The Victorian Government has concluded the public hearing section of its inquiry into Labour Hire. Industrial Relations Minister Natalie Hutchins has said in a media release that
“Evidence has been put to the inquiry suggesting widespread underpayment of award wages, tax avoidance, nonpayment of superannuation, poor occupational health and safety practices, maltreatment of workers and backpackers on visas, and, in some instances, allegations of illegal conduct.”
This article focusses on the occupational health and safety (OHS) evidence provided through the submissions to the inquiry.
Australian Chamber of Commerce and Industry
OHS is clearly referenced in its Terms of Reference but many of the submissions illustrate that interested organisations do not “get” workplace safety or only see safety through Industrial Relations.
The Australian Chamber of Commerce & Industry (ACCI) says it does not
“… endorse poor health and safety practices. However, there are detailed and in many respects, complex laws in place to address improper or unlawful practices.” (page 5)
ACCI then references a suite of legislation including the Fair Work Act and migration laws. This combination is complex, but in the context of safety, the OHS Act has clear safety and health obligations of employers and workers. OHS laws have been purposely written to be clear and understood by the layperson and have copious amounts of plain English guidances, codes and handbooks.
Complex situations are often addressed by reducing the problem to its parts. OHS can be addressed as single component while being aware of the issues on the periphery.
Dr Elsa Underhill
The research work of Dr Elsa Underhill was repeatedly quoted, referenced and supplied by submissions to the inquiry. Her research into the potential health and safety effects of precarious and insecure employment are readily available online with some as attachments to her inquiry submission. Dr Underhill herself made a submission which stated that:
“All studies of labour hire workers and occupational health and safety in Australia and overseas have found that labour hire employees are more likely to be injured at work, compared to direct hire workers in like occupations” (page 4)
“All studies of injured labour hire and other forms of temporary employment, in Australia and overseas, have found that those injured at work are less likely to be offered employment post-injury than permanent employees” (pages 4-5)
The Inquiry asked for evidence and Underhill provides local authoritative evidence on a range of labour hire issues including workplace safety. It is up to the Inquiry how much attention is given to OHS.
Australian Institute of Employment Rights
The Australian Institute of Employment Rights took the opportunity to promote The Australian Standard of Employment Rights which includes specific OHS issues. For those advocating a holistic approach to workplace relations, safety and culture it is worth being familiar with, however this has existed since 2009 and still has a relatively low profile which may indicate its difficulty in cutting through into mainstream consideration (or political favour).
Australian Nursing and Midwifery Federation
Those organisations from the health and medical sectors provided strong arguments, often because they focussed on the inquiry’s topic rather than dusting off an old agenda simply because the inquiry provided an opportunity. The Australian Nursing and Midwifery Federation (ANMF) stated that labour hire produces negative effects on worker safety because there is:
“less access to training and less focus on these employees by host employers…” (page 2)
The ANMF uses this issue as part of their argument, echoed by many submissions, for a form of certification or accreditation for labour hire providers that provides:
- “occupational health and safety training and updates annually
- access to paid professional updates annually (in the case of nursing that they receive at least 2-3 paid days of mandatory clinical education at the expense of the agency)
- adequate induction into any new workplace (including a workplace the worker has not been placed in during the last three months) in respect to safety, technology and work systems.” (page 6)
This type of information or consultation is already a legislative obligation under the OHS Act for other workers and Health and Safety Representatives and should not automatically be seen as an additional cost burden to business.
Centre for Employment and Labour Relations Law & Gangmasters
The Centre for Employment and Labour Relations Law (CELRL) states that
“Currently, there is no legal obligation for host companies to inquire about the work practices of labour hire suppliers, save for the requirement under work health and safety legislation that both host firms and labour hire agencies have a duty to ensure the health and safety of labour hire workers so far as is reasonably practicable.” (page 20)
This is the case in Victoria but would have been different if the Victorian Government had signed up to the harmonised OHS laws that would have placed greater emphasis on the obligation for a due diligence on OHS matters. To some extent the OHS due diligence obligations have bled across the borders through large multi-State organisations but it seems less prominent in Victoria than elsewhere and certainly seems not be used in the labour hire sector.
Significantly CELRL discussed the Gangmasters Licencing Authority (GLA) operating in the UK in the context of licencing the labour hire sector in Victoria. It is useful to note that the GLA emerged as response to the deaths of 23 cocklepickers in Morecambe Bay in 2004. These traumatic workplace deaths were too many to be ignored and the government responded. Victoria has not had such a single disaster on the same scale but the revelation of an accumulated exploitation created the Victorian Labour Hire inquiry (as well as similar inquiries in other Australian States) and licencing will be hard to avoid.
