REVIEW OF NATIONAL HARMONISATION OF WORK HEALTH AND SAFETY UNDERWAY. EDITION 3-2014 http://www.mba.org.au/ files/view/?id=594 MASTER BUILDERS EXECUTIVE COUNCIL President – Valdis Luks Treasurer – Frank Porreca Chair, Commercial Builders’ Sector Council – Peter Naylor Chair, Suppliers and Subcontractors’ Sector Council – Grace Ferreira Chair, Residential Builders’ Sector Council – Frank Porreca Chair, Civil Contractors’ Sector Council – Andy Crompton Chair, Professional Consultants’ Sector Council – Hans Sommer MASTER BUILDERS MANAGEMENT TEAM Executive Director – John Miller Deputy Executive Director – Jerry Howard Director Industrial Relations – John Nikolic Senior Management Accountant – Louise MacCallum Senior Manager - Marketing & Membership Services – David Leitch Work Health and Safety Advisor – Philip Edwards MASTER BUILDERS GROUP TRAINING General Manager – Wendy Tengstrom
Master Builders Association of the ACT 1 Iron Knob St, Fyshwick ACT 2609 PO Box 1211, Fyshwick ACT 2609 Tel: (02) 6247 2099 Fax: (02) 6249 8374 Email: canberra@mba.org.au Web: www.mba.org.au
Safe Work Australia with the assistance of consultants KPMG are currently evaluating the impact of harmonised Work Health and Safety (WHS) requirements across Australian states and territories, including the impact on the building and construction industry.
WHS requirements were harmonised across all jurisdictions except Western Australia and Victoria. Harmonisation was adopted by the ACT, NSW, Northern Territory and Queensland in January 2012 and by South Australia and Tasmania in January 2013. Harmonisation has potentially led to a change in business activities to meet new workplace health and safety requirements. KPMG has been commissioned by Safe Work Australia (SWA), the Commonwealth policy body for work health and safety to gather information on the impact WHS harmonisation on businesses in order to estimate the net economic impact of harmonisation across Australia. Interviews with 100 businesses are being conducted by KPMG, under the supervision of Dr Henry Cutler of their Sydney office. Master Builders Australia believes these interviews need to include construction businesses as many of the interview topics relate to the building and construction industry. The interviews will collect information on changes in time and financial costs to businesses associated with changes to legislative requirements under Work Health and Safety harmonised “reform.”
The information collected in the interviews will help to validate the cost and time data collected by SWA in the large national business survey recently despatched by SWA. SWA is keen to determine the cost of harmonisation as part of its review of work health and safety legislation, with the aim of reducing the burden of the law where possible. Master Builders Australia has asked local committees to determine their members’ willingness to be involved in this review.
THE
HAMMER hits the nail on the head!
Around the country, the call for increased consumer protection gets louder on a daily basis. It’s a sad reality that this less controlled environment in which we find ourselves has brought a sinister travelling companion – burgeoning litigation. Why has this happened? Many would argue that regulators have become so reluctant to tackle problems at their root cause that a Medusa-type monster has been created. You cut off one head and another comes back to bite you. Surely the time has come to forget the band-aids and head for major surgery. There is no question that vested self-interest will be hard to contain. For as long as there is a lack of appetite at government and regulatory levels to stop miscreant operators of any type in their tracks, consumers will continue to be knocking at the door seeking better protection. Sadly, they will be blissfully unaware that their plight is getting worse, not better. A spotlight here and there and they will think all is solved. It won’t be, not least of all whilst the current games are played. Constant media highlighting the plight of consumers in their battles against business, big and small, does untold damage to the reputation of the many who do the right thing. The building and construction industry has come in
for its fair share of beltings as consumers have often been left high and dry either on the grounds of poor quality work or in dealing with fly-by-nighters with the business ethics of an alley cat. Regrettably, in responding to the noise, the answer always seems to be to enact more legislation and regulation or increase or implement new fines. When will the authorities learn that this is a zero sum game and the shysters will enjoy the chase while the good guys will become increasingly de-incentivised. Why is it so easy for a business to fall over today and start again tomorrow? How is it that a qualification can be obtained in such a short space of time? Who condones licenses being issued without consideration for experience being offered? Where is the disadvantage in not paying your bills and meeting your obligations? There are just too many unanswered questions! Around the country Home Warranty Insurance schemes have failed because the scrutiny required to support the protection needed was sadly missing. State governments in Victoria and New South Wales are scrambling to redress this situation at great pain and great cost. South Australia and Western Australia are in a state of flux whilst Tasmania just gave up and now don’t know where to go.
