chain of responsibility codes & practices - mike wood - latus

Chain of Responsibility

This Presentation:

Codes of Practice

All States - All Businesses

Road safety – The New Direction

Case studies – tailoring codes for a national approach

Section 2 – What is Chain of Responsibility?

Chain of Responsibility

Choices!!

What is Chain of Responsibility?

CurrentRegs

CurrentRegs

CurrentRegs

CurrentRegs

Transport is a

dangerous business!

Objective of CoR Legislation

To increase public safety on the roads

To protect public infrastructure

To create a level playing field by penalising

“cheating companies”

To provide a safer industry for Drivers

To encourage parties in the road transport task to adopt active risk

management strategies to prevent breaches of applicable road laws.

Sobering Facts

Transport drivers are

16 times more likely

to die at work than

others.

Truck drivers

account for 25% of

all work related

deaths.

Why It’s Important To You

• 4500 charges laid in NSW

• Company fined $19.3 million

• 45 Directors have been charged.

• 90 Police Investigations in Vic

Personal

Fines

And

Company

Fines

You cannot contract your

way out of your liability

Contracting out Prohibited (1) A term of any contract or

agreement that purports to

exclude, limit or modify the

operation of this Part or of any

provision of this Part is void to the

extent that it would otherwise

have that effect.

Victoria Road Traffic Act Sect 191

So even if you don’t have transport

but contract them…

You’re still liable!

Why It’s Important To You

If a body corporate commits a

relevant heavy vehicle offence,

each director of the body

corporate - and each person

concerned in the management

of the body corporate - is

deemed to have also committed

the offence.

Vic Legislation Part 11- 200

What is CoR?

What is Chain of Responsibility?

CoR requires that all commercial

vehicles over 4.5 tonne travelling on

roads comply with the legislation, and is

effectively:

Section 2 – What is Chain of Responsibility?

By extending the OHS Concept

to the road transport it now states that any CoR breaches

can extend beyond the driver to include those who have any

influence on the chain

Meaning:

Anyone who has contracted or requested a driver to

undertake a task - be it direct or inferred

Encourage Risk Management

The purpose of the CoR laws are to encourage parties in

the Chain to adopt a proactive approach to Risk

Management of the transport task.

“The bill is also designed to encourage parties to the road

transport task to adopt active risk management strategies

to prevent breaches of applicable road laws”.

NSW Roads Minister Second Reading Speech Hansard 6 April 2005

Safety Approach

WA has taken CoR as a road safety initiative

This includes:

All vehicles

All sizes

All industries

Education

Advice

Who does CoR apply to?

What vehicles are covered under

CoR?

All trucks 4.5T +

All trailers (heavy)

Utilities, Vans and Trailers (in WA now)

Basically any vehicle that is used in a

commercial manner to complete a task on

public roads

Areas Of Application

Load Restraint

Mass Management

Dimensions

Fatigue

Speeding

Drugs, Alcohol & Health

(DAH)

Training

Equipment Suitability

Equipment Maintenance

Documentation Systems

Subcontractor Assessment

Who is Covered?

Obvious coverage

Consignor / Consignee

Receiver

Packer/Loader

Scheduler

Transport Operator

Hidden coverage

Sales

Purchasing

Auditing

Training

Reasonable Steps

Reasonable Steps

To comply with the CoR you must be able to demonstrate

that you have taken ‘reasonable steps’ to prevent a

breach from occurring in your workplace resulting from

one of your or your employees’ activities.

Demonstrating Reasonable Steps

In order to demonstrate you

have taken reasonable steps

some actions could include:

Identifying and assessing

risks;

Taking steps to eliminate,

manage or prevent the risk;

and

Monitoring and reviewing risk

management processes.

Examples of Reasonable Steps

Participating in the development of an industry code of

practice;

Use of accreditation schemes where your processes and

procedures are audited for compliance with the Legislation;

Regularly reviewing your business practices;

Changing your commercial arrangements and including CoR

clauses in all Contracts; and

Adopting a risk management approach to CoR

Compliance &

Codes of Practice

Code of Practice Definition

A Code of Practice is a practical guide to achieve the

standards of health and safety required under

regulations

Codes of Practice provide duty holders with guidance

on effective ways to manage work health and safety

risks.

Key words:

Practical

Guidance

Code of Practice = Practical

Guidance

The new style Codes of Practice:

Specific

Guiding

Educational

Measurable

Consequences/Accountability

New Style Code of Practice

What is a Code of Practice versus a Code of Conduct?

A Code of Practice is “Thou Shalt!”

A Code of Conduct is “It would be nice if you did!”

Why a Code of Practice?

Provides consistency of approach for enforcement and compliance;

Provides a ‘road map’ for smaller companies to comply;

Makes compliance affordable!

Why an industry-based Code of Practice?

Provides industry -wide commonality;

A company has one set of compliance rules with specific segments,

rather than multiple compliance standards.

