BHP Billiton deaths – government intervention

The West Australian government has taken the extraordinary step of talking directly to the senior management of Australian mining corporation BHP Billiton about the recent spate of fatalities at BHP’s worksites.  The cynic would say that we now know the number of workplace fatalities that it takes to gain a Minister’s attention however, the fact that this high-level meeting is occurring is a clear indication of the severity of the issue.  It may also indicate just how effective a union safety campaign can be.  It is just regrettable the campaign is generated from multiple fatalities rather than preventive issues.

According to the Minister, Nick Moore 

“Mines inspectors will now issue prohibition notices to BHP under the Mines Safety and Inspection Act 1994 – basically a stop work notice – for any breach of work practices or work place conditions that may constitute a hazard to workers.”

Mr Moore went on to say, according to one media article, “…the policy would remain in force until he had seen the report of a Section 45 review currently under way into safety management systems at all of BHP Billiton’s Pilbara iron ore mine sites.” 

The article noted that

“The review, requiring independent engineering studies of BHP worksites to be carried out, is expected to be completed by April 30.”

BHP, meanwhile, has given guarantees of the following safety improvements:

  •          Reduce site access;
  •          Improve contractor management;
  •          Enhance existing strategies to prevent excess working hours;
  •          Move rail operations from the Mine Safety and Inspection Act to the Rail Safety Act;
  •          Enhance traffic management standards, and;
  •          Suspend all non-essential work outside daylight hours

Kevin Jones

Safety conference protest

Janet Holmes a Court speaking at the Safety In Action Conference 2009  

 

 

Janet Holmes a Court speaking at the Safety In Action Conference 2009

On 31 March 2009, Australian trade unionists (pictured below)  protested outside the Safety In Action Conference.   The crowd was objecting to the presence of Ms Janet Holmes a Court, the chair of  John Holland, as a keynote speaker.  As Dave Noonan, CFMEU Construction Division national secretary, put it

“It is an outrage that a company with a dismal safety record is the key note speaker at a major safety conference,” Mr Noonan said. “John Holland needs to stop talking about safety and start working with the unions to make their worksites safe.” 

Many of the conference delegates who were attended a breakfast seminar were oblivious of the protest outside.  According to a media statement from the Safety Institute of Australia national president, Barry Silburn

“We share the same goal as the unions – to bring safety failures into the public arena and work towards preventing more deaths – so we wholeheartedly support their efforts and were pleased to see them at the conference today,” Mr Silburn said. “We certainly don’t condone the systems failures at John Holland. Janet Holmes a Court’s presentation was an opportunity to hear what went wrong and of her plans to improve those systems. She acknowledged that John Holland had made mistakes and gave delegates the opportunity to learn from them.”  

Recently, the trade union movement has become more strident in its protests about John Holland’s move to the national workers compensation scheme, the only construction contractor to choose this option.  The union argues that safety on John  Holland sites has deteriorated since the move.  They also complain over John Holland restricting union access to their worksites.

protest1mb-2

Many workplace deaths for BHP Billiton

The Australian Workers Union are justifiably angry at the latest workplace death associated with BHP Billiton.   According to the company’s media statement on 19 march 2009

“We regret to inform that we have been advised by Mines and Port Development (a Joint Venture of Fluor and SKM), who manage our major construction activities, that there has been a fatal accident involving a John Holland employee at the construction site in Newman.”

The company’s own website provides the background to the union’s concern.

25 February 2009

It is with regret that BHP Billiton Iron Ore advises that an employee, Bob Blake, a track machine operator, aged 56, was fatally injured in a rail accident approximately 74km south of Port Hedland at 3.30am on Tuesday 24 February.

25 February 2009

It is with sadness that BHP Billiton Mitsubishi Alliance (BMA) advises that John Barker, an employee of Nixon Communications working at Blackwater Mine, was fatally injured in a motor vehicle accident at the mine late this morning.   

4 September 2008

We regret to advise that a fatality has occurred at BHP Billiton’s Yandi mining operations involving a HWE Mining employee.

26 August 2008

BHP Billiton Iron Ore regrets to advise that an incident occurred during the night at its Yandi mine site, which resulted in the death of an HWE Mining employee.

29 July 2008

BHP Billiton Iron Ore regrets to advise that an incident occurred at approximately 11.00am today at its Nelson Point operations in Port Hedland, which has resulted in the death of an employee.

