Challenges for US labor unions and lessons for all businesses

Doug Henwood releases regular podcasts of his radio broadcasting and occasionally there is content that provides an interesting perspective on occupational health and safety, as does the 3CR program, Stick Together.  On August 1 2009 Henwood interviewed journalist, Steve Early, author of “Embedded With Organized Labor”. The podcast is available online. The Early interview clicks in at the 38 minute mark.

(A video interview with Steve Early is also available)

Early talks about how difficult the United States union movement has found it to maintain the enthusiastic momentum from 15 years ago.  He says that several industrial relations programs have slowed due to a lack of support from the grass roots or perhaps the exclusion of this sector in the initial planning of the programs.

As with many policy issues in the early period of the Obama government, a lot of interest is being placed on labour relations.  The government has begun discussions with labour leaders but these leaders face the challenge of gaining the government’s attention during the miasma of policy changes and President Obama has clearly stated to labour leaders, according to Early, that health care is his primary policy area at the moment.  The last month has shown the level of the challenge on health care policy.

Steve Early echoes the thoughts of Tom Bramble, an Australian academic analyst of unions, when he advocates an increased role for the rank-and-file union members.  It is in this sector that the passionate values of industrial relations and trade unionism are felt the strongest, often because it has avoided the political baggage that comes with the upper levels of the union movement.

Early reiterates that the best asset for change is an organisation’s membership.  He agrees that there is often a class-divide between the rank-and-file members and union management.  In many large organisations, senior executives are being encouraged to gain a better understanding of their organisations by jumping across the structure to (re)experience the lot of the membership.

Early says that the union movement in the 1930s resolved this by a major reconstruction of unions.  Corporations and conservative organizations are loathe to deconstruct in order to rebuild because, primarily, the executives get too comfortable.  Executives who genuinely understand their organisation, particularly those organisations that are member-based, can rebuild and remain true.

Kevin Jones

James Hardie directors face the consequences of their poor decisions

SafetyAtWorkBlog has kept a watchful eye on the long saga involving the directors of James Hardie Industries and their mishandling of a compensation fund specifically established for victims of the company’s asbestos products.  The compensation fund story has been handled well by Gideon Haigh in his book on the company.

The saga has since evolved into one of the duties and actions of the board of directors, moreso than one of compensation.  Today, 20 August 2009, the previous directors will be told of the financial and professional penalties determined by the New South Wales Supreme Court.

The ABC News online has an article about the impending court decision but more relevantly to the OHS and compensation issues is the fact that the existing compensation fund runs out in 2011 and the company says that the current economic climate does not allow for any more funds.  For a company that has earned good profits from asbestos over many decades, two years of poor corporate performance does not seem to balance the scales.

Too many corporations are using the global financial crisis to mask their own management failings.  The United States and England have seen this more than most countries.

The ABC was able to interview the current CEO of James Hardie Industries, Louis Gries, who is not as damning of the past directors’ decisions as some might expect, and the reporter, Sue Lannin, asks many direct questions about the company’s responsibilities to victims of its products.  This interview deserves careful listening.

Company directors around Australia are watching how the court case ends and the size of penalties they may face if they make similar decisions.  The OHS element is oblique to the issue of directors’ responsibilities but it is the hot topic in Australia at the moment and many OHS professionals talk with these same directors.  It may be necessary to adjust one’s language or message when talking safety with them from tomorrow on.

Kevin Jones

Buenos Aires Nightclub fire – Update

According to a Reuters report available on-line on 20 August 2009:

“The former manager of a Buenos Aires nightclub has been sentenced to 20 years in jail over a fire that killed 194 people, the deadliest blaze in Argentine history.

The court’s decision at the end of a year-long trial was met with spontaneous outbursts of violence among relatives of the victims, with police using water cannons to disperse rioters.”

One of the most popular blog articles at SafetyAtWorkBlog over the last month – the Santika fire article – provides a useful contrast to the Buenos Aires prosecution and some practical risk control measures.

Kevin Jones

Why OHS performance targets don’t equal safe workplaces

On 19 August 2009, the Australian Financial Review (AFR) published an article (not available online) about the lack of success of OHS regulators meeting their agreed performance target.  The article is based on the information provided by Safe Work Australia in its 2006-07 progress report.

Below is a chart that WorkSafe’s John Merritt showed at a recent OHS seminar which clearly shows how far the State of Victoria has to go to reach the 2012 target, and it is one of the better performing States.

vic_ohs_johnmerritt_leadership_080804 graph

The Australian Council of Trade Unions (ACTU) has placed its hope for improvement in the upcoming harmonised OHS laws.  Jeff Lawrence is quoted in the small AFR article from the ACTU media release:

“Australia has a long way to go before success can be claimed on achieving national targets for workplace death, injury and disease,” Mr Lawrence said.  “With proposed uniform national occupational health and safety laws, we have a once-in-a-generation opportunity to lift protections for workers by achieving the world’s best safety standards for the entire country.”

