risk – Page 173 – SafetyAtWorkBlog

EU-OSHA releases a business case for safety and health at work

One of the most ignored, but important, elements of occupational health and safety (OHS) management is the business case. Work on this issue is being completed in Australia by Safe Work Australia but the European Agency for Safety and Health at Work (EU-OSHA) has beaten it to the punch by releasing “The business case for safety and health at work: Cost-benefit analyses of interventions in small and medium-sized enterprises“. This document includes new case studies that provide detailed analysis of cost and return on investment from interventions as varied as a vacuum lifter for pavers to warm-up exercises and task assessments of domestic builders by qualified physiotherapists.

The report found that:

“Wide-ranging interventions appear to be more profitable than interventions targeting a particular
issue related to the sector of the enterprise.

Interventions that mainly concern training and organisational change appear to be more profitable than interventions based on technical changes (such as introducing new equipment).

Interventions that include direct worker (participatory) involvement appear to be more profitable, regardless of whether or not increased productivity benefits are taken into account in the
economic evaluation.

In most cases, the enterprises managed to estimate benefits related to increased productivity. It
should be emphasised that increased productivity does not always come as a result of improved
safety and health, but it is taken into account in the context of a business case.” (page 10)

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Australian PM responds to Insulation Royal Commission

Australia’s Prime Minister Tony Abbott provided his interim response to the Royal Commission into the Home Insulation Program (HIP) in Parliament on 30 September, 2014. One should not expect much sustainable or cultural change from an interim response but Abbott’s responses hold some promise.

The commitments include:

“…[asking] Minister Hunt [Environment] to assume responsibility to oversee the Commonwealth response and to coordinate actions across departments and ministers.”

“…[asking] the Minister for Employment to examine these [OHS] findings, particularly as they relate to the reliance of the Commonwealth on state and territory laws, and his work will inform the government’s final response.”

“Minister Hunt and the Minister for Finance have been asked to recommend options to compensate their next of kin [of the deceased workers]”

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Safe Work Australia month begins with an online gamble

The annual Safe Work Australia month starts today. The promotion of this month has fluctuated wildly over the last decade. Sometimes there are physical launches with interesting speakers, sometimes balloons and merchandise, other times the national OHS authority has left most of the activity to the States. In 2014, Safe Work Australia has jumped into internet videos, online presentations and webinars each day of the month of October (the full schedule is available HERE). This initiative is to be supported but it has not been tried before in Australia and its success is not guaranteed.

As expected the first couple of videos are polite launches of the strategy with statements from Ministers and CEOs. The potential for valuable content is after the initial launch but this value is debatable. It is unclear who the target audience is. If the seminar series is for OHS newbies, a restatement of legislative OHS obligations is of little interest to experienced safety managers and professionals. Continue reading “Safe Work Australia month begins with an online gamble”

HIP Royal Commission – Leadership and Culture

The findings of the Royal Commission into the Home Insulation Program (HIP) deserve a great deal of analysis by the safety profession. Amongst the lessons are important ones concerning leadership, culture and consultation.

The final report identifies major deficiencies in the design and administration of a major project regardless of the politics and jurisdictional argy-bargy. Although many are disappointed the report did not identify any big name politicians as the major evildoer, Commissioner Ian Hanger is brutally forthright when necessary.

In the introduction of the report, there are several references to what a “competent administration” would have done, clearly implying that the government of then Prime Minister, Kevin Rudd, was incompetent in the management of HIP. In fact Hanger writes:

“It ought also to have been obvious to any competent administration that the injection of a large amount of money into an industry that was largely ‘unregulated’ would carry with it the risk of rorting and other unscrupulous behaviour.” (para 1.1.19)

“It ought to have been obvious, to any competent administration, that such an exponential increase in work to be undertaken would require a similarly huge increase in the workforce to do it.” (1.1.9)

“The reality is that the Australian Government conceived of, devised, designed and implemented a program that enabled very large numbers of inexperienced workers—often engaged by unscrupulous and avaricious employers or head contractors, who were themselves inexperienced in insulation installation—to undertake potentially dangerous work. It should have done more to protect them.” (1.11.18)

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HIP Royal Commission – Risk Registers

Cover of ReportoftheRoyalCommissionintotheHomeInsulationProgram SafetyAtWorkBlog has written previously about the evidence of Margaret Coaldrake to the Royal Commission into the Home Insulation Program (HIP) given at the public hearings and also the occupational health and safety role of risk management and risk registers. The release of the Royal Commission’s final report on 1 September 2014 provides further details on a risk management process that is common to all large projects.

Commissioner Ian Hanger spent considerable time on the issue of the risk register as this was one of the crucial elements in the project’s whole decision-making process up to Ministerial level.

Risk Register

Commissioner Hanger was scathing of the risk management process that not only ignored the risk of worker fatalities but purposely dropped this risk from the register. He was unforgiving in his criticism of Margaret Coaldrake. He criticised her judgement. In working with her Minter Ellison colleague Eric Chalmers:

“it was up to [Coaldrake] to make sure that she and the people working with her were qualified to provide the service that Minter Ellison consultants had been retained to do.” (para 7.11.15)

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WHS, performance indicators, annual reports and other thoughts

Macquarie University researcher Sharron O’Neill is traveling around Australia refining, through consultation and seminars, her research into Work Health and Safety (WHS) Due Diligence. In a Melbourne seminar this week O’Neill, and her colleague, Karen Wolfe, provided thought-provoking discussions on three principal areas:

Due Diligence,
Performance Indicators, and
Reporting.

Below are some of my thoughts that they provoked.

WHS Due Diligence

WHS Due Diligence is still a poorly understood concept. Part of the reason is that the major explainers of due diligence seem to be, predominantly, labour lawyers who, not surprisingly, emphasis the legal requirements and origins rather than the safety elements and application. There are few safety professionals who are explaining due diligence; rather they are discussing OHS/WHS in the context of due diligence.

One colleague explained how an established organisation employed her as their first dedicated OHS professional around the same time as due diligence was being discussed as part of the national OHS harmonisation process. By looking through the company’s existing system of work,

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OHS is not all about covering one’s arse

iStock_000005779267_Small It is very common to hear people say that the core motivation for introducing or improving workplace safety management is to cover one’s arse (to protect oneself from various legislative and reputational exposures), be that the collective arse of management, the board and executives or the arse of the individual worker. This is a fundamental misunderstanding of the intention occupational health and safety (OHS) laws and principles yet the fear of reputational damage is a strong motivator of change with which safety professionals should learn to work and, perhaps, exploit, particularly as the traditional methods for corporate embarrassment, the media, are declining.

The most pertinent research on reputation risk as a motivator for OHS change seems to come from the UK’s Health and Safety Executive in 2005. In a summary report on research into compliance, HSE looked at the motivations of employers for change. It found that reputational damage was one of many motivators and that each was given around the same weight in deliberations but that

“Respondents cite newspaper reports covering serious incidents and requirement to advise customers of incidents as the best way of increasing risk of reputational damage, followed by a requirement to report health and safety in company reports. ” ( page 10)

This change catalyst relies on two increasingly fragile criteria – the media and annual reports. The media has rarely reported on OHS issues unless the incident

has caused major disruption
involves a high profile individual or company
involves children
can be given a party political context.

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Category: risk

EU-OSHA releases a business case for safety and health at work

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Australian PM responds to Insulation Royal Commission

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Safe Work Australia month begins with an online gamble

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HIP Royal Commission – Leadership and Culture

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HIP Royal Commission – Risk Registers

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WHS, performance indicators, annual reports and other thoughts

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OHS is not all about covering one’s arse

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