executives – Page 68 – SafetyAtWorkBlog

The tenuousness of safety culture

Only a few days ago, SafetyAtWorkBlog questioned the usefulness of vision statements. A leaked internal memorandum from the structural mechanical process division of John Holland reported in the Australian media on 27 April 2009 shows just how tenuous such statements can be.

According to an article in the Australian Financial Review (not available online, page 3), the divisional general manager, Brendan Petersen, listed 81 injuries to subcontractors and employees and 51 near-misses in 2008. The memo acknowledges that the situation is “unsatisfactory and unacceptable” and Petersen makes a commitment to “do something about it”.

The trade unions have jumped on this memo as an indication that John Holland is not living up to its principles, although there is a lot of irrelevant and mischievous industrial relations baggage behind any of the current union statements about John Holland’s operations.

Petersen’s memo admits that, as well as his division’s performance being unacceptable

“we also have sites that consistently allow work activities to be undertaken in an uncontrolled or unsafe manner, sites that don’t take employee concerns about unsafe workplace conditions seriously and sites that don’t report near misses so as to learn from them and ensure the situations never re-occur again.”

That such an established company with such an active program of safety management acknowledges these deficiencies is of great concern.

On being asked about the memo, Stephen Sasse, John Holland’s general manager for HR, spoke of optimism and the safety efforts introduced since the 6 April memo however, behind his words is an acknowledgement that the safety culture has not been supported.

“To an extent [the memo] is an exhortation to middle management and supervision, and to an extent it is a warning that we cannot tolerate staff who do not share the John Holland values around safety…”

The John Holland values are listed on their website as

“Commit to the successful completion of a wide variety of construction, mining, services and engineering projects through our specialist and regional construction businesses

Commit to continuous improvement in all we do

Understand our clients’ businesses

Achieve our vision of “No Harm” through safe and responsible work practices

Build and maintain open lines of communication with our people’ our partners and our clients

Provide excellent returns to our stakeholders

Create an environment where our people are challenged, motivated and satisfied

Conduct business ethically, honestly and with diligence at all times”

The No Harm value is expanded upon through it’s “Passport to Safety” program.

In the AFR article, it is noted that Comcare currently has four federal court prosecutions occurring against members of the John Holland Group.

It seems trendy to broadcast the values of a company’s safety management system as if they are new and unique to their companies when, in fact, many of the values reflect legislative obligations under OHS law. The trap that many companies are facing is that reality does not match the ideal, and may never do so.

A strong argument can be made to be a quiet achiever on workplace safety – to just get down and get managing – without trumpeting the values that can become an embarrassment when the real world pierces the academic fog of the MBA. Perhaps true safety leadership comes from those who do it on the shop floor rather than than those who advocate it in the boardroom.

Kevin Jones

WorkSafe Victoria’s plans for the future

At the Safety In Action Conference in Melbourne last week the CEO Of WorkSafe Victoria, John Merritt, told the delegates that over the coming weeks and months we will see the following:

The “Homecomings” series of workplace safety ads have been purchased by Washington State and will be broadcast shortly. Merritt expects the campaign to spread across the United States and, maybe, into Canada;
WorkSafe has developed fake vending machines for use at exhibitions and trade displays which display replacement body parts, fingers as USB sticks (pictured below);
WorkSafe will be introducing an advisory support scheme for the medium-sized businesses, modelled on the Small Business scheme;
A team of advisers is targeting poor-performing large employers. Merritt said that “50 large employers account for 11% of all injuries WorkSafe sees”;
A major street art campaign will be launched by the end of April 2009
A new series of ads to be run on regional and rural television based on local sporting legends as part of the country football and netball sponsorship;
The graphic young worker advertisements will be re-run at appropriate times. Merritt acknowledged that the ads have generated many complaints but are transmitting the right message to the target audience.

WorkSafe will also maintain their focus on the “jugglers” those business people or administrative staff that are essential to each organisation because they are in charge of dozens of business processes. WorkSafe surveys of the jugglers have shown that less than 10% of their time is spent on OHS matters, around 30% of them are trained in their tasks and most operate without support.

Kevin Jones

Global pressures on Australian workers compensation schemes

Around 18 months ago the Victoria Government launched WorkHealth, a health prevention program that would be funded from the interest generated from the pool of workers compensation funds. SafetyAtWorkBlog has previously questioned how the program will be funded when its income source is likely to have been severely reduced due to the global economic problems.

