Turning with the bars also increases an obvious risk of injury."

In 2013 Warn worked on machines that cut or bent steel reinforcing rods in various shapes and sizes at Best Bar's factory in Rockingham, south-west of Perth. Warn claimed he was bending "short" steel bars on the Robo 45 from the start of his morning shift on May 20 for some time when he sustained the back injury.

Judge Braddock accepted Warn bent 13-19 bundles of four or five "short" steel bars, at least 1.6m in length, before the incident. He repeatedly lifted "numbers of bars" manually out of the machine before turning to put them on a trolley.

In amended negligence particulars Warn claimed he worked 1.5-2 hours on the short bars before smoko on May 20. He said the bars were not round so had to be lined up. "Nothing happened" and he didn't have any pain "until he felt a sharp pinching" when lifting five bars, weighing 12-15kg.

Judge Braddock said it was "no answer" to say Warn was "a big strong man, and that the bars were relatively light".

"This was an industrial process, using a powerful and sophisticated machine, with established and detailed operating instructions, which, if applied, would have reduced the risks of injury."

Judge Braddock found there was a foreseeable risk of injury in the system of work Warn adopted.

Robo 45 standard method 'circumvented'

How Warn used the Robo 45 on May 20 was "contrary to the machine's standard operating instructions", Judge Braddock (above) said.

From Warn's evidence he "circumvented" the standard method where "kickers" or "arms" automatically raised the steel bars and rolled or slid them towards the operator. The bars then "went into a holding gallery" or the operator placed them on a trolley at waist height.

Instead, Warn used what he called the "short bar method", where he was left to manually lift the bars.

Judge Braddock said the fact Warn didn't think he was doing anything untoward "points strongly to this operation being a known and accepted practice".

No evidence on Best Bar's 'actual knowledge'

Robo 45 (above) was designed to do the heavy work of bending bars of varying sizes, in an automated and controlled fashion, without the operator being required to manhandle heavy bars.

There was no direct evidence as to Best Bar's "actual knowledge" about what Warn was doing and whether it had given any instructions about Robo 45's "non-standard" use, the judge said. Nor was there direct evidence on whether anyone had assessed it.

Judge Braddock said one would expect training for such work would include the "full spectrum of work to be performed". Evidence showed Warn was given on-the-job training when he started work with Best Bar. "There is nothing wrong with training of this kind, so long as it covers all practical aspects and variants of the work."

Judge considers 'failure to call OHS officer'

Best Bar's defence position was there was no evidence the method Warn adopted was unsafe or a risk to a Robo 45 operator, Judge Braddock said. It didn't assert Warn was working contrary to specific instructions or that his negligence contributed to the incident, she said.

The occupational health and safety (OHS) officer to whom Warn reported his injury on May 20 was not called to give evidence. Nor was another employee who saw Warn after the incident.

Best Bar's "failure" to do so led Judge Braddock to "more readily" accept Warn's evidence about the common use of Robo 45 as he described.

She concluded the OHS officer and the employee "could not have assisted the defence of [Warn's negligence] claim" if called.

If it were known certain steel bars would be lifted manually, which she found was the case, reasonable care would have included assessing when the 'manual lifting' method was to be used.

It would have assessed how great a weight an operator might safely lift and identified weight limits based on bars' dimensions and numbers.

And it would have considered whether there was "a simple way to obviate dangers, perhaps by using the kicker differently" or having another device to lift bars or an offsider available where the method was used.

"None of those steps would be particularly difficult or expensive," Judge Braddock said.

There was "no evidence" Best Bar had considered those issues. The witnesses who "might have spoken" of the parameters or instruction given, particularly the OHS officer, were not called.

Worker unaware of congenital vulnerabilities

Back injuries could be anything from a mild, short-lived muscular strain to seriously debilitating structural damage to the spine, Judge Braddock said.

"Reasonable care calls for at the bare minimum an assessment of a risk to limit the chance of the occurrence and the extent of any injury."

In Warn's case, medical evidence in court made it clear his spine had "two unusual vulnerabilities, of which he was unaware", even after the incident occurred. He suffered a disc protrusion.

Judge Braddock said Warn "was unaware of his back's structure and there can be no suggestion that he was taking unjustifiable risks with it".

The two problems made Warn's injury and treatment "more significant and painful". Neurosurgeon Dr Michael Kern, called as a witness for Warn, said his underlying condition was asymptomatic.

However, Warn was more prone to developing an injury with significant physical work due to the condition. Without the May 20 incident Kern said Warn would likely have remained asymptomatic.

