BUSINESS HEALTH & SAFETY COLD EYE’S REVIEW

BENCHMARK AGAINST“WHAT DOES GOOD HS LOOK LIKE”

Steve McFadden: HSE Strategic & Technical advisor

EXECUTIVE SUMMARY

SM Consulting was asked to undertake a Cold Eyes Health, Safety and Environment Review of Watson and Son.

Scope of work involved, data and incident review, key documentation reviews, site visits and key stakeholder interviews

Sites were visited during September 2016 and discussions held with employees at all levels of the organisation.

The recommendations are made across seven (7) key areas with a focus on Visible Leadership, Risk Management and HS Systems & Legal Compliance

The organisation culture based on the Bradley Maturity Curve is a Reactive / Supervisor Dependent Culture, however the business has a solid high energy leadership foundation to build on. One key area requiring significant improvement in it’s Safety Management Systems and process.

The ultimate determinant of whether improvement will be achieved for the business is through the Operational line management taking accountability for implementing, driving and monitoring the Health & Safety processes that have been put in place

BRADLEY MATURITY CURVE

3

§ Safety by natural instinct§ Compliance is the goal§ Delegated to Safety Manager§ Lack of Management involvement

§ Management commitment to safety§ Condition of employment§ Fear discipline§ Rules/procedures /training§ Supervisor controls/emphasises the goals§ Value all people

§ Personal knowledge commitment and standards§ Internalisation§ Personal values§ Care for self § Practice habits§ Individual recognition

§ Help others conform§ Others keeper§ Care for others§ Networking/contributor§ Organisational Pride

COLD EYE’S REVIEW - STRENGTH'S

• Business recognition that a step change is required for Health and Safety

• Farm tracks ITRACK system for hazard identification / notification

• People are passionate about the company and appear to have a high work ethic

• The Asset management investment in fit for purpose 4wd heavy vehicles & light vehicles

• Daily communication to crews through Line Managers

• Extraction workshop continuous improvement program based on last year review

• Vehicle tracking (GPS) system is all vehicles

• Neal’s shed significant improvement in workshop standards and process over last 12 months

• IFS contractors planting Manuka – clear safety and reporting requirements based on their Forestry industry experience

• Good supervisors who are keen to develop / improve themselves

• Apiary headquarters traffic management improvements (step change from where they were)

COLD EYE’S REVIEW – OPPORTUNITIES AREA’S

1. Visible Leadership and Commitment (Safety Interactions & High Risk Checks)

2. High Risk ”Critical Control” Checks (includes HV/LV Vehicles driving @ night on farm tracks, Traffic Management / Forklifts is yards)

3. Fundamental Risk Management (SWMS, Task Analysis, Pre-start talks)

4. HS System, Legal Compliance and Dashboard Data

5. Contractor Management (Min Safety requirements, pre-qualification & reporting)

6. Traffic Management (yards & forklifts, journey management)

7. Asset Management (FFP equipment, maintenance, reliability, equipment checks)

1. VISIBLE LEADERSHIP AND COMMITMENT

Opportunities

• No HSE Strategy & annual plan with Vision, Goals, Measures and Targets

• No annual action plan to deliver vision• Leadership presence and visibility on-sites

can be increased at all levels through specific safety leadership monitoring activities e.g. Site Safety Interactions and High Risk Critical Control Checks

• No formal measurement for Management & Supervisors to conduct onsite monitoring as part of due diligence

• Develop operational supervisors/people leaders through the safety leadership processes e.g. Pre- Start talks, Toolbox talks, Safety Interactions

1. VISIBLE LEADERSHIP - HSE STRATEGY IN ACTION

2. HIGH RISKS “CRITICAL CONTROL” CHECKS

Opportunities

• Board Risk Register Heat Map emphasis on HV/LV driving @ night on farm tracks, Traffic Management / Forklifts in yards and Contractor Management

