IPWEA NSW Division Annual Conference 2007
DUE DILIGENCE AND MANAGING SAFETY USING STANDARD OPERATING PROCEDURES Richard Jane;
[email protected] Executive Engineer, Inverell Shire Council, Inverell, NSW, Australia.
Paper Summary Inverell Shire Council (ISC) embarked on a due diligence based Integrated Management System (IMS), initially to meet statutory requirements for safety systems, but also as a method of standardising practices for quality, environmental and public risk procedures. Standard operating procedures (SOP) have been produced for the majority of tasks undertaken by Council, that give staff a set list of work activities to follow, which incorporates a hazard assessment and where a hazard has been identified, a Safe Work Method Statement (SWMS) to mitigate the hazard. Using the due diligence philosophy, ISC has been successful in keeping workers compensation premiums low, prosecutions to a minimum and work quality to a high level. The result being, community funds are not being directed toward paying high premiums or defending multiple claims but are rightfully being directed to providing quality services for the Inverell community.
the process provides staff with a much higher level of confidence that quality, environmental and public risk aspects of the job are being appropriately managed. The outcomes include a good quality job that will last for at least the design lifetime, where costs are controlled, risk is well managed and community funds are spent in the most productive way.
Introduction Since the early eighties Local Government has seen a huge amount of change in the management of risk. OHS, Public Liability, Environmental, Quality and Political risk has seen massive growth and change. When ISC undertook the necessary management changes to handle these issues, every attempt was made to transform, what appeared to be an inconvenience, into a management tool with clear operational objectives.
ISC has benefited by this approach and anticipate that other Councils who have not already adopted this approach may benefit from the work that has been undertaken.
The aim of applying due diligence through SOP’s was to provide a method of evaluating and standardising work practices and providing a means of integrating the various forms of risk management. OHS risk, environmental risk, public risk, quality risk and political risk can be mitigated by careful selection and research of procedure steps and subsequent standardisation of the work procedure.
What is ‘due diligence’ ? Due diligence can be defined as : ¾ “ the degree of care that a prudent person would exercise, a legally relevant standard for establishing liability” ENCARTA DICTIONARY ¾ “persistent and hard-working effort in doing something” ENCARTA
The due diligence process was also designed to engender a philosophy among staff that safety and other risk factors, are an inherent part of doing a job properly. Further to this
DICTIONARY
Page 1
IPWEA NSW Division Annual Conference 2007 ¾ “persevering especially in detail or exactness” worldnet.princeton.edu,
establishes absolute liability in the event of an accident, accidents still happen. In the event of an accident, some form of penalty is unavoidable, but we believe that if we can demonstrate that we have taken considerable effort to provide a safe workplace, then we can argue in a plea in mitigation for a much lesser penalty than would normally be expected. The due diligence process was designed to engender a philosophy among staff that safety is an inherent part of doing a job properly. Further to this the process provides staff with a much higher level of confidence that quality, environmental and public risk aspects of the job are mitigated.
(Princeton University, NJ, USA)
Due diligence is not constrained to “having a good attitude”, but in a work environment includes good quality staff, well researched practices, provision of an appropriate level of training and information, an appropriate level of supervision and appropriate premises and tools to undertake the work. For an organisation to prove that the above factors have been considered in a workplace, they need to be documented in a risk assessment. Failure to provide the above constitutes a “…lack of care for the consequences of his physical acts on the part of the person doing them”. Lord Diplock – Tesco Supermarkets v Nattrass [1972] AC 153. Therefore a ‘duty of care’ is required to research and provide the necessary appropriate work practices to prevent damage or injury.
Staff Selection Section 349 of the NSW Local Government Act 1993, requires that “appointments … be on merit”. “Merit of the persons eligible … is to be determined according to (a) the nature of the duties of the position, and (b) the abilities, qualifications, experience and standard of work performance…”. Further to, and in support of these statutory requirements, three aspects of staff selection used in the ISC due diligence process are aptitude, medical and attitude.