Interestingly the GLA made a submission to this Victorian inquiry which provided a clear outline of the powers that such an authority would require over and above substantial inter-agency co-operation, such as:
- “Power of entry to premises, and to require the production of documents (section 16)
- Examine records in any form of media
- Enter under force to search and seize, with a court warrant, in criminal investigations (section 17)
- Power of arrest for those acting without a licence (in practice this is discharged through joint investigations with the police
- Authority to conduct surveillance, control informants, and obtain specific telephone data from mobile service providers under the Regulation of Investigatory Powers Act 2000
- Initiate financial investigations
- Conduct IT forensic examinations” (page 2)
Such powers in a government-run licencing authority will be hugely unpopular with many employer groups as those groups and their members will be the collateral damage from this response to unscrupulous labour hire providers and their clients.
The UK has found that in this instance, like so many safety-related laws, laws require enforcement, and this is where any regulatory body can be neutered. Opponents could allow such laws to come in but then constrain any authority through a lack of resources limiting its enforcement and influence. Victoria’s Independent Broad-Based Anti-Corruption Commission could be considered a local example of this strategy.
The GLA also referenced the significance of focussing on the supply chain, an increasingly attractive opportunity that is banging heads against corporate ethics. GLA wrote:
“Where workers are supplied the organisations in the supply chain have some specific responsibilities. Where they themselves provide accommodation or transport they will be responsible for its safety. They will also be responsible for negotiating with the labour hire company who provides the health and safety induction training at the site to which workers are provided, and agreeing who is responsible for the provision of personal protective equipment (PPE). Higher in the supply chain we would expect ethical auditors of the supermarkets, etc, to have an increasing awareness of the proper treatment of workers, so that they may identify any areas of concern and ensure they are referred to the appropriate authority for action.” (page 7)
The focus of any complaints from industry and employer groups about the “red tape” generated by introducing licencing should not be to the government that is simply responding to brutal exploitation of workers, but to the labour hire providers and clients who have been turning a blind eye to the abuse.
Master Builders Association Victoria
These submissions were made after the Inquiry released its background paper and the areas on which it required comment. The Master Builders Association Victoria (MBAV) responded to one question posed of OHS relevance:
“What role do labour hire companies play in supply chains for the provision of goods and services? Do other actors in those supply chains have responsibilities towards labour hire workers, whom they do not directly engage?
The major area in which other actors in the supply chain have responsibilities towards labour hire is in regard to occupational health and safety. Ultimately, this rests with the entity having control of the site, being the principle [sic] contractor. The role of labour hire companies in this regard is no different in practice to other subcontractors working on-site.” (page 11)
This is a concise response that fails to address the reason for the Inquiry. How should these issues be addressed when the principal contractor chooses to ignore the law for its own financial advantage? No one has much of an issue against labour hire as a concept and a viable labour supply structure but users exploit the system. Several submissions, like the MBAV’s, fail to address the nub of the reason for the Inquiry, how can people be stopped from exploiting and injuring workers in labour hire arrangements? Too often the response is to trust employers who, largely, do the right thing. But the “largely” is not where the problem lies.
The Future
Victoria’s Inquiry into the Labour Hire Industry and Insecure Work is not yet over. As mentioned above, other States have, or are, conducting inquiries into similar labour hire issues. The inquiries are independent but the Governments’ responses could be (forgive the word) harmonised. This would be an effective countermeasure to those labour hire exploiters who operate across States and would allow for the sharing, if necessary, of resources, a particular advantage for those agricultural areas along the river boundaries of three States.
Coordination of responses would also allow for the enforcement to operate under the National Compliance and Enforcement Policy, administered by Safe Work Australia. Victoria is already reviewing its local policy.
The Victorian Government needs to decide whether a licencing authority is the way to proceed. It is hard to argue against such an authority except on ideological grounds given the evidence produced by Four Corners last year and the submissions already received. However, the introduction of another industrial inspectorate levels the (Labor) government open to accusations of not trusting employers, over-regulating, and creating an “unnecessary” bureaucracy. Accusations the Victorian Labor Party seems to face every time it is in government.
The Victorian Government could introduce the licencing changes into WorkSafe Victoria’s operations as WorkSafe already has an inspectorate, it has recently located to the “rural” city of Geelong, and it should have been inspecting labour hire workplaces already under its OHS powers. But WorkSafe seems far less keen to prosecute for legal breaches than in the past and the labour hire sector will need a great of attention, at least, in the first few years of operation.
The Victorian inquiry’s report is due on May 31 2016.
Kevin Jones
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WorkSafe Tagged:
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