Lessons from Royal Commission into Home Insulation Program

Australia’s Royal Commission into the Home Insulation Program (HIP) demands the attention of all occupational health and safety (OHS) professionals, primarily, because a job creation and economic stimulus program was so poorly planned at the highest level of government, that it seems to have established a culture that led to workplace deaths. However the Royal Commission is already revealing information that shows how OHS is misunderstood by decision-makers, a situation that still persists in many jurisdictions and will only change by watching the Royal Commission carefully and analysing this information through the perspective of workplace safety.

State of Knowledge

The Royal Commission has been investigating when the workplace deaths in New Zealand from using metal staples with foil insulation were known by the Australian Government.  In OHS-speak, it is trying to determine the state of knowledge on this workplace hazard in the decision-making process.  The deaths of four young Australian workers prove that the state of knowledge was inadequate however it is well established that Australia and New Zealand operate independently and that, although there are legislative similarities, it is rare for a death in one country to generate regulatory change in another.  (One could look to the quad bike safety issues for an additional example.)  The recent legislative changes in New Zealand may indicate that they listen to Australia more than vice versa.

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GlencoreXstrata’s annual report shows more than 26 deaths

Last week the Australian Financial Review (AFR) brought some focus on occupational health and safety (OHS) by reporting on the most recent annual report from GlencoreXstrata in its article “Mining’s not war, why 26 deaths?” (subscription required). The article is enlightening but as important is that a business newspaper has analysed an annual report in a workplace safety context.  Curiously, although OHS is often mentioned as part of its sustainability and risk management program, safety is not seen as a financial key performance indicator, and it should be.

AFR’s Matthew Stevens wrote:

“Everybody in mining talks about ‘zero harm’ being the ultimate ambition of their health and safety programs. But talking safe and living safe are two very different things.”

GlencoreXstrata’s 2013 annual report is worth a look to both verify the AFR’s quotes but also to see the corporate context in which fatality statements are stated.  The crux of the AFR article is this statement from the Chairman’s introduction:

“It is with deep sadness that I must report the loss of 26 lives at our combined operations during 2013. Any fatality is totally unacceptable and one of the Board’s main objectives is to bring about lasting improvements to our safety culture.” (page 76)

(A curious sidenote is that the interim Chairman is Dr Anthony Howard, formally of BP and brought to prominence by the Deepwater Horizon oil spill.) Continue reading “GlencoreXstrata’s annual report shows more than 26 deaths”

Senator Abetz oversteps on workplace bullying claim

abetz.com.au - Joe McDonald 130314Anyone dealing with occupational health and safety (OHS), or in any profession, knows to be careful with one’s words in public.  This is particularly so when one is dealing with mental health issues or claims of workplace bullying.  This week Senator Eric Abetz, Australia’s Workplace Relations Minister, seems to have overstepped the mark by misrepresenting some Federal Court Orders as related to workplace bullying, when the Court made no such statement.  This could simply be dismissed as political hyperbole in the heat of the moment but this was no off-the-cuff remark.  He headlined his media release on 13 March 2014 as:

“Joe McDonald found guilty of workplace bullying – yet again. Bill Shorten must now act”.

According to Safe Work Australia, an organisation within Senator Abetz’s portfolio, workplace bullying is defined in the most recent national guide as

“repeated and unreasonable behaviour directed towards a worker or a group of workers that creates a risk to health and safety.” (page 2)

Nowhere in the Federal Court orders*  is workplace bullying, or any other bullying, mentioned and the Federal Court has not found Joe McDonald guilty of workplace bullying. The best that can be said is that Joe McDonald has a history of intimidation on construction sites and that this has created tense relations between the workforce and employers (perhaps a confused safety culture) and generated delays in construction.

Does this all matter? Yes

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Prediction on accountability and a political kick in the balls

Responsibility highlighted in greenThere will be two areas of occupational health and safety attention in the early months of 2014 in Australia – workplace bullying laws and the Royal Commission into Home Insulation Program.  The labour law firms are gearing up for a “bumper year” as one said prior to Christmas and the business groups are already lobbying/complaining/whingeing about the workplace bullying laws administered by the Fair Work Commission.  However the Royal Commission has the potential for the biggest social and ideological impact so, as the new year begins, I will attempt some predictions of the Royal Commission’s findings based around some of the terms of reference.