In the ACT the Master Builders Fidelity Fund has at least had the wherewithal to say no to those who don’t tick all the boxes. This is being replicated in the Northern Territory with early success. If the business doesn’t stack up or the qualifications and experience can’t support the contract being negotiated, why put both parties at risk? It’s common sense and yet time after time that common sense test is being failed at great cost to the community and industry reputation. Let’s be truthful and accept that there is far too much focus on the rights of the wrong people, those who are more often the perpetrators of the troubles being inflicted on all and sundry. This is a common feature of how society is operating at many levels and it’s a fair bet that most people have made that observation without a great deal of prompting. You’ve got to ask yourself why so many people just love those movies where the bad guys take an almighty fall at the hands of the good guys without the intervention of the law. Maybe it’s just got to do with the failure of the protectors to protect the groups and individuals who just keep getting hammered.
Royal Commission into Trade Union Governance and Corruption begins Hearings of the Royal Commission into Trade Union Governance and Corruption are now underway.
Extensive public hearings into the Australian Workers Union and Health Services Union were conducted in May and June. The Commission is also due to examine the Construction, Forestry, Mining and Engineering Union, including its alleged links to organised crime. The Commission in June published three Issues Papers; and for MBA members interested in particular hearings, the Commission’s proceedings are streamed live at http://www. tradeunionroyalcommission.gov. au/Hearings/Pages/default.aspx Previous hearings are also available.
extent are campaign and election processes transparent? Should there be a cap on expenditure? The papers are available online at www. tradeunionroyalcommission.gov.au The Commission’s CEO Jane Fitzgerald said, "Interested parties, including employers, employees, peak bodies and members of trade unions are invited to comment." Submissions should be made by Friday, 11 July 2014. In addition to the release of the Issues Papers, a series of stakeholder forums
corrupt behaviour to flourish,” he said. “The ABCC was extremely successful in suppressing unlawful industrial behaviour and made significant inroads in tackling the culture of industrial thuggery of building unions prior to its abolition by the previous Labor Government,” Wilhelm Harnisch said. “Master Builders fully supports this Royal Commission despite the discomfort is may cause some employers. Master Builders’ focus is on ridding the building and construction industry of the industrial cancer that has lately
"The ABCC was extremely successful in suppressing unlawful industrial behaviour and made significant inroads in tackling the culture of industrial thuggery of building unions prior to its abolition by the previous Labor Government." Under its Terms of Reference, the Commission is investigating a range of matters connected to the governance, financial management and operation of trade unions and associated relevant entities. The three Issues Papers released for public comment cover: •
The duties of trade union officials and governance arrangements for trade unions and their officials: to what extent are they adequate and effective?
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Whistle-blowers: what processes exist for whistle-blowers wishing to report problems, and how these operate in practice; how effective and accessible these processes are; and the adequacy of current protections for trade union whistle-blowers.
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Practices relating to the funding of trade union elections and the adequacy of their regulation: to what
and meetings will run parallel to the Commission's public hearings. In February Master Builders Australia CEO Wilhelm Harnisch said, “Master Builders will fully cooperate with the Royal Commission and its work.” He said, “The Royal Commission is an important step in reassuring the public that no party is exempt from the rule of law by addressing concerns about unlawful and corrupt behaviour of unions and others,” he said. “The Royal Commission’s Terms of Reference will cover participants in the building and construction industry. “Importantly, the Commission provides a new opportunity to expose the scope and extent of unlawful and corrupt behaviour in industrial organisations. The work of the Royal Commission must occur alongside the restored Australian Building and Construction Commission (ABCC), to combat the culture which allows such unlawful and
become more entrenched,” he said.
“Master Builders is also looking to the Royal Commission to investigate the increasing incidents of criminality in the building and construction industry,” Wilhelm Harnisch said. The Commission is calling for evidence of corruption by unions and union officials. If MBA members would like to provide information to the Commission they can call Master Builders’ IR Department on 02 6247 2099, which can assist in liaising with the Commission. An archive of the ABC’s news items about the Royal Commission can be found at http://www.abc.net.au/ news/topic/royal-commissions The Australian Financial Review has published a useful backgrounder on the issues at stake at the Royal Commission - '7 questions about the Royal Commission you were too
Frequently asked questions
Changes to the ActewAGL Distribution Connection Charges Policy From 1 July 2014 ActewAGL Distribution will be implementing a new Connection Charges Policy that will set out the circumstances in which any request to connect to the ActewAGL Distribution network is processed and whether connection charges are payable by customers and the basis for determining such charges.
