Just an FYI for those of you outside of Canada… there are fourteen (14) jurisdictions in Canada – one (1) federal, ten (10) provincial, and three (3) territorial each having its own occupational health and safety legislation. Federal legislation covers employees of the federal government including Crown agencies and corporations across Canada. The federal health and safety legislation is commonly referred to as Canada Labour Code Part II and regulations under the Code. The Canada Labour Code also applies to employees of companies or sectors that operate across provincial or international borders.
Approximately 6% of the Canadian workforce falls under the OH&S jurisdiction of the federal government. The remaining 94% of Canadian workers fall under the legislation of the province or territory where they work.
The amendment put the following new requirements in place for:
- inventories and new hazard assessment requirements
- training records retention
- reassessment of a confined space
- atmospheric pressure level
- emergency procedures for all confined spaces
- continuous monitoring of a confined space
- atmospheric monitoring
- signage
New requirements for inventories and new hazard assessment requirements
Changes to section 11.02 in the regulatory amendments would require employers to identify all confined spaces in their workplaces, establish a record of all confined spaces, and implement a system to ensure it is kept up to date. In addition, the employer would be required to determine if the confined space is hazardous or non-hazardous, and a section would be added prescribing new requirements to be included in the hazard assessment, including new equipment requirements.
It is estimated that developing the record and updating the hazard assessment with the prescribed new elements would take approximately 1.5 person-hours, on average, for each worksite containing confined spaces, and that the record would require updating on a quarterly basis (estimated at 15 minutes every three months). The opportunity cost for maintaining the record and conducting the assessments, where applicable, is based on the average wage rate, inclusive of non-wage benefits. As a result, in the first year after implementation (2021), the 3 992 worksites containing confined spaces would each have to dedicate 2.25 person-hours to the development and maintenance of the record. In future years, each worksite would have to dedicate one person-hour per year. Total costs are expected to average approximately $155,000 per year and represent the bulk of costs associated with the regulatory amendments, about 82% of average yearly costs.
New training records retention
Paragraph 11.13(1)(c) of the regulatory amendments would require employers to maintain records of all employees who receive instruction and training regarding their regulatory obligations when working in confined spaces. This would apply to new trainees only and would affect approximately 1 600 new employees working in confined spaces annually. It is estimated that each employee record would take about 15 minutes to complete and costs would average about $15,000 per year across the federal jurisdiction for the period 2021–2030. The projected labour force growth of 0.93% and a projected retirement rate of 1.96% was factored into this estimate.
New requirements for a reassessment of a confined space
Subsection 11.03(4) of the regulatory amendments requires employers to conduct a reassessment of a confined space for hazard identification and risk assessment whenever there have been any changes to the structure, the intended use, or the immediate surrounding area of the space or due to information about the space regarding a potential new hazard. It is estimated that approximately 10% of all worksites containing confined spaces will require reassessment, as they are limited to industries where confined spaces tend to be makeshift structures that may be reconstituted as required, such as in the energy and mining or pipelines sectors. Tanker trucks or rail cars would not be considered makeshift structures in this sense, since they are not likely to be reconstituted for different purposes. It is expected that this new provision would affect an average of approximately 450 worksites per year. Costs are estimated to average approximately $14,800 per year across the federal jurisdiction.
New requirement regarding atmospheric pressure level
Subparagraph 11.05(1)(a)(iii) of the regulatory amendments prescribes that the percentage of oxygen in the air in the hazardous confined space be not less than 19.5% by volume and not more than 23% by volume, at normal atmospheric pressure. This was deemed to have no significant impact. Costs would be minimal as the equipment required would already have been purchased and testing already occurs. This change would align the Regulations with the best practices of other jurisdictions.
Emergency procedures for all confined spaces
Subsection 11.06(1) of the regulatory amendments requires the development of emergency procedures for all hazardous confined spaces, not just those containing atmospheric hazards. It is estimated that this new requirement would affect approximately half of all worksites with confined spaces and require one person-hour of work per year, per affected worksite. Total costs are expected to be around $75,000 in the first year after implementation of the regulatory amendments and average $311 in subsequent years, as only new confined spaces would be affected.
New requirement for continuous monitoring of a confined space
Subsection 11.05(1) of the regulatory amendments adds the requirement of continuous monitoring for hazardous confined spaces where atmospheric conditions could be of concern. The current Regulations only require safety verifications, by means of tests, before entry into the confined space, unless, per subsection 11.10(1), ventilation equipment is currently being used in the confined space, in which case the employer has the choice of either equipping the confined space with an alarm or having it continuously monitored by an employee. Since confined spaces with potentially dangerous atmospheric conditions would likely require ventilation equipment, and that this would be identified in the hazard assessment for the confined space, it is likely that a significant number of employees are already providing continuous monitoring. This section was deemed to carry a small cost, namely the opportunity cost in wages of the employee monitoring the confined space. This cost was not quantified because of lack of data in relation to the number of times employers choose to either equip the confined space with an alarm or provide continuous monitoring, and the number of employees and hours affected. However, given only a small number of worksites would be affected, costs will likely only carry a small impact.
New requirement for atmospheric monitoring
Subsection 11.10(1) of the current Regulations mandates the employer to select one of two options in cases where ventilation is currently being used in a confined space with atmospheric hazards. Either the confined space is equipped with an alarm that is activated automatically and is audible or visible to every person in the confined space if the equipment fails, or the confined space is monitored by an employee in communication with those working in the confined space. Subsection 11.11(3) of the regulatory amendments will add a new requirement where, in cases where an assessment report determines that a hazardous confined space requires continuous ventilation, the employer must ensure continuous atmospheric monitoring while the space is occupied. This subsection was deemed to carry a small cost, namely the opportunity cost in wages of the employee monitoring the confined space. This cost was not quantified because of the lack of data in relation to the number of times employers choose each option and the number of employees and hours affected. However, given that only a small number of worksites will be affected, costs will likely only have a small impact.
New requirement for signage
Subsection 11.02(3) of the regulatory amendments prescribing that signs be placed at the entrance of each confined space will carry a small cost impact. The majority of costs are expected in the first year after implementation of the regulatory amendments, with a total cost across the federal jurisdiction of approximately $59,000. In subsequent years (2022–2030), signs will only be required for new confined spaces, and costs will average only $245 per year in this period. Over time, signage will age and endure damage, in which case the signage will require replacement. As there is no data regarding the number of signs currently in use in the federal jurisdiction, nor the expected number of employers who will opt for the minimal cost alternative of producing signs in-house, it is assumed half of all affected employers (median value between zero and all employers) will opt to purchase signage from third-party suppliers. As a result, purchases from these suppliers will be made for approximately 2 000 worksites in 2021 and around 10 per year for the period 2022–2030. The average price for a range of signs specific to this new regulatory requirement was found to be approximately $19, with an additional $10 in shipping costs per order if purchased online. Given the specialized nature of this type of signage and the limited number of traditional retail providers, it is assumed all employers purchasing signs from third-party providers will do so through online purchases, thus incurring shipping costs. Costs associated with the production and installation of employer-made signs, which could cost less from a materials perspective but more from a labour perspective, and the installation of signs purchased from third-party vendors, are included in the labour costs associated with the new requirement to establish a record of confined spaces. In addition, signs purchased from third-party providers, given the sturdy material used (e.g. vinyl, fibreglass or aluminum) and permanent adhesives included with purchase, are likely to last 10 years or longer.
CLICK HERE to see the new standard which becomes enforceable on 10/1/21
