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August 10, 2017

Is Your Business Ready for Changes to the Australian/New Zealand CoR Laws?

Whip Around provides full transparency across the CoR through data sharing between companies.   Whip Around provides full transparency across the CoR through data sharing between companies.  

Some heavy vehicle Chain of Responsibility laws are coming into effect in 2018. These regulations can have steep consequences for those that fail to adhere to them, with the possibility of a $3 million penalty for non-complaint transgressive companies And the threat of imprisonment. The National Heavy Vehicle Regulator or NHVR has declared that the Chain of Responsibility (CoR) laws now covering fatigue, speed, load mass dimension, and loading are going to be extended to maintenance and vehicle standards. According to a 2016 survey of 183 companies, only three organizations reached a level of compliance that lined up with updated CoR laws with twenty having reached an amorphous level of compliance while the rest failed.

What the NHVR Wants You to Know

At a panel discussion following a moot court where the regulations were tested, NHVR National Investigations Coordinator Bill Esteves advised business owners and councils to be proactive in their efforts to reach compliance. The NHVR Manager, Michael Crellin, in charge of the Chain of Responsibility explained that the changes require that the executive officer understand the risk management processes, the safety systems, and most importantly if these are operable.

The focus of these regulations is pointed at the business practices as well as the system controls in place. Investigators won’t need an inciting incident or substantive offense to act. All they have to do is look at the system and either make sure everything is in working order and efficient or failing. Investigators want business to make sure and inform their partners in the supply chain about these changes. Additionally, investigators want to impress upon businesses that technology integration and that assuring compliance in areas like fatigue management is crucial.

Penalties for Violations

Category III

Violation Situation: there is a breach of safety responsibilities discovered, with no inciting event.

Violation Penalties: $50,000 for a person, and $500,000 for a business.

Category II

Violation Situation: There is a breach of safety responsibilities found that is a risk of injury or death.

Violation Penalties: $100,000 for a person and $1 million for a business.

Category I

Situation: Reckless behavior is involved in a violation.  

Penalties: Five years of incarceration and/or $300,000 for a person, and $3 million for a business.

 

For more information on the changes to CoR laws, contact us at Whip Around today.

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