City of Johannesburg Council 2004-05-27

34.1

City of Johannesburg Council 2004-05-27

COJ : MAYORAL COMMITTEE 2004-05-20

CORPORATE SERVICES

34 / COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASE (COID) MANAGEMENT POLICY : CITY OF JOHANNESBURG

1STRATEGIC TRUST

Service Delivery Excellence.

2OBJECTIVE

To ensure that the City of Johannesburg not only meets statutory requirements but to provide for payment for medical treatment and employees’ earnings while incapacitated due to occupational injuries or diseases as well as the successful management of the rehabilitation process. This policy and the implementation thereof will ensure a well-informed workforce and effective management, administration and regulation of the COID process and fund.

3SUMMARY

The purpose of the Compensation for Occupational Injuries and Diseases Act (130 of 1993): or COID Act, is to provide for compensation for injuries on duty, payment for medical treatment, salary reimbursement as well as compensation, (in certain instances), for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases; and to provide for matters connected therewith. In order to comply with this legislation the under mentioned policy and procedures must be implemented and adhered to by all employees.

The City of Johannesburg is an exempt employer in terms of Section 84(1)(a)(ii) and (2) of the Act. This means that assessments are not paid to the Compensation Commissioner but instead contributions are levied and collected from the Regions, Central Distribution Functions and the Utilities, Agencies and Corporations, on behalf of the Commissioner, (as its agent), by the City. This is then administered as an Internal Fund in line with the prescripts of the COID Act and the stipulations of the exemption certificate. The administration of this fund was previously part of the General Insurance Fund, under the control of Corporate Finance. This function has since been relocated to the Occupational Health and Safety Directorate within the Corporate Services Department since 2002 and it is therefore necessary to align the fund to the manner in which the Compensation Commissioner is administering the Compensation Fund, in terms of the COID Act, 130 of 1993.

Over the years a number of practical and procedural deficiencies were highlighted and it is intended that the comprehensive procedures and guidelines included in this policy will correct the above-mentioned misalignment and deficiencies.

It is essential that a procedure be established throughout the City of Johannesburg in order to comply with current legislation and to ensure compliance with a three year plan of “getting the basics right” i.e. reimbursement of salaries and a effective rebate system calculated over a three year cycle.

4POLICY IMPLICATIONS

This report serves to establish a policy that will ensure legal compliance and effective management of all COID related matters which includes:

(1)Optimal treatment;

(2)The payment for such treatment;

(3)Constant liaison with the treatment institutions;

(4)Minimising of the impact of an injury or disease sustained or contracted by an employee;

(5)The effect on his/her dependants and the Council as his/her employer;

(6)The effective management of the COID Fund.

…The protocol, attached as Annexure C, will also indicate which functions of the COID Administration process, will be seated in the OHASA Department, from those pure financial management and administration of the COID Fund, which will be seated in Corporate Services Finance Directorate. The segregation of duties is depicted in an

… Activity Mapping Diagram, attached as Annexure D. It is recommended that the split be effective from I July 2004.

5FINANCIAL IMPLICATIONS

The fund that is currently being accessed to pay accounts in respect of COID cases will be transferred under the control of the Deputy Director : Corporate Services Finance. This fund will henceforth be known as the COID Fund. A full audit of the fund will be conducted and a report will be submitted to the Executive Director : Corporate Services.

The responsibility and accountability for the Fund will be transferred from the Occupational Health and Safety Department to the Deputy Director: Corporate Services Finance with effect from 1 July 2004.

The Deputy Director: Corporate Services Finance will then create, implement and maintain the protocols surrounding the financial management of the COID Fund. An actuary will have to be appointed to determine the liabilities of the Fund. Corporate Finance must then provide the assets to cover these liabilities. In addition a new organizational structure will be created and will have to be capacitated. This will necessitate the appointment of an official within Corporate Services Finance to handle the pure finance aspects of this programme.