17 January 2008

It is with deep regret that BHP Billiton reports that a fatality has occurred today at the Cannington silver, lead and zinc operation in north-west Queensland.

In the “Chairman’s Review” for 2008,  Don Argus wrote about the growth in demand for its products from the Asian region:

Our response has been to streamline our business to enable us to produce as much product as fast as possible within the non-negotiable framework of the highest safety and environmental standards.

The CEO, Marius Kloppers, states that even though the company has achieved its seventh consecutive year of “record attributable profit”

While we can report financial success, I regret to report we have not performed well on safety. In FY2008, 11 of our employees died at work. Many more lives will have been impacted, some forever, by these tragic and avoidable events. We have reflected deeply on what more we must do to reach our goal of Zero Harm. In FY2009, we are making even greater efforts to improve our safety performance.

As shown above, the FY2009 performance statistics are not looking too good.

In the 2008 Corporate Governance Summary, the Directors are lauded.

The non-executive Directors contribute international and operational experience; understanding of the sectors in which we operate; knowledge of world capital markets; and an understanding of the health, safety, environmental and community challenges that we face.

In its 2008 Annual Report under Risk Factors, safety is listed within assets.  It reads like an acceptance that contractors are not living up to their OHS obligations or BHP Billiton standards.  This rings hollow as contractor management should be an area that a company of such size, resources, longevity and experience, manages in an exemplary fashion.

Some of our assets are controlled and managed by joint venture partners or by other companies. Some joint venture partners may have divergent business objectives which may impact business and financial results. Management of our non-controlled assets may not comply with our management and operating standards, controls and procedures (including health, safety, environment). Failure to adopt equivalent standards, controls and procedures at these assets could lead to higher costs and reduced production and adversely impact our results and reputation.

Later in the Risk Factor chapter:

Despite our best efforts and best intentions, there remains a risk that health, safety and/or environmental incidents or accidents may occur that may negatively impact our reputation or licence to operate.

The company is active though.  It has a Code of Conduct that applies to everyone, including contractors.  In it there is a quick test:

If you are in doubt about what to do or whether to speak up, it may help to do the Business Conduct Quick Test by asking yourself some simple questions:

  • The values test: Does it fit with the values in our Charter?
  • The safety test: Could it directly or indirectly endanger someone or cause them injury?
  • The law test: Is it legal and in line with our policies and standards?
  • The conscience test: Does it fit with my personal values?
  • The newspaper test: If the story appeared in the paper, would I feel comfortable with the decision?
  • The family test: What would I tell my partner, parent or child to do?
  • The ‘feel test’: What’s my intuition or ‘gut feel’? If it ‘feels’ bad, then it probably is bad!

Failing any of the above ‘tests’ indicates that you need to talk with someone about the concern you have.

It’s not that BHP Billiton seems to have fallen into a heap in the last couple of years.  Following a major explosion in 2004 at its remote Boodarie Hot Briquette Iron (HBI) plant in Western Australia, it was fined $200,000 plus costs for “failing to provide and maintain a working environment in which employees were not exposed to hazards.”   The explosion killed one worker and injured several others.

The court case revolved around the May 2004 explosion at the Port Hedland Boodarie HBI plant where one man died, and others received severe burns.

The prosecution case was that BHP Billiton undertook two activities, with the potential to cause an explosion, together without a proper risk assessment. This was considered to be a serious and substantial breach of the obligation to provide and maintain a safe working environment.

There is much more OHS performance information available at the BHP Billiton website but it is worth ending this post with the OHS statement included in the Code of Conduct:

BHP Billiton is committed to achieving leading industry practice in health and safety.

In all cases, we will aim to meet or exceed applicable legal and other requirements, as we believe that all accidents and occupational illnesses and injuries are preventable.

Our priority is to ensure that all our people – regardless of where they work or what they do – return home safely.

Kevin Jones

April 28 – Workers’ Memorial Day

memorial-poster-2009This annual event seems to receive more attention in Europe than elsewhere although over the years several Australian capital cities have erected workers’ memorial stones.  It is usually here that ceremonies occur.

I always attend these services in my own right as it helps to keep me grounded as I wade through risk assessments, policies, consultations, and other safety ephemera.

