No SWMS $450,000 Fine

No SWMS $450,000 Fine

AGL Macquarie (Liddell Power Station) was recently fined $450,000 by the District Court of NSW for failing to have a Safe Work Method Statement (SWMS), resulting in an incident where an employee sustained severe burns.

The incident occurred when an oil cooler in a live transformer exploded due to a long-standing leak, which was assumed to be in a standby position. The Court found that AGL was aware of the risks associated with the introduction of air into the oil cooler, but failed to implement adequate procedures to avoid it. The Court ordered AGL to pay the fine after a 25% reduction for pleading guilty.

The maximum penalty for the offence is $1,766,130.00

The power station has four 500-megawatt steam generator units. Each generator unit has a turbine and three transformers, one of which is a generator transformer. Each generator transformer sits within a transformer tank and is immersed in oil which acts as insulation against the heat produced by the generator transformer.

An extract from SafeWork:

On 12 November 2015, two workers sustained burns when an arc flash occurred whilst they were undertaking maintenance and general inspection work on a transformer at the Liddell Power Station.

Alleged breach
Section 19(1) of the Work Health and Safety Act 2011 (WHS Act), as a person with health and safety obligations prescribed under Section 32 of the WHS Act.

Summary of undertaking:
Activities AGL Macquarie Pty Limited will undertake will include:

  • implementing a skills and competency program for workers
  • benchmarking and tracking of safety culture at AGL Macquarie
  • safety leadership training for AGL Macquarie leaders
  • developing publications that focus on electrical arc flash
  • sharing electrical safety awareness with the broader community
  • supporting safety awards and initiatives within the Hunter Region
  • undertaking an independent audit program

This undertaking has a total expenditure of $1.13 million.

Reasons for accepting the undertaking

  • the alleged contravention does not appear to be a section 31 Reckless conduct category 1 offence, which if it was the case, would preclude the proposed undertaking from being accepted
  • the nature of the alleged contravention and the actions taken by AGL Macquarie Pty Limited in response to the incident are assessed as being appropriate for consideration of an undertaking
  • the strategies proposed in the undertaking have been assessed as likely to deliver long-term sustainable safety improvements in the workplace, industry and community
  • the undertaking addresses the requirements contained within the SafeWork NSW Enforceable Undertakings Guidelines

REFERENCE
Source: SafeWork NSW
Title: AGL Macquarie Pty Limited
Link: https://www.safework.nsw.gov.au/compliance-and-prosecutions/enforceable-undertakings/2018-eu-accordion/agl-macquarie-pty-limited

What’s a PCBU?

What’s a PCBU?

Work Health & Safety (WHS) terminology can be confusing & a particular phrase we get asked about is, what’s a PCBU ? A PCBU, or Person Conducting a Business or Undertaking, is a legal term used in Australian work health and safety (WHS) legislation to describe any entity that conducts a business or undertaking, regardless of its size or legal structure. A PCBU can be a corporation, partnership, sole trader, government agency, or any other type of entity that carries out work activities. It is important to note that a PCBU can also be an individual who conducts a business or undertaking.

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Understanding Workers Compensation Insurance

Understanding Workers Compensation Insurance

In Australia, employers are required to provide workers’ compensation insurance coverage for their employees. This insurance is designed to provide financial support and benefits to workers who have been injured or become ill due to their work. Workers compensation insurance also protects employers from potential lawsuits related to workplace injuries amongst other aspects.

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Injury Management Best Practices

Injury Management Best Practices

Injury management is an essential process for businesses in Australia, as it aims to prevent workplace injuries and illnesses, and manage them effectively when they do occur. Businesses that invest in Injury Management are likely to benefit from a happier, more productive workforce as well as lower workers compensation premiums.


Injury management best practices can include the following:

  1. Develop a comprehensive injury management policy: This policy should outline the company’s commitment to providing a safe and healthy workplace, as well as the procedures for preventing and managing workplace injuries and illnesses
  2. Conduct regular risk assessments: Employers should identify potential hazards in the workplace and implement appropriate measures to eliminate or minimise the risks. This may include providing personal protective equipment, conducting regular safety training, and ensuring that equipment is well-maintained
  3. Encourage reporting of injuries and illnesses: Employers should create a culture of openness and encourage employees to report any injuries or illnesses, no matter how minor. This allows for early intervention and better outcomes for the employee
  4. Provide early intervention and treatment: Employers should provide prompt medical treatment to injured or ill employees, including first aid and emergency medical services if required. This can help prevent the injury or illness from becoming more severe
  5. Develop return-to-work plans: Employers should work with the injured or ill employee, their treating medical practitioner, and their insurer to develop a return-to-work plan. This plan should outline the steps that will be taken to support the employee in returning to work as soon as possible
  6. Provide suitable duties: Employers should identify suitable duties that the injured or ill employee can perform while they are recovering. These duties should be within the employee’s capabilities and be meaningful and productive
  7. Monitor progress and provide support: Employers should monitor the employee’s progress and provide ongoing support and assistance, including regular communication and feedback
  8. Continuously review and improve injury management processes: Employers should regularly review and improve their injury management processes, including policies, procedures, and training, to ensure they remain effective and up-to-date

By implementing these best practices, businesses can help minimise workplace injuries and effectively manage them when they do occur to achieve better outcomes for both employees and employers.

ABILITY GROUP are Injury Management specialists & provide businesses of all sizes across Australia with a variety of affordable Injury Management service options ranging from advice based to outsourced service models.

Contact our team to discuss your needs or for further information, please refer to the following:


Source: WorkSafe

Title: Injury Management: Making it Work

Read Time:


Source: WorkCover WA

Title: Injury Management: A Guide for Employers

Read Time: 5+ minutes


Source: iCare

Title: Injury Management Plans

Read Time: 5+ minutes

Policy/Claim Transfers Begin

Policy/Claim Transfers Begin

Following icare’s announcement in late 2022, from 1 January 2023 icare has increased the number of Claims Service Providers (CSP’s) to 6 partners. The existing CSP’s (i.e. Allianz, EML, GIO and QBE) will be joined by Gallagher Bassett (GB) and DXC later in 2023. The increase in CSP’s is to help ensure both injured workers and employers get the best possible care and support throughout workers compensation claim management process with the transition to new CSP’s having commenced in April 2023.

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