On 1 April 2009 WorkCover in South Australia reported a half-year net loss of $313 million. WorkCover CEO Julia Davison said in a media release that

“the global crisis is, as expected, taking its toll. In the last six months stock markets have declined, investors have experienced significant losses, and interest rates have fallen significantly,” she said “Like all investors, WorkCover has been hit hard by the global financial downturn.”

Earlier in March 2009, the Chair of the WorkSafe Board Elana Rubin said

“the significant downturn on the world financial markets and reduction in interest rates had combined to drive a net loss of $1.42 billion for the half year. Whilst interest rate reductions are good news for those of us with mortgages, they have the opposite effect on our scheme – in the half year to 31 December 2008, the unprecedented level of interest rate cuts negatively impacted our net result by $645 million.”

On 1 April 2009 SafetyAtWorkBlog asked John Merritt why WorkHealth was not mentioned as part of his keynote presentation at the Safety In Action Conference. He reiterated the importance of the program in easing the recovery time, particularly, for manual handling injuries but acknowledged that the program’s funding source was based on interest

“from the [$600 million of the assets of the] workers compensation scheme over the next five years ….well there used to be interest from assets – there should be one day, there will be again – around $40 million each year for the next five years will be invested in worker health.”

It is good to hear that the WorkHealth program is going to continue but the fragility of the program’s funding should have been evident in the planning phase. Governments around the world are pulling back on government funded programs in a wide range of areas. Ideas that seem good in the good times are now looking like luxuries. It will be interesting to see if WorkHealth continues in the WorkCover area or moves to Health, where many of its critics have always said it belongs.

Kevin Jones

BHP Billiton deaths – government intervention

The West Australian government has taken the extraordinary step of talking directly to the senior management of Australian mining corporation BHP Billiton about the recent spate of fatalities at BHP’s worksites. The cynic would say that we now know the number of workplace fatalities that it takes to gain a Minister’s attention however, the fact that this high-level meeting is occurring is a clear indication of the severity of the issue. It may also indicate just how effective a union safety campaign can be. It is just regrettable the campaign is generated from multiple fatalities rather than preventive issues.

According to the Minister, Nick Moore

“Mines inspectors will now issue prohibition notices to BHP under the Mines Safety and Inspection Act 1994 – basically a stop work notice – for any breach of work practices or work place conditions that may constitute a hazard to workers.”

Mr Moore went on to say, according to one media article, “…the policy would remain in force until he had seen the report of a Section 45 review currently under way into safety management systems at all of BHP Billiton’s Pilbara iron ore mine sites.”

The article noted that

“The review, requiring independent engineering studies of BHP worksites to be carried out, is expected to be completed by April 30.”

BHP, meanwhile, has given guarantees of the following safety improvements:

Reduce site access;
Improve contractor management;
Enhance existing strategies to prevent excess working hours;
Move rail operations from the Mine Safety and Inspection Act to the Rail Safety Act;
Enhance traffic management standards, and;
Suspend all non-essential work outside daylight hours

Kevin Jones

Impressions of Australian safety

At the Safety In Action conference in Melbourne Australia, SafetyAtWorkBlog was able to catchup with John Lacey, a past President of the Institute of Occupational Safety and Health in England. John has attended ten of the conferences and has some interesting comments on the conference, how Australian safety differs from the UK and who he would nominate as an example of safety leadership.

The short interview is available at delegate-day-1-02

Many workplace deaths for BHP Billiton

The Australian Workers Union are justifiably angry at the latest workplace death associated with BHP Billiton. According to the company’s media statement on 19 march 2009

“We regret to inform that we have been advised by Mines and Port Development (a Joint Venture of Fluor and SKM), who manage our major construction activities, that there has been a fatal accident involving a John Holland employee at the construction site in Newman.”

The company’s own website provides the background to the union’s concern.

25 February 2009

It is with regret that BHP Billiton Iron Ore advises that an employee, Bob Blake, a track machine operator, aged 56, was fatally injured in a rail accident approximately 74km south of Port Hedland at 3.30am on Tuesday 24 February.

25 February 2009

It is with sadness that BHP Billiton Mitsubishi Alliance (BMA) advises that John Barker, an employee of Nixon Communications working at Blackwater Mine, was fatally injured in a motor vehicle accident at the mine late this morning.

4 September 2008

We regret to advise that a fatality has occurred at BHP Billiton’s Yandi mining operations involving a HWE Mining employee.

26 August 2008

BHP Billiton Iron Ore regrets to advise that an incident occurred during the night at its Yandi mine site, which resulted in the death of an HWE Mining employee.

29 July 2008

BHP Billiton Iron Ore regrets to advise that an incident occurred at approximately 11.00am today at its Nelson Point operations in Port Hedland, which has resulted in the death of an employee.

