Transcript IOSH Northern Ireland Branch - Health and Safety Strategists

IOSH Northern Ireland Branch
Tuesday 28th January 2003
G.S.J. Fulwell
The Way Forward in OHSMS
Contents of the presentation;
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Introduction
The Corporate onslaught in OHSMS.
Key Performance Indicators.
The position on Corporate killing.
Recent developments in Global Standards
OHSAS 18001 and Integrated Systems
The ILO OHSMS Guideline
IOSH international Specialist Group
Questions.
Current position on standards;
• ISO 9001 - Quality Management Systems.
• ISO 14001 Environmental Management
Systems.
• OHSAS 18001/2 OHSMS management
guideline.
• PD 6668 Integrated Management Systems.
• Environmental Management Auditing
System.(EMAS).
Risk Management Standards
Standards for Corporate Accountability
The Process Based Approach.
• The new approach to “standards”;
• All new standards are no longer based upon
the attainment of a prescribed level of
performance but on the process based
approach of continuous improvement.
( Guide 72 - May 2001)
OHSAS 18001
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+ Agreed by major certification bodies.
+ International credibility and development.
+ A standards based approach
+ Benchmarking opportunity
+ Aligns with other standards - integration
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- Not an ISO standard.
- Commercially based activity
- Auditor Competence not defined
- Development of the global ILO guideline
- Application to sme sized undertakings
Strategic approach formula;
PLAN
DO
ACT
CHECK
Continual Improvement
Process of enhancing the
OH&S Management System,
to achieve improvements in
overall occupational health
and safety performance in
line with the organisations
policy
(OHSAS 18001)
The Management Systems Approach
in the Workplace.
EMS
Continuous
Improvement
QUALITY
OHSMS
Standards.
Legislation.
Policy.
Cooper 1998
Minimum
only.
Risk
Management
influences the
process
Integrated Management Systems
Risk Recognition
Risk Identification
External Market
Environment
Risk Ranking
Risk Mapping
Risk Surveys
Risk Controls
Opportunities
Assessed
Business Strategy
Plans Developed
Integrated Risk
Responses
Business Process
Implemented
Audit and
Compliance
Management
Review
Risk Management Tool
Business Process
The Manufacturing Environment.
INPUT.
PROCESS
Assets
Raw Materials.
Supply Chain Management.
Research & Development.
Finance and Investment.
Training and Development.
Energy.
OUTPUT.
Product or
Services
Marketing
Distribution
Waste
Finance
Combined or Integrated?
• Combined
v
MS
MS
MS
SH
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Q
Integrated
IMS
SH
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Q
The Integrated Strategy
• Policy
• Planning
• Implementation and Operation
• Performance Assessment
• Improvement
• Management Review
PLAN
DO
CHECK
ACT
Common Elements of an Integrated System
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Element
9000
14001
18001
Policy
5.1, 5.3
4.2
4.2
Planning
5.2, 5.4, 7.2 4.3, 4.4
4.3, 4.1
Implementation 7.2-7.5
4.4.6
4.4.5,4.4.6
& Operation 4.2
4.4.5
4.4.3
Performance 8.2
4.5.1,2,3. 4.5.1,2,3.
Measurement 8.2.2.
4.5.4.
4.5.4.
Improvement 8.5.2,3
4.5.2.
4.5.2.
Management 5.6
4.6
4.6
Key features of the approach;
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Common organisational objectives
Clearly defined responsibilities
Common objective of continual improvement
Based upon the plan,do,check,act approach
Driven by top management
Implemented as a project based approach
Based upon a business risks approach
Cross department ownership and commitment
Fulwell 2003
Definition of an Audit.
A systematic examination to determine
whether activities and related results conform
to planned arrangements and whether these
arrangements are implemented effectively
and are suitable for achieving the
organisations policy and objectives
3 Key stages of an audit.
• Documentation - reflects the hazards.
• Interviews - verify competence.