• High Risk Activities - HV/LV driving @ night on farm tracks requires review & confirmation of Critical Controls through a deep dive risk process (bow tie) e.g.: Track data log hazard process, radio protocols

• Leadership need to formally monitor compliance of High Risk Activities “Critical Controls” as part of a fatality prevention process

• Compliance data for critical controls to be actioned including business wide management interventions

3. FUNDAMENTAL RISK MANAGEMENT

Opportunities

• Documented personal Risk Management process (Take 5 Hazard ID) for jobs outside the normal not in place

• Safe Work Method Statements (SWMS) for high risk work

• Documented “on the job” Group Risk Management process (Task Analysis/JSEA) for jobs outside the normal not in place including contractor management

• Measure as a leading indicator fundamental risk management to include new hazards identified, Take 5 Hazard ID, JSEA

• No communication plan for Safety Alerts, weekly tool box talks etc

3. FUNDAMENTAL RISK MANAGEMENT EXAMPLE

4. HS SYSTEMS, LEGAL COMPLIANCE & DATA

Opportunities

• Minimal (no documented) HS system in place aligned to AS/NZ4801

• No Leading Indicators reported monthly through a current dashboard

• Accessibility to HS systems, documentation and simplification of reporting training / compliance e.g.: iPads

• Incident investigation process (5 Why’s / ICAM)• Corrective actions closeout to ensure full

implementation• Verification of Competency• Just Culture Consequence Management• Shared learning’s from Safety alerts & toolbox

talks, communications delivered by operational people leaders and sign off

• Business interventions triggered through leading and lagging data

• Officers due diligence checklist 2/ year

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PlanningIdentificationof…LegalandOtherRequirements

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OHSManagementPlans

Resources

ResponsibilityandAccountability

TrainingandCompetency

Consultation

Communication

ReportingDocumentation

DocumentandDataControlHazard-GeneralHazardIdentification

Hazard/RiskAssessment

Hazard/RiskControl

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EmergencyPreparednessand…

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NTPH&SAssessmentagainstAS/NZS4801:2001KeyComponentsandElements

Established Effective

4. HSE SYSTEMS - STORYBOARD

5. CONTRACTOR MANAGEMENT

Opportunities

• No external pre-qualification for contractors to a consistent standard

• Introduction of a contractor roadmap with clear accountabilities and specific deliverables including contractor requirements

• No contractor monthly safety reporting process including work hours

• The business is not aware of contractors having to provide Site Specific Safety Plans (SSSP)

• The business not aware of safe work method statement (SWMS) processes and group JSA processes

• Minimal monitoring of contractors on the job – e.g. Safety Interactions, High Risk Critical Control Checks

5. CONTRACTOR MANAGEMENT EXAMPLE TOOLS

6. TRAFFIC MANAGEMENT

Opportunities

• Business Standard required for Seatbelts, Radio Protocols, Reversing, Parking and Journey management

• Operational discipline required for radio protocols e.g. standard radio terms (“Message received” ,“out” “over”)

• Mandatory seat belts to be worn where fitted to equipment e.g. trucks / forklifts / side by sides (this is a symbol for the organisation)

• Traffic Flows/Pedestrian plans need reviewing at each site.

• Review journey management processes to include notifications and journey plans for trips greater than 4 hours

7. ASSET MANAGEMENT

Opportunities

• Good asset management reliability is good safety

• No overarching business reliability Strategy & framework which would cover all assets e.g. Buses, trailers, tractors etc.

