HIP Royal Commission – Leadership and Culture

The findings of the Royal Commission into the Home Insulation Program (HIP) deserve a great deal of analysis by the safety profession. Amongst the lessons are important ones concerning leadership, culture and consultation.

The final report identifies major deficiencies in the design and administration of a major project regardless of the politics and jurisdictional argy-bargy.  Although many are disappointed the report did not identify any big name politicians as the major evildoer, Commissioner Ian Hanger is brutally forthright when necessary.

In the introduction of the report, there are several references to what a “competent administration” would have done, clearly implying that the government of then Prime Minister, Kevin Rudd, was incompetent in the management of HIP. In fact Hanger writes:

“It ought also to have been obvious to any competent administration that the injection of a large amount of money into an industry that was largely ‘unregulated’ would carry with it the risk of rorting and other unscrupulous behaviour.” (para 1.1.19)

“It ought to have been obvious, to any competent administration, that such an exponential increase in work to be undertaken would require a similarly huge increase in the workforce to do it.” (1.1.9)

“The reality is that the Australian Government conceived of, devised, designed and implemented a program that enabled very large numbers of inexperienced workers—often engaged by unscrupulous and avaricious employers or head contractors, who were themselves inexperienced in insulation installation—to undertake potentially dangerous work. It should have done more to protect them.” (1.11.18)

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HIP Royal Commission – Risk Registers

Cover of ReportoftheRoyalCommissionintotheHomeInsulationProgramSafetyAtWorkBlog has written previously about the evidence of Margaret Coaldrake to the Royal Commission into the Home Insulation Program (HIP) given at the public hearings and also the occupational health and safety role of risk management and risk registers. The release of the Royal Commission’s final report on 1 September 2014 provides further details on a risk management process that is common to all large projects.

Commissioner Ian Hanger spent considerable time on the issue of the risk register as this was one of the crucial elements in the project’s whole decision-making process up to Ministerial level.

Risk Register

Commissioner Hanger was scathing of the risk management process that not only ignored the risk of worker fatalities but purposely dropped this risk from the register. He was unforgiving in his criticism of Margaret Coaldrake. He criticised her judgement. In working with her Minter Ellison colleague Eric Chalmers:

“it was up to [Coaldrake] to make sure that she and the people working with her were qualified to provide the service that Minter Ellison consultants had been retained to do.” (para 7.11.15)

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If everyone claimed compensation for work-related stress in Australia, the estimated annual cost would be $83 billion

Lucinda Smith of Esteem People Management has made some excellent points about stress and mental health in her article – “The People Risk of Work-Related Stress“.  On determining the cost of mental stress she acknowledges authoritative government estimates but, significantly, states of the data:

“Although not fully exploring the issue of workplace stress because it only applies to accepted claims,…”

This is the core of much of the frustration in the OHS profession that injury and illness is always underestimated because data is based on workers’ compensation statistics.

Where Smith progresses the argument, though, is by comparing several important pieces of data.  Quoted in a Safe Work Australia report, Medibank Private estimated in 2008 that the direct cost of work-related stress was

“…$14.81 billion to the Australian economy, and $10.11 billion to Australian employers because of stress-related presenteeism and absenteeism.” (page 3 of the Safe Work Australia report)

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One hour of OHS discussion on New Zealand radio

On 17 August 2014, RadioLiveNZ‘s Mark Sainsbury devoted an hour to discussing workplace health and safety.  Given New Zealand has undergone a remarkable change on its occupational health and safety (OHS) strategy since the Pike River disaster, with the restructuring of its regulations and regulator into WorkSafeNZ, the various interviews are worth listening to.

This series of interviews are structured assuming that the audience has no prior knowledge of OHS.  The first interview was with a representative of the Accident Compensation Commission, Dr Geraint Emrys.

Dr Emrys lists fishing, forestry, and farming and agriculture as the industries of most concern.  This list is not surprising considering the industrial profile of New Zealand but it is curious that mining was not mentioned, even in passing, given the prominence of Pike River.

Emrys is asked about the opportunity to build an overall safety culture for New Zealand.  Emrys says that overall campaigns are possible Continue reading “One hour of OHS discussion on New Zealand radio”

Book review: The Financial and Economic Crises and Their Impact On Health and Social Well-Being

Book Cover NavarreAny of the books written or edited by Vicente Navarro are worth serious consideration.  The latest book, edited with Carles Muntaner has the daunting title of The Financial and Economic Crises and Their Impact On Health and Social Well-Being but it is the content that is important.  The editors’ social class analysis may be unfashionable in some areas, or even anachronistic, but the perspective remains valid, as they write:

“…any explanation of the current crisis requires incorporating a social class perspective so as to understand the modus operandi of the economic-financial-political system.” (page 4)

The book though is about the effects of the crisis on health and well-being and there is much to learn.  Continue reading “Book review: The Financial and Economic Crises and Their Impact On Health and Social Well-Being”

Fear of exposure rather than pride in their work

Due diligence” is an established business management concept that only recently came to be applied to occupational health and safety (OHS) in Australia through the Work Health and Safety (WHS) harmonisation process.  It’s credibility comes from the Corporations Act, principally, but also Consumer Protection and, partly, Environmental laws.

iStock_000015900242SmallThe attention given by OHS/WHS professionals and senior executives to due diligence is already changing how workplace safety is managed in a positive way but recently the

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WHS, performance indicators, annual reports and other thoughts

Macquarie University researcher Sharron O’Neill is traveling around Australia refining, through consultation and seminars, her research into Work Health and Safety (WHS) Due Diligence. In a Melbourne seminar this week O’Neill, and her colleague, Karen Wolfe,  provided thought-provoking discussions on three principal areas:

  • Due Diligence,
  • Performance Indicators, and
  • Reporting.

Below are some of my thoughts that they provoked.

WHS Due Diligence

WHS Due Diligence is still a poorly understood concept.  Part of the reason is that the major explainers of due diligence seem to be, predominantly, labour lawyers who, not surprisingly, emphasis the legal requirements and origins rather than the safety elements and application.  There are few safety professionals who are explaining due diligence; rather they are discussing OHS/WHS in the context of due diligence.

One colleague explained how an established organisation employed her as their first dedicated OHS professional around the same time as due diligence was being discussed  as part of the national OHS harmonisation process.  By looking through the company’s existing system of work,

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