Category: business

Big fine for go-kart death

The AAP and others are reporting a big fine over the death of Lydia Carter whilst driving a go-kart at a work function held in Port Melbourne in 2006.  The significance of the $A1.4 million fine is that the company, AAA Auscarts Imports Pty Ltd,  is not a large or multinational corporation.

Ms Carter was wearing a seat belt that did not fit properly and safety barriers on the track had been incorrectly installed.  

Judge Duncan Allen said 

“There is no doubt in my mind that (Auscarts) not only was fully aware of the risk, but was fully aware of the ways to reduce them” 

“The company showed a gross disregard concerning the safety of employees and the public.”

For OHS professionals this case, which ended today (12 May 2009) in the Victorian County Court, will generate a fair degree of attention because of the fine’s size.  However, from the information currently available, the case seems one of the go-kart company having a work environment that was unsafe for customers, the company being aware of this and not doing enough to fix it.

SafetyAtWorkBlog is also looking  into how Ms Carter’s death has changed her employer’s organisation, what effect it had on her colleagues, what policy changes have been made, amongst other matters.

The judgement will also be made available as soon as possible.

Kevin Jones

What a good safety management system looks like

I’m a big fan of minimising the rehashing of OH&S guides. In my WorkSafe Victoria days (the latter ones when I was doing guidance material editing) I did what I could to encourage adoption of other people’s good work.

cover indg275[1]And just today I found an example of a British Health & Safety Executive (HSE) guide on what a sexy SMS looks like that I think is about as good as it gets; particularly in the context of giving an OH&S newbie an excellent sense of what it means to deal with OH&S in a systematic way.

Loved the focus on critical questions to ask about key elements of an SMS; as opposed to a common bad habit of doing the thing I call a “knowledge dump” – asking every question you can think of that has any sort of relationship to the topic at hand.

Loved the way the guide related smart SMS evaluation to real-world business decisions. I gotta say (obviously with the benefit of hindsight) that governments are pretty hopeless at “relating” to business in guidance material. It’s a waste of white space to keep telling a reader why it’s awful to hurt workers. It’s a waste because the reader wouldn’t be a reader if they weren’t concerned about that.

The HSE guide takes the approach of comparing SMS decisions to day-to-day business decisions. Take for example these questions from the guide: “How much are you spending on health and safety and are you getting value for money? How much money are you losing by not managing health and safety?”  These are just a couple of examples of business-savvy questions in the guide. They show the author knows full well that crappy OH&S  management costs big bucks and they cut straight to the chase on questions about costs and losses. But, cleverly, the author leaves it at that, and includes other business related questions. A good move.

I’ve found (and I have to say I was surprised to find this out) that my clients – almost all small businesses – are not “consumed” by profitability. They want their businesses to work, they want to be able to pay their bills, but I’ve found that there is lots of angst about hurting workers. (Hmm…rather than go on anymore about this topic of small business motivators for safety, I think I’ll leave it for a separate post.) Back to the guide.

What is a real stand-out in the guide is the minimal use of the lazy adjectives like “suitable” and “appropriate”. We in OH&S-World use those mostly useless adjectives way too much in guidance material. The author of the guide avoids them like the plague. Grab yourself a free copy from ttp://tinyurl.com/obwzrg .

Col Finnie
col@finiohs.com
www.finiohs.com

Passive smoking and casino workers

Smoke-free workplaces have gained considerable attention over the last few years but many countries allow exemptions for casinos.  This makes no health sense but considerable political and revenue sense.   The  American Lung Association has released a video story about one non-smoking casino worker who has suffered lung cancer, Vinnie Rennich.  (The 16meg flash video is available for download)

Safety Innovation – doing the hard yards

Kevin’s stuff on the latest Safe Work Australia Awards got me thinking about an issue I have had a bee in me bonnet about for a while now.  It’s safety innovation, and the glaring hole in Australia for support for the hardest innovation of the lot – safety product development.  By “safety product” I’m specifically referring to development of equipment or systems intended for sale.

As far as I can discover, Australian OH&S awards tend to focus on the entirely worthy thing of endorsing solutions that are readily adopted and are ideas that have a record of successful implementation.  There is no doubt that the safety award system finds excellent ideas used all over the place.  But the key issue here is that these innovations, relatively speaking, sell themselves.  They have been implemented and are proven “winners” in the sense of being a successful safety idea.

What seems to be missing is support for a small-scale product developer who has an excellent product prototype that hasn’t the convenience of a proven safety track record.  I’ve had the privilege (and sometimes the terrible angst) of trying to help out safety product developers, solo- or micro-businesses that are plugging away at getting a marketable product up and running.

Any product development is expensive, and in the absence of a larger company budget to “take the hits”, the small operator has to wear lots of pain to get a product to the point that it can be put on the market.

General support for all sorts of product development is often made available by various government agencies.  In Victoria, Innovic is the government organization that does good work in helping promote good ideas.  They have a specific award program for very new ideas called “The Next Big Thing”.  

It’s a great system, that invites applications from around the world but it’s still limited, by virtue of it (like the current OH&S regulator safety awards) being mostly an endorsement.  And, sure, a developer can benefit from endorsement. But from my experience, the small operator is mostly in need of advice and funding to keep a product idea alive.  This is where I think the OH&S regulatory agencies could really have a positive impact on safety product innovation in Australia.

I’m suggesting that contributions from each of the Australian OH&S agencies to a fund to support safety product developers with a specialised new product award could be managed by Safe Work Australia.  That fund would have to be fair dinkum.  It would need to have the resources to draw on expertise from product development specialists.  It would have to have prizes that matter.  Options could include funding to have winners attend the very excellent programs much like the New Enterprise Incentive Scheme (NEIS) provided around Australia.) The award system could include in the prize a fully funded 12-month part time course that does a similar thing to NEISS. 

