Letter of transmission to Minister
Mission statement and statutory objects
Seacare Scheme Organisational Chart
Legislation administered by the Seacare Authority
Chairperson’s report
Seacare Authority – major initiatives in 2004-05
The Seacare scheme – selected statistics 2004-05
Letter of transmission to Minsiter
The administration of the Seafarers Rehabilitation and Compensation Act 1992 (the Seafarers Act), the Seafarers Rehabilitation and Compensation Levy Act 1992 and the Seafarers Rehabilitation and Compensation Levy Collection Act 1992 (Levy Acts)
In administering the Seafarers Act and Levy Acts, the Authority aims to:
- provide an efficient and effective scheme of workers’ compensation and rehabilitation for seafarers who are injured or contract an illness in the course of their employment; and
- efficiently administer the Seafarers Safety Net Fund.
The objects of the Occupational Health and Safety (Maritime Industry) Act 1993 (the OSH(MI) Act)
The objects of the OHS(MI) Act are:
- to secure the health, safety and welfare at work of maritime industry employees;
- to protect persons at or near workplaces from risks to health and safety arising out of the activities of maritime industry employees at work;
- to ensure that expert advice is available on occupational health and safety matters affecting maritime industry operators, maritime industry employees and maritime industry contractors;
- to promote an occupational health and safety environment for maritime industry employees that is adapted to their health and safety needs; and
- to foster a cooperative consultative relationship between maritime industry operators and maritime industry employees on the health, safety and welfare of maritime industry employees at work.
Legislation administered by the Seacare Authority at 30 June 2005
Enactments administered by the Minister for Employment and Workplace Relations through the Seafarers Safety, Rehabilitation and Compensation Authority, at 30 June 2005:
- Seafarers Rehabilitation and Compensation Act 1992
- Seafarers Rehabilitation and Compensation (Transitional Provisions and Consequential Amendments) Act 1992
- Seafarers Rehabilitation and Compensation Regulations 1993
- Seafarers Rehabilitation and Compensation Levy Act 1992
- Seafarers Rehabilitation and Compensation Levy Collection Act 1992
- Seafarers Rehabilitation and Compensation Levy Collection Amendment Regulations 2003
- Occupational Health and Safety (Maritime Industry) Act 1993
- Occupational Health and Safety (Maritime Industry) Regulations 1995 (as amended)
- Occupational Health and Safety (Maritime Industry) (National Standards) Regulations 2003 (as amended)
Amendments to Seacare scheme legislation, including regulations
There were no substantive amendments to Seacare scheme legislation during 2004-05.
Related legislative matters arising in 2004-05
There were no consequential amendments made to Seacare scheme legislation in 2004-05.
CHAIRPERSON’S REPORT
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It gives me great pleasure to report to the Hon Kevin Andrews MP, Minister for Employment and Workplace Relations, the Australian Parliament and the maritime industry on the activities of the Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority) for the year ending 30 June 2005. This is my sixth annual report since my appointment as Chairperson in September 1999. |
The Seacare scheme is Australia’s only national, industry-based, occupational health and safety and workers’ compensation scheme. It covers seafarers who are maritime industry employees and trainees generally working on prescribed ships engaged in overseas, interstate or intra-territorial trade and commence. The scheme aims to protect and enhance seafarers’ health and safety. Where seafarers are injured it aims to provide for their safe and durable return to work while providing financial security through an efficient and effective scheme of rehabilitation and workers’ compensation. The workers’ compensation scheme is privately underwritten, administered and funded by the scheme’s employers.
During the year, the Minister announced an independent review of the Seacare scheme with broad terms of reference encompassing the scheme’s purpose and objectives, scheme design and coverage, governance and delivery. The conduct of the Review enabled interested persons to make submissions. A fundamental question posed by the Review was whether alternative systems to the existing arrangements would facilitate improved outcomes.
In terms of performance against the scheme’s objectives, I am pleased to report that Seacare has again achieved another year without a work-related fatality. It is now ten years since there was a work-related fatality in the maritime industry covered by the Occupational Health and Safety (Maritime Industry) Act 1993.
