Dr. Elsa Underhill, Deakin UniversityProf. Michael Quinlan, UNSW

Improving the effectiveness of OHS regulation in the temporary agency

sector through enhanced host-supplier relationships

PDR model: Risk factors associated with Insecure and contingent work

Effort/Reward Effort/Reward PressuresPressures

DisorganizationDisorganization Regulatory Regulatory FailureFailure

Spill-over Spill-over EffectsEffects

Insecure jobs (fear of losing

job)

Short tenure, inexperience

Poor knowledge of legal rights,

obligations

Extra tasks, workload shifting

Contingent, irregular payment

Poor induction, training &

supervision

Limited access to OHS, workers comp rights

Eroded pay, security,

entitlements

Long or irregular work

hours

Ineffective procedures &

communication

Fractured or disputed legal

obligations

Eroded work quality,

public health

Multiple jobs(may work for

several employers)

Ineffective OHSMS /

inability to organise

Non-compliance & regulator oversight (stretched resources)

Work-life conflict

MethodsStratified sample of injured workers• Investigated workers’ compensation claims in Victoria;

198 agency & direct hire matched by occupation & year of injury (1994/95–2000/01)

Statements from injured workers, witnesses, employers & host supervisors, medical reports

Focus groups and survey of agency workers• 147 surveyed, mostly blue collar• 5 Focus groups in Melbourne & regional Victoria• Mostly blue collar, plus call centres, health sector

Study of OHS experiences of agency workers

High levels of employment & income insecurity• Irregular hours (27% of injured workers) & irregular income• Eg. storeperson – average weekly wage A$276 but ranged from

A$105 - $621 over 15 weeks• 45% never/rarely had continuity of placements • 32% different hourly wage dependent upon host

Interchangeable - easily & quickly replaced• “He asked his supervisor if he could take 2 days sick leave.

The supervisor told him that if he could not come to work for 2 days [the host] would have to replace him with another worker…” (process worker, notwithstanding 6 months into a placement

Explaining the risk: economic and reward pressures

Work with injuryI kept working and put up with the pain which was worse when I

stopped and I didn’t mention it to anyone at the time as I was concerned my job would be terminated…I needed the money and didn’t want to attract attention by wearing a brace.” (process worker)

Accept work intensificationWe’ve had labour hire guys pass out, working hard…was stifling hot

up there (3rd level, warehouse) …they were under the impression they wouldn’t get hours, so they went flogging themselves then they passed out (storeperson, distribution, focus group)

Perform more hazardous tasks The permanent staff here always get priority on the better shifts…

certain jobs are regarded as easier than others, and the permanent and host casuals get priority on those ahead of the agency… (storeperson, distribution, focus group).

Contributing to workplace risk: economic pressures

Characteristics of agency workforce & placementYounger workers (more than double direct hire

but older workers injured earlier in a placement too)

Lack of familiarity with workplaceInexperienced and/or underqualifiedPoor person-job matchFractured communicationUndermining of OHS management system

Explaining the risk: Disorganisation

Agencies assume unskilled tasks can be completed by anyone

…appears the claimant is not physically suited to the work she performs…she told our investigators she has always been prone to back pain from bending and lifting… (25 year old, back injury)

Hosts assume agency has supplied appropriate worker No time allowed for physical adjustment, for host specific training

Agencies incorrectly match general trade qualifications with specialised skill needs

…I looked over and thought he looked a bit uncertain about what he was doing… (20 year old, electrocuted performing equipment maintenance

Pressure to fill placements quicklyAgency can easily dismiss & replace when inappropriate workers supplied

Disorganisation: Poor person-placement match, low/unskilled workers

Too little…He’s not been given any specific lifting technique

training, although we have a policy of continual safety training…

When I started my only training with the pump was being shown the on/off switch and the reversing procedure…

Or irrelevant…… the social club, history & expansion plans, other

locations…etc. etc.Insufficient knowledge to make safe decisions

Disorganisation: Inadequate training

Lack of knowledge by agency workersEg. not knowing to report injuries

Exclusion from host systemExclusion from workplace specific OHS training

and subject to different OHS practicesEg. forklift driver injured when he slipped on

greasy step of a forklift. … Each driver is responsible for the ongoing cleanliness

on a daily basis of any fork he is using. While permanent employees of the company use the same forklift each day, casuals can swap and change from one fork to another during the course of the day depending on the type of work being undertaken… (claims investigator).

