Health and Safety Responsibilities of Directors

Jane Nees
BOP Regional Councillor
www.janenees.co.nz

Last week I wrote about the launch of the Institute of Director's Aspiring Director's Award which is now open for applications.

Another worthwhile IoD initiative is the recent launch of the Good Governance Practices Guideline for Managing Health and Safety Risks. This was initiated as a result of the Pike River enquiry which has led to proposed changes to legislation and a recognition that the Board of an entity has a large role to play in ensuring the health and safety of the people in their workplace.

The statistics on workplace accidents are very sobering. Our health and safety record is twice as bad as in Australia. On average, 1-2 people are killed while at work each week in New Zealand. This doesn't include deaths from occupational diseases such as asbestosis. The financial cost of this total picture is estimated at about $3.5 billion per year – and doesn't include the human cost and impact on individuals and families.

As a result of our poor record, central government is setting up a new independent Crown entity called Worksafe NZ to focus on injury prevention and safer workplaces. The proposed legislative changes include a more proactive approach to workplace health and safety assessments, stricter corporate requirements, a stronger enforcement regime, much stronger penalties and an expectation that governance has a big role and responsibility to ensure a safe workplace.

The final shape of the proposed legislative changes won't be clear until July 2013, but in the interim, all members of Boards need to be aware of the best practice guideline developed by the Institute of Directors in partnership with the Ministry of Business, Innovation and Employment. It may save lives and will help address liability and risk around the Board table.

If you have any views on this or any other issue, please contact me on neesj@xtra.co.nz or ring me on 07 579-5150. Or you can check out my website at www.janenees.co.nz

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