When considering the research of work practices, care is taken to determine who the ‘reasonable person’ should be to formulate the standard operational procedures. For instance, a highly experienced and competent plant operator is the best person to interview, when researching the appropriate procedure for the particular work to be undertaken by that item of plant. A risk manager who attempts to formulate a standard operating procedure without consultation is eroding the protection offered by a due diligence defence.
ISC considers the quality of staff, particularly the suitability of staff for the work they are undertaking, to be critical in the application of due diligence in the workplace. Quantity and quality of experience as well as level of training are considered by ISC in the assessment of the aptitude of a prospective employee. In some cases prospective plant operators are required to demonstrate their competence in a field trial as part of the selection process.
Undertaking and documenting this research also fulfils Section 12 of the OHS Act 2000, which requires employers to consult “... with the employees of the employer to enable the employees to contribute to the making of decisions affecting their health, safety and welfare at work”.
Prospective employees are required to undergo a medical by council’s consultant doctor, which includes a mandatory drug test. This provides council with an objective tool for determination of physical ability of the prospective employee to undertake the work required by the position.
Due Diligence in the Workplace ISC believes that the “due diligence” defence should be a valid argument in a prosecution hearing. Although the OHS Act 2000, states that “an employer must ensure the health, safety and welfare at work of all the employees of the employer”, and therefore
The mandatory drug test ensures that the prospective employee has not been using illicit drugs and therefore will not endanger Page 2
IPWEA NSW Division Annual Conference 2007 have interpreted as the specific activity that is being undertaken at the time. This specific activity could be working near traffic, manual handling, trenching etc.
themselves or others by having their judgement impaired by the effect of the drugs. Equal Employment Opportunity (EEO) principles are not overlooked in the due diligence process, but safety of the prospective employee and the safety of others in the vicinity are the overriding factor in the application of aptitude principles.
The requirement to formulate SWMS’s can only be found in Part 8.3 – “Special Workplace Arrangements for Construction Work” of the OHS regulation. SWMS’s are not limited to construction work under the ISC safety management system, but considerably more effort is directed to providing SWMS’s where they are required on construction jobs.
Attitude is also considered in the staff selection process to determine the level of understanding and acceptance of council’s management methods. This is done to ensure prospective employees will abide by councils policies, provide good quality workmanship and instil a sense of pride and enthusiasm amongst their co-workers. As mentioned earlier, ISC engender a philosophy among staff that safety and other risk factors are an inherent part of doing a job properly. Attitude to work is a major contributor to the success of this philosophy.
ISC as an employer is still required to “ensure the health, safety and welfare at work of all employees of the employer”, which requires that premises, plant, substances and systems of work are safe and without risk to health. This extends to “providing such information, instruction, training and supervision as may be necessary to ensure that employees’ health and safety”. Based on the above, ISC have interpreted that although a risk assessment is required for all premises, plant, substances and systems of work, SWMS’s are not required for any specific work activity that has been assessed as being non-hazardous and SWMS’s are not required for work outside of construction work.
Integrated Risk Management The due diligence approach has provided an opportunity to integrate the various forms of risk. ISC manages OHS as part of the overall risk management of the organisation. The other forms of risk considered under councils risk management system include public liability, environmental, quality and political.
Therefore, SWMS are only required for “for all work activities assessed as having safety risks”, that by definition, are construction work. Not all activities require a SWMS, but only those that have been assessed as being hazardous.
By considering the above risk factors using the one integrated risk assessment, duplication has been minimised.
Structure of Standard Operating Procedures (SOP)
OHS Regulation 2001 Clause 226. Chapter 8 – Construction work, Part 8.3 – Special Arrangements for construction work, states that “The principal contractor must ensure that the occupational health and safety management plan includes…..safe work method statements for all work activities assessed as having safety risks.”
SOP’s are written for work that is undertaken by ISC where the work process has been entirely designed in-house. Where an operator’s manual or similar document is available, that document is used. The number of SOP’s is kept to a minimum by ensuring operators manuals are available and are not duplicated by the creation of a SOP.
