business – Page 251 – SafetyAtWorkBlog

Inadequate resources generate workplace stress

Survey findings released on 9 October 2008 by recruitment company Talent2 indicate that Australian employees are feeling stressed at work as a result of the effects of redundancies.

John Banks of Talent2 said

“… 71.7% say they currently do the job of more than one person, and this makes for a very stressful and unproductive workplace.”

The press release for the study stated

“More than half of Australian employees believe they are operating under extremely low staffing levels and 82.1% say they are expected to do far more work today than they were 5 years ago, according to a survey of 2,703 people.”

Almost 60% of respondents in Western Australia said that their workplaces are understaffed. Between 48% and 58% of respondents in other Australian States agreed.

Banks said that companies can create a “false bottom line” by minimising staff numbers. He said

“Across the board, the sales/marketing sector has been most affected with 74.7% of employees in that industry asked to do additional work. The manufacturing sector is also guilty of asking staff to cover the work of more than one person with 74.2% of those surveyed dobbing in their bosses, and the legal sector is not too far behind at 70.4%.”

It is acknowledged that the volume of claims for compensation for workplace stress increases during periods of corporate economic hardship and redundancies.

A terrific short article on the costs and impacts of workplace stress in Australia can be found in a newsletter by the law firm, Landers & Rogers.

It is also useful to note that the Talent2 survey results were released in the same week that the ILO has been promoting decent work, Australia is running Mental Health Week and the United Nations has its World Mental Health Day.

Corporate accountability – Lessons from Lehmans

Yesterday,the CEO of Lehman Brothers, Richard Fuld Jr, faced an inquisition at the House Oversight and Government Reform Committee. It was uncomfortable to watch but fascinating.

Video of the hearings shows the questions focused on Fuld’s accumulation of wealth in the good times and the retention of wealth in the bad times. There are parallels with the non-financial accountability of corporate leaders on matters such as workplace safety and corporate social responsibility.

The chair of the committee, Henry Waxman, spoke of company documents that

“portray a company in which there was no accountability for failure”.

Waxman said he was troubled by the attitude of Fuld where Fuld would not acknowledge any wrongdoing. Fuld did accept responsibility for the failure of the company but would not accept that his behaviour or the behaviour of the company he lead, contributed to the failure. In other words, Fuld would not accept that his company had a culture that may have contributed to the bankruptcy.

There will be more of this type of inquiry and in many countries other than the United States. OHS managers should not sit back and watch the chief financial officer squirm with discomfit and anxiety for the way that the financiers handle this crisis, as there are important lessons about their own accountability, responsibility and disaster planning.

When psychosocial hazards originate from poor management

There are still some OHS professionals who are uncomfortable with approaching workplace hazards that do not involve nip-points and energy-transfer. In fact there are some who can’t cope with the industrial relations interplay with occupational health and safety. A major industrial relations problem ran for some time at Tristar Steering and Suspension. The absurdity of this…

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Workplace Safety at Board Level

In May 2008, the Safety Institute of Australia held a conference where, for one day, CEOs and senior executives talked about their experiences with workplace safety and how they manage OHS in their workplaces and with their boards of management. The presentations were of variable interest but those that were good were very good. The…

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“Negligence” and salvation

SafeWork SA recently released details about the successful prosecution of MCK Pacific P/L (trading as Plexicor) over two injuries in a carpet manufacturing plant in South Australia that occurred in January 2006 and July 2007.

The company was fined a total of over $40,000. The new management has been congratulated on its new OHS management program (to such an extent that it won a Safe Work Award in 2006) and for achieving a positive safety culture.

It’s a shame that the prosecution didn’t focus on the lack of a safety culture that had lead up to two injuries on the same machine at the same MCK Pacific plant both involving the trapping of a worker’s foot in exactly the same nip point.

Risk Assessment

According to the report from the SA Industrial Relations Tribunal a risk assessment had been undertaken after the first incident but the control measures were not undertaken:

“The recommendations involved re-wiring the machine and ensuring safe work practices were put in place. …… The defendant failed to act on the identified risk. Further there was no hazard identification or risk assessment done with respect to the particular issue of cleaning and maintaining the foaming press being the function Wilson was performing at the time he was injured.”

There are several issues raised in this prosecution that need discussing. The first is that the company was able to save over $10,000 by “early guilty pleas, cooperation and contrition” assumably by the new management. In other words, once you are caught, get an easy 25% deduction on the penalty by realising you’ve been caught and saying sorry.

What has happened to the previous management who allowed for a second injury from an unguarded machine 18 month’s after a serious incident? Are those directors and executives excluded from managing a company unless they have had safety training? Have they acknowledged that they were negligent?

Regardless of the argy-bargy over an executive’s personal accountability and what is a company’s “controlling mind”, this case seems to be a good example of business owners not being held accountable for their (in)action. Once may be a mistake but twice is negligent.

It is also clear from the Tribunal findings that basic safety procedures were not followed and that workers were unaware of interlock devices.

“There was an isolation key but this was not common knowledge to all employees. Wilson and the other employees working on the machine at the time of the incident indicated that they were not aware of any lockout procedure. There was no documented lock out procedure with respect to the cleaning and maintenance of the machine.”