• Observations - implemented in practice.
International Labour Office
ILO-OSH 2001
Guidelines on occupational safety
and health management systems
International developments.
• International Labour Office proposal.
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technical experts met in April 2001.
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ILO Council met in July 2001.
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implementation programme being developed
• Alternative proposal from ISCSA.
• Strong support for the ILO from Asia/Pacific.
The role of the ILO in OHS.
International Labour Organisation.
Monitoring
Auditing
Conventions
Recommendations
National
Governments
Legislation and
enforcement policy
National
OHSMS Audit
Protocols.
Organisations Health and
Safety Management Systems.
Fulwell 2001.
ILO - OSH 2001
• Section 3.2. Worker participation:
• 3.2.1. Essential requirement of OSH.
• 3.2.2. Workers and their representatives are
consulted, informed and trained ( including
emergency arrangements ) in respect of their
work.
• 3.2.3. Arrangements for active involvement.
• 3.2.4. Ensure the establishment and effective
operation of a safety and health committee.
Key points of the ILO.
*Reciprocal observer status with the E.U..
*Tri-partite organisational membership.
*A United Nations Specialist Agency.
*Linked to the World-Bank requirements.
*Role in defining minimum standards.
*Supervisory role in national legislation and
enforcement policy,
*International role with member countries.
Fulwell 2001.
Supply Chain Management.
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ILO (2001) section 3.10.5. Contracting
organizations standards applied to contractors.
Arrangements when on site must include:
a) criteria for evaluation & selection.
b)communications & coordination between all.
c)arrangements for reporting accidents/ill-health.
d) specific awareness & training arrangements.
e) regularly monitor contractor performance.
f) ensure all on-site arrangements complied with.
Supply chain management.
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ILO (2001) section 3.10.4.1. Procurement.
procedures established and maintained;
compliance in purchasing & leasing specs..
any relevant national laws in advance.
arrangements made to ensure compliance
before use.
Corporate SHE Liabilities
Corporate
Criminal
Civil
Corporate Liability
Maintaining Stakeholder Confidence.
Financial Times - November 15th 2002.
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ABB now has 110,000 Asbestos claims.
ABB estimates its exposure at $812million.
Hanson has 75,000 asbestos claims.
Hanson has currently paid out $86 million.
Hanson receiving 17,500 claims per year.
Business News - Sunday 19th January 2003.
ABB pays $1.2 billion to settle the US
claim on asbestos liabilities and places
Combustion Engineering into Chapter 11
bankruptcy protection. Assets $812 million
balance ABB.
Top Risks Facing the
Organisation
Strategic These are the long term strategic aims
and objectives of the organisation.
Project (These may also be considered as tactical or
developmental risks). These are the change
objectives, including product and process
developments.
Operational These are the day to day issues that
ensure continued operation of the organisation
RISK CONTROL STRATEGIES
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RISK AVOIDANCE
RISK RETENTION
RISK TRANSFER
RISK REDUCTION
or any combination
Residual Risks will remain
OECD Principles of Corporate
Governance.
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Established in April 1998 - 5 principles.
1) Rights of Shareholders.
2) Equitable treatment of shareholders.
3) Role of Stakeholders.
4) Disclosures and transparency.
5) Responsibilities of the Board.
OECD Guidelines for Multinational
Enterprises 2001
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Follows a review of the 1976 guidelines
Recommendations to Governments,
Express the shared values of governments
observance is voluntary
principle of establishing a common position
part of the Declaration of International
Investment and Multinational Enterprises
European Commission Green
Paper.
• Promoting a European framework for
corporate social responsibility;
• In addition the tendency of companies to
include OHSMS in their procurement……..
……..which allows for a third party to carry
out “certification” or initial approval of the
contractors as well as overseeing the
continuous improvement of the scheme.
EU September 2001.