Judge Braddock said she would hear from the parties on any consequential orders. (Warn v Best Bar Pty Ltd [2018], WADC 17, 02/02/2018)

[2]

Ctee to probe WHS in offshore petroleum; govt opposed move

The Senate Education and Employment References Committee will inquire into offshore petroleum industry workers' work health and safety (WHS) despite a Federal Government senator telling the Upper House an inquiry wasn't needed.

On February 8, Vic ALP Senator Gavin Marshall successfully moved that the ctee conduct the inquiry and report by August 14. Marshall chairs the ctee.

Just before the Senate agreed to refer the matter to the ctee to conduct the inquiry, Liberal Qld Senator James McGrath said the govt didn't support the move because it was "unnecessary". Australia's offshore petroleum industry was "one of the safest in the world, with some of the lowest injury rates", McGrath said (see below).

However, the Senate agreed the ctee should inquire into the "scope and need for amending and updating any legislative inconsistencies in the relevant WHS scheme", including any provisions that need to be updated.

"Appropriate consistency" should be provided between the federal Offshore Petroleum and Greenhouse Gas Storage (OPGGS) Act 2006 and the WHS Act 2011, the inquiry terms of reference said.

Regulators' collaboration to be examined

Specifically, the ctee (above) is expected to inquire into legislative changes required to the OPGGS Act to provide for "appropriate consistency" with the model WHS laws, as revised in June 2011. And it will explore the need for any legislative changes that recognise "work is undertaken in remote locations".

The ctee will examine the National Offshore Petroleum Safety and Environmental Management Authority's (NOPSEMA) and equivalent state and territory regulators' "effectiveness" in promoting the WHS of people engaged in the industry's operations.

It will assess NOPSEMA's accountability framework for WHS matters and whether it needs to be strengthened, as well as its board's role and structure.

The ctee is expected to report on options for improving the effectiveness of NOPSEMA and its board's stakeholder engagement.

How NOPSEMA collaborates and the status of its "working relationships" with other WHS regulators and bodies, including Safe Work Australia, will be probed. As will the challenges in "attracting and retaining health and safety representatives" and the adequacy of legislative protections afforded to them for performing their functions.

The ctee's inquiry will examine factors significantly impacting the WHS of workers in the industry, including federal, state and territory govt policies.

The ctee has also been asked to inquire into "relevant parallels or strategies in an international context".

Organisations and individuals are invited to make submissions to the inquiry, with a closing date yet to be advised.

Regime 'applies duties of care in more detail'

McGrath (above) said NOPSEMA regulated health and safety in the industry in its role as Aust's independent, expertise-based regulator.

Early last year the govt appointed three new board members from industry, academia and govt to provide advice and recommendations to NOPSEMA (OHN 05/04/17).

"While broadly consistent with the national WHS Act", the regulatory regime had additional specific requirements to deal with high-hazard, high-risk offshore activities, he said. It "applies duties of care to a more specific set of persons in more detail".

Marshall responded that the govt should support the inquiry "to reaffirm those claims".

[3]

Firm's enforceable undertaking replaces NT WHS prosecution

On press day (February 14), NT WorkSafe said it had accepted Downer EDI Mining Pty Ltd's legally binding agreement as an alternative to prosecuting the company over a 2015 incident in which two workers lost consciousness.

WorkSafe said the workers were "allegedly being exposed to a toxic environment".

WorkSafe executive director Stephen Gelding said the company had not been charged with a Category 1 offence, which enabled it to "propose an enforceable undertaking".

As part of the undertaking Downer EDI Mining would "develop health and safety resources for workers and the NT resources industry", Gelding said.

On press day the regulator said Downer EDI Mining had committed to spend $136,000 on "outcomes that improve the health and safety of the NT resources industry and benefit the wider community".

Promised actions include the company developing and implementing: a digital pre-task assessment training package for workers; an e-health campaign on healthy lifestyle, healthy heart, prostate cancer and mental health for the industry; and a digital personal safety message campaign for industry.

Downer EDI Mining has also committed to present to industry "findings of the incident and activities committed to under the enforceable undertaking". It would support NT mining conferences and forums, and donate $20,000 to Care Flight NT.

WorkSafe said if a company did not comply with an accepted enforceable undertaking, the regulator could apply for a court order to enforce compliance and impose financial penalties, and start "prosecution for the original alleged contravention".

[4]

'Extensive system overlooked risk'

A multinational corporation's "extensive" health and safety system "overlooked" a corroded outdoor steel storage rack at Botany Industrial Park (BIP) that collapsed, causing a subcontractor to fall and suffer fatal injuries.

