executives – Page 67 – SafetyAtWorkBlog

Fair Work Act and OHS

On 1 July 2009, the Australian industrial relations (IR) climate changed with the introduction of the Fair Work Act. Regardless of the politics of the new Act’s origin, this legislation changes the way that working conditions for Australians are negotiated and set.

The Fair Work Act has no relevance to occupational health and safety, so why mention this on SafetyAtWorkBlog?

The new IR legislation should reduce the conflict that has been existent in workplace negotiations. The new industrial climate is consultative and forward-looking. In fact, the government is hoping that, to some extent, this legislation reboots industrial relations (to borrow a phrase from current international diplomacy).

It is in this IR climate, and consultative structure, that OHS issues will need to be discussed and negotiated in the future.

In a webinar conducted by SmartCompany and Gadens Lawyers on 9 July 2009, the openness of the information/consultative processes was stressed by panellist, Kathryn Dent.

This positive management climate reflected that presented in an earlier seminar conducted by Douglas Workplace Lawyers. Fair Work Australia Commissioner Lewin and lawyer, Andrew Douglas, spoke about how the new IR system is more inclusive than the previous WorkChoices systems. However, they also admitted that the Fair Work Act has nebulous support documentation and information.

The level of prescription is much less than previous. This allows for less restrictive negotiation but it also means that clarity may rely on determinations made by the tribunal. Commissioner Lewin concurred with Andrew Douglas’ point that the operations of the Fair Work system will require several years of “settling in” and some adjustments depending on determinations.

When raising OHS issues for the next year or so in Australia, employees and professionals need to be reminded that many of the managers and employers with whom they are dealing may well be feeling swamped by new industrial relations processes. This distraction may be understandable but OHS obligations remain the same regardless of other management issues.

OHS may seem to be more messy during this period as the IR overlaps with the “safe systems of work”. Unless IR is already part of the responsibilities of an OHS professional, the advice is to keep away from the details of the Fair Work Act. However it is recommended that at least one seminar on the Fair Work Act be attended so that the “tone” of the new legislation is understood. More important is how the Act is to be applied within the workplaces of one’s clients or employer.

Safety management systems will need to be tweaked to fit with the new consultative aims and processes. Of course, they will need to be tweaked again once the harmonised national OHS legislation comes begins in 2010. Don’t expect stability in Australian workplaces for the next couple of years.

Kevin Jones

More workplace stressors, email and upwards bullying

According to a paper presented at the latest Industrial & Organisational Psychology Conference organised by the Australian Psychological Society, poor quality emails are causing almost as much stress in the workplace as the number received.

New Zealand provisional (?) psychologist, Rowena Brown, was presenting findings from her PhD studies and said

“Email is a double-edged sword. We know that email can help employees to feel engaged with and connected to their work colleagues, however the impact of a poor quality email, combined with the expectation to respond immediately, can create unnecessary stress. Our research raises important issues for employers, who have a responsibility to train their staff in appropriate email etiquette.”

This type of research really doesn’t help business and managers to deal with the stress of their employees because it doesn’t provide any useful control measures. There are more significant causes of stress that demand the attention of OHS professionals and managers.

The same conference illustrates one of those other stressors. Sara Branch, a psychologist Griffith University was quoted on the matter of employees bullying their bosses.

“Upwards bullying, like other forms of workplace bullying, is often more subtle and less obvious to other staff. However, it can also include more aggressive behaviours such as yelling, verbal threats, and confrontational phone conversations.”

“Workplaces need to understand that bullying can occur at any level in an organisation. Although managers clearly have formal authority, they can also be victims of bullying and need just as much support as other staff.”

The study also found, according to a media release about the conference, that one of the main triggers for upwards bullying is organisational change.

“If an employee is disgruntled by change, such as new working conditions, management, or processes, they may blame their manager and respond by bullying them.”

With the increased attention to psychosocial hazards in the occupational health and safety profession, it is necessary to pay attention to these sorts of studies but they are simply new perspectives on established issues that should already be monitored and changed.

These studies may illustrate the issue that OHS professionals can use to gain that managerial or client attention but they should be handled carefully so that these specific issues do not dominate the understanding on the manager or client.

SafetyAtWorkBlog advocates looking outside the OHS discipline for new evidence and understandings of workplace issues be it sociology or psychology but one must avoid reacting to hype.

Kevin Jones

BHP, swine flu and leave entitlements

Many OHS professionals and business gurus state that safety leadership must come from the top of the corporate tree. BHP Billiton received some rare positive press on 16 June 2009 concerning its OHS policies.

