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IOSH Northern Ireland Branch

Tuesday 28th January 2003

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G.S.J. Fulwell

The Way Forward in OHSMS

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Contents of the presentation;

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.

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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 AuditingSystem.(EMAS).

Risk Management Standards

Standards for Corporate Accountability

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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)

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OHSAS 18001 + Agreed by major certification bodies.

+ International credibility and development.

+ A standards based approach

+ Benchmarking opportunity

+ Aligns with other standards - integration _____________________

- Not an ISO standard.

- Commercially based activity

- Auditor Competence not defined

- Development of the global ILO guideline

- Application to sme sized undertakings

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Strategic approach formula;

PLAN

ACT

CHECK

DO

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Continual Improvement

Process of enhancing the

OH&S Management System,

to achieve improvements inoverall occupational health

and safety performance in

line with the organisationspolicy

(OHSAS 18001)

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The Management Systems Approach

in the Workplace.

EMS

QUALITY

OHSMS

Risk

Management

influences the

process

Continuous

Improvement

Standards.

Legislation.

Policy. Minimumonly.

Cooper 1998

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Integrated Management Systems

Risk Recognition

Risk Identification

External Market

Environment

Risk Ranking

Risk MappingOpportunities

Assessed

Risk SurveysRisk Controls

Business StrategyPlans Developed

Integrated Risk

Responses

Business Process

ImplementedAudit and

Compliance

Management

Review

Risk Management Tool Business Process

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The Manufacturing Environment.

INPUT. PROCESS OUTPUT.

AssetsRaw Materials.

Supply Chain Management.

Research & Development.

Finance and Investment.Training and Development.

Energy.

Product or

Services

Marketing

Distribution

Waste

Finance

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Combined or Integrated?

Combined v Integrated

SH E Q

MS MS MS

SH E Q

IMS

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The Integrated Strategy Policy

Planning

Implementation and Operation

Performance Assessment

Improvement

Management Review

PLAN

DO

CHECK

ACT

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Common Elements of an Integrated System 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

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Key features of the approach;

* 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

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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

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3 Key stages of an audit.

Documentation - reflects the hazards.

Interviews - verify competence.

Observations - implemented in practice.

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International Labour Office

ILO-OSH 2001

Guidelines on occupational safety

and health management systems

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International developments.

International Labour Office proposal.

technical experts met in April 2001.

ILO Council met in July 2001.

implementation programme being developed

Alternative proposal from ISCSA.

Strong support for the ILO from Asia/Pacific.

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The role of the ILO in OHS.

International Labour Organisation.

NationalGovernments

Legislation and

enforcement policy

Organisations Health and

Safety Management Systems.

Conventions

Recommendations

Monitoring

Auditing

National

OHSMS

Protocols.

Audit

Fulwell 2001.

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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 ( includingemergency 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.

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Key points of the ILO.

Fulwell 2001.

*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.

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Supply Chain Management. 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.

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Supply chain management.

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.

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Corporate

CivilCriminal

Corporate SHE Liabilities

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Corporate Liability

Maintaining Stakeholder Confidence.

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Financial Times - November 15th 2002. 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 USclaim on asbestos liabilities and places

Combustion Engineering into Chapter 11

bankruptcy protection. Assets $812 million

balance ABB.

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Top Risks Facing the

OrganisationStrategic These are the long term strategic aimsand 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

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RISK CONTROL STRATEGIES

RISK AVOIDANCE

RISK RETENTION RISK TRANSFER

RISK REDUCTION

or any combination

Residual Risks will remain

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OECD Principles of Corporate

Governance. 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.

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OECD Guidelines for Multinational

Enterprises 2001 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

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European Commission Green

Paper. Promoting a European framework for

corporate social responsibility;

In addition the tendency of companies toinclude OHSMS in their procurement..

..which allows for a third party to carry

out certification or initial approval of thecontractors as well as overseeing the

continuous improvement of the scheme.

EU September 2001.

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Corporate Governance

Process by which corporate bodiesgovern themselves - a risk based

approach

No Surprises - ICAEW

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Corporate Governance

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 toretain the widespread confidence of shareholders,employees, government and others - Institute ofChartered Accountants

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Turnbull requirements

AssessmentObjectives

plans

performance targets

indicators

Control strategy

culture - senior management demonstration Authority and accountability

communicate to its employees

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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 companys 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

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Higgs Report - January 2003

Role of Non-Executive Directors

Ratio of Non-Executive to Executive

Training and selection of non-executives

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Civil Liability position.

The changing position

An opportunity or a threat?.

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The Insurance Market

Client Broker Insurer ReinsuranceMarket

Offshore

Account.

Level andsize of claimsSize andNumber of

ClaimsNumber

Numberand

Scope.