• Daily Pre-starts / equipment checks for all equipment e.g. trailers

• No internal mechanical resources to categorise and prioritize work

• No identification of critical spares

RECOMMENDATION SUMMARY1. Visible Leadership

1. Complete development of the the business Health and Safety 3 year Strategy/annual plan on a page including Goals, Measures and targets. This will be supported by an annual Action plan. Facilitated by SMcf with HS Committee by Oct 16

2. Define the leading indicator metrics and expectations at a supervisor up to CEO/Board level which are tracked and reported monthly against targets. Proposed leading indicators: Safety Interactions and High Risk Critical Control Checks. Facilitated by SMcf with HS Committee by Oct 16 as part of Annual Plan

CEO & GM’s = 1 per month, Non-Operational Management = 1 per quarter, Operational Managers / Leaders = 2 - 4 per month

2. High Risk “ Critical Control” checks

1. Review the High Risk Activity “Critical Control” check process for supervisor through to CEO Level. This due diligence process is very specific to ensuring ongoing compliance (owned by management) specifically targeting the reduction of exposure to a fatality. Facilitated by SMcf with HS Committee by Oct 16

2. Complete a deep dive review (bow-tie) for HV/LV Vehicles driving @ night on farm tracks to confirm “Critical Controls” and improvement action plan. Facilitated by SMcf with HS Committee by March 17

3. Fundamental Risk Management

1. Review current pre-start processes to include the introduction of a Safety component. This process is expected to be completed every day for every shift. HS Advisor working with Line Managers by Nov 16

2. Identify all high risk business activity and develop a program of documenting Safety Work Method Statements for all these (as per template & worked example). HS Advisor working with Line Managers by Dec 16

3. Introduce a requirement to complete Job safety Analysis (JSA’s) for any group task that is NOT normal work or has a change in environment which also includes contractors (as per template & worked example). HS Advisor working with Line Managers by Nov 16

4. Develop a ongoing 3 monthly communication plan for Safety Alerts, toolbox talks etc. HS Advisor Jan 17

RECOMMENDATION SUMMARY4. HS System , Legal Compliance and Dashboard Data

1. Develop the HS Dashboard Leading Indicators, this should include new hazards reported, safety interactions, high risk critical control checks, tool box talks and job safety analysis / Take 5’s. The combination of lagging data and leading data needs to drive management intervention and shared learning’s. Facilitated by SMcf with HS Committee by Jan 17

2. Complete AS/NZ 4801 HS System gap analysis and develop a action plan for implementation. This will include a system framework with supporting documentation based on PLAN, DO, CHECK, ACT. Facilitated by SMcf with HS Committee by Feb 17

3. Develop a 2 level incident investigation process with a 5 WHY’s simple process for all incidents and ICAM process for High Potential incidents to be reported to the Board. HS Advisor with HS Committee by Mar 17

4. Review Just Culture Consequence Management process for Safety high Potential incidents that involve behavioural errors or violations. Management Team by June 17.

5. Review current Training Needs Analysis (TNA) and Verification of Competency (VOC) assessment process to ensure that all the right people are trained and competent to perform key risk activities. HS Advisor with HS Committee by Feb 17

6. Review HS resourcing / structure to include the following positions HS & Training Advisor (Kerry in place now). , HS Systems, documentation & data administrator and a Part-time 12 months Project Mgmt role (Moana in place now). Management Team by Nov 16.

5. Contractor Management

1. Introduce external prequalification of all contractors through companies like Site Safe. This is a minimal cost to the contractor ($180) and will ensure that a minimal standard is set for safety management plans and supporting risk management tools prior to working for the business. NB: The system will allow for exceptions. Facilitated by SMcf with HS Committee by July 17

2. Review current Contractor Process against the Contractor Road Map which simplifies accountabilities, expectations and supporting tools at different stages of the process. The Road Map Requirements has different HS expectations based on risk and financial levels of work (low, medium, high). Facilitated by SMcf with HS Committee by Feb 17

3. Introduce a Monthly Contractor one page reporting requirement (Key Tool from Road Map) capturing the safety and hours worked information. Facilitated by SMcf with HS Committee by March 17

RECOMMENDATION SUMMARY

6. Traffic Management

1. Introduce Traffic Management defined standards/expectations at a business level for seatbelts, reversing of heavy vehicles, parking, radio protocols and journey management. This is not a large document but rather 2 – 3 dot points providing clear operational expectations. HS Advisor with HS Committee by April 17

