1. Health & Safety Reform Bill Toni Welch l OSH Consultant I Trainer M: 0273265251 Ph: 07 9292463 E: toni.welch@ema.co.nz

2. Where did this come from? Pike River Royal Commission report Royal Commission report MBIE Action agenda Create a Directors Guideline MBIE Action agenda Create a Directors Guideline 16 recommendations Directors should be more accountable Task Force 15 recommendations Directors to be held to account Completed 12 Health and Safety Reform Bill Completed Regs

3. “Good Governance Practices Guideline for Managing Health and Safety Risks”. Health and Safety Reform Bill Here now and expected to be undertaken. Out now, before select committee soon. Final report due e/o July. Regulations 2- 400 pages ? timeline Regulations 2- 400 pages ? timeline Overview

4. The Guideline This Guideline was developed by the Institute of Directors in New Zealand (IoD) and the Ministry of Business, Innovation and Employment (MBIE). With the assistance of New Zealand Council of Trade Unions (NZCTU), Business Leaders Forum, Employers and Manufacturers Association (EMA), New Zealand Institute of Management (NZIM) and Business New Zealand. – as a result of the key findings and recommendations laid out in the final report of the Royal Commission on the Pike River Coal Mine Tragedy.

5. Content Why Directors Principles of Leadership Roles of Directors – Policy and planning – Deliver – Monitor – Review

6. This document creates a Top down system It is fully the intention of the Guideline document that Directors must: Set the standard Insist on outputs and outcomes Demand accountability and responsibility Know good and bad news. Have a high level of comfort that all is well.

7. The Principles of OH&S Governance Leadership – Planning – Leading – Organising – Controlling Worker Participation (a key component in the Reform Bill) Legislative Compliance

8. What is Guidance Acts Regulations Approved Codes of Practice Standards and Guidelines Mandatory Used a practicable step, unless employers have an equal or other system Voluntary: Used as guidance only

9. What legislation? Health and Safety in Employment Act 1992 Health and Safety at Work Act (soon) Accident Compensation Act 2001 Employment Relations Act Machinery Act Fire Service Act and Regulations Human Rights Act Privacy Act Hazardous Substances and New Organisms Act Holidays Act Smoke free Environments Act Land Transport rules Bill of Rights. – Plus 125 Codes of Practice. ( www.mbie.govt.nz Publications)www.mbie.govt.nz

10. The roles of Directors Policy and planning Setting the standards Deliver Strategic direction and scope Monitor Outputs and outcomes Review OH&S programme and targets

11. 1.Policy and planning Creating a company policy and or Board policy. Setting objective targets for management to attain. Creating management accountabilities and responsibilities re OH&S. 11

12. 2. Deliver Fit for purpose OH&S management system maybe aligned to AS/NZ 4801 or other Systems that can detect minor variations, near misses. Systems that act on these reports. 12

13. 3.Monitor Creating the metrics that comes to the board. Good investigation systems with remedial follow up. 13

14. 4.Review Audits both internal and external Monitoring recommendations from audits. 14

15. Conclusion The Board must have their collective finger on the company pulse. They must not wait for bad news but rather go looking for it. When issues come before them safety can no longer be held behind costs or productivity. – “the board’s focus on meeting production targets set the tone for executive managers and their subordinates – the Chairman’s general attitude was that things were under control unless told otherwise – an alert board would have ensured that these things had been done and done properly; it would have held management strictly and continuously to account” Taken from the commission report on Pike River 15

16. Get A Copy Good Governance Practices Guideline Managing Health & Safety Risks Available from www.iod.org.nz or www.business.govt.nz/worksafe

17. Purpose of Health and Safety at Work Act Protecting workers and others by eliminating or minimizing risk To provide for fair effective workplace representation, consultation, co- operation and resolution of issues Encourage unions and employer groups to work constructively To promote advice, information education and training re OH&S To secure compliance with the Act through effective means To have scrutiny and review of actions taken by duty holders under this Act To have a framework of continuous improvement to achieve higher standards of OH&S

18. Volunteers and Volunteer Associations A purely volunteer organisation where volunteers work together for community purposes AND does not have any employees is known as a volunteer association under this Bill. A volunteer association is not a PCBU so the Bill will not apply to it A volunteer organisation that has one or more employees is a PCBU and will have the same duties as a PCBU to ensure health and safety of its workers and others.

19. PCBU Person who Conducts a Business or Undertaking. Means a person who conducts a business or undertaking— whether the person conducts a business or undertaking alone or with others, and whether the business or undertaking is conducted for profit or not.

20. Primary Duty of Care. PCBU must so far as reasonable practicable ensure the health and safety of workers engaged or caused to be engaged workers who are influenced or directed by the PCBU other persons from the work being carried out.

21. Worker. A person who carries work in any capacity for a PCBU, including work as- an employee a contractor or subcontractor, an employee of a contractor or subcontractor, or an employee of a labour hire company working for the PCBU, an out worker including a homeworker, an apprentice or trainee, a person gaining work experience, a volunteer,or a person in a prescribed class.

22. Officer Includes any other person who makes decisions that effect the whole or a substantial part of the business of the PCBU e.g. (CEO) Does not include a Minister of the Crown acting within that capacity.

23. Duty of officers If a PCBU has a duty or obligation under the Act, an officer of the PCBU MUST exercise due diligence to ensure the PCBU complies with the duty or obligation. Officer Due Diligence

24. Due diligence 1)Due diligence means a.to acquire and keep up-to-date knowledge of work health and safety matters; and b.to gain an understanding of the nature of the operations of the business or undertaking of the PCBU and generally of the hazards and risks associated with those operations; and c.to ensure that the PCBU has available for use, and uses, appropriate resources and processes to eliminate or minimise risks to health and safety from work carried out as part of the conduct of the business or undertaking; and

25. Due diligence d. to ensure that the PCBU has appropriate processes for receiving and considering information regarding incidents, hazards and risks and responding in a timely way to that information; and e. to ensure that the PCBU has, and implements, processes for complying with any duty or obligation of the PCBU under this Act; and f. to verify the provision and use of the resources and processes referred to in paragraphs ( c ) to (e).

26. To verify the PCBU has: “C” available for use, and uses, appropriate resources and processes to manage OH&S risks “D” appropriate processes for receiving and considering information and responding in a timely way “E” and implements, processes for complying with any duty

27. Offences Category 1Corporations $3million PCBU or officers $600K/ 5 yrs. jail Other individuals $300K/ 5 yrs. jail Reckless conduct causing exposure to individuals Category 2Corporations $1.5 million PCBU or officers $300K Other individual $150K Failure to comply with a duty causing an exposure to risk of… Category 3Corporations $500K PCBU or officers $100k Other individuals $50k Failing to comply with a duty.

28. Liabilities Officers. Can be found guilty under S. 29 ( Duties of officers) whether or not the PCBU has been convicted. Volunteers. A volunteer does not commit an offence S 42, 43 or 44 for a failure to comply except a duty under S. 30 duty of worker, or S. 31 duty other persons in a workplace.

29. Questions Toni Welch l OSH Consultant I Trainer M: 0273265251 I P: 07 9292463 E: toni.welch @ema.co.nz