DRUG & ALCOHOL POLICY

CONTENTS

SCOPE

Transit Systems is concerned about the effects on safety and work performance when employees present for work with the presence of drugs and/or alcohol in their systems. Being under the influence of alcohol, prohibited drugs, some prescription medications and some over the counter medications creates serious health and safety risks not only to the influenced employee but other employees, passengers and waterway users.

For the purpose of this policy the maximum allowable breath alcohol will be zero as mandated by M.S.Q (Maritime Safety Queensland). Drug limits will be set as per the Australian Standard 4308)

The following Drug and Alcohol policy applies to all employees including but not limited to:

• Directors

• Management

• Administration

• Masters/ Crew

• Engineering

• Apprentices

• Work Experience

• Contractors

• Visitors

Transit Systems’ Drug and Alcohol Policy has been introduced to ensure that all employees understand and comply with Transit Systems’ drug and alcohol level requirements to provide a safe working environment.

It is a condition of employment at Transit Systems that all employees will be subject to drug and alcohol testing to measure the level of alcohol and the presence of drugs that have the potential for impairment on an employee’s work performance on occasions such as but not limited to:

• Entry Testing

• Post accident

• Post incident

• Reasonable suspicion

• Random

• Post Rehabilitation

Testing will be carried out on the company’s premises and vessels at any time.

OBJECTIVE

The objective of this policy is to implement an effective drug and alcohol testing procedure at Transit Systems to achieve the following;

• To achieve a drug and alcohol free workplace thereby provide a safe work environment for our employees, which is free from the hazards associated with alcohol, prohibited and other drugs in the workplace.

• Increase awareness of ‘safe’ consumption of alcohol and to assist employees to overcome inappropriate use of alcohol and drugs.

• Create an understanding amongst all employees that coming to work whilst under the influence of alcohol or drugs causes an unsafe work environment for all involved and is unacceptable.

DUTY OF CARE

Duty of the employer

Transit Systems has a duty of care under the Work Health and Safety Act and Regulations to provide and maintain a safe working environment in which employees are not exposed to unacceptable hazards. Part of the duty of care includes ensuring employees are fit for duty when at work and to minimise risk to both themselves and their fellow employees.

Duty of employees

All employees have a duty of care under the Work Health and Safety Act and Regulations to take reasonable care to ensure their own and fellow employee’s health and safety at work is not exposed to unacceptable risks.

Work sponsored functions

From time to time a function may be arranged on company premises. Functions where alcohol may be consumed must have the permission of the Area Manager. During these functions low alcohol or alcohol free beverages may be served. It is the function organiser’s responsibility to ensure that any attendee who consumes any alcohol does so in a responsible manner.

Employees who attend such functions and have completed their duties are not subject to alcohol testing. However, employees who are working, or will be commencing work after attending any such function are subject to the conditions of this policy.

DRUG AND ALCOHOL POLICY STATEMENT

Transit Systems is committed to providing a safe working environment for all employees, contractors and visitors. This Drug and Alcohol Policy has been implemented to ensure that Transit Systems work places are free from the affects of alcohol and drugs.

All employees are to understand their duty of care and ensure that the following responsibilities are complied with;

• All Transit Systems employees MUST present themselves fit for duty with their performance not impaired by alcohol or drugs (prescribed or non-prescribed).

• All employees MUST notify their supervisor if they are taking any prescribed or “over the counter“ medication that may affect their work performance prior to commencement of duty and the period of time the medication is to be taken.

• Employees MUST notify their supervisor immediately if any medication they are taking has adverse affects on their ability to safely perform their duties.

• All employees and contractors at Transit Systems MUST submit to Drug and Alcohol testing when requested.

Employees failing to comply with the Transit Systems Drug and Alcohol policy may be subject to dismissal.

Date: 7^th August 2012

Neil Smith

Date: 7^th August 2012

Lance Francis

Education and awareness

Information will be provided to all employees regarding drug and alcohol consumption and the Transit Systems alcohol and prohibited drugs testing program through various media and during the induction process for new employees. The program will promote awareness of the health and safety implications of alcohol and drug abuse.

Contractors will be advised in writing of the Transit Systems Drug and Alcohol Policy and will be advised that they will be expected to submit to testing if they are on Transit Systems sites when testing is being conducted.

DRUGS AND ALCOHOL

PRESCRIPTION AND NON PRESCRIPTION MEDICATION

The use of prescription or non-prescription medication may affect the safety and efficiency of an employee’s performance.

There are several types of drugs which may impair performance including:

• Sedatives

• Anti-depressants

• Anti-histamines

• Stimulants and appetite suppressants

• Analgesic / codeine

Employees taking any prescription or non-prescription medication are responsible for consulting their doctor / pharmacist in regards to the effects the medication may have on their work performance.