Will there be transitional arrangements?
Why is there a new policy?
What are the general principles of the new Connection Charge policy?
This new policy is the result of changes to the National Electricity Rules (NER) and the introduction of National Energy Customer Framework by the ACT Government which requires ActewAGL Distribution to have a Connection Charges Policy which is approved by the Australian Energy Regulator (AER) for the five year period from 2014-15 to 2018-19.
The old policy will operate until 30 June 2014 and applications received by ActewAGL Distribution before this date will be subject to the existing connection charging policies. Applications received after the 1 July 2014 will be subject to the new connection charge policy.
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The application of a cost revenue test for all connection applications.
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The introduction of a shared network augmentation charge.
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The unbundling of connection costs and street lighting costs for estate reticulations.
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The introduction of a pioneer refund scheme.
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The introduction of prepayments and security fees requirements.
What will the policy apply to? •
All new connections to ActewAGL Distribution’s electricity network.
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All modifications or alterations to existing connections to ActewAGL Distribution’s electricity network.
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Any connection request that causes work to be done to the ActewAGL Distribution network upstream of the proposed connection.
Who will be most affected? Generally, more complex projects such as estate reticulation developments, redevelopment projects and Larger commercial developmentslarge developerswill be affected. Most connection applications such as new residential connections will see no major differences. The new policy is designed to bring a more equitable treatment for customers. Overall new charges are designed to be revenue neutral for ActewAGL Distribution. There will be some connection type applications that will be treated differently under the new policy. The changes are described in more detail below.
Has the new policy been approved? Yes, the AER approved the new ActewAGL Distribution Connection Charges Policy on 16th April 2014 to come into effect on 1 July 2014.
What happens to the existing connections policy? The ACT Capital Contribution Code will be superseded on 1 July 2014.
What is the cost-revenue test? The cost revenue test is a calculation that is applied to all connection requests. The cost revenue test compares the estimated cost of a new connection, including any system augmentation costs, against the estimated revenue expected from the connection over a fifteen year period for commercial customers and a thirty year period for residential customers. A capital contribution is only required when there is negative return at which point ActewAGL Distribution will seek an upfront capital contribution, equivalent to the calculated deficit, toward the costs of the connection assets and any required network extensions. ActewAGL Distribution has applied the cost revenue test uniformly to various categories of connections and has streamlined the process for typical connections and subdivisions to derive standard reflective fees. The cost revenue will still be applied to non-standard connection applications.
What types of connection services will have nil or minor changes? The least affected will be new basic connections which are normally urban single/dual occupancy residential or small low voltage commercial customers. Refer to Example 1. These are connections with a maximum demand less than 100 amps per phase and there is minimal or no augmentation required to the ActewAGL Distribution network.
ActewAGL House 40 Bunda Street Canberra ACT 2600 I GPO Box 366 Canberra ACT 2601 actewagl.com.au ActewAGL Distribution ABN 76 670 568 688.
Do you still have a responsibility to ensure all workers at your business or work site have a visa? YES is the short answer. But the good news is there have been some developments which mean you can now structure your contracts to help reduce your liability. Remind me – what are my responsibilities? You may remember MV’s article in Edition 6 of Onsite Insight last year about the amendments to the Migration Act 1958 (Cth) (Act) that came into effect on 1 June 2013. The amendments imposed significant penalties for businesses that fail to take ‘reasonable steps’ to ensure they were not allowing illegal workers to work on their site or in their premises. The amendments meant that if you allowed a person to work on your building site or at your place of business, even if that worker was supplied by a labour supply company, contractor or subcontractor, you were responsible for ensuring that person had the right to work in Australia.
What is the good news? When we first reported on this issue, there was virtually no guidance on what ‘reasonable steps’ were. The good news is that the Department of Immigration and Border Protection has now stated that a ‘reasonable step’ can include contracting with a third party to make them responsible for doing the visa check. That third party can be the entity that is supplying your site or business with the worker. You therefore will be likely to have satisfied the ‘reasonable steps’ obligation if you have added a clause to your subcontracts or labour hire agreements that requires your contractor/labour hire supplier to check the legality of all workers they supply to your workplace. That is, you can push the responsibility down the line, but only if you have a written contract that expressly says this.
How do I ensure my contracts comply so that I don’t get fined? The change will not be extensive – in most cases it will be a matter of simply inserting an additional short clause. The wording will vary depending on the kinds of contracts you use. It would be advisable that you seek legal advice on how best to draft a clause that limits your liability with reference to your specific business model or arrangement. For contractual advice on how to avoid being penalised under the Migration Act, contact Alisa Taylor, Construction Dispute Resolution team at Meyer Vandenberg Lawyers.