17 January 2008

It is with deep regret that BHP Billiton reports that a fatality has occurred today at the Cannington silver, lead and zinc operation in north-west Queensland.

In the “Chairman’s Review” for 2008, Don Argus wrote about the growth in demand for its products from the Asian region:

Our response has been to streamline our business to enable us to produce as much product as fast as possible within the non-negotiable framework of the highest safety and environmental standards.

The CEO, Marius Kloppers, states that even though the company has achieved its seventh consecutive year of “record attributable profit”

While we can report financial success, I regret to report we have not performed well on safety. In FY2008, 11 of our employees died at work. Many more lives will have been impacted, some forever, by these tragic and avoidable events. We have reflected deeply on what more we must do to reach our goal of Zero Harm. In FY2009, we are making even greater efforts to improve our safety performance.

As shown above, the FY2009 performance statistics are not looking too good.

In the 2008 Corporate Governance Summary, the Directors are lauded.

The non-executive Directors contribute international and operational experience; understanding of the sectors in which we operate; knowledge of world capital markets; and an understanding of the health, safety, environmental and community challenges that we face.

In its 2008 Annual Report under Risk Factors, safety is listed within assets. It reads like an acceptance that contractors are not living up to their OHS obligations or BHP Billiton standards. This rings hollow as contractor management should be an area that a company of such size, resources, longevity and experience, manages in an exemplary fashion.

Some of our assets are controlled and managed by joint venture partners or by other companies. Some joint venture partners may have divergent business objectives which may impact business and financial results. Management of our non-controlled assets may not comply with our management and operating standards, controls and procedures (including health, safety, environment). Failure to adopt equivalent standards, controls and procedures at these assets could lead to higher costs and reduced production and adversely impact our results and reputation.

Later in the Risk Factor chapter:

Despite our best efforts and best intentions, there remains a risk that health, safety and/or environmental incidents or accidents may occur that may negatively impact our reputation or licence to operate.

The company is active though. It has a Code of Conduct that applies to everyone, including contractors. In it there is a quick test:

If you are in doubt about what to do or whether to speak up, it may help to do the Business Conduct Quick Test by asking yourself some simple questions:

The values test: Does it fit with the values in our Charter?

The safety test: Could it directly or indirectly endanger someone or cause them injury?

The law test: Is it legal and in line with our policies and standards?

The conscience test: Does it fit with my personal values?

The newspaper test: If the story appeared in the paper, would I feel comfortable with the decision?

The family test: What would I tell my partner, parent or child to do?

The ‘feel test’: What’s my intuition or ‘gut feel’? If it ‘feels’ bad, then it probably is bad!

Failing any of the above ‘tests’ indicates that you need to talk with someone about the concern you have.

It’s not that BHP Billiton seems to have fallen into a heap in the last couple of years. Following a major explosion in 2004 at its remote Boodarie Hot Briquette Iron (HBI) plant in Western Australia, it was fined $200,000 plus costs for “failing to provide and maintain a working environment in which employees were not exposed to hazards.” The explosion killed one worker and injured several others.

The court case revolved around the May 2004 explosion at the Port Hedland Boodarie HBI plant where one man died, and others received severe burns.

The prosecution case was that BHP Billiton undertook two activities, with the potential to cause an explosion, together without a proper risk assessment. This was considered to be a serious and substantial breach of the obligation to provide and maintain a safe working environment.

There is much more OHS performance information available at the BHP Billiton website but it is worth ending this post with the OHS statement included in the Code of Conduct:

BHP Billiton is committed to achieving leading industry practice in health and safety.

In all cases, we will aim to meet or exceed applicable legal and other requirements, as we believe that all accidents and occupational illnesses and injuries are preventable.

Our priority is to ensure that all our people – regardless of where they work or what they do – return home safely.

Kevin Jones

Safety In Action Conference

For three days next week, SafetyAtWorkBlog will be reporting from the Safety In Action Conference in Melbourne. This is the 12th annual conference and it remains the dominant OHS conference on the Australian circuit for duration, affordability and credibility.

More information on the conference is available at www.siaconference.com.au. Check out the videos below on this page for an introduction to some of the speakers.

Contact me through my email if you are going to be at the conference and want to meet up.

Kevin Jones

Category: executives

The tenuousness of safety culture

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WorkSafe Victoria’s plans for the future

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Global pressures on Australian workers compensation schemes

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BHP Billiton deaths – government intervention

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Impressions of Australian safety

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Many workplace deaths for BHP Billiton

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Safety In Action Conference

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