New Style CoP Strategy

Common Umbrella Code covering ALL Industry Sectors; Industry specifics under ‘Umbrella Code’

Auditable

External Audits; Trained Auditors

Audited to superior standards

Accredited & Certified: Annual External Certification

Quarterly Internal Assessment

Out-of-Cycle External Audits

New Style CoP Strategy

Business Compliance: Business becomes Compliant to the basic Umbrella Code:

Plus……….

Sector specific ‘add-ons’

Growing Business Maintains Umbrella Code;

Additional Sector specific ‘add-ons’

Code of Practice

(Parent)

Forestry CoP

(Child)

Sector Sub Code

- Chipping

- Hardwood

- Softwood

Bulk CoP

(Child)

Sector Sub Code

- Grain

- Sands

- Ore

Agri Bus CoP

(Child)

Sector Sub Code

- Farmer pickups

- Direct delivery

- Farm

Fuel CoP

(Child)

Sector Sub Code

- Bulk

- Gas

- Cylinders

Utility CoP

(Child)

Sector Sub Code

- Electric

- Water

- Gas

CoP Strategy

Umbrella Code: Covers all primary details of Legislation that apply across the

board!

Defined in “Umbrella Matrix”

This is auditable basis for all companies.

Industry Section Codes “Add-Ons” General Freight:

Refrigerated;

Livestock etc

CoP Strategy

Over Dimensional (OSOM): Machinery / Pilots

Bulk: Grains / Minerals / Coal

Dangerous Goods: Tankers / Fuels

Packaged

Gas

Light Truck: Couriers

Food service

Taxi Truck

CoP Matrix

Compliance Systems

A

“cake”

recipe!

What should a Code or System look like?

Compliance

Substance over Form

Or

Form over Substance

Compliance Real processes

Systemic

Simple

Measurable

Accountable

Compliance: Substance over Form

Items that need to be included:

Policy

Procedure

Training

Implementation

Application

Measurement

Accountability

Compliance: Substance over Form

Policy Generic / Motherhood - OK

Procedure Specific (cake recipe)

SOP’s, SWI’s JSA’s etc

Training Technical components of CoR

How the system works

Where to find items

How to use them

Compliance: Substance over Form

Implementation Actually put it into place

Make sure everyone knows

Application Make sure it is actually being applied

Measurement Measure and improver the system

Accountable Set personal KPI’s

Discipline where required

Case Studies

Case #1 – Load restraint

Desk top audit showed: Loading & restraint training with last 2 months

Physical audit showed: 19 loads steel leaving site

All 19 inspected

17 rejected on load restraint failure

6 severe failures

5 major failures

6 minor failures

Knowledge audit: 60 minute training program or 15 loaders and 20 drivers

Case #2 – Mass

Desk top audit showed: Minimal overloads

Corrective action in terms of notices

Physical audit showed: B Doubles on high productivity HML to 68.5t

Notices issued once truck had exceeded 69.5t

No close out on corrective action

400 potential breaches identified

Knowledge audit: Did not understand how HML worked

Case #3 – Sales

Desktop audit showed: Planning and scheduling for sales done as per P&P

P&P - Collaboration and discussion between sales and distribution

Physical audit showed: Sales entered and sent to distribution at COB

Special sales day saw: 180% of normal sales

No discussion with distribution

Orders printing 1 hour after COB

Afternoon shift walked into nightmare

Knowledge audit: Did not understand how distribution worked

Case #4 – Fatigue - 1

Desktop audit showed: Metro distribution

Standard hours worked

No breaches

Physical audit showed: Hours in excess of 12 on busy days “banked”

Hours under 12 on slack days topped up with “banked” hours

Knowledge audit: Did not understand relevance of hours and fatigue

Did not know legal implications of “banking”

Case #5 – Fatigue 2

Desktop audit showed Heavy vehicle long haul + Ancillary work

Standard hours worked - No breaches

Work Diary showed 2 lots of 4-5 hours work

4-5 hours rest between work hours

Pay sheets showed 14 – 15 hours pay

Physical audit showed “Rest” between work was ancillary work not using the vehicle

Knowledge audit Did not understand definition of “Work”

Only driving considered as “work”

Buyer Beware (Caveat Emptor)

Leather Bound; guilt edged !

Different rules in all states

Eastern States System not relevant in WA

WA Rules wider reaching than East

Case Summary

Investigations – When do you want the system to perform?

Internal audit

or

Forensic Investigation Roads Authorities

Police

Coroner

WorkSafe

Tailoring Codes

Tailoring Codes

Secret steps to tailoring:1. Know industry properly

2. Understand profitability

3. Understand capability/capacity

4. Know the law clearly

5. Write it from the bottom up

Fail in any of the 5 above and you will end up with:

Form over Substance

Summary

Chain of Responsibility

Choices!!

Summary

Get involved with Codes of Practice

Make sure your system is Substance over Form

Apply CoR Rules

Policy

Procedure

Training

Implementation

Application

Measurement

Accountability

Questions

Mike Wood1300 008 386

www.latus.edu.aumikew@latus.edu.au

Logistics Risk Specialists

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