Kevin Jones

James Hardie directors face the consequences of their poor decisions

SafetyAtWorkBlog has kept a watchful eye on the long saga involving the directors of James Hardie Industries and their mishandling of a compensation fund specifically established for victims of the company’s asbestos products. The compensation fund story has been handled well by Gideon Haigh in his book on the company.

The saga has since evolved into one of the duties and actions of the board of directors, moreso than one of compensation. Today, 20 August 2009, the previous directors will be told of the financial and professional penalties determined by the New South Wales Supreme Court.

The ABC News online has an article about the impending court decision but more relevantly to the OHS and compensation issues is the fact that the existing compensation fund runs out in 2011 and the company says that the current economic climate does not allow for any more funds. For a company that has earned good profits from asbestos over many decades, two years of poor corporate performance does not seem to balance the scales.

Too many corporations are using the global financial crisis to mask their own management failings. The United States and England have seen this more than most countries.

The ABC was able to interview the current CEO of James Hardie Industries, Louis Gries, who is not as damning of the past directors’ decisions as some might expect, and the reporter, Sue Lannin, asks many direct questions about the company’s responsibilities to victims of its products. This interview deserves careful listening.

Company directors around Australia are watching how the court case ends and the size of penalties they may face if they make similar decisions. The OHS element is oblique to the issue of directors’ responsibilities but it is the hot topic in Australia at the moment and many OHS professionals talk with these same directors. It may be necessary to adjust one’s language or message when talking safety with them from tomorrow on.

Kevin Jones

Buenos Aires Nightclub fire – Update

According to a Reuters report available on-line on 20 August 2009:

“The former manager of a Buenos Aires nightclub has been sentenced to 20 years in jail over a fire that killed 194 people, the deadliest blaze in Argentine history.

The court’s decision at the end of a year-long trial was met with spontaneous outbursts of violence among relatives of the victims, with police using water cannons to disperse rioters.”

One of the most popular blog articles at SafetyAtWorkBlog over the last month – the Santika fire article – provides a useful contrast to the Buenos Aires prosecution and some practical risk control measures.

Kevin Jones

Why OHS performance targets don’t equal safe workplaces

On 19 August 2009, the Australian Financial Review (AFR) published an article (not available online) about the lack of success of OHS regulators meeting their agreed performance target. The article is based on the information provided by Safe Work Australia in its 2006-07 progress report.

Below is a chart that WorkSafe’s John Merritt showed at a recent OHS seminar which clearly shows how far the State of Victoria has to go to reach the 2012 target, and it is one of the better performing States.

vic_ohs_johnmerritt_leadership_080804 graph

The Australian Council of Trade Unions (ACTU) has placed its hope for improvement in the upcoming harmonised OHS laws. Jeff Lawrence is quoted in the small AFR article from the ACTU media release:

“Australia has a long way to go before success can be claimed on achieving national targets for workplace death, injury and disease,” Mr Lawrence said. “With proposed uniform national occupational health and safety laws, we have a once-in-a-generation opportunity to lift protections for workers by achieving the world’s best safety standards for the entire country.”

Jeff Lawrence and the ACTU need to remember that harmonised OHS model laws have never been about improving workplace safety. They are about setting the legal framework within which employers and employees improve safety in their workplaces. Safety improvement comes from the management of risk and hazards, not whether it is easier for a union to get onsite or for a company to be more easily prosecuted or for fines to be set at record amounts.

(In fact until recently, Australian lawyers and some OHS lawyers acknowledge that fines do not work for anything other than punishment. Other legal penalty options have been promoted for some time but these seem to have been ejected from the proposed National OHS law.)

The ACTU, and the employer groups, need to start assisting companies to reduce hazards, not only the sites or industry sectors of their own members. Unions are often keen on pushing corporate social responsibility but do not promote safety outside their member organisations. So where is their own corporate social responsibility?

The principal motivator of the union movement in Australia has always been industrial relations, of which OHS is of occasional relevance. Though it is acknowledged that in some specific union sectors, particularly the emergency services and construction, safety has a higher priority than elsewhere.

If the union movement was genuine about improving the lot of Australian workers and of the importance of safety, assisting in the education of business operators, outside their own union sector, to improve safety may show to some workers that being a member of a union may be a good thing.

As has been discussed elsewhere the OHS performance targets of the regulators are purely academic. Former Prime Minister John Howard introduced the concept of “aspirational targets” to the Australian political lingo and the current OHS targets were set during his government. Aspirational targets are those that you sort-of try to reach but if you don’t, it doesn’t matter, as there is no penalty.

If the regulators were genuine about reaching this target, the enforcement of OHS would be substantially different and harsher. The technical assistance for business to improve safety would not rely on the regulators alone or some token business consulting funding. But the targets have no big “stick”, the legislation is in a state of uncertainty, the unions have limited influence, and the community’s awareness of workplace safety is up but still only a trickle on their decision-making radar.

The targets also have no “carrot” other than a media opportunity to say that one State OHS regulator performed better than another, and that will surely create harmony.

No enforcement + no penalty = no effort.