According to Mark Hawthorne, BHP CEO Marius Kloppers has revealed he is battling “pig flu”, in his words. This seems to have generated a flurry of OHS activity. Sadly the best OHS practice was not mentioned, which would be to send the infected CEO home.

Hawthorne’s article identifies several BHP swine flu actions:

non-essential trips have been cancelled;

executives who must fly are being provided with Tamiflu;

cleaning shifts have been increased;

telephones, keyboards, rest rooms and public areas are being disinfected more regularly; and

bottles of alcohol-based hand sanitisers have appeared.

SafetyAtWorkBlog is seeking clarification from BHP Billiton on a number of points.

It is hoped that these measures were not generated only by the CEO comments but were already in place, particularly, following previous incidents with SARS and even avian influenza.

Any measures should be supported by staff consultation that involves more than a notice on the board or an email in the intranet. Many of these measures generate as many questions as they hope to answer and there should be information sessions for those who wish more detail.

Indeed one of the basic employment issues that always comes up in discussions about pandemics is leave entitlements. The importance of brainstorming pandemic planning can be illustrated by an article in The Australian, also on 16 June 2009. The ACTU believes that unpaid leave should not be applied if a worker needs to be absent from work due to influenza, even if the worker themselves are not ill.

The ACTU has told SafetyAtWorkBlog that the following motion was passed at last week’s ACTU Congress

that Federal and State governments should bring together peak union and employer groups to establish guidelines for handling the pandemic. These would:

ensure workers and their families are not financially disadvantaged by the outbreak;

provide employers with useful information and procedures to deal with any suspected cases of swine flu in the workplace;

ensure persons who are in isolation as a consequence of swine flu are not discriminated against or disadvantaged in their employment; and,

educate the community about the disease to stop misinformation, panic and help in the overall strategy to slow down the spread of the disease during the winter months.

One of the criticisms that SafetyAtWorkBlog has expressed about many influenza advice sites is that control of the hazard at work is not being seen in the context of occupational health and safety. This was the case with www.fluthreat.com.

Sadly, influenza information from OHS regulators is of dubious value and application, in many instances, and the regulators have not been promoting their advice. Very little OHS traction has been gained on the pandemic, even when the unions make the point to the media, as the ACTU did with The Australian newspaper. The Australian’s article did not mention the following, and sensible, ACTU advice:

“Employers owe a duty of care to workers to provide healthy and safe workplaces as far as reasonably forseeable(sic) [and] the swine flu outbreak has been highly publicised and is reasonably forseeable.”

Let’s hope that the BHP Billiton control measures are part of an integrated OHS/pandemic plan and not a reflex action to please the boss.

Kevin Jones

Not another Australian swine flu website!?

Recently in 2009, the Health Services Australia company launched a new swine flu website.

The HSA site is run by a private health services company and came to the attention of SafetyAtWorkBlog through a news item by the OHS Commissioner of the Australian Capital Territory. The ACT OHS Commissioner may not be endorsing the site but the HSA website is described positively. The Commissioner’s site says

“The site provides information on the risk of flu – pandemic, swine, avian and seasonal varieties – expanding upon information previously published on their avian influenza site.

It also includes the latest health alerts, FAQs, useful links and information on travel health services relating to flu which people may find of benefit.”

For further information on www.fluthreat.com.au SafetyAtWorkBlog followed the trail from fluthreat to HSA which then lead to the site of one of Australia’s largest private health insurers, Medibank Private. The two companies merged only recentlyon 1 April 2009.

Health Services Australia is listed on the fluthreat site as the copyright holder but Medibank Private is not mentioned.

The HSA site which includes a prominent link to www.fluthreat.com.au does mention Medibank Private, in a mediarelease link on the home page but more succinctly, but almost in passing, under Governance and Structure:

“Health Services Australia Limited (HSA) and its subsidiaries are owned by Medibank Private Limited (Medibank).”

It seems very odd that the ACT OHS Commissioner should be directing Internet visitors to a privately run influenza information website instead of to the influenza information from authoritative websites such as the Australian Department of Health and Ageing, the ACT Dept of Health, the Federal Government’s dedicated swine flu site – healthemergency, or even the the World Health Organisation.

[SafetyAtWorkBlog has repeatedly tried to contact the ACT OHS Commissioner’s office but gets an answering service each time. The media spokesperson for HSA Group and Medibank Private has not yet returned calls]

Kevin Jones

Offshore industry regulator performance

Australia’s National Offshore Petroleum Safety Authority (NOPSA) has released a report of its own OHS performance based on data from 2005 to 2007. NOPSA has been in the public eye far more than normal due to the Varanus Island explosion and the various investigatory reports.