Following the second incident the company made substantial improvement:

Following the [second] incident … a lockout and isolation procedure was developed together with training for employees in relation to that procedure. Safe work practices were developed for all of the processes involved with respect to the foaming press. A space entry permit was required to be completed and signed prior to the entry of personnel into the press. Audible alarms were fitted. Hoses on the tool die were relocated to the front of the die which eliminated anyone standing behind the die and potentially out of sight of employees at the control panel.

Supplier Obligations

There is also a movement in OHS for contractors to meet the OHS standards of the commissioning company. Plexicor lists the following companies as its clients – Chep Australia, Ford Australia, Holden, JC Decaux, Mitsubishi, Pacific Center Cyber Works, and Telstra.

In 2004, before the injuries mentioned above, Holden made this statement in its 2004 Community and Workplace Report:

“Supplier Management
GM’s Worldwide Purchasing Policy includes a number of practices that guide its suppliers in purchasing activities throughout the world. Suppliers and any goods or services supplied must comply with all applicable regulations or standards of the country of destination, including those relating to environmental matters, wages, hours, conditions of employment, subcontractor selection, discrimination, occupational health and safety and motor vehicle safety.” (my emphasis)

Holden doesn’t seem to have pushed this obligation with Plexicor.

Holden sets out its current expectations for its suppliers on its website. One of the criteria, which seems a little contrary to well-resourced OHS management systems, is “Lean Manufacturing” – “the production of durable goods with a minimum consumption of capital investment, floor space, labour, materials, time and distance”. Holden states that

“For Holden to be successful a a low cost producer of quality vehicles, Holden suppliers also must be committed to the lean ethic.”

Similar obligations are imposed by Ford Motor Company through its joint venture with Futuris Automotive (the new owners of Plexicor and the defendant in the SA IR Tribunal case).

The Magistrate was certainly optimistic about the safety future of Plexicor under the tutelage of Futuris. If only Futuris had bought Plexicor earlier.

Is OHS a profession?

There are some in the safety profession who question whether OHS practitioners have the right to describe ourselves as professionals. Comparisons have been made to the medical profession where one is either a doctor or not, a nurse or not, a medical practitioner or not. This is an unfair comparison as the medical profession has a history going back centuries. As a regulated profession, the history is shorter but that it is a profession is unarguable.

A profession focusing on safety is a recent development, only a couple of decades old. I would mark the new approach to safety from Lord Robens but others may take it from Australian OHS legislation in the mid-1980s. (An argument could be made for the beginning to be from the increase in safety engineering in the 1960’s and maybe even Ralph Nader’s safety activism). The safety profession is still embryonic.

The added challenge is that additional hazards and social safety issues seem to be appearing much faster than happened decades ago, as manufacturing processes change much quicker and society applies more psychosocial hazards in a work context.

Maybe it is not yet a profession but it is becoming one and perhaps we need to focus on the journey more than on the result. Business and legal concerns have evolved just as rapidly as our approaches to OHS and becoming a profession is more complex than it was previously. The level of business regulation, government oversight and reporting has never seemed higher.

Previously business and employers could be trusted in some business areas. In the early 21^st century trust has evaporated.

One element of the comparison between the OHS profession and medicine is particularly useful to consider. It is now an accepted practice that if a serious health matter is diagnosed we seek a second opinion. We don’t seek a second opinion from safety advisers even though that “profession” is far less regulated than medicine. That seems an absurd business practice to me.

For a primer on what is meant by a profession, Wikipedia is a good place to start. It’s not authoritative but it is free and always a good place to start.

Unacceptable levels of death at Australian mines

In The Australian on 28 August 2008 was an article about the Australian Workers Union wanting to strengthen its industrial presence in the mining communities of the Pilbara region. Nothing surprising in that but the spur for this latest move was the death on 25 August of a 29-year-old worker in the Yandi mine workshop owned by BHP Billiton. The company acknowledged the fatality a media release.

The company has had several recent deaths in its facilities. According to a report on 30 July 2008:

“A 52-year-old Port Hedland man was conducting maintenance work on a scissor lift at Port Hedland when it fell on him at 1300 AEST on Tuesday, a police spokeswoman said.”

CEO Marius Klopper admitted on 20 August 2008 that BHP Billiton has had 11 fatalities so far in 2008. He is quoted as saying:

“The fatalities are difficult to talk about without getting emotional. The event that really shook us was that we had a helicopter crash where basically a pilot flew a helicopter into terrain and we had five fatalities. That was a truly tragic event and would be the single biggest event that we’ve had.”

“I think historically, we probably have reduced our fatality rates over time. It varies certainly from year to year but unfortunately we still have multiple fatalities every year in this business, which is something that we’ve got to continue to work on.”

Klopper’s comments received minimal media coverage outside of Western Australia. Perhaps that was because the CEO made those comments at the same time as announcing his company’s record profit of almost $A18 billion.

Category: business

Inadequate resources generate workplace stress

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Corporate accountability – Lessons from Lehmans

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When psychosocial hazards originate from poor management

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Workplace Safety at Board Level

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“Negligence” and salvation

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Is OHS a profession?

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Unacceptable levels of death at Australian mines

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