Why OSH management

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Business competitiveness and safety and health at work measures

Ljubljana, November 7th 2008

Ir. Kris De Meester

Director health and safety affairs

Chairmen BussinessEurope OSH Committee

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Megatrends in the world of work

Restructuring of economy and politics: "Competitive

Europe"

 Competitive world economy and increased productivity with restructuring of organizations and management

Outsourcing, focus on core-business, downsizing, delocalisation

– 60% of world trade within supply chain!

– Work intensity, stress,…

– The world becomes "smaller" (a global village in a "global" world)

 Instability in financial markets

New technology and new production: "Innovative Europe"

 Increasing global automation and change of manufacturing industries towards a service production

New production models and job contents

– Shift from traditional workplace to homework, mobile office,…

– Temporary work, just in time,...

Demographic shift: "Graying Europe"

 Rapid ageing of work force, changing age attitudes and demands on work ability and competence

–  Challenges facing young workers and immigrants

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Megatrends in the world of work

Geographic shift: “Migrating Europe”

 Workers from new EU member states and beyond

 Language barriers; training, instruction and communication challenges

Social change: “Conscient European Generation"

 From a work life-centred society toward a "multisociety"

– Periods of employment, unemployment, training, leisure, family life and individual development vary throughout the whole life course.

 Employee participation and a new citizenship is growing

 Balancing work and family life

Growing role of media "Attention Economy and

Citizens Europe“

 Social media, social networking

Increasing speed of changes ”Speeding Europe”

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Framework

 Lisbon Strategy

 Guaranteeing quality and productivity at work can play in promoting economic growth and employment.

 The enormous economic costs of problems associated with health and safety at work inhibits economic growth and affects the competitiveness of businesses in the

EU

 Raise the employment rate

Poor OSH = burden

Poor OSH conditions (Occupational Safety,

Health, Welbeïng,…)

 Human burden

 Enterprise burden

– Millions of working days lost

– Enormous cost

– Affects all sectors of the economy

 Societal burden

Prevention has more benefits than just reducing damages: contributory factor in improving company performance

CONVINCED ???

NO YES

STOP

(AND GO HOME)

CONTINUE

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Why OSH management

GOOD ORGANIZATION

Time is money

 No prevention = incidents, disturbances, accidents = no just in time, missed deadlines, longer production time = time loss

Weak chains don’t survive

 Companies are linked in the economy (supply chain, contractor chain)

 No prevention = incidents, disturbances, accidents = missed deadlines, contract fines, contract break-up = weakest chain cut out

Transport has to be on the move

 No prevention (choice of transport, maintenance, driving style,…) = damage, extra maintenance, extra fuel, loss of time and money

Stress is harmful

 A lot of workers experience negative stress due to high work pace, work pressure, emotional workload, lack of support, problematic work-life balance,...

 No prevention = reduced productivity, higher absenteism, more mistakes, accidents, reduced quality

Why OSH management

HEALTHY MANAGEMENT

Client satisfaction

 Prevention = positive influence on company management, good housekeeping, work atmosphere, higher client satisfaction

Market orientation

 More en more clients or plant owners put health and safety demands on their suppliers/contractors

 No prevention = loss of clients, loss of market share

Attracting new people - job retention

 As (skilled) labour force is becoming scarce

 Workers become more sensitive for quality of their working environment

 Company image as safe and healthy workplace can make the difference

Why OSH management

COST REDUCTION

Human Capital

 Safe and healthy workplace = precondition for job satisfaction

Prevention leads to higher job satisfaction

Motivated workers are productive workers

Accidents at work = high cost

 Direct cost: accident insurance (up to 10% !!! Of salary mass)

 Indirect costs: X times direct cost !

Indirect costs of accident

Intervention: first aid, ambulance

Colleagues interrupt work

Colleague accompanies victim

Victim absent from work

Accident spot (temporarily) blocked/unavailable

Accident investigation involving manager, witnesses, expert(s), committee

Accident report

Administrative contacts and burden

Work equipment/materials/goods damaged

Cleanup of accident spot

Temporary stop of production/service

New equipment

Replacement of victim

Reorganisation of work

Training of new worker

Impact on work atmosphere

Job satisfaction decreases

Influence on company image

Reduced turnover

Etc.