Jeff Lawrence and the ACTU need to remember that harmonised OHS model laws have never been about improving workplace safety.  They are about setting the legal framework within which employers and employees improve safety in their workplaces.  Safety improvement comes from the management of risk and hazards, not whether it is easier for a union to get onsite or for a company to be more easily prosecuted or for fines to be set at record amounts.

(In fact until recently, Australian lawyers and some OHS lawyers acknowledge that fines do not work for anything other than punishment.  Other legal penalty options have been promoted for some time but these seem to have been ejected from the proposed National OHS law.)

The ACTU, and the employer groups, need to start assisting companies to reduce hazards,  not only the sites or industry sectors of their own members.  Unions are often keen on pushing corporate social responsibility but do not promote safety outside their member organisations.  So where is their own corporate social responsibility?

The principal motivator of the union movement in Australia has always been industrial relations, of which OHS is of occasional relevance.  Though it is acknowledged that in some specific union sectors, particularly the emergency services and construction, safety has a higher priority than elsewhere.

If the union movement was genuine about improving the lot of Australian workers and of the importance of safety, assisting in the education of business operators, outside their own union sector, to improve safety may show to some workers that being a member of a union may be a good thing.

As has been discussed elsewhere the OHS performance targets of the regulators are purely academic.  Former Prime Minister John Howard introduced the concept of “aspirational targets” to the Australian political lingo and the current OHS targets were set during his government.  Aspirational targets are those that you sort-of try to reach but if you don’t, it doesn’t matter, as there is no penalty.

If the regulators were genuine about reaching this target, the enforcement of OHS would be substantially different and harsher.  The technical assistance for business to improve safety would not rely on the regulators alone or some token business consulting funding.  But the targets have no big “stick”,  the legislation is in a state of uncertainty, the unions have limited influence, and the community’s awareness of workplace safety is up but still only a trickle on their decision-making radar.

The targets also have no “carrot” other than a media opportunity to say that one State OHS regulator performed better than another, and that will surely create harmony.

No enforcement + no penalty = no effort.

Kevin Jones

OHS and workload – follow-up

SafetyAtWorkBlog has had a tremendous response to the article concerning Working Hours and Political Scandal.  Below are some of the issues raised in some of the correspondence I have received from readers and OHS colleagues.

The Trade Union Congress Risk e-bulletin has a similar public service/mental health case which has been resolved through the Courts.   The site includes links through to other media statements and reports.

Australia’s Department of Education, Employment and Workplace Relations has launched its work/life balance awards for 2009.  The information available on the awards is strongly slanted to a work/family balance which is very different from work/life and excludes employees making decisions for the benefit of their own mental health – a proper work/life balance which is the philosophical basis underpinning OHS legislation.  SafetyAtWorkBlog is investigating these awards with DEEWR.

SafeWork in South Australia is working on a code of practice on working hours and has been providing OHS advice on this matter since 2000.

The WA government has had a draft code on working hours for some time.

A legal reader has pointed out that  “the 38 hour week issue is not set in stone …[and]  is not a maximum for non-award employees.”  So expect more industrial relations discussion on that issue over the next two years.

One reader generalised from the Grech case about decision-making at senior levels, a concern echoed by many others.

“The Grech case illustrates the gradual disintegration of effectiveness, and the employee’s own inability to recognise that it is not a personal failing of efficiency, rather an unrecognised systemic risk.

When the employee is at senior level, there is more likelihood there will be poor attention to the warning signs. Any ‘underperformance’ would be seen as a personal failing. For those of us in the safety business, it is obvious that the system itself is in need of urgent risk management.”

There were congratulations from many readers for raising a significant and hidden OHS issue.

“Many people in industry work more than 70 hour a week. This affects their health and personal relationships.”

“Overwork and under-resourcing lead to poor decision making, adverse business outcomes, and in the long term psychological and physical ill health. Both the government and corporate sectors are paying little attention to this issue.”

The workplace hazards resulting from fatigue are being addressed in several industries such as transport, mining and forestry, where attentiveness is hugely important because of the catastrophic consequences of poor judgement.

One of the issues from the Grech case is that the quality of judgement in non-critical, or administrative, occupations can be severely affected by fatigue, mental health and other psychosocial issues.  These may not affect the health and well-being of others but can have a significant effect on the individual.  OHS does not only deal with systemic or workplace cultural elements but is equally relevant to the individual worker.

Kevin Jones

[Thanks to all those who have written to me and continue to do so. KJ]

Working Hours and Political Scandal

Over the last month or so, Australian politics has been scandalised by a senior Treasury official admitting to faking an email that implied political favouritism by the Australian Treasurer, Wayne Swan, and the Prime Minister, Kevin Rudd.

Godwin Grech is the public servant who has admitted faking the email and there are many reasons he has put forward, and journalists have endlessly speculated on, for his actions.  SafetyAtWorkBlog will discuss a minor element of the “Ozcar affair” that has been almost entirely overlooked – OHS.

