Category: executives

Chronic asbestos deaths, sudden mining disasters – both indicate deep corporate problems

It is less than a week until the premiere of Devil’s Dust, a movie about asbestos in Australia and the corporate maneuverings of James Hardie Industries to minimise its exposure to compensation claims but its lessons spread beyond asbestos to politics, corporate responsibility and individual morality.

In a recent article on the movie, the depiction of then New South Wales Premier, Bob Carr, was mentioned.  The politics of asbestos is well shown in the Carr depiction.  The asbestos issue seemed to have little importance until a political value was placed on the issue.  Carr, a Labour Party politician, then acted, met people affected by asbestos-related diseases and made clear statements of moral significance about asbestos and corporate responsibility.

Recently Crikey reminded its readers of some comments on asbestos compensation from 2007.  Apparently, the now-Deputy Leader of the Liberal Party, Julie Bishop stated

“I have enormous sympathy for those who suffered asbestos-related diseases,” she said in a statement to The Australian. “There were members of the CSR executive management team who also died of asbestos-related diseases who had worked at Wittenoom.

“As one of the lawyers in the case, I acted ethically and professionally at all times in accordance with client instructions.” [link added]

There is no doubt that Bishop acted ethically and professionally in her role as a lawyer but by 2007, the issue of asbestos exposure and compensation had moved to a moral basis.  Are companies who resist providing compensation for illnesses caused by their products being heartless or responsible corporate citizens? Continue reading “Chronic asbestos deaths, sudden mining disasters – both indicate deep corporate problems”

Challenges for WorkSafe Victoria at WorkSafe Week

As part of the annual WorkSafe Week, WorkSafe‘s Ian Forsyth presented the organisation’s OHS strategy to a large crowd at the Melbourne Convention Centre on 28 October 2012.

Harmonisation

Clearly Forsyth anticipated questions about the Victorian Government’s decision not to implement the model Work Health and Safety laws that will exist in all but two States and territories from 1 January 2013. He stressed that the government is adamant that the WHS laws will not be introduced “in the foreseeable future” and therefore Victorians need to refocus on compliance with the existing Victorian laws. He effectively shutdown any discussion on those laws before they started. The laws are off the Victorian table so let’s start working with what we have.

His stance has great significance for Victorian businesses and almost projected isolationism as a positive move. Part of his, familiar, justification was that the model WHS laws were based largely on the Victorian occupational health and safety laws and so there is little need to change, particular if the change would increase the regulatory cost burden to Victorian businesses. Continue reading “Challenges for WorkSafe Victoria at WorkSafe Week”

Devil’s Dust – Australian movie on asbestos and corporate morality

On November 11 and 12 2012, the Australian Broadcasting Corporation will broadcast “Devil’s Dust”, a two-part movie about asbestos in Australia.  This is not a documentary on asbestos-related diseases.  It follows the story of investigative journalist Matt Peacock from the 1970s to the present day in parallel with the corporate machinations of James Hardie Industries and its former CEO, John Reid and the life, times and death of Bernie Banton.

To many Australians, bits and pieces of each of these narrative streams will be familiar but Devil’s Dust illustrates the moral linkages between these streams leading to a powerful story of corporate greed, strength of character and man’s inhumanity to man.  The workplace safety context of Devil’s Dust is obvious – ignoring or hiding information about harm to workers, the management of many workplace risks through allowances and “danger money”.

The television production values depict the times perfectly and for those who know of the asbestos risks, particularly readers of Matt Peacock’s book “Killer Company” which inspired the movie, the opening few seconds summarise major issues in the asbestos story – sacks of asbestos on a truck, cigarette smoking and dust being bashed from work clothes.  Later in the first part, other issues are touched on – the washing of asbestos-contaminated work clothes by wives, asbestos in trains, asbestos in carpet underlay and asbestos used as road toppings. Continue reading “Devil’s Dust – Australian movie on asbestos and corporate morality”

The world looks to Australia for quad bike safety changes

On 19 October 2012 in a video address to an Australian forum on quad bike safety, the US Consumer Product Safety Commissioner Robert Adler stated

“We at the US CPSC are monitoring your activities closely with the hope that what you learn can help us back here in the United States.”