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Corporate Governance
Process by which corporate bodies
govern themselves - a risk based
approach
No Surprises - ICAEW
Corporate Governance
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Cadbury - 1992 -reporting of control
Greenbury - 1995 - remuneration
Hampel - 1998 - annual declaration
Turnbull - 1999 - internal control
Higgs - 2003 - role of non-executives
If the non-statutory approach embodied in the code is
to be successful over the long term, the code needs to
retain the widespread confidence of shareholders,
employees, government and others - Institute of
Chartered Accountants
Internal control requirements:
• Defined structures, responsibilities and
reporting.
• Defined operating procedures.
• Objectives - business, department, individual.
• Financial and other resources prepared.
• Mechanisms and measurement criteria
identified.
• Formal reporting of performance against target.
Turnbull requirements
• Assessment
– Objectives
• plans
• performance targets
• indicators
• Control
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strategy
culture - senior management demonstration
Authority and accountability
communicate to its employees
Turnbull requirements:
The annual report will:• The board is responsible for internal controls and
reviewing its effectiveness.
• On-going process for identifying, evaluating and
managing the company’s significant risks.
• That is has been in place in the year.
• Process is regularly reviewed.
• A summary of the review process.
• The process applied to deal with any significant
problems disclosed.
Accounts Digest - 417 October 1999
Higgs Report - January 2003
• Role of Non-Executive Directors
• Ratio of Non-Executive to Executive
• Training and selection of non-executives
Civil Liability position.
The changing position
An opportunity or a threat?.
The Insurance Market
Size and
Number of
Claims
Client
Number
Broker
Number
and
Scope.
Insurer
Level and
size of claims
Reinsurance
Market
Offshore
Account.
Fulwell 2002
The Insurance Market
Underwriting loss of £4.5 billion since 1993.
Fire + 130%
Weather +70%
Theft +20%
Stress +19%
Commercial +100%
Property +50%
Client
Broker
Independent
Insurance
Woolf Reforms
Claims size &
frequency
Insurer
FLOW OF MONEY since 1991.
WTC - $80 billion
Eur flood $60 billion
Asbestos & stress
Stock Market fall
= Reduced Capacity
Reinsurance
Market
Fulwell 2002
Catalogue of Disasters
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Forest Fires in Australia and the USA.
World Trade Centre act of terrorism.
Flooding in the United Kingdom.
Collapse of Independent Insurance.
Flooding in Eastern Europe.
Asbestos claims globally.
Earthquakes in Turkey.
Collapse of the global stock market
(ie 6% value loss on Monday 27th January ).
The Changing Perspective
Historic Position (pre 2001);
Unlimited availability at very low premium, no
requirement to demonstrate risk control.
Future Perspective (post 2001);
Limited availability at a very high premium
and only with effective risk control.
Significant role of OHSMS now emerging.
Fulwell 2002
The Future Strategy
The future requirements will be risk exposure based;
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Identify the key exposures of the business
Establish effective risk control for the key risks
Monitor and review on-going performance
Demonstrate a clear policy and effective control
Establish liaison with the insurance provider
Adopt a policy of continuous improvement
Ensure that a risk based approach is the norm
Identify significant influencing factors
Review Management performance on a risk
basis.
Fulwell 2002
Criminal Liability
Corporate and Individual
accountability
Number of prosecutions;
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Year.
1996/97.
1997/98.
1998/99.
1999/2000.
2000/01.
2001/02.
2002/03.
Company.
1490
1606
1760
2253
2077
2034
Individual.
49. (10)
25. (1)
27. (0)
34. (11)
43. (0)
55. (11)
Directors prosecution
• Brian Dean, a construction company director
became the twelfth director to be convicted of
work-related manslaughter at Stafford Crown
Court and has been sentenced to eighteen
months imprisonment.The prosecution followed
a demolition accident in Stoke where a father
and son were killed.
• Changed on Appeal to a Section 2(1) offence
after 5 months served, Jury misdirected.