2. Each site to develop a specific traffic management plan / drawing based on the risk profile and infrastructure, this process must incorporate the business standards. HS Advisor with HS Committee by June 17

3. Introduce a Journey Management procedure for light vehicle travel > 4-6 hours. HS Advisor with HS committee by April 17

7. Asset Management

1. Introduce a consistent asset management framework and Strategy including resourcing which has clear expectations of the requirements to be met for all pieces of equipment (kit) in the business including critical spare requirements (brakes). This should include Heavy vehicles, trailers, tractors, light vehicles, lifting equipment etc. GM Apiary

CONCLUSION – NEXT STEPS

Watson & Son have started their Health and Safety journey and have an significant opportunity to make a step change.

The recommendations across seven key areas have referred to improvements in the health and safety system, however emphasis has been on Visible Leadership and Risk Management, including deep dive risk reviews of high risk activities supported by Line Manager Safety leadership coaching, measurement and interventions.

Next Steps:

1. Feedback presentation to complete Board of Directors (November 3rd)2. the business Management Team to progress recommendations action plan including

the HS resourcing to deliver plan. Recommended resources include: A business Project Manager (Part-Time Process Senior Business Manager), the business Systems & reporting administrator (full time role reporting to Project Manager ), the business Health, Safety & training role

3. Chris Birkett / Board to review SM Consulting proposal for HS Strategic & Technical support approx 3 days / month over next 12 -18 months

4. Review timeline of HS activities to be supported over the next 12 months (refer next slide)

TIMELINE OF HS ACTIVITIES (NEXT 12 MONTHS DRAFT PLAN)November 2016•Contractor Roadmap process and tools including contractual min safety requirements•Contractor pre-qualification (Sit Safe understanding)•Safety Dashboard Reporting by departments (structure & process)•Key Initiative action planner next 12 months

January 2016•The incident investigation process flow and procedure with Incident categorisation (levels 1-5)•5 Whys Root Cause Analysis (RCA) process for all level & ICAM investigation for High Potential incidents• Contractor education session (main contractors for the business conducted with Site Safe)

February 2017•PLAN-DO-CHECK-ACT - Health and Safety Management Plan, Audit and Monitoring procedure & Consultation procedure•Communications annual plan (toolbox talks, supervisor process coaching sessions etc)•AS/NZ 4801 spider diagram gap analysis based on 25 elements question set

March 2017•High Risk activities development of Critical Control Check tools and process flowchart (5 off required)•Deep dive bow-tie risk analysis for the top 1 risk issue & development of Performance standard verification and auditing process•Safety Monitoring leadership coaching for Management (safety interactions- fund Risk Mgmt, High Risk Checks)

April 2017•Safe Work Method Statement (SWMS review) for all high risk work•Deep dive bow-tie risk analysis for the top 2 risk issue & development of Performance standard verification and auditing process•Safety Monitoring leadership coaching for Management (safety interactions- fund Risk Mgmt, High Risk Checks)

May 2017•Safety Dashboard Reporting by departments (data reporting & process review including contractors)•Key Initiative action planner review next 12 months•Just Culture consequence management for HS for High Potential incidents

June 2017•Risk Management process and structure to include Bow-Tie process•Development of Procedure & safety interface in business risk•Safety Monitoring leadership coaching for Management (safety interactions- fund Risk Mgmt, High Risk Checks)

July 2017•Contractor Management coaching workshop •Safety Monitoring leadership coaching for Management (safety interactions- fund Risk Mgmt, High Risk Checks)

August 2017•Management leadership CEO Safety Performance review process for Departments against Strategy & annual targets•Safety Monitoring leadership coaching for Management (safety interactions- fund Risk Mgmt, High Risk Checks)

September 2017•Health Monitoring procedure and plan for top 2 exposures (Noise, dust)