I am also pleased to report that on key injury prevention and workers’ compensation indicators the scheme has achieved very encouraging improvements in performance in the year under review, particularly in relation to incidence and frequency of injury measures. Provided the current levels of performance can be maintained, the scheme looks set to achieve the 10 year National OHS Strategy target, being a 40% reduction in the incidence of injuries of one week or more. While workers’ compensation premiums generally increased for 2003-04, the latest year for which premium information is available, it is hoped that the more positive injury performance during 2004-5 will be reflected in lower premium rates in future years.?
During the year, the Authority, the industry and employee representatives have worked together to identify the key drivers of the incidence of injury, to propose remedies and to refine strategies to improve performance. One such example of this process was a close analysis of injury data by working parties at the Seacare OHS conference held in November 2004 and continued by the Authority at its planning meeting in February 2005. The Authority has since agreed to supplement its ‘leaders program’ within its OHS strategy by highlighting good performance within the industry, particularly from employers who demonstrate strong safety leadership and commitment, so that assistance and guidance can be provided by the Authority and industry peers where poor performance is identified.
This continues the theme of the Authority’s Sea Safe-Work Awards. Introduced in 2003 and presented again in 2004 following the November OHS Conference, the Awards form an important focal point for Australia’s maritime industry, particularly in recognising and rewarding the best positive initiatives taken by employers, shipping operators, seafarers and their representatives. The 2004 finalists and award winners are to be congratulated, particularly for their efforts and willingness to share their successes and innovations across the industry. The Authority has agreed to continue the Awards on a biennial basis.
Work has continued on the Authority’s commitment to progressively adopt applicable national OHS standards. The Authority, assisted by its OHS Standards Taskforce, proposed to the Minister during the year manual handling regulations and a related code of practice and has commenced reviewing the next priority area of regulation of confined spaces.
The Authority continued to be responsible for management of the Seafarers Safety Net Fund, which provides a safety net for injured seafarers for whom there is no extant employer against which to make a claim. The Authority sought a revised estimate of the Fund’s potential liabilities, taking into account terrorism risks and possible exposure to asbestos related disease claims. While the Fund is still seeking a commercial reinsurer, it is making good progress towards reaching its present reserve target.
The Authority continues to place a high priority on its communications with the industry. The Authority’s cycle of four meetings were again held in Melbourne, Sydney, Canberra and Fremantle. The Sydney meeting was scheduled to coincide with the Authority’s OHS Conference and Sea Safe-Work Awards and an industry briefing was held prior to the Fremantle meeting, to enable as many industry participants as possible to directly communicate with the Authority and to exchange views on key policy and operational issues.
I would once again like to record my appreciation to all Members and Deputy Members of the Authority who continue to demonstrate a strong commitment to making the maritime industry a safer place to work, as well as showing a compassionate approach to the treatment of seafarers who sustain an injury or contract a work-related disease. I also wish to acknowledge the important role played by the Australian Maritime Safety Authority (AMSA) as the OHS Inspectorate and by the Australian Maritime Industry Compensation Agency (AMICA) as the Seacare scheme claims database manager, and the partner with Seacare in administering the Seafarers Safety Net Fund.
Finally, I wish to record the appreciation of the Authority to the dedicated staff of the Seacare Management Group who support the Authority, ably assisted by the senior executives and other staff in Comcare. I am particularly grateful to Comcare’s CEO and senior executives who represent the Seacare Authority in key national fora such as the Heads of Workers’ Compensation Authorities (HWCA) and Heads of Workplace Safety Authorities (HWSA) meetings.
I commend a study of this report to all persons interested in the Australian maritime industry.