• The Client, Daniel Platt was fined £125,000
plus costs of £10,000 for breaching CDM
regulations.
HSB –June 2002
Fresha Bakeries Ltd.- Leicester.
• Fatal accident to two employees in 1998.
• Trapped in an oven at 100 Centigrade.
• Entered the oven to remove a broken part.
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Company fined £250,000 + £175,000 costs.
Parent company, £100,000 + £75,000 costs.
Managing Director fined £20,000
Production Director fined £1000.
Chief Engineer fined £2000.
HSB September 2001.
Subcontractor electrocuted.
• Subcontractor was fatally electrocuted whilst
undertaking maintenance work in an office
block. Reaching into a false ceiling he touched
an exposed control panel on an air conditioning
unit.
– Doncaster Council were fined £400,000 plus
£31,000 costs
– Maintenance budget had been cut despite a
previous incident of electrocution at the site, some
years earlier.
– judge made comments about “fine equivalent to the
annual turnover if it had been a private company”.
EXEL fined for Workplace fatality
• Exel Europe Ltd., was fined £96k for a fatal
accident when an agency driver was crushed by
a reversing vehicle at the Comet operation in
Corby.
• In addition the employment agency Taskmaster
Resources Ltd was also fined £40k for failing to
request copies of risk assessments and failing to
ensure that Exel had introduced adequate
arrangements for all “relevant personnel”.
MARS October 2002
Corporate Killing Legislation.
France,
Canada,
Republic of Ireland,
Australia,
New Zealand,
UK - England and Wales
United States of America.
UK proposals for reform on
Involuntary Manslaughter
• a) Corporate Killing – specific offence making companies accountable
• b) Reckless Killing – person aware of the risk
• c) Killing by Gross Carelessness – conduct below that expected
• d) Killing when the intention was to
cause only minor injury
UK issues in Corporate Killing.
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The UK has specific problems in this area;
i) only individuals may commit a crime
ii) requirement for the identification principle
iii) prove both actus reas and mens rea
iv) aggregation is not permitted
v) vicarious liability only applies in civil law
vi) no current recognition of corporate culture
NOT included in the Queens Speech but not
withdrawn from the proposed legislation.
Republic of Ireland.
Corporate Manslaughter Bill, 2001
• A Company shall be guilty of the offence if;
• failure to manage or organise in a way
which ensures health or safety of persons.
• failure amounts to conduct falling far below
reasonable expectations.
• failure is the cause or one of the causes of
the death of a person.
United States of America
• Concept of “respondeat superior”
• A corporation may be held criminally liable
for the acts of any of its agents if an agent
commits a crime within the scope of his
employment and with the intent to benefit
the corporation.
Canada
• New Private Members Bill, C-242 February 2001
• New Part XIII section 467.3 to 6 to Criminal
Code
• “A corporation is guilty of every offence of which
an individual could be found guilty for
committing that act or omission”.
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section 467.6 (d)
• Corporate fault - C$1,000,000 per day of offence
• Individual fault - C$10,000 per day of offence
• unsafe workplace up to 7 years or life if a fatality
The Pyramid of Sanctions.
Corporate
license
revoked
Corporate criminal sanctions
Corporate probation.
Court ordered disciplinary action
Voluntary disciplinary action.
Fines or civil penalties
Advice - warnings - persuasion
Braithwaite 1989
Corporate Killing
• Defence of “due diligence”;
• The company falls to be judged not on its
words but its actions, including the action of
its employees.
Wells, Corporations and
Criminal Responsibility , 2001
Corporate Killing - due diligence.
• Evidence that the illegal and forbidden act was
clearly in breach of established internal policy.
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Elements;
Specific company policy/procedures.
Evidence that the illegal conduct was forbidden.
Safeguards had been developed and
implemented Lack of previous examples of the
offence.
Wells 2001.
Longford explosion.