One of the chilling parts of the service is always the reading of those who have died over the previous twelve months.  This has echoes of the 9/11 recital each year but for the worker memorial there is a new set of names each year and a new set of families and a new round of grieving.

Please check your local town and city activities lists and attend this year’s event.

In support, the UK’s Hazards magazine has produced a simple but effective poster that can be downloaded.

Kevin Jones


What’s really causing the reduction of Australian injury rates?

Elsewhere in SafetyAtWorkBlog is a summary of the recent statistics released by the Australian Safety & Compensation Council.  Overall the injury trends are positive but it is worth looking at the report a little closer.

On page viii, the report says

Due to large increases in employment, incidence rates fell 16%, from 18 serious claims per 1000 employees in 2000–01 to 15 in 2005–06 and frequency rates fell 14% from 11 serious claims per million hours worked to 9.” [my emphasis]

The ASCC has identified this particular trend, the fall in incidence rates, to labour force variations, not necessarily due to any of the enforcement policies or marketing of the OHS regulators.

Australia is currently bemoaning the loss of manufacturing industry offshore, principally to south-east asia and China.  This will inevitably skew the workplace injury rates as with less heavy industry there is less work activity and less injuries.

There are all sorts of ways of measuring performance, of finding positive indicators, and indicators that are proportional are favoured – percentage reductions by specific industries, for instance.

All of this may look good for the OHS regulators and economic statisticians but those who glance over statistics for a general impression should consider that Australia is exporting a large part of its homegrown manufacturing industry.  The industry that we have from overseas, such as the automotive industry, is collapsing. (There are persistent rumours that, regardless of the US bailouts, General Motors, will disappear or have its Australian subsidiaries being nationalised by the Australian government.)

Australia is, in effect, exporting those industries with the highest long-term injury rates.  As the Compendium indicates (p.11) in 2007-8 the most hazardous industries remained agriculture and construction, industries that we cannot export.

National OHS Strategy

The ASCC figures differ from those used to measure the performance of the ten-year National OHS Strategy 2002-2012.  The strategy set a reduction target of 40% on figures for work-related injuries with a 20% reduction by June 2007.  The Compendium reports:

“Data from the recently released Comparative Performance Monitoring Report, 10th Edition shows that the 16% improvement recorded from the base period up to 2006–07 is below the rate of improvement required to meet the target of a 40% reduction by June 2012.”  (p 11)

The OHS regulators have failed to meet their midway target even though the country has seen one of the most expensive safety awareness campaigns in its history and with a major reduction in the manufacturing industries.  No wonder some of them are falling back on the old-school, and expensive, measures of increased inspection and more robust enforcement.

The risk of setting any target is how to account for the failure to reach it.  Keep your eyes open for the preparative work by the regulators’ marketing departments on turning failure into  triumph, or at least in making it into an “SEF” – someone else’s fault.

Kevin Jones

Latest Australian OHS Statistics

Below is an edited summary of the findings from the latest compendium of statistics issued by the Australian Safety & Compensation Council.  The stats relate to 2006-07 primarily but with some comparative data from 2000-01 onwards.  The full report is available for download as is a media statement from the Council Chairman, Bill Scales.compendium200607-cover

132 055 serious workers’ compensation claims in 2006-07  = to 14 claims per 1000 employees or 9 claims per million hours worked.

Men accounted for 68% of all serious claims

Incidence rates for male employees almost twice that of females

There were 9 claims per 1000 employees aged 15-19 years, which increased to 17 claims per 1000 employees aged 60-64 years.

“The Manufacturing, Transport and storage, Agriculture, forestry and fishing, and Construction industries had incidence rates substantially above the national rate of 14 claims per 1000 employees.”

The occupational group with the highest incidence rate of serious claims was Labourers and related workers (39 claims per 1000 employees).

Transport workers and some others had the second highest rate with 29 claims per 1000 employees.

The majority (73%) of the serious claims involved injury or poisoning (95 910 claims)

The remaining 27% (36 145 claims) were disease related.

The most common injury (41%of all serious claims leading to a serious claim was Sprains and strains of joints and adjacent muscles.

Fractures and Open wounds (8% of all serious claims )not involving traumatic amputation were the next most common injuries

The most common diseases were:

  • Disorders of muscle, tendons and other soft tissues (7% of all serious claims),
  • Dorsopathies – disorders of spinal vertebrae (6%), and
  • Mental disorders (5%).