NSW District Court Judge William Kearns has convicted and fined Broadspectrum (Australia) Pty Ltd $240,000 over the incident. He also ordered Broadspectrum (formerly Transfield Services (Aust) Pty Ltd) to pay an agreed $51,000 for the prosecutor's costs.

Broadspectrum pleaded guilty to a charge brought under 32 of the NSW Work Health and Safety Act 2011 that alleged it failed to comply with its s19(2) duty at BIP on January 29, 2015.

Transfield had contracted NWEC Pty Ltd to provide tradespeople as required. At BIP, NWEC engaged subcontractor John Yoon through his own company, Indong Pty Ltd, as one of five workers assigned to perform required maintenance services at the park.

Inductions conducted for multiple hazards

Yoon (above) was also assigned to work at a Transfield alliance compound within BIP that comprised a workshop and open yard area used to store equipment and engineering consumables.

Transfield directed Yoon's pipe work on a day-to-day basis, Judge Kearns said. Yoon used his skills as a pipefitter and boilermaker at the site.

Judge Kearns said the rack collapsed due to corroded base support beams at its structure's anchorage points.

That "placed the structure in danger of total collapse. Insufficient drainage holes had been provided in the base frame of the rack".

Before the collapse "no steps had been taken" to deal with the rack's corroded condition, Judge Kearns said. "The frame had not been galvanised, painted or otherwise corrosion-protected."

Judge Kearns considered the company's "extensive" approach to safety. Broadspectrum resources business division executive manager, health safety and environment (HSE) Glen Cowling affirmed evidence of it in an affidavit. Broadspectrum's evidence on its health and safety system was unchallenged.

The company employed more than 14,500 people in Australia, including 60 at BIP, when the incident occurred. Its health and safety system applied over the large workforce.

Judge Kearns summarised the system as including mandatory safety rules; induction of all workers and others entering the site; a HSE management system; and HSE made subject to internal and external audits, daily to annually.

There were ongoing risk assessments; risk management including workplace inspection checklists, job starts, workplace inspections and job safety observations; and programs encouraging leadership in safety.

Yoon had participated in 10 specific inductions before the incident. Multiple inductions were conducted "because of the diversity of work and the multiplicity of hazards and risks". On Jan 28 and 29, 2015 (the day of the fatal incident) Yoon had taken part in a job safety & environment analysis information session "covering the task allocated to him".

Judge Kearns said Broadspectrum's approach to safety was extensive. It could be described as conscientious and diligent.

The case "is one of a good system, but one which overlooked an item it should have picked up". "The risk was a serious one", but in a case where Broadspectrum had taken extensive steps "in its attempts to comply with its health and safety duty".

After the incident the company issued an alert to all its operations, held site briefings with employees and contractors, conducted 1,871 reviews of racking over 198 sites and introduced new methods and systems.

Judge Kearns took into account the company's prior conviction in 2005 for an offence in 2002. The incident in that case involved serious burns.

The prior record "needs to be understood against a background of the defendant's size and area of operations, much of which involves hazardous work. It is one conviction only over a period that goes back at least to 1993", Judge Kearns said. (SafeWork NSW v Broadspectrum (Australia) Pty Ltd [2018), NSWDC 7, 02/02/2018)

[5]

Veolia fined $200k, no conviction recorded after fatal gas explosion

A Qld magistrate has fined Veolia $200,000 and recorded no conviction after it pleaded guilty to a Workplace Health and Safety (WHS) Qld charge following a fatal explosion in a gas kiln in 2015.

Gladstone site project manager Mark Chapelhow died on October 27, 2015, after the explosion.

WHS Qld said an unnamed environmental services company (Veolia) was prosecuted for failing to engage competent persons to design and install a gas system in the kiln; failing to engage competent persons to ensure operation and maintenance of the kiln were safe; and failing to provide adequate training to workers operating the kiln by gas.

The regulator said Gladstone Magistrate Melanie Ho noted there'd been "a serious breach of the [WHS] Act with catastrophic consequences".

Magistrate Ho considered the company's early guilty plea, co-operation during the WHS Qld investigation and good safety record before the incident.

She also considered safety improvements the environmental services company had made, including stopping a 'drying out' process "which on this occasion cost a young father his life".

WHS Qld referred to Magistrate Ho's summary that said Chapelhow was "at no fault at all during the failed process, but the 31-year old suffered the most catastrophic of consequences leaving behind a young family".

