Safety is missing from productivity debates

A March 2012 report from Safe Work Australia reminds us that the issue of productivity and safety is not a new ideological battle. The report states that

“In 1995, an Industry Commission study estimated that only 25 per cent of the total cost of work–related injury and disease was due to the direct costs of work-related incidents. The remaining 75 per cent was accounted for by indirect costs such as lost productivity, loss of income and quality of life.” [link and emphasis added]

The significance of this quote is that the Industry Commission (now the Productivity Commission) established a direct link between work-related injuries and lost productivity. The link was not established by an organisation focusing on safety but one that is all about productivity. But none of the safety advocates or lobbyists have entered the political debate on productivity, even though the relationship between safety management and productivity has been established for almost 20 years, at least.

Continue reading “Safety is missing from productivity debates”

Truly acknowledging failure provides a strong base for improvement

When one fails in safety management, people can get hurt or die, yet safety professionals and business executives rarely acknowledge this failure, even though companies may plead guilty in court. Instead “mistakes” are made, “deficiencies” are identified and investigations uncover “areas for improvement” but these are rarely described as “failures”.

October 13 was the International Day For Failure (IDFF), a day that is intended to provide a structure for the discussion of failure and how we respond to, and cope with, failure.  The quote that most summarises the day is

“Failure is not the enemy, the fear of failure is”.

Part of the impediment for growth in safety management is that people are encouraged to deny liability for their actions.  Executives receive legal advice to say as little as possible and to keep as much as possible under legal-client privilege.  This is anathema to the principles of safety management that require failures to be acknowledged and for new preventive strategies to be developed. Yes, shit happens but safety management is particularly required to not let the shit happen twice. Continue reading “Truly acknowledging failure provides a strong base for improvement”

Safety culture change through a regulatory-based market mechanism

In late August 2012 at a breakfast seminar, the Director of Construction Code Compliance, Nigel Hadgkiss outlined the 1999 Victorian Code of Practice for the Building and Construction Industry, which complements a 1997 National Code, and recently released implementation guidelines being imposed on many Victorian construction companies by the Liberal Government. The Code and implementation guidelines are ostensibly about industrial relations or, as Australia is increasingly calling them, workplace relations but do contain some interesting safety elements.

An intriguing element of the Code and guidelines is the introduction of a workplace culture through contract obligations and how this may affect workplace safety.

Hadgkiss stated, according to a copy of his presentation, that

“Where a party tenders for public work called for after 1 July 2012, the party is required to comply on any subsequent privately funded work.”

This quote means that any company that applies for a Victorian Government contract, of specific costs and other criteria, must comply with the Code.  Any client is entitled to impose their own contractual conditions. The obligation that  “the party is required to comply on any subsequent privately funded work” means that even if the contractor or party fails to win the contract it tendered for its management of  any subsequent project, even one from non-government funding, must also comply with the Code.

One of the four priority elements of the Code is occupational health and safety, so OHS requirements will spread from principal contractor, or tenderer, to contractor, sub-contractors and sub-sub-contractors like a virus or an “ITI”, an industry-transmitted infection.   Continue reading “Safety culture change through a regulatory-based market mechanism”

Inside Australian PM’s political problems is a nugget of workplace safety

Prime Minister Gillard (centre) and others at Government House Canberra in March 2012

The Australian Prime Minister, Julia Gillard, has been under intense media pressure over an issue concerning her conduct as a lawyer around 17 years ago.

It involves legal work for unions, her personal relationship at the time with a union official who has been described as “dodgy” and of most relevance to this blog, workplace safety.

Missed in all the debate is that the workplace safety issue seems to support the assertions of many in the business and industry associations that OHS is frequently used by trade unions as an excuse for action in other areas.  These other areas are usually industrial relations but in this instance OHS was used to mask a unionist’s alleged misuse of member and industry funds. Continue reading “Inside Australian PM’s political problems is a nugget of workplace safety”

OHS – the missing element in productivity debate

On 7 August 2012, the Victorian Premier, Ted Baillieu, verbally attacked the Federal Government over its COAG program and lack of support for  productivity initiatives.  The criticism of productivity sounded odd as the Victorian Government has dropped out of the reform program for occupational health and safety laws yet OHS is understood to have a positive effect on productivity. More clarification was needed on this understanding.

In April 2012 the Productivity Commission, an organisation favoured by Premier Baillieu, discussed OHS reforms in Australia.  that

“Improved health and safety outcomes achieved in practice would then lead to benefits for businesses (such as increased worker productivity, reduced worker replacement costs and reduced workers’ compensation costs), workers (increased participation, reduced medical costs among others) and society more generally (though reduced public expenses on health, welfare and legal systems).” (page 170)

For years there has been a debate about safety versus productivity.  Partly this stemmed from the taking of shortcuts on safety in order to satisfy production.  In the short-term, it was perceived that safety could be an impediment to production – take the guard of a machine, run the line speed faster than recommended, “don’t worry about the faceshield, just get it done”.  But safety professionals have been arguing that this risky behaviour masks the real problem of  not integrating safety management into the business operations and seeing safety as an optional add-on, or something applied when the boss is watching.

The recently released OHS Body of Knowledge provides some relevant insights on the productivity benefits of safety management that deserve better and broader communication. Continue reading “OHS – the missing element in productivity debate”

Safety is unlikely to improve without a transformational conversation

As the relevance of Leadership encroaches on the workplace safety discipline, so do supportive concepts and techniques such as transformational conversations.  There is little doubt that such concepts are applicable to improving safety management and worker safety, even if, to some extent, these concepts are old wisdom rebranded into modern lingo.  Safety conversations can, and should, be transformational but don’t think that this type of conversation is new or unique.

Transformational conversations have been integral elements of the language used by  OHS consultants, and small business people, (and frauds) all the time, mostly subconsciously.  By answer the phone or asking “how can I help?” you indicate that you are available to be supportive and helpful. It also throws the emphasis back on the customer/employer to be more forthcoming with information and reinforces that you are not providing/imposing solutions but helping the client to develop or refine the solutions themselves.

This is a crucial element of OHS law that the business community still struggles to appreciate. Continue reading “Safety is unlikely to improve without a transformational conversation”

John Darley’s delay on Work Health and Safety laws is unproductive

South Australia still has not passed the Work Health and Safety legislation that would bring it into line with most of the other States of Australia.  A major obstacle to the Bill’s progress in the South Australian Parliament is the “dithering” of Independent MP John Darley.

On 28 June 2012, Darley spoke to the WHS Bill in the Legislative Council (page 1641).  Darley reviews the status of WHS laws in Australian States, mentions Victoria’s flawed PricewaterhouseCoopers costings report but without expressing an opinion on it and acknowledges the support from major industrial and employer associations for the laws, but he seems very sympathetic to minority views on workplace safety.

Darley refers to the views of the Housing Industry (HIA) and Master Builders’ Associations (MBA) on “control”, two groups he acknowledges are “the most vocal opponents” of the Bill, and states

“Any person who does not have direct control of a risk should not have responsibility for eliminating or minimising the risk”.

Consider this position in relation to workplace psychosocial hazards.  A bully would be breaching OHS laws by bullying another worker but those executives who establish the culture of a workplace that condones the bully’s actions would not be facing any penalty.  This scenario seems to contradict a dominant safety principle that compliance and respect stems from the active example shown by an organisation’s leader.  How will the legislative obligation for a “positive duty of care” in workplaces apply with in-direct control? Continue reading “John Darley’s delay on Work Health and Safety laws is unproductive”

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