• Longford Australia 25 September 1998
• Liquid flow into plant causes disturbance,
control was not re-established
• Vessel fracture lead to hydrocarbon release,
Explosion and Fire
• Casualties
– 2 Killed
– 8 Injured
• Fire extinguished 27 September
• Victoria gas supply cut off for 2 weeks
Culture
• The commission noted:
– “over time a culture developed whereby it
became normal to operate the plant in alarm.
This culture developed despite the fact that
the alarms existed for the primary purpose of
alerting operators to that which was
abnormal…The consequence was that the
protective purpose of the alarms was lost…
The culture of operators regarding the
operation of the plant in alarm was, in our
submission, a contributing factor to the
disaster.”
Conclusion
• The jury found Esso guilty of 11 breaches
of workplace safety, including a failure to
train staff properly and a failure to provide
properly trained supervisors at its gas plant.
A$ 2 million fine and A$1 billion
class action to follow
• Justice Philip Cummins said the blast that killed
two workers and shut down Victoria's gas supply
for two weeks was no mere accident - it was
avoidable and it was all Esso's fault.
• "The events of September 25, 1998, were the
responsibility of Esso - no-one else," Justice
Cummins told the Supreme Court. "The cause was
grievous, forseeable and avoidable. The consequence
was grievous, tragic and avoidable. To use the term
'accident' denotes a lack of understanding of
responsibility and a lack of understanding of cause."
BP - Prudhoe Bay, Alaska
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Major Corporate threat following an explosion
Group = BP - ExxonMobil - ConocoPhilips
BP operates 1600 oil wells for the group
Alaska Oil & Gas Conservation Commission
Largest oilfield in North America
BP already on “corporate probation”
HSE - FOD - Risk Control Indicators;
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Falls from Height
Workplace Transport
Musculoskeletal Disorders (MSD)
Stress
Slips, trips and falls on the level
Hand, Arm Vibration, (HAV).
Noise.
Occupational Asthma.
Management of Risks.
Source HSE, 2003.
Working Environment.
Fatal Accident Manufacturing
• YEAR
Manuf.
1997/98
61
1998/99
69
1999/00
41
2000/01
50
2001/02
47
2002/03 - ytd 21
Constr.
80
65
81
105
79
36
Total
274
253
220
292
249
110
As at 30/09/02 = 6 months.
Source - HSE Statistics dept.
Fatal Accident Causation 2001/02
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Contact with moving machinery
Struck by falling object
Struck by Moving Vehicle
Injured whilst handling
Slips trips and falls
Falls from height
Trapped by collapsing/overturning
Drowning or asphyxiation
Exposure to fire/explosion
Contact with Electricity
Others kind of accident
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- 43
- 40
- 1
- 2
- 68
– 8
- 11
- 8
- 12
- 22
Current issues in OHSMS
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Civil Liability premium increases
Corporate Killing
Enforcement Management Model
Accident Investigation
Employee Representation
Manual Handling survey by the HSE
Directors duties
International Specialist
Group.
1. Approved by Council in September 2001
2. Comprises two separate Working Parties
IOSH Specialist Groups;
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Municipal and Public Services.
Off-Shore Group.
Construction Group.
Environmental Group.
Healthcare Group.
Fire Risk Management.
Railway Safety Group.
International Group.
Safety Sciences Group.
Education Group.
Consultants Group.
In progress - Airways and Telecommunications.
International Specialist Group
• 2 separate Working Parties;
• Internal Working Party - focus upon the
membership services required to support a
global organisation and its development.
• External Working Party - focus upon the
development of the Institution into a global
organisation and the establishment of a
network of international contacts.
International Group Objectives
*Develop an international information web site.
*Review the International membership criteria.
*Publish 2 Learned Journal articles.
*Establish a network of international contacts.
*Establish a comparative qualification base.
*Increase the International Group membership.
*Investigate potential questionnaire in SHP.
*Monitor international developments.
*Present at the IOSH Conference.
*Advise IOSH of global developments in SH&E.