Module 00

Introduction

© CHSS 2003
Ref: SC/086/V1
 Module 01
Why Manage Health & Safety

© CHSS 2003
Ref: SC/086/V1
 Why Manage Health & Safety?

 Costs (Financial Loss)

 Humanitarian and Moral reasons

 To Avoid Prosecution

© CHSS 2003
Ref: SC/086/V1
 Reason 1 - Cost
 Workplace accidents cost between 2-3% of
GDP (about the same as the cost of all of
defence)
 30 Million days lost each year
 Cost of failure is not easy to calculate,
but includes:
 accident investigation, replacement
labour, loss of reputation, compensation,
insurance.

© CHSS 2003
Ref: SC/086/V1
 The Costs of Accidents at Work
HS(G)96
 HSE APAU - studied and costed in
depth accidents and incidents at 5
selected organisations
 they came up with surprising findings
 Losses as high as 37% of profits,
8.5% of the tender price, 5% of
running costs

© CHSS 2003
Ref: SC/086/V1
 Employers Liability Insurance
 Insurance is
increasingly expensive
£1  Claims have increased at
about twice the rate of
premium increases
£8 - £36  Limited liability which
may be linked to
performance
 Compulsory in most
cases

© CHSS 2003
Ref: SC/086/V1
 Employers Liability Insurance
 Insurers now selective
 “No longer how much to insure, but can we
insure ?”
 Only well managed risks will obtain cover

 Litigious climate
 escalating claim cost, 12% p.a. last 5 years

 Increased claims frequency

 Increased awareness and ease of access

© CHSS 2003
Ref: SC/086/V1
 Example of cost - Stress
 In November 1994 the High Court
found Northumberland County Council liable
for psychiatric damage Walker suffered
as a result of work related stress.
 Walker settled for £175,000 (less than
asked for).
 Existing legal principles apply to
psychiatric as well as the physical health of
employees.

© CHSS 2003
Ref: SC/086/V1
 Influence of Trades Unions
 UNISON helped members claim more
than £6.5 million pounds in
compensation during the three month
period - January to March 1997.
 £185,000 awarded to a charge nurse who injured
his back lifting a 17 stone patient.
 £100,000 awarded to an auxiliary nurse who was
left unable to iron, hold a phone or write in comfort
and was a chronic insomniac for two years.

© CHSS 2003
Ref: SC/086/V1
 £500m bill for miners’ vibration
white finger injuries
 In August 1998 three Court of Appeal Judges
dismissed an appeal by British Coal, 20,000
cases are currently pending.
 British Coal should have known about the
problems by 1st January 1973 and should have
taken preventative action within twoyears.
 Current awards range from £50,546 to £5465

© CHSS 2003
Ref: SC/086/V1
 The Safety and Health Practitioner March 1999

Costs - Fines
Heathrow tunnel collapse
Following the collapse of a section of the Heathrow
Express rail link on 21 October 1994
 Balfour Beatty - fined £700,000 + £100,000 costs
 tunnelling sub-contractor - £500,000 +£100,000 costs
 consultant continually ignored warning signs preceding the
collapse and it was alleged the self monitoring system between
the parties involved was flawed - during the hearing they were
described as “the watchdogs who failed to bark”.

© CHSS 2003
Ref: SC/086/V1
 Reason 2 - Humanitarian

2000/01 Total fatalities to members

© CHSS 2003
of the public = 447
Ref: SC/086/V1
 New cases reported in 1996/97

Reason 2 - Humanitarian

© CHSS 2003
Ref: SC/086/V1
 Professor Julian Peto.
The Safety and Health Practitioner March 1999

250,000 asbestos deaths

 Over the next 25 years 250,000
employees are expected to die following
asbestos exposure.
 The peak is expected around 2018 - 2020
with 9000 per year compared to 5000 in 1998.
• 1 in 150 of all men born between 1945 and
1950 will die of mesothelioma.
• The risk for those born after 1955 is not yet
known.