Employees must advise their supervisor prior to commencement of duty if they are taking any medication that may affect their work performance or may cause a non-negative result on testing and the period of the time that the medication is to be taken.

Employees must notify their supervisor immediately any adverse side affects to the medication become apparent.

Consideration will be given to prescriptive medications that do not hamper the employee’s work performance, but may produce a non-negative result providing that the employee has advised their supervisor when such medication has been used.

DRUG AND ALCHOHOL TESTING

It is a condition of employment at Transit Systems that all employees will be subject to drug and alcohol testing.

(NOTE: in the case where drugs are prescribed for the employee, medical evidence is to be provided by the employee to indicate that the drug does not affect their ability to safely perform their duties e.g. letter from doctor)

Appropriately trained Testing Officers will conduct alcohol testing using Australian Standard 3547-1997 alcohol breath testing equipment. The testing officer will instruct the person being tested through the procedure.

Appropriately trained testing officers will conduct drug testing using Australian Standard 4308-2008 by means of urine analysis or Australian Standard 4760-2006 by means of oral fluid (saliva). The testing personnel will instruct the person being tested through procedure.

All initial on site non-negative tests, with the exception of THC, will be treated as negative until confirmed by an appropriate NATA testing facility.

The identity and details of any person who tests non-negative or positive, after confirmation testing, will be only made known on an “as needs basis” and will be kept confidential unless required to be revealed by law. The people who will have access to those details will be:

• Transit Systems Testing Officers.

• Directors

• Employee’s Area Manager

• Employee concerned

• Contractor’s Company

Testing will be conducted at Transit Systems and affiliated sites at a frequency subject to management discretion. The timing will be random and all employees on site may be subject to testing.

Testing Methods

Testing for alcohol will be conducted using a Lion SD-400 breath analyzer in accordance with AS3547-1997.

Testing for drugs will conform to AS/NZ 4308-2008 for urine sampling or to AS 4760-2006 for the collection of oral fluids (saliva).

Monitoring

Test results will be monitored and annual audits conducted on the results of the testing undertaken. This will determine the effectiveness of the policy and access if the expected outcomes of zero confirmed positive readings have been achieved and thereby assisting in maintaining a drug and alcohol free workplace.

TYPES OF TESTING

Confirmation Testing

Alcohol

Should the first alcohol test produce a positive result then the employee will be retested after 20 minutes during which time they will be supervised. During this 20 minute period the employee will only be allowed a maximum of one standard glass of water. No food or smoking is permitted during this time. The outcomes as detailed in Appendix 2 Outcomes for a Positive Result will be implemented. Should the confirmation results prove to be negative the employee is to be paid for any time lost.

Drugs

Should the drug test record a presence above the prescribed levels as per Australian Standards 4308 or 4760 - 2006 the test sample is to be analyzed at an approved NATA laboratory for confirmation of type and levels of drugs detected. The outcomes as detailed in Appendix 2 Outcomes for Positive Results will be implemented. Should the confirmation results prove to be negative the employee is to be paid for any time lost.

Post accident / incident

Tests will be conducted after marine accidents and or incidents. Employees who record a confirmed positive test result may be subject to dismissal.

Reasonable suspicion

Any employee who has a reasonable suspicion that an employee or contractor is under the influence of drugs or alcohol shall contact their supervisor or a Transit Systems Testing Officer. Testing will be conducted in accordance with the drug and alcohol procedures.

Random Testing

The random drug and alcohol testing procedure will apply to ALL company employees and will include contractors and visitors on site at the time of testing.

When undertaking a random test, the person being tested must advise the testing personnel if they are taking prescription or non-prescription medication that has the potential to cause a non-negative result for the drugs being tested for. The person must have already advised their supervisor of the expected effects of the prescription or non-prescription medication being taken that has the potential to adversely affect their ability to safely perform their duties prior to commencement of duty. Non-negative tests that are ultimately attributable to prescription drugs (specifically for that person) or non-prescription medication will have no further action taken.

Some prescription and non-prescription medication can interfere with the drug testing process e.g.:

• Codeine (Opioids)

• Codral (Opioids)

• Demazin (Amphetamines)

• Actifed (Amphetamines)

A confirmation laboratory test can distinguish between drugs types.

REFUSAL, INABILITY OR AVOIDING TO UNDERTAKE A TEST

1. If any employee refuses to submit to, or cooperate fully with the personnel administering drug and/or alcohol test, they will be counselled and encouraged to take the test by their supervisor and/or testing personnel.