6COMMUNICATIONS IMPLICATIONS

An extensive advocacy programme will be embarked upon to:

(1)Educate and empower employees regarding their rights and responsibilities regarding COID.

(2)Educate line management and employees regarding the correct procedures to be followed in the event of an accident on duty or the contraction of an occupational disease.

(3)Train line management on the correct protocol on how to complete an accident claim form.

This programme will include a road show, a poster programme, training as well as inclusion in the Human Resources newsletter and the Jozinet.

7CONSTITUTIONAL AND LEGAL IMPLICATIONS

(1)The Constitution of the Republic of South Africa

The Constitution is the highest law in the Republic and employee safety is entrenched therein.

(2)Compensation for Occupational Injuries and Diseases Act (130/1993)

The Act and its Regulations provides for the payment of all medical treatment as well as to ensure that employees’ are remunerated while incapacitated due to occupational injuries or diseases and also makes provision for compensation for temporary, total or permanent disablement caused by occupational injuries or diseases sustained or otherwise contracted by employees in the course of their employment, or the death resulting from such injuries or diseases; and to provide for all other matters connected therewith.

Compliance to the Act and its Regulations will ensure the following:

(a)To reduce or eliminate legal proceedings against the employer (COJ).

(b)The drawing up and implementation of COID procedures.

(c)The establishment of a well-designed, effective COID paper trail.

(d)To prevent unnecessary financial hardship by employees/dependants.

(e)To minimize trauma through optimal treatment; and

(f)To minimise the downgrading impact of occupational injuries and diseases on Council’s service delivery through optimum injury and/or diseases rehabilitation.

(3)Occupational Health and Safety Act (85/1993):

The Act and its Regulations provides for the recording, investigation and reporting of incidents and occupational diseases.

8OTHER DEPARTMENTS AND/OR BODIES CONSULTED

Guidelines for COID management, published by the following institutions, were consulted.

Department of Labour

The inspectorate of this Department liaises with Local Councils to enable them to set mechanisms in place to ensure COID procedures are followed and maintained.

Compensation Commissioner

The Commissioner sets guidelines for Compensation for Occupational Injuries and Diseases that need to be followed.

National Occupational Safety Association (NOSA)

NOSA was formed under the auspices of and initially funded by the Workmen’s Compensation Commissioner, with the objective of providing guidance, education, training and motivation to employers and employees alike. Today the NOSA five star MBO system is used and recognized not only locally but also worldwide.

IT IS RECOMMENDED

[1That the City of Johannesburg adopt the Compensation for Occupational Injuries and Diseases Management Policy as detailed in Annexure A attached to the report and that it be implemented in terms of the Occupational Health and Safety Act (85/1993) throughout the City of Johannesburg.

2That the City Manager be responsible for ensuring compliance with the Compensation for Occupational Injuries and Diseases Management Policy, and that he assigns such responsibility to the Executive Director : Corporate Services.

3That an Actuary be appointed to determine the liabilities of the COID Fund.

4That Johannesburg Risk Assessment Services Department audit the COID Fund and submit a report, detailing the assets of the Fund to the Deputy Directors : Occupational Health and Safety and Corporate Services Finance before the Deputy Director : Corporate Services Finance accepts receipt of the Fund.

5That Corporate Finance identify adequate assets to cover the liabilities (more than that of the existing guarantee of R15 million) of the COID Fund as determined by the appointed Actuary.

6That the COID Reporting Procedure and Protocols, attached as Annexure B and C to the report respectively be adopted and implemented throughout Council.

7That the Executive Director : Corporate Services be given the authority to affect changes to the COID Reporting Procedure and Protocol when and if necessary.

8That the segregation of duties, as depicted in Annexure C and D to the report, become effective from 1 July 2004.

9That a report be submitted annually to the Council by the City Manager regarding compliance with the policy within the total sphere of operations.]

(17/1/8/P)

(COJ 51/2004)

(CORPORATE SERVICES)

(DEPUTY DIRECTOR)

(T van der Wath)

(Tel: 407-6315)

(C/1235/2004)

(tk)

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