diligence – Page 12 – SafetyAtWorkBlog

HIP Royal Commission – Risk Registers

Cover of ReportoftheRoyalCommissionintotheHomeInsulationProgram SafetyAtWorkBlog 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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Have Moot Courts had their day for OHS purposes?

Ha01-035 The purpose of OHS Moot Courts is to provide a taste of the Court experience in the context of a prosecution for occupational health and safety (OHS). Moot Courts and Mock Trials [for the purposes of this article the concepts are interchangeable] have specific meanings in law schools and overseas but in Australia there is an increasing trend to tweak the moot/mock format to motivate OHS change by showing the consequences of an OHS breach and resultant prosecution. This application of the concept still needs refining both in structure and purpose but may have had its time.

SafetyAtWorkBlog has attended around half a dozen such events since a cold rainy night at Monash University law faculty over 30 years ago. That Moot Court, conducted by the Australian Human Resources Institute, had a genuine sense of occasion and fear. Prosecutors went in hard as is the potential for any court case. A more recent OHS Moot Court was almost jovial and failed to communicate the import of the court process and, therefore, the significance of the potential consequences of the court’s decision. Continue reading “Have Moot Courts had their day for OHS purposes?”

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_000015900242Small The 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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OHS is not all about covering one’s arse

iStock_000005779267_Small It is very common to hear people say that the core motivation for introducing or improving workplace safety management is to cover one’s arse (to protect oneself from various legislative and reputational exposures), be that the collective arse of management, the board and executives or the arse of the individual worker. This is a fundamental misunderstanding of the intention occupational health and safety (OHS) laws and principles yet the fear of reputational damage is a strong motivator of change with which safety professionals should learn to work and, perhaps, exploit, particularly as the traditional methods for corporate embarrassment, the media, are declining.

The most pertinent research on reputation risk as a motivator for OHS change seems to come from the UK’s Health and Safety Executive in 2005. In a summary report on research into compliance, HSE looked at the motivations of employers for change. It found that reputational damage was one of many motivators and that each was given around the same weight in deliberations but that

“Respondents cite newspaper reports covering serious incidents and requirement to advise customers of incidents as the best way of increasing risk of reputational damage, followed by a requirement to report health and safety in company reports. ” ( page 10)

This change catalyst relies on two increasingly fragile criteria – the media and annual reports. The media has rarely reported on OHS issues unless the incident

has caused major disruption
involves a high profile individual or company
involves children
can be given a party political context.

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Australian company dumps triple certification as unnecessary

At a recent seminar an HSE Manager of a large Australian company revealed that the company has dropped its support of “triple certification” – external certification to safety, quality and environmental standards. This caused a murmur in the audience as external certification has long been seen as an unavoidable element (and cost) of operating a large business. The HSE Manager explained that the company had assessed all of the resources it provides for certification in light of the benefits it receives and determined that the company could still do well without the external certification.

Certification has been considered as a public and commercial statement of good business management. Certification is also required as a minimum requirement to qualify for tenders for government works. But certification has also been seen as a costly and disruptive burden. This perception has strengthened as new regulators have imposed compliance requirements that are usually satisfied through external or third-party audits. This auditing complexity has sometimes been mentioned in the context of the “red tape” debate.

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“Safety is paramount”, “safety is our number one priority” = bullshit cliches

After a major incident or at an Annual General Meeting, it will be common to hear a senior executive state something like “Safety is our number one priority”. This is unrealistic and almost absurd because even in the most worker-friendly company, the continued existence of that organisation is the real and ultimate goal. Most corporate leaders believe these safety clichés because they think they reflect their own values but the statements are misrepresenting occupational health and safety (OHS) and need to be questioned.

Corporate leaders who say such statements are not hypocrites. They are more likely to not understand the consequences of their statements. If safety really is the number one priority, an executive should be able or expected to close the company if its work cannot be conducted safely. If a company’s people are paramount to the success of the company, how does it handle an accusation of bullying against a manager? Which of the people does the Board or the company choose to keep and which to lose? Should it keep the “evil” sales representative because the rep is its most effective salesperson or sack the rep because he or she is abusive?

These are executive decisions that need to be worked through if any company is to develop an effective operational culture that truly values the safety of its workers. It is vital that the reality behind the statements is analysed and acted upon, or perhaps such statements should not be uttered in the first instance.

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Category: diligence

HIP Royal Commission – Risk Registers

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Have Moot Courts had their day for OHS purposes?

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Fear of exposure rather than pride in their work

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WHS, performance indicators, annual reports and other thoughts

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OHS is not all about covering one’s arse

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Australian company dumps triple certification as unnecessary

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“Safety is paramount”, “safety is our number one priority” = bullshit cliches

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