This clause does not say that SWMS’s are required for all activities, only the ones assessed as having risk. The clause refers to ‘work activities’, not the whole job, which ISC
Qualifications of the person undertaking the work is also considered in determining if an Page 3
IPWEA NSW Division Annual Conference 2007 SOP is required. For instance, an SOP for driving a large truck on a public road has not been formulated because any driver of a large truck must have the required licence and the Roads and Traffic Authority (RTA) has assessed that person in the process of issuing the licence. Operator competence or ‘currency’, ie the level of recent and appropriate experience, is also considered to ensure the due diligence process of staff selection is maintained.
¾ Lifting and Slinging
SOP’s are used as an operational document. There is no statutory requirement to have an SOP, but the SOP provides staff with a defined work process and a pre-planning risk assessment.
¾ Working over or Near Water
ISC has integrated one of two risk assessments into the SOP’s. All activities are listed in order of progression of the job, hazards are determined, a risk matrix applied to determine chance, impact and rating then a hazard control applied. The word ‘safe’ is kept to an absolute minimum in SOP’s, so that staff understand that a SWMS is only ever triggered when a hazard has been identified. If the activity has no identifiable hazards then no SWMS is required.
¾ Use of Electrical Equipment
¾ Powered Small Plant ¾ Manual Handling ¾ Working Near Plant ¾ Underground and Overhead Services ¾ Trenching and Excavations ¾ Hazardous Substances ¾ Use of Laser Survey Equipment ¾ Working Near Traffic ¾ Working at Heights ¾ Scaffolding ¾ Welding and Cutting ¾ Use of Ladders ¾ Compressed air / Explosive power tools ¾ Concrete Pumping ¾ Remote and Isolated Work ¾ Use of Hand and Power Tools ¾ Personal Protective Equipment
Because SOP’s have been formulated in consultation with staff, generally the language used is in layman’s terms and is kept this way to better communicate the requirements of the SOP.
¾ Heat Stress ¾ Housekeeping ¾ Traffic Management ¾ Plant Maintenance
There is a focus on repetition in SOP’s that is intended to make the structure of the SOP’s easily recognisable, for example, the ‘establishment’ step on each SOP is virtually identical with only minor variations, where required. A site specific risk assessment is a component of the job establishment that appears on every SOP.
¾ Isolation Procedures ¾ Sunburn and Skin Cancer ¾ Communicable Hygiene
Disease/
Personal
¾ Drugs and Alcohol ¾ Material Stacking and Storage ¾ Demolition
Hazard Identification
¾ Asbestos
Hazards for thirty four generic work activities have been identified within the ISC work force. It is believed that these thirty four hazards, in various combinations, cater for every work activity that makes up a SOP. The hazards are:
¾ Noise ¾ Confined Spaces
Generic Safe Work Method Statements
¾ Operating Plant Page 4
IPWEA NSW Division Annual Conference 2007 an onsite induction into the SOP’s and SWMS’s necessary for the job are carried out. Further to this a detailed SSRC is carried out to determine any additional site specific hazards and mitigation procedures for those hazards. The SSRC is required to be carried out at least once a week or if there is a change in the working environment, such as wet weather.
Generic safe work method statements are used by ISC in a repetitive manner to ensure the training that is provided to staff on each SWMS is effective and easier for the staff to remember. The SWMS’s have headings included which ensure the detail that is required by the OHS Regulation 2001 are included and easily identifiable. The SWMS’s can be individually tailored to suit the specific activity for which they are being used, but ISC consider that it is important that the SWMS’s keep the same essential elements. This supports the repetition philosophy and makes the paperwork familiar to those employees who are required to maintain the paperwork.
Implementation The SSRC is considered to be one of the most valuable parts of the process and has been received very well by staff. The SOP’s, which were developed using staff input, have also been received quite well.