Since the scandal broke in a Senate inquiry, Godwin Grech kept a fairly low profile and was last reported to be receiving treatment in a Canberra psychiatric facility.  It has been reported that Grech has a history of physical health problems and it has been reported, in an investigation into the affair by the Australian National Audit Office (ANAO), that administering the scheme was taxing on Grech.  The report says

“The under‐resourcing of the implementation phase of the policy placed at risk the anticipated policy outcomes. It also placed a considerable workload on Mr Godwin Grech, the Treasury official primarily responsible for the development and implementation of the policy measure, particularly in light of his medical condition.”

It needs to be noted that additional resources were offered to Grech to assist in administering the scheme. But Treasury was also criticised in the report.

“There were no indications that these matters, or Mr Grech’s medical condition, were given due weight in the implementation planning and delivery.”

Grech admitted to the ANAO that he had not informed his employer, the Department of Treasury, of his ongoing struggle with depression.

“What senior Treasury management did not know – as I have only very recently discovered – was that I have also been suffering from chronic clinical depression for some years, dating back to at least 2003. This had not been treated.”

Page 100 of the ANAO report has Grech quoting the OHS Act’s employer obligation to “take all reasonably practicable steps to protect the health and safety at work of [its] employees’”, and then lists his working hours required by the scheme.

“My work on the Oz Car program required me to work between 75‐85 hours per week including on weekends from late October 2008 until the onset of my bowel obstruction in early February 2009. My hours varied from 60‐70 hours per week from late February to June 2009.”

The amount of hours expected is phenomenal and there is little surprise that health problems or poor judgement occurred on this hazard alone.

However, what Grech fails to quote in the information to the ANAO is another section of the OHS Act 1991 – Section 21

“Duties of employees in relation to occupational health and safety

(1) An employee must, at all times while at work, take all reasonably practicable steps:

(a) to ensure that the employee does not take any action, or make any omission, that creates a risk, or increases an existing risk, to the health or safety of the employee, or of other persons (whether employees or not) at or near the place at which the employee is at work; ……”

Employees have a legislative obligation to not put themselves at risk. It would be interesting to know why Grech took on more than was healthy for him.

This dichotomy of choice is a crucial but difficult one for all employees in all industries.  When is it the right time to say no more or to ask for help or to say something is unsafe or unhealthy?

A further complexity to employment relations comes when industrial relations legislation specifies a maximum amount of working hours.  The Australian Government’s very recent Fair Work Act 2009 specifies maximum weekly hours of 38.  So what does this say about the employer’s OHS obligations to  civil servants, such as Godwin Grech?

The Fair Work Act says (Division 3, Section 62 (1))

“An employer must not request or require an employee to work more than the following number of hours in a week unless the additional hours are reasonable:

(a) for a full time employee—38 hours; or
(b) for an employee who is not a full time employee—the lesser of:

(i) 38 hours; and
(ii) the employee’s ordinary hours of work in a week.

Employee may refuse to work unreasonable additional hours.”

In May 2008, the Prime Minister, Kevin Rudd, said the following about public service workloads:

“I understand that there has been some criticism around the edges that some public servants are finding the hours a bit much ….. Well, I suppose I’ve simply got news for the public service — there’ll be more.  This Government was elected with a clear-cut mandate.  We intend to proceed with that.  The work ethic of this Government will not decrease.  It will increase.”

Godwin Grech could be considered one example of the Rudd Government work ethic.

In this political scandal OHS is an oblique and fringe issue but its existence cannot be ignored and it raises legitimate questions about how a Labor Government, the traditional friend of the worker, manages the safety of its employees.

Kevin Jones

River death leads to OHS prosecution

The prosecution of a New Zealand adventure company, Black Sheep Adventures, over the death of Englishwoman Emily Jordan has received more press in England than in Australia but the case should be watched by all OHS professionals.

One report provides a useful summary of the fatal incident

“Emily Jordan drowned while riverboarding on the Kawarau river in New Zealand’s south island in April last year [2008].

The 21-year-old former Alice Ottley School (now RGSAO) pupil was travelling with her boyfriend after graduating from Swansea University with a first class degree in law.

The riverboarding company Black Sheep Adventures Ltd and its director Brad McLeod have been charged with failing to ensure the actions or inaction of employees did not harm Miss Jordan.”

The same article is an illustration of the importance of regular communication with the family of the deceased by the Authorities, even if the parties are on opposite sides of the globe.

The family established The Emily Jordan Foundation and a eulogy about Emily is available which provides a clearer understanding of what was lost in this tragedy.

Black Sheep Adventures have also been charged under the Health and Safety Employment Act 1992, with failing “failure to take all practical steps to ensure the safety of employees and the prevention of possible hazards.”  The company and its director have pleaded not guilty.

The Birmingham Post is continuing to cover the case including the start of the trial due for next week.

Maritime New Zealand who are prosecuting the company instigated a review of the river boarding industry in late 2008.

Kevin Jones

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