ecompliance
 
eCompliance

Government and Provincial Incentives

 

 

 

 

Non-compliance under Bill C-45 is now a crime

 

 

Since the promulgation of Bill C-45 in March 2004, the Canadian Criminal Code requires directors, officers, and corporate decision makers to "take reasonable steps" to protect workers or other persons against bodily harm arising from work. It now includes all individuals who direct work, or who direct how work is to be done in the workplace. Bill C-45 creates a legal duty to protect workers, a person can also be found guilty of criminal negligence if they "omit to do anything", in terms of section 219(1) (b) of the Criminal Code.

In order to limit exposure under Bill C-45, organizations must prove due diligence by demonstrating that they have taken "reasonable steps" to protect workers.

Tough penalties established by Bill C-45 help to ensure that any punishment matches the seriousness of the crime. The maximum fine for minor convictions is $100,000 and there is no set maximum fine for a more serious offence. In the case of a death, the maximum penalty for an individual convicted of criminal negligence is life imprisonment.

OHS laws, government initiatives and incentives

 

 

Occupational Health & Safety (OHS) regulations in Canada are greatly decentralized. The federal OHS Act covers employees of the federal government, employees of Crown corporations and employees of enterprises that operate across provincial and international borders such as airports. Each province and territory has similar legislation in their labour code, which cover employees in their jurisdiction1.

Provincial governments are becoming increasingly involved in promoting and driving OHS awareness and performance initiatives. Some of these initiatives are the Partnerships Program in Alberta, WorkSafe in British Columbia; and Workwell and Safety Groups Program in Ontario. Some of these initiatives are linked to financial incentives and to the workplace insurance boards. In Alberta qualifying organizations can earn a rebate of up to 20% on their annual workplace insurance premiums and in BC and Ontario up to 5% and 6% respectively.

The significance of these incentives is demonstrated by the fact that in 2007 more than 6,866 employers in Alberta registered for the Partners in Injury Reduction (PIR) program and qualified for rebates by obtaining a Certificate of Recognition (COR) and shared a record $73.4 million in rebates based on their 2006 performance.

Increasing number of voluntary OHS standards

 

 

Various OHS standards are in existence or are being developed to assist organizations to meet their OHS program requirements. Some of the most prominent standards are:

  • The Partners in Injury Reduction (PIR) program developed by the Alberta Employment, Immigration and Industry (AEII).
  • Canadian Standards Association (CSA), CSA Z 1000-06 (Published in October 2006).
  • Occupational Health and Safety Assessment Series (OHSAS) 18001.
  • International Labour Organization's (ILO), ILO-OSH 2001 - guidelines on occupational safety and health management systems.
  • American National Standards Institute (ANSI) Z10 standard.

 

 

Organizations that build and maintain an OHS program in compliance with one of these voluntary standard will have an easier onus to successfully prove due diligence in defense if they were indicted under bill C-45. This requirement to comply is also reinforced by various other incentives including:

  • Improvement of the mitigation and management of the health and safety risk to workers.
  • In certain industries organizations that do not hold a COR may be excluded from bidding on projects.
  • It shows good corporate governance.
  • Reduction of operational risk.
  • Mitigation of legal and criminal liability risk.
  • It drives continuous improvement.

 

 

High work-related fatalities in Canada

 

 

Canada has the highest industrial fatality rate of all developed countries. According to data collected by the Association of Workers' Compensation Boards of Canada, 1,097 workplace fatalities were recorded in Canada in 2005, up from 758 in 1993. As Canadians work on average 230 days per year, this means that there were nearly five work-related deaths per work day in Canada.

Unacceptable injury rate among young workers

 

 

In Canada, one in seven young workers is injured on the job. At a level of nearly 110,000 young people injured in a year, this means that those aged 15 to 29 represent approximately one in four injured workers. Although progress has been made in reducing overall injuries and fatalities, the pace of improvement has been slower for this vulnerable and important group - namely, young workers.

Changing needs of an aging workforce

 

 

Older workers, which now make up a higher percentage of the entire workforce, bring different demands to the workplace. Better planning is needed to manage the cases where elderly employees with poor eyesight, reaction times and physical strength have to be accommodated.

Requirements of a growing multi-cultural workforce

 

 

New approaches are often needed to accommodate language and cultural differences to effectively train and instill the importance of OHS as an integral part of their work duties.

Use of outsourcing, part-time and contract workers

 

 

New challenges have arisen in binding contract workers to the same OHS culture of permanent full-time employees Potential problems are exacerbated by the pace of change due to the introduction new technologies and increased production demands.

Challenge of on-the-job stress

 

 

The rise of psychosocial stress in workplaces is estimated to cost Canada $20 billion annually as a result of lost productivity and increased illness and injuries. New strategies to reduce stress are thus urgently needed and should be built into an organizations OHS program.

Rise of small businesses

 

 

The rapid growth of the small business segment in Canada brings new workplace safety issues. Today about 43% of all Canadian work in organizations employing fewer than 50 people 2 and nearly 80% of all new jobs are created in small enterprises in the service sector. This is the sector has been identified as an area where health and safety practices need significant improvement.

Legal Prosecution

 

 

One of the most significant factors that drive the OHS industry and individual organizations is the threat of penalties and prosecution resulting from non-compliance with local and federal OHS legislation, regulations and codes. Non-compliance can result in:

  • Crippling financial penalties under OHS laws.
  • Legal liability.
  • Criminal liability (which include possible imprisonment under the provisions of the Canadian Criminal Code as amended by Bill C-45)3.
  • Reputational damage, as all transgressions are published.

1Parallel to the OHS acts are the workers' compensation laws. While the OHS acts concentrate on prevention, the Workers' Compensation Boards in Canada play an important role in providing insurance and benefits in cases where prevention has failed and workers are injured or killed.

2As reported in BMO Financial Group Economic Study released October 23, 2003.

3We believe that the first successful conviction under Bill C-45 will put even more pressure on organizations to ensure that their "OHS house" is in order.

 

 

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