"Following multiple issues with the electric kiln, the company was running behind in contract requirements and had to seek an extension to provide the first batch of blocks," WHS Qld said.

The company then instructed Chapelhow to switch over from electric to gas firing, the regulator said.

"Chapelhow was provided with instructions on temperature and timing for the new process. However, no information was provided confirming how the gas came to be used in the kiln."

Company 'remains committed to H&S'

WHS Qld (above) said there were "no procedures, policies or safety information regarding the use of the kiln. No professionals were engaged to convert the electric kiln to gas. Management made no further queries regarding the kiln conversion".

The regulator said Chapelhow died two weeks after he was instructed to convert the kiln to gas.

"Investigations confirm the kiln was running on gas when the flame extinguished, gas continued to build up for an unknown amount of time before Mr Chapelhow attempted to relight it, resulting in an explosion."

WHS Qld said "expert evidence found significant issues with the kiln configuration and operation, it was in very poor condition and had been converted using methods inconsistent with Australian Standards".

In a holding statement, Veolia Australia and New Zealand affirmed it had entered a guilty plea.

"At this very difficult time, our thoughts are with Mark's family and loved ones," Veolia executive GM – refractories & energy Grant Winn said as the company's spokesperson.

"Veolia remains committed to a no compromises approach towards the health and safety of our employees and the communities where we operate," the statement said.

The company would not provide further comment at this time.

[6]

'Serious misconduct' in leaving early

The Fair Work Commission has found BlueScope Steel (AIS) Pty Ltd had a valid reason to summarily dismiss a senior employee who had worked for the company and its predecessors since 1992.

Commissioner Bernie Riordan found gas regulator and level 5 operator Walter Troiano was in the habit of leaving his shift early. The cmr held that was "serious misconduct" which put his co-workers at risk and Troiano's termination was "not harsh, unjust or unreasonable".  

Troiano, employed just under manager level at Port Kembla Steelworks' coke plant 1, was sacked on June 18, 2017, because of "inappropriate and socially unacceptable behaviour and unacceptable timekeeping".

On July 18, 2017, the Australian Workers' Union, NSW Branch, lodged an unfair dismissal application on Troiano's behalf. He represented himself during the proceedings in Wollongong.

Troiano's role at the coke plant was split between providing annual leave relief for the regulators and undertaking maintenance activities in the gallery, a restricted space beneath the battery areas. The regulators worked 12-hour shifts on a 24/7 roster and did a "hand over with their replacement at the end of every shift", Cmr Riordan said. The parties agreed the coke Plant was a hot and dirty place to work. Troiano's alleged "inappropriate and socially unacceptable behaviour" referred to an allegation Troiano on June 5, 2017, had defecated in the BlueScope shower.

Troiano denied the allegation. During investigation of the incident, as a "sackable" health and safety issue, BlueScope coal plant 1 operations manager Victoria Collins reviewed Troiano's gate logs from January 1 to June 7, 2017, which revealed an attendance pattern that raised serious concerns. The gate log, which shows times and gate locations where employees swipe their cards on entering and leaving, indicated Troiano had left early more than 20 times without notifying anyone.

Accounting for all personnel on-site critical

Records (above) showed Troiano only sought permission on three occasions to leave before the end of his shift.

Before the cmn, Troiano argued the culture of the coke plant was for employees' timekeeping to be "treated in a flexible manner".

BlueScope submitted Troiano's timekeeping was "poor". Collins testified Troiano had not followed BlueScope's guidelines when leaving work early.

She referred to a 2014 BlueScope staff notice which said: "Leaving site without notifying the team leader does not comply with the intent of the [work health and safety] legislation, where we are required to comply with the company's safe systems of work which includes … accounting for all personnel on their site."

Cmr Riordan found Troiano's time sheets clearly showed a trend he would either leave the steelworks mid-shift or leave early whenever he was not working as a regulator.

The cmr did not accept leaving, "on what could almost be described as a regular or systematic basis" that was neither work related nor urgent personal matters, could be condoned or regarded as reasonable.

"If there was an evacuation because of an emergency and Troiano could not be found, his fellow workmates would have placed themselves in danger to look for him when he had either gone home early or was off-site dealing with personal issues," he said.

"When working in a hazardous location such as coke plant 1, the failure to follow important procedures which have a direct link to safety is, in my view, reprehensible."

Summary dismissal 'proportionate penalty'

Cmr Riordan (above) said for a senior and experienced employee, Troiano's timekeeping was "appalling" and he was satisfied his summary dismissal was an "appropriate and proportionate penalty for his conduct".

