Gillard unveils Labor OHS policy

A Labor Federal Government would seek to accelerate harmonisation of OHS and workers’ compensation regulation through a more empowered national body and financial incentives to the states and territories to adopt reforms. The concept of ‘cooperative federalism’ is proposed in distinction to the Liberal Government approach of ‘aspirational nationalism’.

The Shadow Workplace Relations Minister, Julia Gillard, this week unveiled these measures as part of the policy of the Labor Party on OHS, at a Safety Institute of Australia seminar in Melbourne.

The key elements of the policy are:

• building a model for uniform legislation and regulation, with the fundamental elements agreed through an appropriate consultative process
• achieving uniformity in state and territory workers’ compensation legislation, particularly in definitions of employee, disease and other common terms and mutual recognition between jurisdictions of meeting process requirements
• harmonising OHS regulation by consistent definitions, procedural and reporting requirements in each jurisdiction
• empowering an independent body to direct policy and process development, rather than to merely ’coordinating, monitoring, promoting and recommending’
• providing financial incentives to reward state and territory governments that implement reforms, while using the Productivity Commission and COAG Reform Council to ensure accountability of the Federal and State Governments, and
• taking a strong stance against the use of OHS to pursue unrelated industrial relations matters.

Ms Gillard referred to the ’slippery slope of migration to Comcare’ as a move by stealth towards a national system, without addressing the fundamentals needed to make such a system work. The Labor policy is said to support national uniformity while addressing those fundamentals.

The very similar position of the ACTU was put at the same seminar by Jarrod Moran who noted that the ACTU is not against a national system in principle, but that Comcare is an inappropriate vehicle for it. The ACTU would want to see a national system built ‘from the ground up’ through a lengthy consultative process.

Significantly, this policy will not require legislation to implement other than as necessary to empower the central body. It will, however, rely on cooperation between all governments, supported by all stakeholders—industry, unions and the professions. Political and parochial interests will need to be subdued for this to work. Current slow progress through the Australian Safety and Compensation Council suggests that this will not be easily achieved.

Process employed over the last decade or more towards harmonisation have demonstrated that there is considerable ‘devil in the detail’ and the process of tripartite consultation can be a lengthy and unfruitful one. This policy does not suggest a move toward the more blunt instrument of legislation, although it does not close the door on that.

Implications for employers

This policy confirms there is bipartisan agreement in principle to the need for harmonisation, to reduce confusion and administrative burdens on employers. The parties effectively differ only as to the means by which this will be achieved.

Significantly, the policy leaves open the potential for a national system to be introduced if harmonisation is not achieved through cooperation.

Employers operating across state boundaries will ultimately benefit from a reduction in ’red tape‘, while workers will have the same rights and protections wherever they may be.

Importantly, true harmonisation cannot occur without a softening of the more severe elements of some legislation, most notably overturning the reverse onus of proof in New South Wales where companies and officers are guilty unless they prove themselves innocent.

The rate of progress and the outcomes achieved in the harmonisation process will depend on the level of drive and participation of the stakeholders. Employers can influence this directly or through industry associations.

For more information on the policies of the parties or the various initiatives currently in place for the harmonisation of OHS and workers’ compensation legislation please contact

Name : Barry Sherriff
Title : Partner
Office : Melbourne
Phone : +61 3 9288 1462
Fax : +61 3 9288 1567
Email : barry.sherriff@freehills.com