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SHE Training Requirements and the Benefits of Cost Benefit Analysis
Rank: New forum user
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Recently I was required to justify the Cost of Overhead Crane Training within the business and after giving consideration to the lessons I had learnt through my NVQ Level 5 in Occupational Health and Safety and the production of the Cost Benefit Analysis, I decided that this would be the best method to gain the finances involved.
The cost benefit analysis I produced identified three options. Option A and B were to bring in an external trainer at a cost of £12,000, whilst the cost to train the trainer was a cost of approx. £5,000.
After reviewing recent case law and providing the following examples:-
An employee was using an overhead moving crane to move a 6.5 meter sheet of steel weighing approximately 180K The sheet fell on the injured parties foot injuring his toes. The Health and Safety At Work Act 1974 Section 2 Sub Section 1( It shall be the duty of every employer to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all his employees.)
The fine was £12,000, with a further £11,631.00 being awarded to the HSE for costs.
Prosecution arising from an investigation into serious injury accident to employee when an individual caught in-between panel die blocks when crane moved unexpectedly. Investigation found defects within control console failing to prevent inadvertent operation, other crane defects, failure in planning and train for lift.
£ 53,000 fine for Lifting Operations and Lifting Equipment Regulations
£102,000 Provision and use of Work Equipment Regulation 1998/5/1 ( 5.—(1) Every employer shall ensure that work equipment is maintained in an efficient state, in efficient working order and in good repair.
(2) Every employer shall ensure that where any machinery has a maintenance log, the log is kept up to date)"
Total Fine £155,000 and costs of £22,795.69.
By proving to the business the cost of getting it wrong, balanced against the need to provide training I was able to secure the finances for the training.
The lesson to be learnt is utilise a CBA to prove to the business the need to support SHE costs. I would really be interested to hear in any examples whereby others have used CBA to secure funds !!
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Rank: Super forum user
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Kath
Never used CBA to support an argument for training or any other health and safety initiative. I am aware of the process, however it is too subjective for my liking. In the case law examples you have cited there are many other potential cases including corporate manslaughter where unlimited fines could potentially go into millions of pounds. Would this sway senior managers - probably not. Many would see it as scaremongering, whilst others would consider the likelihood of a serious accident against the chances of being prosecuted - very slim. Might as well use a roulette wheel as use CBA in my opinion.
If it worked for you all well and good.
Ray
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Rank: Forum user
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Hi Ray how do you get the boss to spend then. I see what Kath has done and the moral argument does not go far enough for me. How would you have got your boss to spend the money like Kath
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Rank: Super forum user
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RayRapp wrote:Kath
Never used CBA to support an argument for training or any other health and safety initiative. I am aware of the process, however it is too subjective for my liking.
Ray
Sorry Ray but coming from process safety background not sure I follow your comment about it being too subjective..? But it is early and I'm only on my first coffee....
http://www.hse.gov.uk/risk/theory/alarpcheck.htm
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Rank: Super forum user
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we should not be throwing money away but remember that it is a legal [not a simple accounting want] requirement to adequately train employees etc. so whilst CBA is a useful tool it is also secondary to the requirements of the law so add into your arguments for adequate training the legal side of things quoting case law etc. as needed and CBA it can be very subjective and those asking U to undertake this exercise need updated training in the training areas of H&S law
best of luck
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Rank: Super forum user
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I have been told recently that the company I work for don't want to deal with best practice but will only do want is legally required.
I was then asked how do I intend to build a culture of safety. My response was by introducing best practice. I know that regulations and regulators for that matter are moving away from best practice but our regulations are built on best practice and you still have to show how you met the regulations in court. The ACOPS to me were always a good tool to use.
For me H&S is all subjective. It's how to influence that matters.
People now know that even corporate manslaughter will be rarely used against managers.
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Rank: Super forum user
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I think Bob has answered the questions put to me very nicely. If I want better training, PPE, welfare facilities, etc, I make a request. If it meets some objection I may refer to either the moral or legal argument, or both. Ultimately it is not I who will be prosecuted if it does not satisfy the basic legal standards.
One of the problems with using CBA to justify spending money or investment in health and safety (depending on your perspective) it is does not take into account the moral argument. Yes, I know morality is a movable feast...but sometimes the moral argument is stronger than compliance.
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Rank: Super forum user
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But sometimes Moral or Legal arguments will not sway those at the top, but they are always happy to talk about money.
You sometimes have to use everything above and more.
Chris
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Rank: Forum user
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To me this discussion goes to the heart of Health and Safety.
I’ve begun a short update session for line managers in my relatively low risk area.
I begin by asking them why we should bother with Health and Safety. It costs; witness them sitting here for a couple of hours.
The likelihood of a serious accident is very remote, getting caught is even less likely, and if it did happen the fine will probably be less than the costs incurred. So I suggest we just wing it and hope for the best. Of course it’s not me who’s going to be held responsible because I’m never going to recommend this, but as a line manager why would I want to bother. (I emphasise it’s a low risk area to forestall some comments.)
Interestingly after about 20 mins I lose the argument, on all fronts, legal and financial, but mostly on the moral front. That gets the interest of these guys since it now becomes their idea that Health and Safety is important since I’ve argued not to bother, as the Health and Safety person here I could retire if I’d won (happy days :-)).
I am however in the fortunate position that most of the time I’m telling my senior people that they’re going much too far and there’s no need to gold plate what’s in place so I don’t have to fight the same battles most people in the high risk industries have to. I have to try and retain some practicality in the controls being suggested.
Interesting stuff on CBA and other routes to get buy in though.
Graham
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Rank: Super forum user
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The arguments used to sway opinion should be chosen on the basis of what is most likely to "push the buttons" of those we are seeking to influence.
For senior managers it may well be a mix of economics and law whilst for line managers and supervisors the moral argument may be more powerful. But individuals will vary so knowing and understanding who we need to convince is important. Corporate culture plays a big part too, with the risk of reputational damage being a powerful stimulus.
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