The Challenges of Injury Management for The Good Employer

2015

Bernadette GouldingSenior Advisor, Health & Workers Compensation

Disclaimer – This presentation has been developed based on B Goulding’s knowledge & experience and does not necessarily represent the views or positions of Carlton & United Breweries or SAB Miller

Objectives :

• The pitfalls of being a good employer• Balancing work and workers compensation• Building trust, retaining talent, letting people go with

dignity

A Good Employer

– Well known brand– Honest, has integrity– Reward & recognition– Develops it’s employees– Is a responsible community partner

‘An Employer of Choice is one which maximises the full potential of their workforce through practices that demonstrate effective employee recruitment, engagement and retention’

Australian Business Awards

CUB – A Good Employer

Well known brands

Honest, has integrity

Reward & recognition

Develops it’s employees

A responsible community partner

Pitfalls

‘In a time of exponential globalisation, the key to Australia’s sustainable competitive advantage is diversity’

MM20% will develop mental illness50% will develop cancerInability to cope with change‘Been there, done that’Capped average weekly earnings$120,000 averageNo other historical employer – IME ?Hearing & degenerative claims impactLimited prospectsCUB is their extended family –‘It’s so hard to say goodbye’

Highest WC Premium Workplace

• 95% are male • Average age is 55 years• Average length of service is 30 years• Regular OT with shift penalties• Average age of workers compensation claimant is 55 years• High % of employees with English as a Second Language• Generous VR package expectations, reluctance to voluntarily retire• Employ workers with all types of disability, including mental illness• Generous personal illness provisions for up to 15 months • Sole remaining manufacturing site in Victoria (Succession applies)

Victorian Injury Findings (RTW Network)

• Injury & claims rises with age• Serious injury risk increases with age• Risk of work-related fatality rises with age• Older workers take longer to return to work• Cost of injury by age segment

– Sprains/strains $73,139(< 45) and $141,377(> 45)– Stress $14,284(< 45) and $96,317(> 45)

• The risk of injury to males from manual handling and noise increases with age

• Medical costs increase with age• Number of days lost due to an injury increases with age• At 12 weeks employees have a 50% chance of returning to work, for

over 55 year old workers, this may be as little as 25%

CUB Injury Snapshot• lower back strains/disc degeneration or prolapse

– repetitive manual handling– occasional manual handling (trouble shooting)

• degenerative conditions of knees – historical handling of kegs – Getting on and off forklift

• ‘no incident’ hernias – Packaging lines

• Plantar fasciitis and heel spurs – Prolonged standing for 30 years

• Rotator cuff tears– Repetitive manual handling– forklift driving

• Epicondylitis– forklift driving and repetitive manual handling

2007-2011 Claims

• 200+ claims over 5 years• 37% of claims - industrial hearing loss• Degenerative back & knee injuries most common• 70% of accepted claims had no “incident”• > 50% of claimants had multiple degenerative workers

comp claims within past 3 years• 75% of claims were for aggravation of a pre-existing

degenerative condition• 80% of total claims cost attributed to ex employees

Succession Schematic

Losing the battle between workplaces• Qld younger & fitter • Vic – know the system • Date lodged VS Date of Injury• Succession• Hearing claims• Qld more rigorous with

degenerative conditions

500% higher -Victorian workers compensation premiums five times higher than

Queensland

Balancing Work & Workers Compensation

• Worker expectations• Authority’s expectation • Valued - Great technical skills• Limited external options• It’s hard when you’ve known

them 30 years

• Multiple claims + high PIAWE = capped claim

• Other workers have to cover modified duties – forever?

• High risk of further or additional injuries is high

• Duty of care to others

The R.I.G.H.T. Way• Resilience

• Increased Resilience training• UK HSE Management Standards Approach

• Injury Management• Early (but realistic) intervention• MIW – Expert advice to keep workers working• If unsuccessful - supported medical termination with dignity

• Giving Back• Red Cross Blood Donations – Red 25• National Heart Foundation• Beyond Blue• WWF

• Health• Partner with the National Heart Foundation

– Annual – health checks– Onsite Physiotherapy at major sites– Walking 10,000 steps & Online nutrition & coaching

• Training• OHS (PERFORM, hearing conservation, Fatigue, Stress)• Occupational rehabilitation alternatives• Finance – Retirement planning• Access DEEWR 45’s & >55’s programs

Building Trust & Retaining Talent

Fair and transparent processCase by case basis, take all sides into accountAlways treat workers with respect and acknowledge serviceTake every opportunity to learnMake sure there are ‘Blue sky moments’Holiday, white goods or $$$ bonus – great!! Looking after them during hard times – Priceless

Manage with Dignity & Without DiscriminationAn IM neutral risk management approach to:• health and safety • Injury management• Workers compensation

IM Process is :• Developed in consultation with stakeholders• Includes upskilling RTW, claims managers, WAMs• Documented and applied consistently• Acknowledged efforts and avoids blame• Exceeds standard obligations of employment requirements

Seek advice :• AIG / VECCI• Legal advisors who represent YOUR interests• Medical – IME, Psychologist and VA• DEEWR and WorkCover options

Is fair, just and reasonable .. And consistent and documented

Neutral IM Process•Day 1 Early intervention, IME or IPA•3 Months IME / IPA / FCE•6 Months IME / VA /IPA / FCE•9 Months IME and review suitable duties options•12 Months Review employment options including supported outplacement

Employee is recognised for service and effort at every opportunity. Consider IPA in early intervention to gain understanding of psychological fitness, capability and a vocational assessment baseline

Consider ceasing employment if -- if unable to perform the inherent requirements of the role after 12 months- risk of further injury is significant or adverse work area impact on co-workers and business

needs

• No surprises• 2-3 meetings to ensure right of reply• HR provide benefits/entitlements advice

2015 CUB Picture • Lowest number of claims on record• All employees currently fit for full time work• 2 employee on modified duties• Decrease in ex employee claims• Upskilling gradually to increase rotation opportunities • IM reporting monthly - line of sight for all levels of management• Under 30% capped premium despite ex claimsWhilst successfully returning the majority of employees to pre injury duties post back surgery, heart surgery, secondary cancers and a variety of mental illnesses Allowed the few employees unable to return to pre injury or suitable duties to leave CUB with dignity often with ongoing support for the foreseeable future

Summary

1.

• With increasing change, there may not be a ‘job for life’ anymore• For CUB, Workers compensation most challenging in Victoria• Develop your own ‘Right’ Way to move from Expectation &

Entitlement to Ownership• If it’s not working, minimise harm, preserve dignity and explore

other options• Get expert advice and take care of yourselves too

Thanks !