But that is all very well, but a good idea is a worthless idea if it can’t be funded.  Cash is the thing a product developer needs.  Ten thousand dollar prizes is about the sort of cash I think would start to come close to being useful.  Keep in mind that taking out second mortgages on homes and other severe financial burdens are par for the course for a product developer.  Ten grand is not going to keep a developer afloat, but it may well be the difference between an idea withering vs it being made available to everyone.

And I recognise this sort of support for people trying to get a product on the market is high risk.  If a product development program got up there’s bound to be some failures and that has to be accepted as the cost of taking risks.  But maybe it’s time for the OH&S regulators to stick their neck out in this area?  Australians have had a pretty good history of coming up with new ideas, and there is lots of rhetoric about backing product innovation. It would be excellent to see more examples of regulators being prepared to do the hard yards on safety product development.

Col Finnie
www.finiohs.com

Groundwork for employee engagement

Safety professionals should be suspicious of many management trends.  Over the last decade behavioural-based safety has been popular and more recently workplaces have been subjected to the application of amorphous concepts such as leadership and engagement.  Many of these are dressing up old approaches to management in new jargon,  some have little evidence to back up their claims.

At the end of April 2009 the Society for Industrial and Organizational Psychology (SIOP) identified limits to the application of employee engagement.  A SIOP statement said 

 Study after study has shown that an engaged workforce is considered desirable in any organization and leads to greater productivity and profitability. In short, There seems to be no downside to employee engagement. However, Thomas Britt, an industrial-organizational psychology professor at Clemson University, cautions there are some limits to employee engagement that managers should consider.

Britt acknowledges that employees who are actively involved in the management and decision-making of their company provide greater productivity and profitability. In modern parlance, engagement is good.  But he identifies several issues that should be considered.

“If [engaged workers] are not getting the resources they feel they need to perform at their best, their engagement may be diminished.”

So worker enthusiasm and initiative needs to be adequately supported.

Britt said performance could be restricted by

  • lack of budget and equipment support,
  • access to important information,
  • work overload,
  • unclear objectives and goals, and
  • assigning employees’ tasks that don’t fit their training.

SIOP said 

Britt’s research shows engaged employees are likely to become frustrated and dissatisfied and may blame their supervisors if they do not have the systems and support necessary to be effective. Given the higher pro-activity and energy levels of engaged employees, this frustration could lead to turnover as they begin to look for more supportive work environments. “The ones who stay behind may well be the ones who just don’t care,” said Britt.

 Work overload can lead directly to burnout.  According to SIOP, Britt said

 “highly motivated employees are willing to go beyond the call of duty to help the organization, but when temporary overload continues and they repeatedly fail to meet their own high expectations, their motivation becomes directed at locating other job possibilities, leaving the organization at risk of losing key talent.”

The impediments to an engaged workforce can often be missed in the enthusiasm of the engagement evangelists It is important not to dismiss the enthusiasm but to temper it so that any benefits are long term.  For any new management approaches to work, there must be adequate groundwork so that the participants know the reasons for change, this will help the new approach succeed.

In short, business needs to acknowledge that consultation is a basis for improvement not a communication method of telling people about change.  As SafetyAtWorkBlog has said consultation occurs in preparation for change as well as during and after.  Thomas Britt and SIOP have provided excellent ideas of the areas of threat for an employee engagement program.

More information may be available at  www.siop.org.

Kevin Jones

The real business cost of safety

In February 2009, BHP Billiton forecast a full-year production target of 130 million tonnes of iron ore.  On 6 May 2009, the BHP president, Ian Ashby, has admitted that the company will be a “few million tonnes short”.  The reason?  Workplace deaths.

Ian Ashby was talking at a conference yesterday and pledged to improve safety however BHP, as has been pointed out in previous SafetyAtWorkBlog postings, has professed to place a high value on safety and its staff for some years.  This is not a new issue for the company and that is what makes the statements of the president potentially hollow.

It is useful to look at the areas that Ashby has identified for additional attention for the implication is that this is where the OHS management system has been deficient.  The measures to be adopted, according to media reports, include

  • restricting access,
  • improving traffic management, and 
  • suspending non-essential night-shift work.

In 2008 the spot price for iron ore had reached $US190 per tonne.  In late 2008, the price fell to $US77 per tonne.  BHP is currently negotiating prices for its iron ore so no accurate figure of value is available.  But let’s allocate a conservative figure of 3 million tonnes to the Ashby quote above and perform a rough calculation for the cost of poorly managed OHS in BHP.

      3 million x $US77 = $US231 million; or 

      3 million x $US190 = $US570 million

Following the economic crisis of 2008-09, shareholders are going to be less forgiving on corporate performance.  This has already been seen on the issue of executive salaries but the BHP experience should have shareholders asking why the management activity has not kept up with the safety rhetoric and the corporate values.  Because soon the poor safety practices in the outback mines of Australia will be hitting the shareholders’ pockets and they are justified in expecting answers form the executives.

The trap for shareholders is to forget the deaths of the workers and only hear the commitments of the executives for the future.  Should one believe the future promises when the corporate values of safety have not been upheld in the recent past?

Note: an independent government review was undertaken and a report was handed to the government in early May.  The report has yet to be released and may not be.

Kevin Jones

UPDATE: 8 May 2009

A spokesperson for the West Australian Dept of Mines & Petroleum has advised SafetyAtWorkBlog that the report into BHP was undertaken under Section 45 of the Act and therefore cannot be released unless in the course of a prosecution.  However, just as has occurred with the Melick Report into the Beaconsfield Mine collapse, there is always hope.

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