Geoff Gronow ESM ED
Chairperson
September 2005
Seacare Authority – major initiatives in 2004-05
- the Seacare Authority OHS Conference at which the Authority, industry and employee representatives analysed scheme injury data to identify the key drivers of OHS performance, to propose remedies and to consider and propose strategies to improve performance
- the Seacare Authority Sea Safe-Work Awards 2004 recognising and rewarding the best positive initiatives being taken by employers, shipping operators, seafarers, health and safety trainers, and rehabilitation providers to eliminate injuries in the maritime industry and to provide for improved post-injury management
- refinement of the Seacare ‘leaders program’ to enable good performance within the industry to be highlighted so that assistance and guidance can be provided by the Authority and industry peers where poor performance is identified
- continuation of the Authority’s commitment to progressively recommend for the adoption of applicable national OHS standards. The Authority, assisted by its OHS Standards Taskforce, proposed to the Minister during the year manual handling regulations and a code of practice and has commenced reviewing the next priority area of regulation of confined spaces
- improvement to the quality and delivery of Health and Safety Representative (HSR) training by requiring HSR trainers to be registered training organisations (RTO) and for the content of courses to be checked by an Authority sub-committee
- improved management of the Seafarers Safety Net Fund by obtaining updated actuarial advice on a recommended level of reserve for the Fund taking into account exposure of the Fund to terrorism risks and asbestos claims
- continuation of the Authority’s engagement with the maritime industry and its stakeholders including holding its meetings and industry briefings in Australia’s major port cities, publishing its newsletter Seacare News and promoting Sea Safe-Work Day on 28 April 2005
- signing of a Memorandum of Understanding with the National Offshore Petroleum Safety Authority (NOPSA) enabling cooperation and consultation, as required, on OHS matters regarding the offshore petroleum and maritime industries that may affect each other’s roles and responsibilities
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- continued participation in the Workplace Relations Ministers’ Council Comparative Performance Monitoring (CPM) Report and the Australia and New Zealand Return to Work Monitor which is prepared for the Heads of Workers’ Compensation Authorities
- introduction of an online employer reporting facility, Seacare Online, to provide employers with an efficient and fast means of meeting their statutory reporting obligations and to provide the Seacare Authority with timely and high-quality scheme information
Overview of the Seacare Scheme 2004-05 – selected statistics
- There were 4 260 employees covered under the Seafarers Rehabilitation and Compensation Act 1992 (Seafarers Act) during the year working for 27 employers. This equates to a full time equivalent (FTE) value of some 3 459 employees (Source: Seacare Authority)
- The number of FTE employees covered under the Occupational Health and Safety (Maritime Industry) Act 1993 (OHS(MI) Act) was 3 371, working for 26 employers (Source: Seacare Authority)
- The employees covered by the Seafarers Act were engaged on 169 ships – 62 (37%) in the bluewater sector, 94 (56%) in the offshore sector and the remaining 13 (7%) in the passenger, fishing, aquaculture and dredging sectors (Source: Seacare Authority)
- The Seacare scheme injury incidence rate for 2004-05, (the number of accepted claims resulting in one or more weeks of incapacity per 1 000 FTE employees), was 22.55, a significant improvement over last year’s rate of 45.66 (Source: Seacare Authority)
- The Seacare scheme injury frequency rate for 2004-05, (the number of accepted claims resulting in one or more weeks of incapacity per million hours worked) was 5.19, also a significant improvement over last year’s frequency of 10.52 (Source: Seacare Authority)
- There were no work-related fatalities in the Seacare scheme in 2004-05, bringing the fatality free period in the Seacare scheme to ten years (Source: Australian Maritime Industry Compensation Agency Ltd (AMICA))
- There were 48 incidents and one dangerous occurrence reported to the OHS(MI) Act Inspectorate, AMSA, during the year (Source: AMSA)
- AMSA undertook 45 investigations during the year, three of which were in response to incidents reported. AMSA issued nine prohibition and six improvement notices resulting from these investigations (Source: AMSA)
- There were 164 workers’ compensation claims reported to AMICA, a reduction from 208 reported in the previous year. There were 136 claims accepted of which 109 involved lost time. This is well down on the number of accepted claims and accepted claims which involved lost time last year (182; 151) (Source: AMICA)
- Three insurance companies wrote seafarer workers’ compensation business in 2004-05 with most cover being written by two insurers (Source: Seacare Authority)
- The workers’ compensation premium pool or premium income collected by insurers was approximately $13 656 000 in the latest year for which data is available – 2003-04 (Source: Seacare scheme insurers & Taylor Fry Pty Ltd)
- The premium pool in that year was based on a wages/salary pool of approximately $263 400 000 which saw the average raw premium rate across the industry at 5.19% (Source: Seacare scheme insurers & Taylor Fry Pty Ltd)