Substantial Change

‘the processes by which the Australian Government made decisions about the establishment and implementation of the Program, and the bases of those decisions, including how workplace health and safety and other risks relating to the Program were identified, assessed and managed;’

This paragraph is the one that could have the most long-term effect on governance, due diligence and procurement.  There are many suggestions on these issues in the sphere of project management but trying to keep the discussion in OHS, there are some useful comments on the Government procurement of services.  Australia’s Federal Safety Commission acknowledges that procurement is an important stage in project design.  WorkSafe Victoria’s “handbook for the public sector – health and safety in construction procurement” says

“As procurers, governments can promote better health and safety by requiring projects to include a range of safety measures, such as specifying the safety budget, building layout or the use of certain

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Moral conflicts in store for Australian politicians and bureaucrats

iStock_000016528694XSmall2014 is going to present tough challenges to Australia’s politicians and corporate leaders.  The Royal Commission into the Home Insulation Program, in particular, is going to illustrate and perhaps generate ideological conflict.

The Home Insulation Program (HIP) was established quickly to address a looming economic crisis.  Politicians and business leaders wanted Australia to avoid the global recession and they needed creative solutions.  Various importance governance and safety elements appear to have been sacrificed to achieve the economic ends.  In 2014, the politicians of the time and bureaucrats will be grilled over why they made these decisions.  Various inquiries have already identified that these decisions contributed to the deaths of four young workers.  In 2014, these decision- and policy-makers will be held to account for the fatal consequences of their economic decisions.

There has long been a conflict between the pursuit of profit and the pursuit of safe working conditions.  The Royal Commission, and the surrounding debate, is likely to place this conflict squarely in the highest levels of Australia’s government and public service.  Below are some of the issues that the Australian government and business sector are likely to face in 2014. Continue reading “Moral conflicts in store for Australian politicians and bureaucrats”

Safety in the C Suite doesn’t always run smoothly

It is rare for workplace safety to gain a half-page in the daily press in Australia but this occurred recently in The Australian.  The newspaper’s industrial editor, Ewin Hannan, built an article, “Tunnel Vision on Safety“, around the following quote from a leaked memo from 2010 then head of human resources, industrial relations and safety for John Holland, Stephen Sasse, in relation to the management of the Airport Link project:

“‘‘In my seven years with John Holland, I have never seen any project or management team that was so cavalier about the company’s OHS (occupational health and safety) system, principles and values and I have grave doubts about the management’s team’s capability in safety.’”

This is a remarkable statement but Sasse has been outspoken on safety issues in the general construction sector before. In 2011 a change in the senior management of Leighton Holdings, the parent company of John Holland, created doubt about Sasse’s future and Sasse left the organisation in October 2011.  The latter articles also indicate Sasse’s relationship with the union movement which may be part of the reason the unions are repeating their calls for an inquiry into John Holland and its licence with Comcare.  SafetyAtWorkBlog has several articles about these industrial relations tensions from 2009. Continue reading “Safety in the C Suite doesn’t always run smoothly”

Sex, work, liability and safety

There is a constant tension between occupational health and safety (OHS) and workers compensation. OHS is intended to prevent harm and workers compensation is available for when harm cannot be, or has not been, prevented.  In Australia, these two elements of safety are administered by different organisations under different legislation but it is a distinction that baffles many.   The recent discussion about a sex-related workers compensation claim illustrates this bafflement to some degree.

This time last year Comcare filed an appeal over a Federal Court decision regarding

“A Commonwealth employee is seeking workers’ compensation for injuries sustained after a light fitting was pulled from the wall of a motel during sex, on a business trip.”

(A good summary of most of the legal proceedings is provided by Herbert Geer.)

The case has received wide media attention mostly for the salacious matter of the case, and some political attention, but the purpose of the appeal, according to Comcare, was

“… to seek a High Court ruling on the boundaries between private Continue reading “Sex, work, liability and safety”

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