The site supervisor for every worksite is provided with a folder with only the SOP’s and SWMS’s that are required for that crew. We are careful not to overload the site supervisor with unnecessary documentation. The SOP’s and SWMS’s are reused whilst they are relevant and being generic, can be used for multiple type of jobs, where applicable.
The SWMS’s are a complex document and have proven to be the most difficult component to implement because of the statutory requirements that are required. Fortunately, in most cases the fields that need to be filled in for each work crew do not need to be filled in for each job that is undertaken. Due to the generic structure of the SWMS, they can be reused on numerous jobs if the same responsible people are used and the work crew remains the same.
The site supervisor is given full responsibility for safety on the job. The site supervisors are advised that they cannot delegate the safety responsibility and if a more senior officer of council is on site, the site supervisor remains completely responsible for all safety aspects of the worksite.
The application of the due diligence philosophy at ISC has been a significant shift away from what was expected by staff. Staff were expecting SWMSs for every job that is undertaken , which could be based on anecdotal evidence that other Councils have ‘SWMS for everything’. It is difficult to get staff to understand that SWMS or only required for work activities that are assessed as having safety risk, not all activities. It has also been difficult to explain to staff that the only part of the OHS Regulations that requires SWMS is Part 8.3 “Special Workplace Arrangements for Construction Work”.
A ‘site safety rules’ booklet is provided to all employees of ISC, to ensure that the staff have the necessary safety instructions communicated to them. All staff are provided with in-house training on the site safety rules and safety precautions for the relevant SWMS’s. As part of the training in the site safety rules, employees are required to complete an assessment for each SWMS that they are trained in, so management has a record of the level of competence attained by the training.
SOP’s are not designed to be a firm procedure, but more a template that can be used as is, or can be modified to suit the application for which it is being used. Operational staff tend to consider that the SOP’s are policy and must be rigidly adhered to, so some time is required to educate staff on the flexibility of the system.
Site Specific Risk Checklist (SSRC) Most of the paperwork discussed above is completed in the planning stage of the project. Immediately before the project starts, Page 5
IPWEA NSW Division Annual Conference 2007
Conclusion The development of the due diligence philosophy and safety management at ISC has always been regarded as an evolutionary process. The system will improve with age and acceptance by staff, but we believe that we are on the right path to achieving our goals. The development of new SOP’s will continue, but it is believed that no further SWMS will be required for the nature of the work that is undertaken by Council. The ISC system was audited by the RTA and council received an audit report on 28th November 2006 stating “… an audit report sent to pursuant to the provisions of Clause 9.2 of Specification Q4M …” had been undertaken and “…the audit findings indicated that ISC has in place a System for Site Safety Management Plans that meet the NSW Government Construction Agency Coordination Committee (CACC) guideline and OHS Regulation Requirements”. Council will continue to develop this system as part of the overall Integrated Management System with the aim of keeping the various insurance premiums low and the cost of defending claims low. There will always be claims made against Council, but the main goal is to rightfully direct community funds to providing quality services for the Inverell community. ISC welcome any enquiries from other Councils and organisations that are be interested in pursuing similar goals.
References •
Due Diligence at Work – Workcover NSW 1997.
Page 6
•
Due Diligence – W D Duncan, Samantha J Traves (LBC Information Services Aust, 1995).
•
Risk Management at Work – Workcover NSW 2001
•
NSW Occupational Health and Safety Act 2000
•
NSW Occupational Health and Safety Regulation 2001.
IPWEA NSW Division Annual Conference 2007
Author Biography Richard Jane is a civil engineer with 20 years experience in local government engineering. Richard has a degree in civil engineering, post-grad diploma in Local Government Engineering and a Masters in Local Government Management. Richard has worked at several councils across NSW and has held three positions at Inverell over the last twelve years, including Services Manager, Works Manager and his current position as Executive Engineer. Postal Address: Inverell Shire Council 144 Otho Street (P.O. Box 138) Inverell, NSW. 2360. Tel: (02) 67288200 Fax: (02) 67288240 Mobile: 0429 088227 E-mail:
[email protected] Website: www.inverell-online.com.au
Page 7
