economics – Page 51 – SafetyAtWorkBlog

Transocean executives gain safety bonuses

News that Transocean are awarding their executives substantial safety bonuses has the internet aflame with outrage. Certainly it seems hard to justify the bonuses given after the death of 11 workers and the damage to the local environment, economy and community but the action will also affect safety management.

Safety management is increasingly relying on statistics to identify performance levels. Transocean’s actions illustrate that some statistics bear little relation to reality or, at least, the real-world context of its operations.

AFP quotes Transocean as reporting to the US Securities and Exchange Commission that:

“Notwithstanding the tragic loss of life in the Gulf of Mexico, we achieved an exemplary statistical safety record as measured by our total recordable incident rate and total potential severity rate” Continue reading “Transocean executives gain safety bonuses”

Election excitement masks OHS confusion

The Liberal Party of New South Wales won last Saturday’s State election in a landslide. The New South Wales employer associations are jubilant but the jubilation masks some confusion over OHS reforms.

The new NSW government is being urged to act promptly on OHS reform issues particularly by the Australian Institute of Company Directors (AICD) and the NSW Business Council but the media statement of the AICD illustrates the confused understanding of the national OHS reforms. It says

“Reforms should include reducing the burden on business of excessive regulation, re-committing NSW to participate in the national reform of occupational health and safety laws and reducing the excessive liability burden imposed on company directors by state legislation.”

“The new government must move decisively in its first term to reduce unnecessary regulation and red tape, which is strangling business.”

It is acknowledged that the introduction of new OHS laws will substantially increase the need for paperwork in order to produce the evidence required to support compliance, due diligence and positive OHS duties on managers. It seems impossible to achieve OHS reforms with also accepting the increased documentation. Continue reading “Election excitement masks OHS confusion”

Creating jobs is a waste unless those jobs are safe

Coming out of recession or, at least, a global financial crisis seems to mean that the creation of jobs is the only driver of economic growth. Governments around the world seem obsessed with employment creation but rarely is the quality of the employment ever considered.

The drive for jobs at the cost of other employment conditions such as safety was illustrated on 11 March 2011 in an article in The Australian newspaper. New South Wales’ election is only a short while away and, as it is widely considered to be an easy win for the conservative Liberal Party, government policies are already being discussed.

“Industrial relations spokesman Greg Pearce, a former partner at Freehills, said he was aware that concerns about the workplace safety system had emerged in the legal profession.

But the Coalition’s main goal was to minimise uncertainty to encourage job creation.”

The push for jobs is also indicative of short-term political thinking. Continue reading “Creating jobs is a waste unless those jobs are safe”

OHS harmonisation to result in a substantial increase in costs to business

Australian lawyer Andrew Douglas has provided a frank assessment of the OHS harmonisation process instigated by the Australian government to reduce red tape and administrative costs of safety. In Smart Company on 1 March 2011, Douglas wrote:

“…the Model Act, the regulations and documents that flow from it will dramatically increase state-based businesses legislative compliance, will massively increase the paperwork proving compliance and will inevitably lead to a substantial increase in costs to business in managing safety and OHS.”

Most State governments continue to support the harmonisation process, in almost all its elements, as a positive for business. So what’s the story here?

Andrew Douglas’ opinion needs serious consideration as it is one of the few contrary positions expressed to date. Continue reading “OHS harmonisation to result in a substantial increase in costs to business”

You can lead a stressed horse to water……

England’s Trades Union Congress (TUC) released results of a survey of union representatives on 24 February 2011 that shows that workplace stress is

“now by far the most common health and safety problem at work.”

Even taking into consideration the inherent bias of such union surveys of reps, the figures are significant. The 24 February 2011 media release states:

“Nearly two thirds (62%) of reps say that stress is in the top five problems faced by the workers they represent and more than a quarter of reps (27%) pick out stress as the hazard at work that most concerns them. Another recent report from the British Academy states that the global economic downturn is to blame for the soaring stress levels due to the sharp rise in job strain and job-insecurity; both determinants of work-related stress. In the last 2 years, work stress levels rose by more than 4%, compared to the previous rises of 0.1% from 1992 to 2009.” [link added]

So what can be done to reverse this trend?

If the global economic downturn has generated increased stress levels, OHS practitioners and activists need to look at the big picture and begin pushing for better economic health – an action that, outside of the union movement, hardly ever gets a mention.

If OHS principles are based around the need to eliminate hazards then OHS professionals should be strong advocates of sustainable development where the mental health of workers needs as much support for sustainability as the environment receives, if not more. Continue reading “You can lead a stressed horse to water……”

Safety rationalisation doesn’t end with an improving economy!

Guest contributor, Gerard May, writes

The economic circumstances an organisation finds itself in can greatly affect their approach to workplace health and safety. Tough economic times are still ahead for some industries and organisations, while others who rationalised for survival through the global financial crisis will begin to prosper. This article will delve into what may be happening to Occupational Health and Safety (OH&S) in organisations heading into both tough and improving economic times. The economy will play a role.

Rationalisation in the manufacturing industry appears likely as the Australian Industry Group’s Performance of Manufacturing Index showed nine out of the 12 sub-sectors in the industry went backwards in December 2010[1]. Pricewaterhousecooper‘s (PwC) Australian-based global head of industrial manufacturing, Graeme Billings, recently stated,

“In the face of…declines in activity and the continuing slump in new orders, it is imperative that businesses continue to search for efficiencies, improvements and innovative approaches to their markets, products and business models[2].”

OH&S will surely be in the sights of rationalisation in the sector.

Is capitalism anti-safety? Systemic failures in oil industry

The Wall Street Journal and other media around the world have reported on systemic failures of the global oil industry and government regulators identified by the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling. These articles are based on the release of a single chapter, Chapter 4, of the final report due for release on 11 January 2011.

A media release from the Commission includes the following findings from Chapter 4

“The well blew out because a number of separate risk factors, oversights, and outright mistakes combined to overwhelm the safeguards meant to prevent just such an event from happening. But most of the mistakes and oversights at Macondo can be traced back to a single overarching failure—a failure of management. Better management by BP, Halliburton, and Transocean would almost certainly have prevented the blowout by improving the ability of individuals involved to identify the risks they faced, and to properly evaluate, communicate, and address them.”

“. . .the Macondo blowout was the product of several individual missteps and oversights by BP, Halliburton, and Transocean, which government regulators lacked the authority, the necessary resources, and the technical expertise to prevent.”

“The blowout was not the product of a series of aberrational decisions made by rogue industry or government officials that could not have been anticipated or expected to occur again. Rather, the root causes are systemic and, absent significant reform in both industry practices and government policies, might well recur.”

“What we. . .know is considerable and significant:

each of the mistakes made on the rig and onshore by industry and government increased the risk of a well blowout;

the cumulative risk that resulted from these decisions and actions was both unreasonably large and avoidable; and

the risk of a catastrophic blowout was ultimately realized on April 20 and several of the mistakes were contributing causes of the blowout.”

The significance of these quotes is that the Commission is critical of an industry and not just a single company. Continue reading

Category: economics

Transocean executives gain safety bonuses

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Election excitement masks OHS confusion

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Creating jobs is a waste unless those jobs are safe

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OHS harmonisation to result in a substantial increase in costs to business

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You can lead a stressed horse to water……

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Safety rationalisation doesn’t end with an improving economy!

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Is capitalism anti-safety? Systemic failures in oil industry

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