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Why OSH management

COST REDUCTION

 Company failure / bankruptcy

 Small cause, great consequences

 Sinking of Herald of Free Enterprise, gas explosion

Ghillengien

 60% of company fires lead to company failure

Prevention pays

 Investment analysis

 Cost-benefit analysis

Prevention is base for success

 Combined effects of reduced accidents, reduced absenteeism and personnel turnover, higher job satisfaction, improved image that lead to better productivity

 Beneficial for company and worker (improved live quality)

 Correlation between productivity and prevention (graph)

Figure: Competitivenss and safety (World Economic Forum, ILO/SafeWork)

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Why OSH management

LAW AND ORDER

Legal obligation

 Framework directive and daughter directives

 Other legal health and safety legislation or rules

Enforcement, inspection

 Inspection measures (eg lockout of unsafe work equipment)

 Fines, court sanctions (company, administrators, management)

 Negative media attention, impact on company image

Why OSH management

HUMAN BURDEN

Accidents

 Accident figures (cf. Eurostat)

 Affects victims, their families, colleagues

 ‘It's not only business, it's also personal’

Societal responsibilty

 Not only direct and indirect cost but also societal burden (loss of employability)

 Prevention, safe and healthy workplaces = also corporate social responsibility = contribution to better employment, welfare and productivity of society as a whole

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Company OSH-strategies

Ostrich-strategy: short-term vision, neglect problems, accident = bad luck, only action if inspected/enforced

Defensive strategy: minimum attention to health and safety of workers, efforts limited to most important legal requirements

Constructive strategy: assume responsibility for health and safety of workers. Management involvement. Legal requirements are a minimum. Prevention policy integrated in all aspects of company management and processes in consultation with all actors involved.

Health and safety management (system).

Opportunistic strategy: seek commercial benefits and image building through prevention and OSH-management. Internal and external auditing (certification). Strong worker involvement and empowerment.

Management accountability for OSH.

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Company OSH-strategy

 Constructive or opportunistic

 Integrated strategy

 (top)management commitment

 Assume leadership

 Structured approach (plan-do-check-act)

 Dynamic (daily and ongoing efforts)

 Participation off all actors

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OSH Strategy in general

Development and strengthening of a preventive culture must be a central element of any strategy aiming at improving occupational safety and health

Development and strengthening of a preventive culture = achieving better OSH performance by fostering changes in behavioural patterns

 Governments

 Employers

 Workers

 OSH-Experts

 Financial world

 Students, young people

 ALL PEOPLE

Cannot be achieved through legislation !

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Strategy

Strategy to promote a preventive culture must

 address all parts of society

 go beyond the workplace and the working population

 should help create a general culture that values health and risk prevention

Regulation is just one element

 + implementation

 + control

 + awareness raising

 + education and training

 + enabling environment

 + guidance, assistance,

 + …

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To do for all

REFOCUS AT INTERNATIONAL AND NATIONAL LEVEL TO

Develop national strategy (ILO convention 187)

 Profile

 Vision

 Action Plan

Promote appropriate health and safety management as an integral part of effective business management

Achieve higher levels of recognition and respect for health and safety as:

 an integral part of a modern, competitive business and public sector;

 a contribution to social justice and inclusion

Encourage awareness of the importance of greater corporate responsibility for health and safety

Promote good health and safety practice for all sizes of organisation in all sectors

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To do for all

‘Challenge’ all organisations, private, (public and voluntary), to provide direction on health and safety

Develop tools for use by stakeholders (including business, institutional investors, insurers, employers and trade unions) to further goal of achieving greater corporate responsibility

 Search levers for change

Promote public reporting of health and safety targets and performance so that information is made readily accessible to all stakeholders

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Levers for change

Management systems/tools

Activities to usefully support focus on prevention

 Awareness-raising actions targeting a large public

 Dissemination of good practices

Positive action: “appreciative inquiry”

Use/search “market driven” instruments

 Contractor safety management systems and training

 Safety logbook

 Supply chain incentives

 (Public) procurement

 (Accident and diseases insurance systems)

 Customer and consumer demands

 Temporary workers management systems (risk activities)

 Benchmarking

 New indicators (solution reponse-time, training level)

Be creative !

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Practice what you preach!

 What has been build up over months and years can be destroyed in minutes!

 Practice what you preach

– Authorities

– Social partners

– Top management

– Operational supervisors

– Experts

Stimulate safe behavior

Discourage unsafe behavior

Stress the success of safe behavior

Reduce disadvantages of safe behavior

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To do at industry level

Federations

 Take control over the agenda

 Assume leadership (captains of industry)

 Offensive or opportunistic strategy

 (voluntary) Agreements at national, regional and branche level

 Exchange of good practice

 Collaboration: with education, health,…

Companies

 Systems approach

 Do not lean on experts and advisers but assume leadership

 Management involvement

 Role and responsibility of supervisors

 Internal auditing by management

 Workers involvement (partnership – set expectations)

 Behaviour based approach

– Last Minute Risk Analysis

 Further explore “the healthy workplace”, “workplace health promotion”

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A new industry vision

To gain recognition of health and safety as a cornerstone of civilized and responsible companies and, with that, to achieve a record of workplace health and safety that leads the world!

It’s time to set the traditional regulatory approach upside down and to start with an overall integrated efficient and effective new approach

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