Slip Resistance now a major compliance issue Mandatory slip resistance requirements are now applicable and referenced in NCC2014. This guidance note provided by Natspec will assist you in satisfying your compliance obligations. Accidental falls can be attributed to physical factors, such as footwear, surface material, surface contamination, slope, lipped footpath cracks and lighting conditions, which can be minimised or improved through design, installation, maintenance, safety audits, policy and legislation. An individual’s response to environmental factors may also be affected by factors which increase the risk of slipping, for example, age, impaired vision, general health, stress, fatigue, drug and alcohol use and activity eg carrying, pushing, rushing. Design Design consideration should be given to the following: •
Use of space – Is the space a wet or dry area?
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Surface level – What is the gradient and are there changes in level?
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Wear – Polishing action over time may reduce the slip resistance of materials.
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Maintenance – Highly slip resistant products may be harder to clean than smoother, less profiled surfaces and may affect operating costs and appearance of the building.
Selection What actions should a specifier take? •
Use the SAA HB 197 Handbook to identify the minimum pendulum or ramp recommendations for specific locations within and around the building.
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Base the specification on the test method(s) that most closely simulates the normal usage of the flooring. Consider the likely floor surface contaminants and footwear.
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Check that available slip resistance data relates to the specific product being considered. There can be variations within a single product range, such as with colour or size, as well as from batch to batch.
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Consider, in addition to slip resistant flooring, the following: lighting, colour (or luminance) contrast at transitions
between surfaces, handrails, door mats, bath mats, signage, drainage slopes, maintenance policies and rainfall intensity. •
Confirm that the specified product meets the performance criteria and document the process to provide evidence of due diligence.
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Consult with an independent specialist if appropriate.
Verification AS/NZS 4663 concerns the measurement of the frictional characteristics of existing pedestrian surfaces in wet and dry conditions. It is important to note that Wet/barefoot ramp test and Oil-wet ramp test cannot be conducted onsite to verify the initial documented slip resistance. Only the Wet pendulum and Dry floor friction tests can confirm the onsite performance. Relevant NATSPEC worksections include prompts for specifying these field tests at the date of practical completion as a means of recording a bench mark value against which post contract deterioration, due to wear and cleaning methods, can be compared. Reports have emerged of instances of ceramic tiles, selected for having a classification of minimal notional contribution to the risk of slip, which, over a short period of time, deteriorated to such an extent that they were re-classified as potentially being a major contributor to the risk of slip. Accelerated wear testing, now available, may provide a useful indicator of the potential reduction in slip resistance over time. This process involves subjecting the floor sample through a number of cycles of wear in conjunction with wet pendulum testing. The number of test cycles may vary with the organisation performing the test. Since pedestrian surfaces react differently to various wear mechanisms and exposure conditions, there is no single accelerated wear test method that will reliably apply to all materials and situations. For more information visit www.natspec.com.au
ATO encourages employers to prepare for SuperStream The ATO is encouraging employers to prepare for the introduction of SuperStream which will change the way they make superannuation contributions in the future. In cooperation with their service provider or default fund, employers can opt-in to use SuperStream from as early as 1 July 2014.
“SuperStream is one of the most significant improvements to the compulsory superannuation system since its inception 20 years ago.
The ATO expects most large and medium employers will implement SuperStream between July and December of this year.
“All employers need to introduce changes in the way they currently make super contributions; although some who are already working electronically or have a clearing house partner will find these changes are relatively minor.”
SuperStream introduces a new standard for all employers which involves making super contributions electronically with linked data and payments. All super contributions are treated in the same way – whether sent to a default or choice fund, an APRA fund or self-managed superannuation fund (SMSF). “The main benefit for employers is that the SuperStream standard will simplify the employer experience and reduce costs by eliminating unnecessary variation and complexity that has crept into the system over recent years,” Mr Philip Hind ATO’s National Program Manager, Data Standards & E-Commerce (SuperStream) said. The improvements mean employers will increasingly find that they can use a single channel when dealing with super funds, regardless of how many funds their employees contribute to. “The need for reform of Australia’s superannuation system was highlighted in the 2010 Cooper Review which found the existing processes made poor use of technology and there was no consistency in the data required and how funds deal with contributions,” Mr Hind said.
