due diligence – Page 19 – SafetyAtWorkBlog

“Safety is paramount”, “safety is our number one priority” = bullshit cliches

After a major incident or at an Annual General Meeting, it will be common to hear a senior executive state something like “Safety is our number one priority”. This is unrealistic and almost absurd because even in the most worker-friendly company, the continued existence of that organisation is the real and ultimate goal. Most corporate leaders believe these safety clichés because they think they reflect their own values but the statements are misrepresenting occupational health and safety (OHS) and need to be questioned.

Corporate leaders who say such statements are not hypocrites. They are more likely to not understand the consequences of their statements. If safety really is the number one priority, an executive should be able or expected to close the company if its work cannot be conducted safely. If a company’s people are paramount to the success of the company, how does it handle an accusation of bullying against a manager? Which of the people does the Board or the company choose to keep and which to lose? Should it keep the “evil” sales representative because the rep is its most effective salesperson or sack the rep because he or she is abusive?

These are executive decisions that need to be worked through if any company is to develop an effective operational culture that truly values the safety of its workers. It is vital that the reality behind the statements is analysed and acted upon, or perhaps such statements should not be uttered in the first instance.

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Prediction on accountability and a political kick in the balls

Responsibility highlighted in green There will be two areas of occupational health and safety attention in the early months of 2014 in Australia – workplace bullying laws and the Royal Commission into Home Insulation Program. The labour law firms are gearing up for a “bumper year” as one said prior to Christmas and the business groups are already lobbying/complaining/whingeing about the workplace bullying laws administered by the Fair Work Commission. However the Royal Commission has the potential for the biggest social and ideological impact so, as the new year begins, I will attempt some predictions of the Royal Commission’s findings based around some of the terms of reference.

Substantial Change

‘the processes by which the Australian Government made decisions about the establishment and implementation of the Program, and the bases of those decisions, including how workplace health and safety and other risks relating to the Program were identified, assessed and managed;’

This paragraph is the one that could have the most long-term effect on governance, due diligence and procurement. There are many suggestions on these issues in the sphere of project management but trying to keep the discussion in OHS, there are some useful comments on the Government procurement of services. Australia’s Federal Safety Commission acknowledges that procurement is an important stage in project design. WorkSafe Victoria’s “handbook for the public sector – health and safety in construction procurement” says

“As procurers, governments can promote better health and safety by requiring projects to include a range of safety measures, such as specifying the safety budget, building layout or the use of certain

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Media coverage on workplace bullying needs more depth and analysis

The Australian media has given workplace bullying the front page, probably because it is a slow news period and there have been no major disasters this Christmas period. However the coverage is of the new rules and opportunities for assistance offered by changes to the Fair Work Act that commence on 1 January 2014, rather than about prevention.

Most of the comments from the business groups in the article by The Age newspaper will be familiar from the last few months. Generally they object to what they see as red tape and increased regulation. Some also believe that workplace bullying should be handled through human resources rather than as an occupational health and safety (OHS) matter.

Red tape and unnecessary bureaucracy is a legitimate concern but one that, in large part, the business sector has allowed to happen. As discussed previously, much of the red tape originates from the risk management strategy of business where, when an issue or hazard cannot be eliminated or it is too difficult to try, insurance or liability protection is obtained. As others have said, too often the risk management of safety is corrupted to become risk management of legal issues. Continue reading “Media coverage on workplace bullying needs more depth and analysis”

Moral conflicts in store for Australian politicians and bureaucrats

iStock_000016528694XSmall 2014 is going to present tough challenges to Australia’s politicians and corporate leaders. The Royal Commission into the Home Insulation Program, in particular, is going to illustrate and perhaps generate ideological conflict.

The Home Insulation Program (HIP) was established quickly to address a looming economic crisis. Politicians and business leaders wanted Australia to avoid the global recession and they needed creative solutions. Various importance governance and safety elements appear to have been sacrificed to achieve the economic ends. In 2014, the politicians of the time and bureaucrats will be grilled over why they made these decisions. Various inquiries have already identified that these decisions contributed to the deaths of four young workers. In 2014, these decision- and policy-makers will be held to account for the fatal consequences of their economic decisions.

There has long been a conflict between the pursuit of profit and the pursuit of safe working conditions. The Royal Commission, and the surrounding debate, is likely to place this conflict squarely in the highest levels of Australia’s government and public service. Below are some of the issues that the Australian government and business sector are likely to face in 2014. Continue reading “Moral conflicts in store for Australian politicians and bureaucrats”

Judicial inquiry into insulation dominated by election campaign politics

Australia’s conservative opposition leader, Tony Abbott, has announced that he intends to conduct a judicial inquiry into the government’s handling of the home insulation program (HIP) that resulted in the deaths of four workers in Queensland and New South Wales in 2009 and 2010.

Such a call would, normally, be very welcome but the timing of Abbott’s announcement brings a level of political baggage that weakens his commitment. Continue reading “Judicial inquiry into insulation dominated by election campaign politics”

Nitpicking or forensic analysis?

It is common for regulators, major clients and accreditation bodies to require copies of a detailed health and safety management plan so that they can be assured the contractor is complying with OHS laws and contract safety obligations. Over the years, part of my job has been to assess these plans to determine their quality, validity and applicability. Some have accused me of nitpicking, others have appreciated the pedantry but my perspective is that such plans are a crucial method of establishing and communicating OHS practices and providing a base from which a positive safety culture can be constructed.

I would argue that any company that has a carelessly written OHS management plan is unlikely to fully understand its own OHS commitments. That company would also be providing conflicting and confusing safety information to its own workforce and its subcontractors.

Inaccuracies and inconsistencies

One example that comes to mind was a large company who submitted an OHS management plan which detailed many safety commitments, what I consider “promises”. However, there were inconsistencies such as the person who was responsible and accountable for safety at the start of the plan, let’s say a “safety manager”, and who was not mentioned any further. Continue reading “Nitpicking or forensic analysis?”

Safety should not be the red tape bastard of productivity

There is a logic being applied to workplace safety and public policy that does not ring true. The argument seems to be that productivity levels in Australia are low, that part of the reason for this low productivity is excessive business paperwork and that workplace safety regulators are a major contributor. (SafetyAtWorkBlog has written around this topic previously.)

The authority on productivity in Australia is, unsurprisingly, the Productivity Commission (PC). In mid-June 2013, the commission released its Productivity Update, the first of promised annual reports. Search in the document for “workplace safety” and there is no mention, even “safety” only pulls up a couple of public safety references. Nothing for “workplace” either.

In fact, the report states that

“Strong growth in labour productivity in the December quarter of 2012-13 could be a sign that a broader improvement in MFP growth is now underway” (page 2)

and

“modelling shows that a comparatively small increase in the rate of labour productivity growth (primarily due to higher MFP growth) could lead to a comparatively large increase in the level of real GDP per person by 2050.” (page 2)

2050 is a long way off but the forecast is for an increase in productivity and the growth in the December quarter could indicate a trend. So for all the productivity gloom and doom being written about in the business newspapers, the reality may be different. Continue reading “Safety should not be the red tape bastard of productivity”

Category: due diligence

“Safety is paramount”, “safety is our number one priority” = bullshit cliches

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Prediction on accountability and a political kick in the balls

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Media coverage on workplace bullying needs more depth and analysis

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Moral conflicts in store for Australian politicians and bureaucrats

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Judicial inquiry into insulation dominated by election campaign politics

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Nitpicking or forensic analysis?

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Safety should not be the red tape bastard of productivity

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