ROB'S SHOUT - WORK COVER POSER. EVERYBODY MUST SHARE AN APPROPRIATE BURDEN OF RISK

By Robert Heathcote | Thursday, August 30, 2012

Robert Heathcote is the leading racehorse trainer in Brisbane. 'Rob's Shout' - the personal blog of the multi-premiership and Group 1 winning trainer will appear every Thursday on HRO.

Hello again folks,

I note in the 'racing media' there has been plenty of recent comment and opinion from a number of trainers concerning workers compensation and the proposed changes to the way Work Cover is implemented.

It’s probably all pretty boring stuff unless it directly involves an individual, but with so much opinion being bandied around it does seem worth a comment.

Without getting into the real nuts and bolts of it all, the model adopted in Queensland under current legislation is that the overall policy of about $1.2 million per year is met by employers based on a percentage rate of the wages.

This rate can vary according to the claims record of an individual employer, which can work as a form of incentive for a trainer to maintain a high level of work place health and safety.

The model adopted in NSW is different to Queensland with the cost of insurance levied onto each individual runner right across the state.

Of course working with highly tuned and, at times, volatile thoroughbreds can be very dangerous. Accidents can … and quite often do … happen!

Unfortunately people, usually the track riders, do get hurt and the medical costs are often very high. That's just a fact of life, but the problem of course is who should pay for this and what is the best model to calculate the risks and share the burden of this expense in a fair and equitable manner?

The chance of a track rider getting hurt on a country track is arguably the same as a track rider at Eagle Farm.

I don't know exactly what the best model is, but I do know the present system arguably allows for too much ‘avoidance of responsibilty’, or whatever you would like to call it, with some trainers possibly able to dodge their appropriate burden of risk.

To better explain this, have a quick look at my current work cover premium.

I had about 650 runners last year in this state where there were some 45,000 runners. Because I am a larger stable with a higher number of employees my premium is calculated on a percentage of the wages paid.

In my case the premium came in at about $61,000 dollars for the year. That's about five percent of the whole state policy and yet only a small percentage of the state's actual runners … and that is with a very high level of duty of care with no claims last year, about $4k the year before and $15k the year before that.

If I took a blinkered view like a lot of others, I would certainly argue that is not fair.

There is apparently an instance of one country trainer who had about 150 runners last year and yet supposedly declared no wages and therefore paid a very low work cover premium. If that is true … again, is that fair?

There has been plenty of noise from many in the country about the fact that any changes to the system would be wrong.

There are those who would argue this system would not be work or be fair as it would mean some who pay very little or nothing now would have to pay more!

I certainly do not wish to get into any argument with other trainers in this state, but the risk of injury to any worker in this industry will always be there and the burden of that responsibility should be met by us all in the industry in a fair and equitable manner.

Workers comp is necessary in our dangerous industry but to simply regulate and calculate on wages paid is not, in my opinion, the best way for go. Having said that, I do not pretend to have the solution to what is the best model for premium calculation.

I certainly do not want any new system discriminatory against small trainers in the sense they have to subsidize big stables. I just want a system that is fair to all … simple really!

Is it not fair to simply want the burden of risk to be shared by all in the industry?

If the bigger stables pay more than the smaller stable, well and good but EVERYONE has to take some share of the industry risk … not just those who are doing the right thing!

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A reader recently enquired about the books I read when I first started training racehorses.

Not having grown up with a racing background I felt it was essential early on to gain as much theory and understand the workings of a horse before the practical experience came.

Mind you, that still meant plenty of mistakes were made in the early days, but I was very mindful of learning from what may well have been errors in my training methods.

Maybe never having learned the profession the traditional way was a blessing as I didn't go into the industry with any pre-conceived ideas or set methods … and I still find it’s important to be willing to make changes and try some different methods if the results are not coming!

Whilst I can't recall the specific books I read … they have long been loaned away never to be seen again … I do remember reading as many books as I could on the various methods and ideas that different trainers had.

I cannot recall the actual title, but one of the best books I recall featured the methods of Tommy Smith, D Wayne Lukas and a famous US trotting trainer (not sure of his name, I think it was Rodriguez) .

Looking back now I was never sure of the exact specifics of how representative the theory of training was until my practical knowledge came up to speed but, as I say, I always believe a willingness to try different things can be a good tool!

Either way, it was valuable for me to get a few lengths start via theoretical insight until my practical experience caught up and I sure do remember some stressful times wondering if indeed I was doing the right thing.

I do wonder now though how a young trainer can possible start off in this profession and succeed with the many impediments that seemed to be placed in
front of them?

The economic reality of changing times I guess does make it tough.

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Great to see the good horses starting to come back. A real sense of 'Spring is in the air'.

Pierro and All Too Hard look like they will have a strong rivalry in the upcoming months. The two ‘Boom’ horses from the Gollan stable are looking great in their track work with the Spirit looking awesome in a jump out at Doomben on Tuesday.

My good horse, Solzhentisyn chased him to the line in third place which pleased me. He will return to racing on Saturday week.

Buffering is about to have his work intensity increased as I prep him for the Schillaci stakes on the 13th October.

Some exciting times ahead for us all … trainers, owners and, of course, punters.

Cheers for now.

Robert

BREAKING NEWS: After I had completed this blog, the ATA were notified by Adam Carter (acting CEO RQ) that Racing Queensland were not proceeding with any changes to the Work-Cover premium calculations at this stage. Apparently the reason behind shelving the concept was "due to not having the support of all trainers.”

They advised that they were going to implement an audit process, working closely with Work-Cover Qld, to ensure trainers all trainers are contributing fairly to the system. Yeah … like that is going to happen!

Disappointed is an understatement to see RQ roll over so easily, but hopefully this issue can be revisited at some time in the future.

RQ advised they will be putting a notice on their website in relation to this matter. Little doubt there will be those who feel they have had a big win over the larger stables in this state who do the right thing under the current model.

Still, something I have long learned in this industry is any change that affects anyone no matter how big or small will always bring plenty of condemnation. This instance is a perfect example.

Maybe down the track there will be issues that will directly affect the smaller stables in the country and provincial regions. Just maybe they will need the support of the larger stables in the state. We will see!

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