Vancouver Shipyards - Significance of Implementing an OH&S Policy - Case Study Example

DIPLOMA IN OCCUPATIONAL HEALTH AND SAFETY 28th August, 2008 Organizational Health and Safety system is a part of the overall management system that facilitates the health and the safety risk in the management of an organization. For reviewing and maintaining the organization’s OH&S policy, planning activities, allocating responsibilities, process and source development are also incorporated. In 1931, H.W. Heinrich proposed the concept of Industrial Accident Prevention, which still persists in the contemporary business environment where employees face numerous hazards and dangers unlike anything seen before. To combat the changing needs and demands of the modern times, it becomes obligatory to draft a comprehensive policy for OH&S keeping in mind the emerging hazards and exposures. To analyze and interpret the significance of implementing an OH&S policy, Vancouver Shipyards Case Study is undertaken to purview the execution of OH&S strategy, the identification of key skills and resources utilized and the budget finalized for the same. Vancouver Shipyards deals with the construction, maintenance and repairs of all types of ocean going vessels. A high rate of accidents, soaring costs of unsafe work practices and poor management system, reactive approach to safety concerns rather than being proactive, miscommunication, lack of coordination and trust, lead to the drive for realization of Occupational Health and safety procedures for smooth and efficient operations of the organization. The past complexities of safety comprising of staffing issues, regulatory environment, rising accidental costs, sub standard safety equipments both fixed and mobile, improper infrastructural maintenance etc were the major concern which required immediate fixing. In the course of conducting such an analysis of the organization, many crucial aspects were taken care off such as, the organizations source of financial resources for the development, implementation and maintenance of an OH&S system. The detailed audit revealed that, private financial institutions, the government and the commercial banking sectors were the major source of aiding funds to Vancouver Shipyards Company. As far as the legal obligations to use the funds for OH&S purpose was concerned, The organization aimed to establish and maintain a procedure to identify all possible legal concerns and gain access to legal and other requirements to which the organization had subscribed, comprising of all the environmental aspects, economic and social activities in the due course of the trade of its products and services. The legal obligation enforces the use of funds to ensure from the environmental hazards for which the organization has established procedures for identifying environmental impacts which can be controlled along with the regular updated information on environmental impact of the companies activities, a major chunk of funds is utilized to ensure the realization of environmental objectives including a commitment for continual improvement and prevention of pollution in appropriation to the , scale and environmental impacts of its activities, products and services. As per the Bureau of Labor Statistics, 2007, all requirements should be abided and fulfilled. OHS LIST OF BUDGET ITEMS In the process of accomplishment of the OH&S goals and objectives, various resources need to be channelized in meaningful and proper direction. For instance , staff at all levels within the organization have specific responsibilities for ensuring OH&S. (Staff Responsibilities for Occupational Health and Safety, 2006). Executive Deans and Senior Managers are the key persons accountable for the implementation and maintenance, within the faculty /division, of an effective system of management for occupational health and safety (OH&S) consistent with the organizations norms and health practices. Vancouver, redefined strategy included the appointment of the safety manager for assistance and supervision of the plan. Along with the manager, another team of approximately 25 people is required for implementation of the plan. Skilled manpower in all areas of management that is, planning, organizing, leading and controlling is required. Apart from the people, other resources which need to be put through the entire process include materials, equipment and system which further include individual and the procedures as well. Abundant and free flow of finances is also required for the overhaul of a traditional workplace health and safety system to a proper, systematic and restructured process safety management system. To manage the heavy investments and meeting the normal operational capital of the firm, finance becomes a vital aspect of the budget priority items. Cost effectiveness needs to be achieved along with the use of modern equipments, tools and techniques for better enhanced production and attainment of superior quality. Optimum utilization of scarce resources with minimum overhead expenditures also needs to be budgeted. The current status of Vancouver Shipyard personnel reveals that the company employs 300 people represented by the marine and 506 local shipbuilders. Another increase of 20 to 25 percent in the workforce is required for meeting the OH&S standards and expectations of the company. It is found out that 40% of