Kevin Jones

OHS and workload – follow-up

SafetyAtWorkBlog has had a tremendous response to the article concerning Working Hours and Political Scandal. Below are some of the issues raised in some of the correspondence I have received from readers and OHS colleagues.

The Trade Union Congress Risk e-bulletin has a similar public service/mental health case which has been resolved through the Courts. The site includes links through to other media statements and reports.

Australia’s Department of Education, Employment and Workplace Relations has launched its work/life balance awards for 2009. The information available on the awards is strongly slanted to a work/family balance which is very different from work/life and excludes employees making decisions for the benefit of their own mental health – a proper work/life balance which is the philosophical basis underpinning OHS legislation. SafetyAtWorkBlog is investigating these awards with DEEWR.

SafeWork in South Australia is working on a code of practice on working hours and has been providing OHS advice on this matter since 2000.

The WA government has had a draft code on working hours for some time.

A legal reader has pointed out that “the 38 hour week issue is not set in stone …[and] is not a maximum for non-award employees.” So expect more industrial relations discussion on that issue over the next two years.

One reader generalised from the Grech case about decision-making at senior levels, a concern echoed by many others.

“The Grech case illustrates the gradual disintegration of effectiveness, and the employee’s own inability to recognise that it is not a personal failing of efficiency, rather an unrecognised systemic risk.

When the employee is at senior level, there is more likelihood there will be poor attention to the warning signs. Any ‘underperformance’ would be seen as a personal failing. For those of us in the safety business, it is obvious that the system itself is in need of urgent risk management.”

There were congratulations from many readers for raising a significant and hidden OHS issue.

“Many people in industry work more than 70 hour a week. This affects their health and personal relationships.”

“Overwork and under-resourcing lead to poor decision making, adverse business outcomes, and in the long term psychological and physical ill health. Both the government and corporate sectors are paying little attention to this issue.”

The workplace hazards resulting from fatigue are being addressed in several industries such as transport, mining and forestry, where attentiveness is hugely important because of the catastrophic consequences of poor judgement.

One of the issues from the Grech case is that the quality of judgement in non-critical, or administrative, occupations can be severely affected by fatigue, mental health and other psychosocial issues. These may not affect the health and well-being of others but can have a significant effect on the individual. OHS does not only deal with systemic or workplace cultural elements but is equally relevant to the individual worker.

Kevin Jones

[Thanks to all those who have written to me and continue to do so. KJ]

Who is all this OHS harmonisation for?

The public comment phase of Australia’s review of its OHS law harmonisation process begins in September 2009. To a large degree it is at this stage that the stakeholders can start refining their horse-trading. It will also be interesting to watch as the distraction of the new industrial relations legislation has gone since that law was introduced.

Safe Work Australia is using the traditional limited consultative troika – government, employers and unions, and will need to give public submissions considerable weight to balance interests.

Two of the employer groups have already started setting out some guidelines and expectations.

A statement from the CEO of the Minerals Council of Australia (MCA), Mitchell Hooke, was released on 14 August 2009. The only new element of the media release was

“The MCA has called for the National Mine Safety Framework to form the basis of national minerals-industry specific regulation within the Model OH&S Act.”

One of the aims of the harmonisation movement is to minimise regulations for specific industry sectors.

The Australian Chamber of Commerce & Industry was more expansive in its statement of 5 August 2009. The ACCI overstates the cost burden of OHS legislation in each State. The Model OHS Law Review Panel found overwhelming similarities between the legislations but acknowledged that the variations would be difficult to resolve.

The following quote from the ACCI statement illustrates the value of the ACCI perspective and also its major shortcoming.

“However, harmonisation of legislation is not of itself the solution to the compliance burden problem, but rather it will be the final content and quality of the model legislation and the approach to its implementation and enforcement that will be the critical determinants as to whether or not productivity gains are in fact realised in practice.”

It is accurate to say that the success of the legislation will be gauged by its implementation and enforcement. However, the conservative ideology of the ACCI is on show when it states that the harmonisation is intended to provide productivity gains. OHS legislation’s first aim should always be to improve the safety and health of the workforce which, in turn, increases productivity.

ACCI and other employer associations too often jump the safety element and go straight to productivity yet it is the safety of employees that is by far the greatest value that employers share with the community and the unions. Elsewhere in the ACCI statement, the importance of safety is acknowledged but the communication of priorities is muddled.

The ACCI also says “OHS laws should never be used as a vehicle to drive other agendas,” and then goes on to push issues of industrial relations and union behaviour that are not the core focus of the OHS model legislation process.

The ACCI statement closes on a more philosophical approach to OHS. It talks about “cooperative development”, “safety culture” and “continued engagements” but its own cooperation can be seen as conditional in the majority of the statement.

There is one statement that all involved in OHS law reform should consider. The ACCI states that practical and easily understood regulation is required.

“This is particularly important for the majority of employers who operate only in one jurisdiction and who will not receive a direct productivity benefit under harmonisation but who will bear the cost of understanding and complying with a new OHS Act and regulations.”

Not much will change for those companies who operate in a single State of Australia. It is also useful to note that the vast majority of businesses in Australia are small- and micro-businesses for whom all of this national hoo-ha is almost totally irrelevant.