The report seems to indicate that, as a regulator, NOPSA is performing to expectations. NOPSA’s CEO John Clegg has acknowledged that the industry is below the level of its overseas counterparts. This is peculiar given that other Australian resources industries, like mining, are ahead of other countries and that safety in the offshore industry has had a high profile ever since Piper Alpha.

The report identifies challenges that are difficult but not very surprising:

improving leadership – strong leadership is required for the Australian industry to move to the next level

dealing with a shortage of skilled personnel

managing ageing facilities and minimising gas releases

It will be very interesting to watch the benchmarking of NOPSA and its future role through the OHS harmonisation process that Australia is undergoing.

Below is the full report and the performance summary.

Kevin Jones

The real business cost of safety

In February 2009, BHP Billiton forecast a full-year production target of 130 million tonnes of iron ore. On 6 May 2009, the BHP president, Ian Ashby, has admitted that the company will be a “few million tonnes short”. The reason? Workplace deaths.

Ian Ashby was talking at a conference yesterday and pledged to improve safety however BHP, as has been pointed out in previous SafetyAtWorkBlog postings, has professed to place a high value on safety and its staff for some years. This is not a new issue for the company and that is what makes the statements of the president potentially hollow.

It is useful to look at the areas that Ashby has identified for additional attention for the implication is that this is where the OHS management system has been deficient. The measures to be adopted, according to media reports, include

restricting access,
improving traffic management, and
suspending non-essential night-shift work.

In 2008 the spot price for iron ore had reached $US190 per tonne. In late 2008, the price fell to $US77 per tonne. BHP is currently negotiating prices for its iron ore so no accurate figure of value is available. But let’s allocate a conservative figure of 3 million tonnes to the Ashby quote above and perform a rough calculation for the cost of poorly managed OHS in BHP.

3 million x $US77 = $US231 million; or

3 million x $US190 = $US570 million

Following the economic crisis of 2008-09, shareholders are going to be less forgiving on corporate performance. This has already been seen on the issue of executive salaries but the BHP experience should have shareholders asking why the management activity has not kept up with the safety rhetoric and the corporate values. Because soon the poor safety practices in the outback mines of Australia will be hitting the shareholders’ pockets and they are justified in expecting answers form the executives.

The trap for shareholders is to forget the deaths of the workers and only hear the commitments of the executives for the future. Should one believe the future promises when the corporate values of safety have not been upheld in the recent past?

Note: an independent government review was undertaken and a report was handed to the government in early May. The report has yet to be released and may not be.

Kevin Jones

UPDATE: 8 May 2009

A spokesperson for the West Australian Dept of Mines & Petroleum has advised SafetyAtWorkBlog that the report into BHP was undertaken under Section 45 of the Act and therefore cannot be released unless in the course of a prosecution. However, just as has occurred with the Melick Report into the Beaconsfield Mine collapse, there is always hope.

Australian Prime Minister talks to the great unwashed

The edge of panic is starting to appear in Australian concerns over swine flu. Some health officials, who should know better, are slipping slightly off message. The Queensland government’s chief medical officer has recommended that food should be stockpiled. This was quickly jumped on by the Federal Health Minister, Nicola Roxon, has tried to provide a more palatable context to the stockpiling:

“We want people to be aware of the risk of this disease, we want people to be taking sensible planning steps but we don’t want panic,” she said. “It’s very important that we don’t have a rush on products that people just during the course of their ordinary shopping might think about whether they have some of these extra supplies.”

The Australian Prime Minister, Kevin Rudd, has offered some of the blandest, but relevant, advice:

“For all Australians to engage in the simple practice of washing their hands with soap on a regular basis.”

Kevin Rudd is not the poster boy for personal hygiene unless eating one’s earwax is a suitable hygiene practice.

SafetyAtWorkBlog will continue to watch for evidence of the effectiveness of handwashing in influenza control.

Roxon’s advice is sound however in one very important way – sensible planning steps. Cut through the hyperbole. Listen to reputable health advice, and keep your colleagues and employees informed. If that happens, we’ll get through this threat.

Kevin Jones

Category: executives

Fair Work Act and OHS

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More workplace stressors, email and upwards bullying

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BHP, swine flu and leave entitlements

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Not another Australian swine flu website!?

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Offshore industry regulator performance

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The real business cost of safety

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Australian Prime Minister talks to the great unwashed

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