Making the Business Case

Transcription

1 Creating a Healthy Workplace Making the Business Case Canadian Meat Packers Council Conference Andrew Harkness, CHSC, DOHS IAPA Synergration Consultant

2 Agenda Why Manage Health and Safety? Is this a cost of doing business or a competitive advantage? Speak in language we understand!!!

3 Common Language for CMC Show me the meat Running around like a chicken with its head cut off He s Packing Happier that a pig in %$##@$% $ Bulls eye

4 Health Workplaces: Aren t we already there??? We have got a handle on Occupational Health and Safety in Canada, right? Our Quality of Life standard is second to none in the world, our Occupational, Health and Safety performance should be right there as well, right? Canadians are very interested in Occupational Health and Safety Issues? We are teaching this stuff in our schools, universities and colleges, so managers and workers are better educated? We know all there is to know about Occupational Health and Safety now, so our workplaces have never been safer?

5 What do the Numbers Say? Total work-related deaths in Ontario Source: WSIB site.nsf/public/currentstatistics Allowed lost-time injuries in Ontario Source: WSIB 95, ,234 90,397 89,734 83,179 site.nsf/public/currentstatistics

6 Reality: Numbers (cont d) 2006 Canada Ontario Total Fatalities Accepted TtlL Total Lost-time tti Injuries Accepted 329,357 83,179 Source:

7 Ontario Facts 300,000 workplace injuries a year 100,000 lost-time Direct costs of workplace LTI estimated t at $416 million Average LTI cost: $72,000 $58,000 employer cost $14,000 WSIB cost Source:

8 Canadian Facts Workers in Canada have a greater chance of being killed on the job than in almost any other industrialized country Statistics predict that 7 out of every 100,000 Canadian workers will die as a result of workplace injuries Canada has the fourth highest rate in injuries among the 16 member countries of the Organization for Economic Co-Operation and Development (OECD) Source: ILO Comparative Performance Monitoring Report, March 2004

9 Every year in Ontario approximately 15,000 young workers are injured on the job. That s the equivalent to a full school bus every day

10 Financial Drivers tion rship, Revised Edit n oss Control Leader George L. Germain rence: Practical Lo k E. Bird, Jr. and G Refer Frank In Times of Keen Competition and Low Profit Margins, Loss Control May Contribute Significantly More to Profits Yearly Incident Costs ($) 1% Profit Margin 1% 2% 3% 4% 5% 1,000 5,000 10, , ,000 1,000,000 50, , ,000 33, , ,000 25, , ,000 20, , ,000 25,000 2,500,000 1,250, , , ,000 50,000 5,000,000 2,500,000 1,667,000 1,250,000 1,000, ,000 10,000,000 5,000,000 3,333,000 2,500,000 2,000, ,000 15,000,000 7,500,000 5,000,000 3,750,000 3,000,000 5,000, ,000 20,000,000 10,000,000 6,666,000 5,000,000 4,000, ,000 6,666,000 Sales required to cover losses

11 Impact of an Unhealthy Workplace on Employees 3x Risk of Heart Problems 2x Substance Abuse 2x-3x Injuries 2x-3x Infections High Effort Low Reward and/or High Demand Low Control 3x Back Pain 5x Certain Cancers 2x-3x Conflicts 2x-3x Mental Health Problems Dr. Martin Shain, April 2001

12 Impact of an Unhealthy Workplace on the Organization Low Employee Satisfaction Low Customer Satisfaction Low Commitment Low Loyalty Low Motivation High Effort Low Reward and/or High Demand Low Control Low Morale Low Trust Low Retention Low Creativity Trailing Edge Performance Dr. Martin Shain, April 2001

13 The Legal Question: Employer Requirements Ensure that the health and safety at work of every person employed by the employer is protected Take every precaution reasonable in the circumstances for the protection of a worker OHSMS supports your Due Diligence

14 The Legal Question: Criminal Code Amendments Consider the requirements for ensuring the health and safety at work of every person that is being directed to perform a task by the organization Recent successful prosecution of Quebec firm of criminal negligence causing death

15 Why is OHS Such a Challenge? Health and Safety is common sense Managing OH&S requires more than this Human nature tends not to be: Proactive Risk adverse Consistent t Motivated by health and safety factors

16 What can the employer do about OHS? What Can Employers Do?

17 Is This Your Organization? Lots of Programs? Accident/Incident Investigation Community Impact Security Wellness Waste Management Work Permits Psychosocial Hazards Hiring i and Placement Regulatory Management Occupational Hygiene Workplace Violence Information Management Claims Management Lockout PPE Purchasing Management Pre-Start-Up t Reviews Operating Procedures Change Management Confined Spaces Engineering g Maintenance Contractor Management Ergonomics Fleet Safety Emergency Planning Preparedness and Response Inspections

18 Is This Your Organization? Lots of Programs? (cont d) Accident/Incident Investigation i Community Impact Security Wellness Waste Management Work Permits Psychosocial Hazards Hiring and Placement Regulatory Management Occupational Hygiene Workplace Violence Information Management Activities alone are not enough Claims Management... Lockout PPE Operating Procedures OHSM System Purchasing Management Pre Start Up Reviews Change Management Confined Spaces Engineering Maintenance Contractor Management Ergonomics Fleet Safety Emergency Planning, Preparedness and Response Inspections

19 The Business Question Most organizations manage: Quality Production Environment Finance Customer Service Why not manage Health and Safety?

20 Re-think Safety Culture Old OdThinking Modern Thinking Safety Manager is the doer Safety is seen as an expense Mono cultural approach to training Safety department is responsible for safety Safety manager as facilitator Safety is integral to profit Cultural diversity affects safety management Everyone in the organization ation has some responsibility

21 Managing Risk The many workplace risks that exist in our world today require a systematic approach to Occupational Health and Safety Management

22 The Managed Approach Plan Act Check Do

23 Healthy Workplace Model Employee Health, Safety and Well-being Physical Environment Physical Environment Corporate OH&S Program

24 Management System What are some possible benefits to organizations when using a management system approach?

25 Benefits Assists with system Demonstrates top integration management Provides method for commitment continual improvement Systematic risk Ensures sustainability management focus Easier to attain and Keeps management prove legal compliance informed Corporate Social Provides focus OHS Responsibility resources

26 Return on Investment Data from many studies show a Return on Investment of $1.15 to $8.00 for every $1 invested Greater ROI with comprehensive approach, and measured over time (e.g., 3 years or more)

27 The Service Profit Chain EMPLOYEE SATISFACTION CUSTOMER LOYALTY THE BOTTOM LINE (+ 5% ) ( + 1.3% ) (+05%) 0.5% ) 4% improvement in 1997 = $200 Million Employer Opportunity Source: Harvard Business Review, Jan/Feb, 1998

28 How Do You Manage Your OHS System? This Way No Strategy Reactive Activities Injury Illness Loss Injury Illness Loss Prevention Move to Organizational Excellence Reinforce Positive Behaviours Utilize Best Practices Apply Systems, Standards & Procedures Meet or Exceed Legislative Requirements Establish Due Diligence Framework for OHS Planning, Implementation, Evaluation and Continual Improvement Or This Way

29 Discussion and Questions? Thank You Andrew Harkness, IAPA Consultant Certified Excellence Consultant in Healthy Workplace Initiatives, NQI