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:

  1. each of the mistakes made on the rig and onshore by industry and government increased the risk of a well blowout;
  2. the cumulative risk that resulted from these decisions and actions was both unreasonably large and avoidable; and
  3. 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 “Is capitalism anti-safety? Systemic failures in oil industry”

OHS harmonisation documents released for public comment

Late on 7 December 2010 Safe Work Australia released draft OHS regulations and Codes of Practice for public comment.  The documents released are:

According to a Safe Work Australia media release, not yet available online:

“As part of the development of the Consultation Regulatory Impact Statement (RIS), Access Economics on behalf of Safe Work Australia, is surveying businesses across a range of sizes, industries and regions in an effort to obtain data on anticipated compliance costs and safety benefits of the model Work Health and Safety Regulations.   Continue reading “OHS harmonisation documents released for public comment”

Australian business is outraged over OHS changes but is it all piss and wind?

Australian business groups have written an open letter to the New South Wales Government protesting about the decision to continue with some OHS processes specific to New South Wales regardless of previous commitments to support the harmonisation of OHS laws.  As the letter was published as an advertisement  (Page 6 of  The Australian on 20 October 2010), it is not readily available online but the letter needs a little bit of deconstruction to better understand the politics and ideologies behind the letter and the business associations.

The letter says Australian industry signed on to the national harmonisation process because of the need for an effective way of improving safety, fair legal processes and national consistency.  Yes, to some extent but more often industry groups have been calling for a reduction of red tape for the purpose of reducing administrative costs.  Reducing the injuries and fatalities of workers is not the same as “improving the safety of Australia’s workplaces”.

The ideological gap is shown in the argument against the national imposition of “reverse onus of proof”.  The letter uses Victoria as an example of a jurisdiction without the reverse onus of proof and says

“Victoria, which was used as the model for the new national laws and which does not have union prosecutions or reverse onus, has between 30% and 50% better safety outcomes than NSW depending on the measurement used“. (my emphasis)

What is a “better safety outcome”?  Less deaths?  Less cost to business?  Is it fair to compare NSW to Victoria?  And can the variation in “safety outcomes” be directly related to reverse onus of proof?   Continue reading “Australian business is outraged over OHS changes but is it all piss and wind?”

Safety professionals must understand RTW in order to avoid unnecessary costs

The rationale for the Australian government’s evangelism of harmonisation is the reduction of “red-tape” on the logic, or assumption, that business costs will also be reduced.  Dr Mary Wyatt, according to a report on ABC News Online, says that cost reductions may be possible be reducing over-servicing of injured workers.

Dr Wyatt says:

“We have an increasing focus on the medicine, and we have lots of scans that tell us there are things wrong with our bodies, and then when those scans are done it’s often labelled as a serious problem, and then the worker gets worried and we often go off on a tangent..” Continue reading “Safety professionals must understand RTW in order to avoid unnecessary costs”

Food parcels required by some injured workers in South Australia

An independent member of the South Australian Parliament, Ann Bressington, has revealed that some injured workers in South Australia are receiving food parcels because their income is so low that they are living on bread and instant soup.

In a media statement released on 2 March 2010 (not yet available online), Bressington said

Rosemary McKenzie-Ferguson and I have both found ourselves in the position of having to provide food to injured workers because some were living on nothing more than dry bread and packet soups and unable to afford their medications.   It is a sad indictment of our government’s commitment to its constituents when sick, injured and vulnerable people are forced into this position….they have been thrown out in the cold and literally left to starve”. (link added)

The media statement was issued in support of the 10th WorkCover Public Forum scheduled for 4 March 2010 in the Way Hall, 10 Pitt St, Adelaide.

Bressington and McKenzie-Ferguson recently commented on WorkCover issues in SafetyAtWorkBlog.

Kevin Jones

Small business OHS shortcomings

The home insulation debate in Australia is fragmenting.  Workplace safety is one of the chunks of debate heading in an unknown direction (political safety goggles anyone?)  The Australian newspaper included an article on 19 February 2010 that, although coming from the insulation sector, illustrates a dominant misunderstanding by small businesses.