If the employee is unable to supply a suitable sample at the time of testing then additional time will be allowed for the employee to comply. One hour is sufficient for most people to provide a sample.

If an employee refuses to undertake the test or cannot provide a sample over the period of testing then it will be considered as a refusal and acted upon as in paragraph 4.

2. Employees on company premises or entering company premises while testing is underway or about to commence duty for the day will be subject to testing. A person deliberately leaving the premises before being tested will be considered a refusal and acted upon as in paragraph 4

3. If an employee attempts to pervert the testing or test sample it will be considered as a refusal and be acted upon as per paragraph 4.

4. Refusal will be treated as the highest positive result for the substance being tested and will be handled as such. If the employee continues to refuse the test then a positive result will be recorded for that employee and the actions as detailed in Appendix 3 will be implemented.

TAMPERING WITH AN ALCOHOL OR OTHER DRUG TEST SAMPLE

If an employee deliberately acts in a manner to prevent the effective operation of the testing equipment or test results the employee will be subject to disciplinary action, which may include dismissal.

POSSESSION OR SALE OF ILLEGAL DRUGS

The possession, distribution or use of any prohibited drugs whilst on Transit Systems vessels or sites is unacceptable. Any personal found doing so will be subject to dismissal.

MANAGEMENT OF CONFIRMED POSITIVE RESULTS

A confirmation test will be conducted (see page 8) should the first test register a non-negative result. Should the confirmation test register positive, it will be dealt with as per Appendix 3 Outcomes for Positive Results.

All stages of disciplinary action will be formally documented and kept on the employee’s file for the duration of their employment. Transit Systems will keep the original documentation and the employee will receive the duplicates.

Employees with levels of alcohol registering more than zero and or positive levels of drugs will have transport arranged for their return home.

Before returning to work employees must register a negative result for drugs and alcohol. Drug tests must be undertaken by an appropriate NATA testing facility suitable for the drug/s that caused the initial confirmed positive result. The employee is to pay for any costs incurred in being retested.

REPORTING OF RESULTS OF RANDOM TESTS

Employee information and test results will be kept confidential however all confirmed positive test results for drugs and alcohol may be reported to any of the following personnel

• CEO

• Area Manager

• Operations Manager

• Directors

• Contractor’s Company

The Area Manager will administer and prepare all the documentation and disciplinary action. Original documentation is to be placed on employee’s personal file. Copies of documentation will be given to the employee for their own records.

NOTIFYING EMPLOYEES OF TEST RESULTS

Employees who record a positive result will discuss these results with their Area Manager and Operations Manager. Negative results will not be conveyed to employees. In the event of a non-negative result being recorded and the subsequent confirmation test is deemed to be negative then the employee will be advised of the outcome.

GRIEVANCE AND COMPLAINTS PROCESS

Where a dispute exists with the testing process attempts must be made to resolve the dispute at the workplace level by discussions between the employee and the relevant supervisor and/or management according to Transit Systems’ policies and procedures as amended from time to time.

EMPLOYEE ASSISTANCE PROGRAMME (EAP)

The EAP is designed to help employees who register a confirmed positive result for drugs and / or alcohol, to understand their situation, educate employees about their social habits and increase awareness of the effects that drugs and alcohol have on their health and work performance.

When attending counselling the employee will be assessed and with the help of the EAP counsellor, to develop a Management Plan for returning to work and a healthier lifestyle. The Management Plan should detail what steps the employee is willing to take to reduce the risk of returning a positive result in the future.

Attendance at EAP must be during the employee’s own time with a maximum of three visits at Transit Systems expense.

POSITIVE RESULTS RECORDED BY CONTRACTORS

If a contractor or their employee records a confirmed positive result they will be escorted off the site immediately, the contractor’s company notified and requested to make arrangements to convey their employee home. No further action will be taken by Transit Systems. However, if the individual who recorded the positive result wishes to return they must provide a negative result to any drugs and / or alcohol. Drug testing must be undertaken by an appropriate NATA testing facility and be suitable for the drug/s that caused the positive result. The contractor is to pay for any costs of being retested. The final approval for their return will be at the discretion of Directors and / or Area Manager.

REVIEW

This policy will be reviewed 12 months after the implementation by senior management in consultation with OH&S committees to determine its ongoing performance and overall effectiveness.

APPENDIX 1

SUBSTANCE REFERENCE TABLE- DRUGS and ALCOHOL

APPENDIX 2

OUTCOMES FOR POSITIVE RESULTS

APPENDIX 2 (Cont)

OUTCOMES FOR POSITIVE RESULTS (CONT)

APPENDIX 2 (Cont)

OUTCOMES FOR POSITIVE RESULTS (CONT)