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Business competitiveness and safety and health at work measures

Ljubljana, November 7th 2008

Ir. Kris De MeesterDirector health and safety affairsChairmen 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 "multi-society"

– 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”

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

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CONVINCED ???

NO YES

STOP (AND GO HOME)

CONTINUE

Why OSH managementGOOD 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 satisfactionMotivated 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)

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

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-strategies1. 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 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 allREFOCUS 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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