The proprietor has run many businesses in a range of industries but he clearly has little understanding of his OHS obligations as he denies any responsibility for the death Matthew Fuller, an employee of the firm he contracted to undertake insulation installations, QHI Installations.  The proprietor states the reason is that “we did not employ him.”   Continue reading “Small business OHS shortcomings”

The future of the School of Risk & Safety Science

It was good to hear the President of the Safety Institute of Australia (SIA), Barry Silburn on the radio on 7 December 2009. The SIA has traditionally been very hesitant about going public on safety issues but clearly the potential disappearance of the School of Risk & Safety Science from the University of New South Wales is important to the SIA.

The closure of this school seems absurd, particularly, when the fact of its profitability is shown.

The university’s decision appears wrong and, from the evidence of the radio interview, it seems that the decision has occurred recently.  Dropping a school, regardless of the prominence claimed by the SIA, which has a problem with prominence of its own, is a harsh decision if there has not already been a consultative process or a strategic program for improvement and increased relevance.

It is not as if the school does not have access to top talent.  Names familiar to Australian OHS professionals, researchers and regulators include

Professor Chris Winder

Dr Anne Wyatt

Dr Jean Cross

Michael Tooma

In the University of New South Wales’ Australian School of Business, there are several other prominent OHS academics.  Most familiar to SafetyAtWorkBlog are

Professor Michael Quinlan

Professor Stephen Frenkel

Barry Silburn (a video of Barry Silburn talking about the SIA is available online) accuses the University of New South Wales of sacrificing the safety profession for short-term gain:

“They’re not looking at the overall picture of OHS within Australia they’re looking at very short-term money considerations on their courses that they’re conducting within the university”.

This seems an odd accusation when compared with the fact that the school has made a profit two years running.

It seems to SafetyAtWorkBlog that the limitations of the University’s review are clear in the statement of Deputy Vice Chancellor, Richard Henry:

We had an external review of the Faculty of Science by a committee of internationally respected scientists and their recommendations to the university were that the Faculty of Science should concentrate on its strengths; areas such as maths, physics, chemistry, psychology, biology.

The university wants to focus on pure science rather than applied science after a  review undertaken by “a committee of internationally respected scientists”.   HMMMM?

OHS academics are often less dependent on government funding than other schools and departments because the skills and knowledge can be more readily applied in a practical way and they live closer to the economic realities of business and workplace safety.

Silburn’s accusations of greed are too narrow.  The safety profession can continue without the School of Risk & Safety Science.  There are many sources of OHS graduates still in Australia and, from the activity of the University of Queensland, these opportunities are increasing.

It seems that the university may have been too narrow in its selection of the review panel for the Faculty of Science.  But if we take the panel’s recommendations seriously, Richard Henry does not see the School of Risk & Safety Sciences as fitting in the Faculty of Science.  Surely it could fit in the university’s School of Organisation and Management.  Going from this School’s profile in the website:

“The School of Organisation and Management is a multi-disciplinary unit comprising 32 full-time academics.  Our mission in the School of Organisation and Management (O&M) is to conduct high quality applied research and to prepare students for employment in diverse organisational settings.  Our main areas of research and teaching include: Organisational Behaviour, International Business, Human Resource Management, Industrial Relations, and social and psychological aspects of Management.”

Anne Wyatt researches the psychosocial issue of workplace bullying.  Chris Winder researches occupational toxicology and his most recent academic paper is “Managing hazards in the workplace using organisational safety management systems: A safe place, safe person, safe systems approach.”

If the University of New South Wales cannot see the continuing relevance of its profitable School of Risk & Safety Science, it should perhaps get examined at its own School of Optometry and Vision Science.

Kevin Jones

The School of Organisation and Management is a multi-disciplinary unit comprising 32 full-time academics. Our mission in the School of Organisation and Management (O&M) is to conduct high quality applied research and to prepare students for employment in diverse organisational settings. Our main areas of research and teaching include: Organisational Behaviour, International Business, Human Resource Management, Industrial Relations, and social and psychological aspects of Management.
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