Category: executives

Montara oil spill report will provide clues for handling BP inquiry

The Montara oil spill in the Timor Sea that lasted for three months in late 2009 was large but affected no countries directly and is certainly a long way from the Gulf of Mexico and BP.  However there are enough similarities for considerable media attention to be focused on the investigative report into the incident that was handed to the Australian Government on 17 June 2010.

The Australian Resources Minister, Martin Ferguson, acknowledged the receipt of the commission of inquiry’s final report but will not be releasing it yet.

Greens Senator Rachel Seiwert has said:

“The release of all information available to date is essential for the development of new regulatory and environmental procedures….  We need to be better prepared to respond to future disasters in our precious marine environment.”

Seiwert has at least acknowledged the global context of the report:

“Halliburton is reported to have carried out cementing work on both the Montara well and the US Deepwater Horizon well in the Gulf of Mexico. The failure of this cementing has been linked in the media to both spills.”

Speculation is that the report will recommend a “single national regulator for off-shore drilling” according to the Australian Financial Review (AFR) on 19 June 2010 (p5. not available online).   Continue reading “Montara oil spill report will provide clues for handling BP inquiry”

HSE and Lord Young test the waters of reform

The head of the UK’s Health & Safety Executive, Judith Hackitt has released part of a letter that she sent to Lord Young of Graffham on the announcement of his OHS review.  According to Hackitt’s media statement she advised

“The terms of reference of your review extend beyond HSE’s remit, which is concerned with addressing real risks and preventing death, injury and ill health to those at work and those affected by work related activities.

“However, we in HSE have been saying for some time that health and safety is being used by too many as a convenient excuse to hide behind.”

Hackitt welcomed the review and has released Lord Young’s response in which he says:

“Thank you for your letter of 14 June confirming your commitment to the review commissioned by the Prime Minister into Health and Safety and the growth of the compensation culture.   Continue reading “HSE and Lord Young test the waters of reform”

Off shore drilling safety will change forever

The ramifications for corporate America and particularly, the oil industry, from the Gulf of Mexico oil spill are becoming clearer.  In his 15 June 2010, address to the nation, President Obama stated his financial and operational expectations of BP prior to his meeting the company’s CEO, Tony Hayward on 16 June.

In essence, BP will be required to fund compensation for the families of dead and injured workers and those who are suffering economic hardship as a result of action which the President described as “reckless”.  The distrust of BP was evident by the compensation fund, which is likely to be billions of dollars, being administered by a third party.

But the BP spill has changed the way that oil exploration and extraction will occur in American waters.   Continue reading “Off shore drilling safety will change forever”

A glimpse behind the CEO veneer

The Australian Financial Review published a brief profile of the 53-year-old CEO of the ANZ Banking Group, Mike Smith, on 22 April 2010 (page 23, not available online).  The article ostensibly reported on an ambush and shooting that Smith experienced in South America in 2007 but it also revealed some of his attitudes to leadership and OHS.

Mike Smith stated that as a CEO of a large organisation

“…you really can’t have work-life balance”.

This is not to say that his staff cannot have such a benefit but it sends a message to all those would-be CEOs that personal safety, health and one’s family will be sacrificed if you reach the top.  The implication is that work-life balance needs to be sacrificed on the way to the top although Smith may be describing his own pathway. Continue reading “A glimpse behind the CEO veneer”

Lord Young = old approach to OHS

Reviews of OHS legislation by governments are usually keenly anticipated as they mostly occur once a system is broken.  But there seems to be considerable trepidation with the plan announced on 14 June 2010, by the Prime Minister, David Cameron.

Cameron has appointed Lord Young to undertake an extensive review of OHS.  According to the Prime minister’s media statement:

“The rise of the compensation culture over the last ten years is a real concern, as is the way health and safety rules are sometimes applied.

We need a sensible new approach that makes clear these laws are intended to protect people, not overwhelm businesses with red tape.”

Lord Young has a lot of work to do in building bridges after his disastrous appearance at the 2010 conference of the Institute of Occupational Safety & Health (IOSH) in April 2010.  It’s not quite like putting Lord John Browne in charge of a petrol station but…. Continue reading “Lord Young = old approach to OHS”

Comcare at Senate Estimates – enforcement performance indicators

Comcare is often seen as a minor player in OHS regulation in Australia because, although it has national coverage, it limits its OHS and workers’ compensation activities to specific industrial and public service sectors.  Although it is limited, it has a monopoly in those sectors and is powerful.  Its role in Australia’s harmonisation program seems to be just another OHS regulator but it has a unique role and structure.

Recently, Comcare’s CEO, Paul O’Connor, and Deputy CEO, Steve Kibble, addressed the Australian Senate’s Education, Employment and Workplace Relations Legislation Committee in the annual Estimates hearings.  Hansard reports Kibble’s comments (around page 32) on the enforcement activity of Comcare:

“Comcare has initiated 16 civil court proceedings in relation to alleged breaches of the OHS Act since 2004…..

Recent prosecutions include a matter in relation to a federal agent of the Australian Federal Police for a breach of his individual duties of care.   Continue reading “Comcare at Senate Estimates – enforcement performance indicators”

Does corporate leadership equate to political leadership?

Can a country be run in a similar way to running a business?  Does corporate leadership equate to political leadership?  It would be possible to find examples in support of both these questions and as much evidence to counter them but the contextual difference is important to note when considering leadership in general.

A crucial difference in the two sectors is that the corporate executive or CEO must operate to the satisfaction of the shareholders, regardless of the humanistic and social veneer applied.  A politician or a Prime Minister must serve for the benefit of the people, regardless of the political views held as this social obligation originates with the public office.  Politicians have wriggle room not afforded to CEOs because not all the citizens subscribe to the same values.  In the corporate world there is a clearly visible commitment to capitalism, a clarity not possible in the political world.

At the moment in England, it seems that the newly elected coalition government is starting to prepare for a social capitalism – capitalism with a human edge.  The path to economic restabilisation will be difficult and, according to the newspapers on 8 June 2010, the government is set to call on the services of the former CEO of BP, Lord John Browne.

Browne has graced the pages of the SafetyAtWorkBlog twice previously and not in flattering terms.  One writer said Browne:

“…. was admired by his peers but not as much as he was by himself….” [who] “…As CEO … surrounded himself with sycophants and yes-men enshrouded in a cloud of corporate hubris.”

Continue reading “Does corporate leadership equate to political leadership?”

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