That places considerable attention on the safety initiatives and negotiations in Australia but also may indicate that the United States is struggling to achieve change in this area.

On October 17 2012, the Weekly Times devoted its front page, a double page spread and its editorial to the safety of quad bikes, or All Terrain Vehicles (ATVs).   The editorial called  on the Government to

“…mandate all ATVs are fitted with roll-over protection ..[and to] provide a rebate to allow retro-fitting of roll-over protection to existing ATVs.”

ABC News provided an excellent summary of the issues associated with quad bike safety in its news report on 17 October 2011 and showed some scary images of young children riding quad bikes.

Following the forum, Australia’s Workplace Relations Minister, Bill Shorten issued a media statement outlining to the outcomes.  It stated:

“The Minister said he has asked Safe Work Australia to report on the key findings of the quad bike issues paper and today’s forum, and that he would direct Comcare*, the Commonwealth workplace safety regulator, to immediately implement the following:

Insurance may diminish a director’s commitment to their positive OHS duty

Neil Foster of the University of Newcastle is known to SafetyAtWorkBlog for his work looking at the legal liabilities of company directors and officers.  Recently Foster released a paper called “You can’t do that! Directors insuring against criminal WHS penalties” which provides an additional legal context to an earlier blog article.

Foster acknowledges that

“…provisions of the criminal law imposing personal liability for company breach of workplace health and safety provisions provide one of the strongest ‘drivers’ for company officers to use due diligence to see to the implementation of company safety policies.”

and asks

“… what if the officer knows all along that, should they be subject to such a penalty, the company, or an insurance policy, will come to the rescue?”

This is a concern that relates to insurance policies or indemnities that are being offered in some industrial sectors.  Insurance could dilute the diligence of officers and directors on a range of matters including workplace safety. Continue reading “Insurance may diminish a director’s commitment to their positive OHS duty”

More safety indemnities offered but with similar limitations

In August-September 2012 a media release was circulated in Australia promoting an

“…an Australian industry first – leading construction & mining workplace safety provider RIS offers to indemnify operators against non compliance prosecution.”

This may be a first for RoofSafe Industrial Safety (RIS) but not for Australia.  SafetyAtWorkBlog has reported on a smaller but similar system that originated in the automotive repair industry.

RIS’ Syncron system has several steps to compliance

  • Safety Audit
  • Assessment and Priorities
  • Coordinated actions aimed at maximum cost savings
  • Indemnification
  • Ongoing Monitoring and Continuous Improvement

It seems to be popular in the mining sector, according to the RIS website and clearly, from the media release, RIS is expanding its application from its fall–protection base into construction.

Indemnification

There are lots of issues of concern in the media release, if not in the Syncron system itself.  The indemnification is of particular concern and although these sorts of safety management systems are apparently cleared through legal advisers they need a great deal of explanation in order for businesses to feel comfortable.

One of the potential traps of these systems is that indemnification only exists when the assessment and management system is followed absolutely, as highlighted below.  Although the advisory resources exist outside the customer’s business, checking and monitoring still comes from the customer and adequate resources are required.

The legalese through all Syncron brochures and statements needs forensic analysis.   Continue reading “More safety indemnities offered but with similar limitations”

Momentum increases for tangible action on workplace bullying

According to the Canberra Times, a company board has been served with an improvement notice over inadequate attention to workplace bullying claims in a retirement home.  The ABC television program, 7.30, has followed up workplace bullying claims aired earlier this month with a further case on 25 September 2012 with savage criticism of WorkSafe Victoria’s actions in the case.

The Australian Government has completed the public hearings of its Parliamentary Inquiry into workplace bullying.  Bullying is everywhere but little seems to be happening to address the various elements and deficiencies of the regulatory system.

On 21 September 2012 the WorkSafe ACT Commissioner warned about inaction on workplace bullying:

“If bullying has not occurred, then a properly conducted investigation should find that… If, on the other hand, an independent investigation substantiates the allegations, then the employer will be in a position to act to protect their workers from any ongoing threat to their health and safety.” Continue reading “Momentum increases for tangible action on workplace bullying”

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