23% of all serious claims involved the Back. Hand (13%), Shoulder (9%) and Knee (9%).

Manual handling mechanisms (Body stressing) were the cause of 41% of all serious claims, with: 

  • lifting objects (18%)
  • handling objects (15%)

The most common mechanism was Falls on the same level (13%).

Non-powered handtools, appliances and equipment represented 26% of all serious claims.

Over the period 2000-01 to 2005-06, the number of serious claims decreased 6% from 144 740 claims to 136 575.

“The Agriculture, forestry and fishing industry recorded the highest time lost from work of 4.6 working weeks in 2005-06 but due to the lower salaries in this industry, it recorded one of the lowest median payment amounts ($5100 in 2005-06 compared to the all claims median of $6100).  The highest median payments were recorded in the Mining industry ($10 400 in 2005-06).”

Compensated Fatalities

Preliminary data show that in 2006-07 there were 236 compensated fatalities = an incidence rate of 2.5 fatalities per 100 000 employees.

Of the fatalities, 91% were male employees.

Over the period from 2000-01 and 2005-06, the number of fatalities fell 21%.

Industry

The Construction industry recorded the highest number of fatalities (50).

Transport and storage industry = 45 fatalities (of which 31 were in Road freight transport).

Mechanism of injury or disease

A third of the fatalities (81) were due to Vehicle accident

33 deaths due to Long term contact with chemicals or substances,

19 due to Being hit by moving objects and

18 due to Being hit by falling objects.

Morality in business

A good safety manager is one who is aware of the social context of the job and the social consequences of injury on employees.  The manager also needs to consider the operational parameters of the company.  This is a difficult balancing act that many spend their careers trying to attain.  But what if morality or legislative obligation was removed from the workplace, or was never there in the first place.  How would employees be treated then?

GHOSTS is a movie, ostensibly, about one person, Ai Qin, who travelled illegally from China to England in order to earn a living, a living that she believed she could not achieve in China.  As the opening scenes of the film show, she, and many others, are drowning in Morecambe Bay when the tide comes in rapidly while they are picking cockles.  The reality behind this fictional film radically changed England’s approach to gangmasters and resulted in prosecutions of the operators of the cocklepicking business.  Those operators were found responsible for the deaths of 23 cocklepickers in 2004.

ghosts-19to-the-beach-close-low

As with many memorable films, the story of a single individual can fascinate and shame us at the same time.  GHOSTS is not an enjoyable film as the hardship and the choices faced are uncomfortable to watch but it is an important film for many reasons. One is that gangmasters, and immoral companies, do not exist in a vacuum.  Minor bribery, institutional ignorance, laziness and a disregard for human life are shown by various characters throughout the film.  There are combinations of these elements which push Ai Qin into certain decisions where others would be provided with options.

Another is that we need to be reminded of these events.  Often workplace tragedies fade as quickly as the media’s interest in them.  People often follow events only as long as they are on the telly but this habit provides an extremely skewed view of reality.  People are not expected to follow all issues, or be passionate about all the issues.  That way lies madness, confusion and inaction.  It is necessary to filter our ideological passions while retaining an interest in other related matters.  We categorise our priorities in relation to our resources, emotions and circumstances at one particular time.

But investigations take time and the truth often appears years later, sometimes when the heat in an issue has diminished, or we have had to reprioritize, or the media is looking elsewhere.  Outrage is always more attractive to the media than reason but we need to follow issues to their conclusion.  This is why families revisit the heartache of a fatality by sitting through coronial inquests or prosecutions.  They need to know the truth and find some answer to why the world has turned out as it has.

The conditions for trafficking, illegal migration and unregulated work continue in England today, just as they do in most countries.  GHOSTS is not a film about sex trafficking.  But whether people are being trafficked for sex, fruit picking, working in supermarkets or in take-away kitchens, is irrelevant.  Trafficking is inhumane and must be actively discouraged.

The issue will grow in its economic, human rights and political significance.

It may be heresy to apply the hierarchy of controls outside the workplace safety domain but if safety professionals investigated the contributory factors behind trafficking, it would be hard to argue against the elimination of the hazard for a lower order control measure.  If all physical journeys begin with a single step, then cultural change can begin with a single thought.

Kevin Jones

Victim support fund – http://www.ghosts.uk.com/

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