© CHSS 2003
Ref: SC/086/V1
 Reason 3 - Law
 The Director and Production
Manager of Calder Felts Ltd, a
major textile company in
Sowerby Bridge, Yorkshire
were sent to prison for
eight months.
 A 21 Year old employee lost
an arm during a machinery
cleaning operation & the men
ignored a prohibition notice
served by the HSE.
 The Company was also fined.
© CHSS 2003
Ref: SC/086/V1
 Director Imprisoned.
 In 1997 Company director James Hodgson of
Jackson Transport (Ossett) Ltd, was been
imprisoned for 12 months and fined £1500 for the
manslaughter of a 21 year old employee, who was
sprayed in the face with toxic chemicals.
 Hodgson’s conviction was in addition to a
conviction for corporate manslaughter which
resulted in his company being fined £22,000.

April 1997 HSIB

© CHSS 2003
Ref: SC/086/V1
 The capsize of the Herald of Free
Enterprise
 "All concerned in
management, from the
members of the Board of
Directors down to the
junior superintendents,
were guilty of fault…
 From the top to the bottom
the body corporate was
infected with the disease
of sloppiness."

© CHSS 2003
Ref: SC/086/V1
 What Law Enforcers Look For
 Managers who manage.
 Records of effective risk assessment.
 Plans, strategies and robust management
systems for dealing with risk.
 Effective communication and consultation.
 Well organised employees who know their
responsibilities.
 Evidence of monitoring and continuous
improvement.

© CHSS 2003
Ref: SC/086/V1
 Plan - Do - Check - Act

P D
Step 1 Step 2
Establish standards Implement plans to
for health & safetyl achieve objectives
management based and standards
on risk assessment
and legal
requirements

Step 4 Step 3
Review against Measure progress
objectives and with plans and
standards and take compliance with
appropriate action standards

A C
© CHSS 2003
Ref: SC/086/V1
 HS(G)65
Policy
POLICY development

Organisational
ORGANISING development

AUDIT AND PLANNING &

REVIEW IMPLEMENTING
Developing
techniques of
MEASURING planning, measuring
PERFORMANCE and reviewing

REVIEWING
PERFORMANCE Feedback loop to
improve performance

Information link
CONTROL LINK
© CHSS 2003
Ref: SC/086/V1
 Policy
 Sets the Organisation & Arrangements for
identifying hazards, assessing risks &
preventing or controlling them.
 Are staff aware, do they understand it?
 Is it compatible with the overall Company policy?
 Is responsibility delegated to competent
individuals?
 Does it indicate to Directors and Managers
how to assess risks and allocate resources?
 Is it a working document?
© CHSS 2003
Ref: SC/086/V1
 Organising
 Control.
 Directors and Managers must accept and demonstrate a
commitment to the management of Health and Safety.

 Co-operation.
 Consultation demonstrates commitment which leads to co-
operation.

 Communication.
 Needs to flow in all directions.

 Competency.
 needs to exist for recruitment, transfer & training.

© CHSS 2003
Ref: SC/086/V1
 Planning and Implementing
 Generate SMART objectives.
 Identify hazards, assess risks and set
performance standards.
 Establish priorities according to risk.
 Plans for non routine, new work and serious risks.
 Monitoring arrangements to ensure
standards are met.
 Implement plans based on suitable and
sufficient Risk Assessment

© CHSS 2003
Ref: SC/086/V1
 Monitoring
 Directors and Managers may not be aware
of work practices occurring within their
Departments.
 Monitoring needs to be both Proactive and
Reactive.
 HSE Recommend that monitoring systems
be introduced in each Department.

© CHSS 2003
Ref: SC/086/V1
 Audit and Review
 Assessment against health and safety
performance standards including law
and company procedures.
 Assessment against specific SMART
objectives.
 Identification of areas where standards
are poor or inadequate.
 Analysis of incident, accident and ill health data.
 Formal review against performance to allocate resources
and implement further changes

© CHSS 2003
Ref: SC/086/V1