employees are skilled tradespersons such as welders, fitters, and electricians, to incorporate the occupational health and safety norms; an increase in the skilled labor is required for better understanding and adapting to the change in the strategy and policy of the internal as well as the external environment (Erving William, Groover R D, 2007) A SKILLS AUDIT AMONG THE EMPLOYEES TO IDENTIFY KEY SKILLS, QUALIFICATIONS OR APTITUDE TO LEAD THE PUSH FOR OHS TRAINING IN THE ORGANISATION Identification of the learning and the skill development priorities will facilitate the profitability, competitiveness and sustainability of the organization. The key skills area of the business includes management of people, management of business and resources, management of finances, products and production. Execution in all such areas require strong academic credentials and experience which the skilled manpower possess but more emphasis on educated staff members need to be made at time of selection of additional workforce. 40% skilled labor is to less a ratio to exploit the potential capacity of the business (Erving William, Groover R D, 2007). Another important perspective identified was attitude and aptitude of the employees which reflects an optimistic corporate culture within the organization. It was found that few of the Vancouver Shipyard employees share an internal responsibility system for maintaining health and safety at the workplace however some others lack morale and zeal at work. If one wants to forge ahead with a united goal and common objective for all, a change in the aptitude of the employees is quintessential. The OH& S system should include a continuous evaluation and analysis of system performance and follow-up actions to address partial or overall improvements (Environmental and Social Guidelines for Occupational Health & Safety,2003). For this employees need to go through rigorous training sessions for imbibing a positive work culture within the firm. The enterprise ensures that education and training must be imparted at all levels of the organization, for instance senior management must be taught about the basic safety program activities, the supervisors are also rendered training on the same levels. The organization initiated to impart training to its existing and new recruits through promoting Employee health and lifestyle training pilot project and participating in the North American Occupational Health and Safety Week (NAOSH) activities. Hazard identification is crucial for implementing health programs which can occur in form of physical, chemical, biological, mechanical, electrical and psychological problems. A proper risk identification and assessment needs to be done to avoid all sorts of hazards and obstacles which may arise in future (NSW TEACHERS FEDERATION, 2002). The employers are obliged to train their employees in occupational health and safety so as to help the workers differentiate between the safe and unsafe working environment. OH&S is the promotion and maintenance of the highest degree of social, physical and mental well being of the employees. The proper application of OH&S could result in unnecessary cost reduction, injuries and accidents as in the case of Vancouver Shipyard which observed a 70% reduction in the disability claims from 1998 to 2001 with a drip of total expenses to $500,000 in 2001 in comparison to $2.2 million in 1998.The company even won the North American Occupational Safety and Health General Industry Award in 2001. After a complete detailed analysis of the company, it can be deduced that the areas which require proper consideration in the annual budget of a company include the following heads also: Budget format Income Bank/Cash Non-cash/in kind Expenditure Staff International contract Salary Social security, pension etc Travel Per diem/food Housing Training Recruitment costs Induction Incidental expenses Equipment Travel Air travel International National Surface travel Vehicles Additional Purchase Shipping Hire Fuel Maintenance Insurance Office Rent Utilities, maintenance and repair Premises Non-consumables Consumables Stores and other premises Communications Purchase Telephone: fixed, mobile, satellite Radio: HF, VHF, UHF ISP: internet access, email Recurrent costs Supplies and materials Audit costs Head office overhead Contingency REFERENCES 1. Bureau of Labor Statistics, 18TH Dec, 2007, Occupational Outlook Handbook, 2008-09 Edition , Occupational Health and Safety Specialists and Technicians, Viewed on 28th August, 2008, http://www.bls.gov/oco/ocos017.htm 2. Environmental and Social Guidelines for Occupational Health & Safety, June 24th , 2003, IFC Environmental Guidelines For Occupational Health And Safety Viewed on 28th August, 2008, http://www.ifc.org/ifcext/enviro.nsf/AttachmentsByTitle/gui_OHS/$FILE/OHSguideline.pdf 3. Secretary and Registrar, The University of Queensland, Staff Responsibilities for Occupational Health and Safety, 17th Nov, 2006, Viewed on 28th August, 2008, http://www.uq.edu.au/hupp/index.html?page=25020 4. NSW TEACHERS FEDERATION, October 2002, Occupational Health and Safety, Viewed on 28th August, 2008, http://www.nswtf.org.au/media/latest/files/20021114_new.pdf 5. Amyotte P, William E, 21st November 2003, Management Systems: Occupational Health and Safety, Viewed on 28th August, 2008, http://chemicalengineering.dal.ca/Files/Mgt_Systems.ppt Read More