The Australian Bureau of Statistics said in a webpage that was updated in September 2008 that

“Small businesses comprise the vast majority of Australian businesses. The importance of the small business sector to the Australian economy is recognised by researchers, government and policy makers as well as the business community as a whole. It is acknowledged that the characteristics and business drivers of small business are potentially very different to those of larger businesses and as such require specific, targeted policy initiatives. Central to the development of effective policy initiatives is a sound understanding of the nature and characteristics of this sector of the business economy.”

The employer associations do not represent the largest employment sectors in Australia – small businesses, micro-businesses and home-based businesses. Nor do the trade unions. So who exactly are the biggest beneficiaries of this whole OHS harmonisation process?

Kevin Jones

Handling trauma

The Rural Health Education Foundation (RHEF) produced a DVD recently as part of its professional development program on managing trauma. It is an introduction for rural medical practitioners on how to identify trauma and how to advise on management. The video was produced in conjunction with the Australian Centre for Posttraumatic Mental Health and is unavailable at the moment due to a lack of funding. However, the video, and others, are available online through a free registration at the RHEF website.

Health and safety practitioners rarely prepare themselves adequately for handling a traumatized worker whether it is from a work experience or an issue outside the workplace. OHS practitioners often have a linear perspective where an incident occurs, the personal damage is handled or referred on and the avoidance of recurrence is prevented.

The cycle of incident, rehabilitation and reintegration to the workplace is not widely understood in the OHS field. The “Recovery From Trauma: What Works” video illustrates the personal and psychological cost of an incident. Through a case study it also shows the early signs of trauma, when a worker may “not be himself” – the clues to a possible bigger problem. One case study, John, specifically includes the impact of his situation on his work performance.

In the early stages of trauma, around a week after an incident, the video advises that people avoid

Alcohol and drugs
Keeping overly busy
Involvement in stressful situations
Withdrawing
Stopping yourself doing things you enjoy
Taking risks

If the worker is out of sorts for longer than a week, professional assistance should be sought.

The video was broadcast in February 2009 so the information is current.

The program continues with issues of post-traumatic stress disorder with additional case studies including a policeman talking about his counseling and the therapy he undertook after a traumatic event.

RHEF does not try to do everything by itself and draws upon subject matter experts on trauma and recovery. The video is a very professional production and RHEF should be supported in its initiatives. Readers are encouraged to watch the videos online and, if you can, consider supporting RHEF financially so that these important resources can be made available to medical professionals throughout Australia.

Kevin Jones

CertIV OHS training in Beijing

Several years ago I met an OHS professional from Singapore, Daniel LO. Daniel relocated to Australia and has continued his OHS career. Last month Daniel conducted a Certificate IV OHS course for the Sinopec Corporation. As China becomes even more important to the world economy, pressure is increasing to show an acceptable commitment ot workplace safety. We, in the West, have seen this most in China’s coal mining industry and some of its manufacturers, particularly for some global brands.

In talking with Daniel last week, he offered a short article on the training course he instigated and conducted. Daniel is an asset to Australia and will be one OHS professional to watch. Here is his contribution:

An OHS Professional Report on Safety Developments in China

Since China’s entry into the World Trade Organisation in December 2001, there has been much pressure from the international community for China to raise its Occupational Health and Safety standards. The introduction of the Safe Production Law in 2002 and more recently the adoption of the Law on the Prevention and Control of Occupational Diseases in 2008 is the response of a determined government, to ensure that its regulatory framework catches up with the nation’s unprecedented economic growth.

Heeding this call to protect workers’ safety and health by investing in OHS training is state owned enterprise – China Petroleum & Chemical Corporation – one of the largest state-owned major petroleum companies in China, The company has made it to the top ten ranking by Fortune Global 500, is also known as Sinopec Corp, and is listed in the Shanghai, New York and Hong Kong Stock Exchanges.

In July 2009, as an OHS professional with bilingual ability, Daniel Lo personally negotiated, prepared and delivered the first ever CertIV in OHS in Sinopec (Beijing). This flagship competency-based training and assessment is also part of Sinopec’s policy of “Safety First, Prevention Foremost, All Involvement and Comprehensive Control," to achieve a better Health Safety and Environment (HSE) performance. Participants for this training are project managers, safety managers and supervisors from various oil fields in Saudi, Sudan, Ecuador, Yemen, Iran, Nigeria, and China. The key success of this program has been the training and sharing of occupational safety and health management system in context of China’s language, culture and history.

Daniel LO is presently engaged as a senior OHS consultant by IFAP. He has an MBA, BSc in Mechanical Engineering, Specialist Diploma in OHS, CertIV in OHS, Diploma in Information Technology, Advanced Certificate in Training and Assessment. He is also a Certified lead auditor for OHSAS18001.

Author: Kevin Jones

James Hardie directors face the consequences of their poor decisions

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Buenos Aires Nightclub fire – Update

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Why OHS performance targets don’t equal safe workplaces

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OHS and workload – follow-up

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Who is all this OHS harmonisation for?

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Handling trauma

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CertIV OHS training in Beijing

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