"Not only is such behaviour fraudulent, but it creates serious safety issues for Troiano's work colleagues who were unaware of his non-attendance," he said.

"In a hazardous work location like the coke plant, I find [Troiano's] actions in deliberately contravening the 'leaving work early policy' falls within the boundaries of serious misconduct." (Walter Troiano v BlueScope Steel (AIS) Pty Ltd [2018], FWC 439, 08/02/2018)

[7]

NTC improves Load Restraint Guide

The National Transport Commission (NTC) has released an improved Load Restraint Guide and, for the first time, a companion guide specifically designed for light vehicles under 4.5 tonnes.

The guides, providing practical advice on how to safely transport loads, are available for downloading from the NTC website.

NTC chief executive Paul Retter said: "The Load Restraint Guide for light vehicles presents advice specific [for] light vehicle drivers – such as tradies, couriers or for the everyday driver taking a load to the rubbish tip – to make it easier for them to ensure their loads are restrained safely."

He said the Load Restraint Guide, aimed at drivers, operators and other participants in the transport chain of responsibility, was "an invaluable resource" to ensure loads were correctly restrained to prevent incidents that could cause death or injury.

"We encourage everyone who is involved in restraining loads to read the guide and keep it handy as a reference," Retter said.

The guide includes information on understanding load characteristics for choosing suitable vehicles plus equipment and restraint systems that meet legally required performance standards.

"If you're involved in packing, loading, moving or unloading any type of vehicle, you are responsible for complying with load restraint laws," Retter said.

"Restraining your load is not complex, but it does require training and knowledge.

"This guide will help you to know how to restrain your load safely through practical guidance material, including diagrams, in a user-friendly style allowing you to find the information you need quickly."

[8]

FWC remits safety breaches sacking

A Fair Work Commission (FWC) full bench has remitted for redetermination a yard hand's claim he was unfairly dismissed for serious misconduct.

His former employer contended the worker's misconduct included but was "not limited to language, intimidation, bullying and serious safety breaches".

After considering Steric Solutions Pty Ltd's appeal against Commissioner Leigh Johns' decision it had unfairly dismissed Minas Trialonas on unproven safety grounds, Deputy Presidents Anne Gooley and Peter Anderson and Cmr Anna Booth quashed his decision. They also quashed Cmr Johns' January 24 order to award Trialonas $25,765.

The full bench was satisfied there was an arguable case Steric had been denied procedural fairness when Cmr Johns failed to give it the opportunity to test Trialonas's evidence on all issues relevant to merit.

On December 6, 2016, Steric's business owner Leanne Docherty sacked Trialonas after an argument over machinery obstructing a pathway, when he called her a "backstabbing c...t". 

Cmr Johns found no evidence to justify any safety concerns, making the dismissal unfair.

But on appeal, the full bench found Steric was denied procedural fairness when Cmr Johns permitted Trialonas to give evidence about his dismissal at a preliminary hearing to establish the identity of his employer, when Steric was not on notice.

As part of his decision to name Steric as Trialonas's employer, Cmr Johns found Leanne Docherty had sacked Trialonas but had then reinstated him.

He concluded she sacked him again three days later on her uncle James Docherty's direction because James was a part-owner of her only client – not because of safety issues.

The FWC full bench concluded Steric had been denied procedural fairness, particularly in relation to Cmr Johns' dismissal reasons.

The DPs and cmr took into account Cmr Johns had refused Leanne Docherty the opportunity in a second hearing to give additional evidence about Trialonas's alleged safety breaches.

They agreed Steric was not advised that evidence given in the first hearing would be relied on in the second. Nor was Steric advised it could cross-examine Trialonas "about the totality of evidence he had given at the first hearing".

DPs Gooley and Anderson and Cmr Booth allowed Steric's appeal. But unable to conclude the denial of procedural fairness had impacted the hearing outcome, they remitted the matter to a different cmr to re-determine. (Steric Solutions Pty Ltd v Minas Trialonas [2018], FWCFB 479, 24/01/2018; Trialonas v Steric [2017], FWC 5068, 29/09/2017)

[9]

Diary

March 8: 2018 national major hazard facilities forum, SafeWork NSW, Sydney. Go to www.safework.nsw.gov.au/news.

April 18: North Qld injury prevention and return to work conference, WorkSafe Qld, Townsville. Registrations open in early 2018. Go to www.worksafe.qld.gov.au/nq-conference.

[10]

Editorial team

Managing Editor: Helen Jones. Email:helen.jones@tr.com and phone (02) 8587 7683. Journalist:Eva Wiland.

 

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