Fulwell 2002

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The Insurance Market

Client Broker InsurerReinsurance

Market

WTC - $80 billion

Eur flood $60 billion

Asbestos & stress

Stock Market fall

= Reduced Capacity

Fire + 130%

Weather +70%

Theft +20%

Stress +19%

Commercial +100%Property +50%

Independent

Insurance

Woolf Reforms

Claims size &frequency

Fulwell 2002

Underwriting loss of 4.5 billion since 1993.

FLOW OF MONEY since 1991.

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Catalogue of Disasters

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 ).

Th Ch i P i

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The Changing Perspective

Historic Position (pre 2001);

Unlimited availability at very low premium, norequirement to demonstrate risk control.

Future Perspective (post 2001);

Limited availability at a very high premiumand only with effective risk control.

Significant role of OHSMS now emerging.

Fulwell 2002

S

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The Future StrategyThe future requirements will be risk exposure based;

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

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Criminal Liability

Corporate and Individual

accountability

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Number of prosecutions;

Year. Company. Individual.

1996/97. 1490 49. (10)

1997/98. 1606 25. (1)

1998/99. 1760 27. (0) 1999/2000. 2253 34. (11)

2000/01. 2077 43. (0)

2001/02. 2034 55. (11) 2002/03.

Di t ti

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Directors prosecution Brian Dean, a construction company director

became the twelfth director to be convicted ofwork-related manslaughter at Stafford CrownCourt and has been sentenced to eighteenmonths imprisonment.The prosecution followed

a demolition accident in Stoke where a fatherand 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 CDMregulations.

HSB

June 2002

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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.

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.

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Subcontractor electrocuted. Subcontractor was fatally electrocuted whilst

undertaking maintenance work in an officeblock. 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 aprevious 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.

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EXEL fined for Workplace fatality Exel Europe Ltd., was fined 96k for a fatal

accident when an agency driver was crushed bya 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 toensure that Exel had introduced adequate

arrangements for all relevant personnel.

MARS October 2002

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Corporate Killing Legislation.

France,Canada,

Republic of Ireland,

Australia,

New Zealand,

UK - England and Wales

United States of America.

UK l f f

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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 i i C t Killi

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UK issues in Corporate Killing. 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

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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.

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United States of America

Concept ofrespondeat superior

A corporation may be held criminally liablefor the acts of any of its agents if an agent

commits a crime within the scope of his

employment and with the intent to benefitthe corporation.

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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 ofwhich an individual could be found guilty for

committing that act or omission.

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

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The Pyramid of Sanctions.

Advice - warnings - persuasion

Fines or civil penalties

Voluntary disciplinary action.

Court ordered disciplinary action

Corporate criminal sanctions

Corporatelicenserevoked

Corporateprobation.

Braithwaite 1989

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Corporate Killing

Defence of due diligence;

The company falls to be judged not on itswords but its actions, including the action of

its employees.

Wells, Corporations and

Criminal Responsibility , 2001

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Corporate Killing - due diligence.

Evidence that the illegal and forbidden act wasclearly in breach of established internal policy.

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

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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

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Culture The commission noted:

over time a culture developed whereby itbecame normal to operate the plant in alarm.

This culture developed despite the fact that

the alarms existed for the primary purpose ofalerting operators to that which was

abnormalThe 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.

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Conclusion

The jury found Esso guilty of 11 breaches

of workplace safety, including a failure to

train staff properly and a failure to provideproperly trained supervisors at its gas plant.

A$ 2 million fine and A$1 billion

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A$ 2 million fine and A$1 billion

class action to follow

Justice Philip Cummins said the blast that killedtwo 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 wasgrievous, 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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BP - Prudhoe Bay, Alaska

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

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HSE FOD Risk Control Indicators;

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HSE - FOD - Risk Control Indicators; 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.

Working Environment.

Source HSE, 2003.

F t l A id t M f t i

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Fatal Accident Manufacturing

YEAR Manuf. Constr. Total1997/98 61 80 274

1998/99 69 65 253

1999/00 41 81 2202000/01 50 105 292

2001/02 47 79 249

2002/03 - ytd 21 36 110As at 30/09/02 = 6 months.

Source - HSE Statistics dept.

Fatal Accident Ca sation 2001/02

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Fatal Accident Causation 2001/02 Contact with moving machinery - 22

Struck by falling object - 43 Struck by Moving Vehicle - 40

Injured whilst handling - 1

Slips trips and falls - 2 Falls from height - 68

Trapped by collapsing/overturning 8

Drowning or asphyxiation - 11 Exposure to fire/explosion - 8

Contact with Electricity - 12

Others kind of accident - 22

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Current issues in OHSMS

Civil Liability premium increases

Corporate Killing

Enforcement Management Model

Accident Investigation

Employee Representation

Manual Handling survey by the HSE

Directors duties

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International SpecialistGroup.

1. Approved by Council in September 2001

2. Comprises two separate Working Parties

IOSH Specialist Groups;

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IOSH Specialist Groups; 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

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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 globalorganisation and the establishment of a

network of international contacts.

International Group Objectives

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p j*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.

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