Download Why OSH management

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
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Restructuring of economy and politics: "Competitive
Europe"
 Competitive world economy and increased productivity with
restructuring of organizations and management
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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
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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,...
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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
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Geographic shift: “Migrating Europe”
 Workers from new EU member states and beyond
 Language barriers; training, instruction and communication
challenges
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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
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Growing role of media "Attention Economy and
Citizens Europe“
 Social media, social networking
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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 CONTINUE
(AND GO HOME)
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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
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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
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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
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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
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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
Company OSH-strategies
1.
Ostrich-strategy: short-term vision, neglect problems, accident = bad
luck, only action if inspected/enforced
2.
Defensive strategy: minimum attention to health and safety of workers,
efforts limited to most important legal requirements
3.
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).
4.
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
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Constructive or opportunistic
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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
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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
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Governments
Employers
Workers
OSH-Experts
Financial world
Students, young people
ALL PEOPLE
Cannot be achieved through legislation !
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Strategy
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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
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Regulation is just one element
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+ 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
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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
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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
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‘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
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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
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Management systems/tools
Activities to usefully support focus on prevention
 Awareness-raising actions targeting a large public
 Dissemination of good practices
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Positive action: “appreciative inquiry”
Use/search “market driven” instruments
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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!
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What has been build up over months and years
can be destroyed in minutes!
 Practice what you preach
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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
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Federations
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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
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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
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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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