Disorganisation: undermining host OHS management system

Most examples provided are also examples of lack of compliance

Placements involving high risk tasksLack of, poor standard of trainingFailure to respond to OHS issues Dismissal for raising issuesUnderpinned by:

Vulnerability to dismissal – weak employment protectionLarge number of small agencies & ability to avoid prosecutions

Regulatory failure: culture of non-compliance

A study of options for improving compliance within constraints of existing legislation

11 focus groups, metro & regional Qld

5 of hosts, 6 of temporary agency employers

3 semi-structured interviews with union officials

62 participants

Construction, manufacturing, distribution / warehousing, health services, mining, mineral processing, pastoral & agriculture

What works to safeguard the OHS of temporary agency workers?

What measures would improve their safe placement?

How can regulatory agencies enhance their activities to secure safe placement?

Emphasis upon improving existing practices

What works to safeguard the OHS of agency workers? Large agencies & hosts Strategic & comprehensive approach to

placements & OHSAdvanced planning of placementsAvoidance of short-notice placements Avoidance of high risk placementsRisk Assessments performed by OHS qualified staff

Long term relationships between hosts & agenciesEnhanced understanding of placement

requirementsBetter access to host workplacesBetter communication

Hosts promoted better practices amongst agencies (esp. regional areas)

What works to safeguard the OHS of agency workers?

I invite the agency out for a tour of the factory so that they can understand what I need in a work…they get to see the whole factory operating under normal circumstances…and then they can select more suitable candidates

Like a partnership. They’re not just supplying a service; they’re actually involved with the ongoing function of the workers in the workplace…

But problems remain re:Hosts moving workers without prior noticeRisk assessmentsAgency labour turnoverAgency reward / incentive systems

What works to safeguard the OHS of agency workers? Small niche suppliers

Specialised by occupation (but not necessarily specialised skills)

Better understanding of host needs

Better communication

Better understanding of specialised staff needs

Longer term relationships with their employees

What works to safeguard the OHS of agency workers? Problem groups….

The “don’ t care” small suppliers & hosts

No background, no knowledgeI don’t think it is an ambiguity around what they’re reading. They’re just not reading. There is no exposure to it.

Calculated avoidanceSend us the fittest of your fittest, young blokes that aren’t broken. And when we finish with them, and they’ve got problems later in life, they’ll be some else’s issue

Ease of establishing operations & ability to respond to host requests at short notice

Hosts can always find an agency willing to supply on these terms

Other facilitators & barriersFacilitators: Pre-placement risk assessments, job safety analysis

But concerns re competence for on-going monitoring & assessment

Regular interaction & worksite visits, extending to involvement in host OHS committeesBut interaction with workers potentially impeded by hosts’

attitudes towards workers

Barriers: Insufficient information regarding placements supplied by hosts

It’s easy enough to get the qualifications, formal qualifications & licensing but it’s far more difficult if you’ve got to be thinking in terms of what kinds of experience does the person have to have had to be able to do that work?

Growth of ‘hold harmless’ clauses (agency accepts host’s costs of injuries)

Less stable work environments eg. construction, home care

How can regulatory agencies enhance their activities to secure safe placement ?

Registration/licensing for temporary employment agenciesMinimum requirements eg. All agency staff involved in

placements hold OHS qualifications Mechanism for provision of information by regulators –

checklists etc. Mechanism for information/education, and prosecution

purposes

Develop check lists for use in selecting hosts/agencies

Promote more strategic approach by agencies & hosts Encourage planning; stronger relationships between agencies

& hosts etc.

How can regulatory agencies enhance their activities to secure safe placement ?

Encourage inspectorate to identify whether TAW present during all site visits & assess adequacy of arrangements

Prosecute for breaches of processes, irrespective of injuries Eg. not conducting risk assessments; moving placed workers

to new tasks without advising agency or undertaking risk assessment; hosts not providing adequate detail in job specifications

Targeted campaigns – information, education followed by audit program & then prosecutions (by region & by industry) ‘safe’ niche suppliers show small does not have to be high

risk

Prohibit hold harmless clauses

ConclusionLong-term relationships between agencies

and hosts have clear OHS benefitsQuestions to be resolved?

Is long term planning consistent with agency work?

Can intense competition between agencies be overcome by means other than regulation?