The ATO is focused on awareness raising, education and support for employers during the first few years of SuperStream as the new standard is adopted. “All large and medium-sized employers need to prepare now to ensure they’re ready to transition to SuperStream at the earliest available opportunity,” Mr Hind said. “The ATO will provide flexibility and support to employers making a genuine attempt to comply with their obligations under SuperStream. This means you must have in place firm implementation plans with your service provider or default fund including a proposed completion date. A large or medium employer must complete their implementation by no later than 30 June 2015.” Small employers (those with 19 or fewer employers) have another year before they commence using SuperStream, starting from 1 July 2015 but completing their implementation by no later than 30 June 2016.
What’s more important than your health? ACT Medicare Local (ACTML) is the ‘backbone’ organisation for the Canberra community’s health and wellbeing. We’re a non-government organisation that has worked closely with local general practices for over two decades. We’re also introducing innovative new primary health care services. We encourage Canberrans to form an ongoing relationship with a local family doctor as having a GP you see regularly and trust, even if you’re fit and well, often leads to better health outcomes. Your general practice becomes your ‘health care home’ for a broad range of issues including health prevention which is easy to ignore, but important. These days, general practices house not only your GP but nurses and allied health providers such as psychologists and nutritionists. And if the ‘team’ isn’t under one roof, chances are your GP will have strong links with nearby allied health services like physiotherapists and pharmacists. Mild to moderate anxiety and depression are very common in our modern age. If you feel like you need someone to
talk to and think you may have mild to moderate depression or anxiety that you would like to ‘nip in the bud’, you can access free support from one of our trained coaches. Funded by Movember and beyondblue, our NewAccess Program has a small team of coaches who will help point you in the right direction, set practical goals and help you get yourself back on track. You can call the program directly on 02 6287 8066 and arrange for support by either meeting your Access Coach in person or over the phone. ACTML is providing free workplace information sessions about NewAccess. You can invite your staff to an information session so they can learn more about the program and take home information for themselves, a friend or family member. If you’d like an information session held in your workplace, please contact Judy Gleeson, NewAccess Marketing Advisor, ACT Medicare Local on 02 6287 8007 or j.gleeson@actml.com.au
COMING EVENTS FOR 2014 Master Builders ACT Annual Dinner
Date: Thursday 16 October 2014 I
Master Builders ACT Annual Charity Golf Day
Date: Monday 17 November 2014 I
Where: National Museum of Australia, Acton
This year the Master Builders ACT Annul Dinner will be held at the National Museum of Australia in Acton. The Annual Dinner is the Master Builder’s premier networking event, where industry comes together for a social and networking evening. This function provides an annual forum for the industry to take stock of its performance and to consider the outlook for the coming year. Where: Federal Golf Club, Red Hill
The Master Builders ACT Annual Golf day will again this year be held at the Federal Golf Club in Red Hill.
TRAINING DATES FOR 2014 ASBESTOS AWARENESS (The new regulation will take effect from 1 July 2014, with all workers effected by the regulation need to be trained by 30 September 2014)
There are a number of available dates. (Contact Cecilee Miller at cmiller@mba.org.au to book your place, or visit www.mba.org.au/training The aim of this course is to provide participants with an awareness of the hazards and health effects of asbestos and its possible location in ACT homes and the community. Under the current Work Health and Safety ACT an employer must provide information and training to protect all persons from risks to their health and safety arising from their work. MBA Group Training will be running this half-day course through to December.
SECTOR COUNCIL MEETINGS 2014 COMMERCIAL
12 AUG
14 OCT
CIVIL
2 SEP
7 OCT
RESIDENTIAL
8 OCT
10 DEC
SUB-CONTRACTORS & SUPPLIERS
19 AUG
29 OCT
PROFESSIONAL
13 AUG
8 OCT
2 DEC
10 DEC
ACT PRIVATE SECTOR BUILDING ACTIVITY $100
MILLION
$80 $60 $40 $20 $0
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
The above graph and table below summarise private sector building activity for the various building sectors in the ACT over the past 12 months. The values for each month are depicted in millions of dollars.
// To Insert New Data Goto Object/Graph/Data • Copy and Paste Pivot Table Data into Data May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14
Additions and Alterations (Residential) Commercial Building Work Garages, Pools, Decks and Similar Structures Multi Unit New Housing
5.02 24.3 13 18 51.2
7.4 35 12.5 28 69
6.3 27.5 13 43 55
4 22.3 13 32.6 60.2
13 45 22.2 17.3 60
3.4 24 5 13 14.2
11 41 9 84 32
7 24 12 35 32
4.7 26 12 56 62
6.8 48.2 3.4 4.6 51
4.6 61 12 22.5 52
5 55 10 18 50