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Criminal law is all about punishment but fining organisations multi-millions may not always be the r
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Posted By Steve Butler
I read with dismay the recent article published on the IOSH website on Wednesday 7th July 2006 written by the current President of IOSH, Neil Budworth.
Neil wrote about the Hatfield disaster of October 2000 and how the fine handed to Balfour Beatty of £7.5m was nothing more than a slap on the wrist. No matter how large the corporation, £7.5m is a massive amount of money and is not easily replaced. The reason behind the appeal was the disparity in the size of fines between Balfour Beatty and Network Rail. It was never about Balfour Beatty having been fined too much; it was about a fair and just approach considering the findings of the case.
The Hatfield disaster very tragically led to the loss of lives and although of little consolation to those affected, very valuable lessons have been learnt which enabled Balfour Beatty to move forward having invested significantly in doing so to ensure the health and safety of employees and the public, where operations demanded it.
I believe that good health and safety management is all about moving forward, making changes and in the event of accidents happening, never letting the same thing happen again?
I am also all for the introduction of the Corporate Manslaughter law but the article Neil wrote goes beyond that and, in my opinion portrays a vision that fining corporations large sums of money becomes justice itself. This will never work and was not what The Health and Safety at Work Act 1974 was introduced to achieve.
Fining organisations often has very little effect on an improvement on their health and safety management system anyway, perhaps being forced into investing in the very thing that caused the failure would be far more beneficial for everyone?
Only the other day I heard on the radio how the government had stopped short of fining a water company, who shall remain nameless but instead insisted that they invest extra millions of pounds on top of that already invested to stop leaks in ageing pipelines that carry our drinking water around the country.
Perhaps this is the way we should be thinking?
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Posted By Ian Mitchell
Hi. I think you will find Louise Smail's article in the August SHP very interesting reading whilst you dunk your morning biscuit then!
I agree, a far better punishment would be to force the offenders to invest heavily in their H+S culture. I don't just mean put the money in that they should have done anyway, as otherwise why invest if you have a 50/50 chance of escape and the punishment is no worse financially than compliance? Instead, make them invest at a greater level than needed to merely comply! I think this is 'enforceable undertakings' in the article, which is thought provoking and goes into far more detail than I have time for...
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Posted By Jim Walker
Steve,
I'm inclined to agree with you, however we need some system of deterrant to ensure the "deciding mind" of a large organisation incurres proportionally the same loss as a small one.
If you review the successful manslaughter cases over the years, its always small company directors who have been punished; imprisonment, fines bankrupcy etc. The herald of free enterprise, various rail companies, piper alpha and recently Barrow council etc etc directors have walked away with a smirk on their faces.
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Posted By Ian Mitchell
Many of the alternatives suggested would be very geared up to proportional application depending upon the perpetrator. Joe Bloggs builders failing to provide proper scaffold for painters - make them buy the latest all singing all dancing access platforms with associated paraphernalia for ALL their WAH teams when new tubes would have done. Multicorp Pharmaceuticals dumping some solvent illicitly - make them financially commit to maintaining the entire network of waterways in their county for the next x years!
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Posted By gham
A probationary period perhaps, where resposible people are legaly bound to comply with in (a warrant or, order), breach of which would become the criminal offence resulting in imrisonment and/or fine.
Fining companies such large sums of money will only make H&S improvements more of a burden, in the real world no matter how big the company you will normaly be asked 'how much' before 'what is the benifit'.
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Posted By Jeffrey Watt
How about operating under licence,
put them on the EHS offenders register for seven years with a quarterly surprise inspection to make sure they retain all the new equipment that they bought and don't just flog on e-bay one week after beeing forced to buy it
Or
50/50 half your fine is investment the other half is retained in an ISA for X years and you get it back if your quarterly inspections are favourable and show improvement. All interest from the fines go to pay for a new HSE Inspection service.
At least in purgatory there is hope in hell your damned.
Kind regards
Jeff
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Posted By Zaphod
Forgive me for sounding a little self-righteous and stereotyping but I need to get this off my chest.
I have found many of the directors I have had to deal with in my career hard work because they do not see the world in the same way as I do. I do not need overwhelming evidence to justify a H&S decision. I see a possible accident happening with major carnage - even with a low likelihood of it happening and I imagine myself in a situation of immense regret after the incident thinking - could I have done something to prevent it. I would hope that many H&S bods think like that.
Now directors; many are a different species. I cannot get inside their heads but many seem to enjoy playing Devils Advocate to H&S recommendations - especially those involving diverting budgets from projects that they find more sexy. They tend to be very quick thinking people - often with the gift of the gab and able to talk their way out of any situation - unable to see the blind-spots in their thinking. I have also come across a minority in local authority who ruled by bullying and fear - seeing H&S as something else to ridicule or ignore for the hell of it.
I thought Lyndon Sherman's article in last months S&H Practitioner provided an interesting explanation as to why managers and directors do not treat H&S as a priority because it is not perceived as an imminent threat - to their subconscious.
To come back to the thread - if all Directors were enlightened Sir John Harvey Jones types then perhaps relatives of victims of major disasters would have a greater sense of justice when directors are not individually punished.
Incidentally, I must emphasise that I am not referring to my current place of employment - of course!!
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Posted By Tabs
Zaphod, you have hit a nail squarely on the head there. I know the very same types from various other employment (not here, of course).
I find the idea of financial penalty to be a paper tiger in most cases, only the very high levels would get the directors in trouble with shareholders (their pseudo-bosses).
For me, I would like the court to be able to sack a director or two - not disqualify them, but to force them to go somewhere else, and start again. Maybe, just maybe, they would then be more careful and that would now be a good director (H&S-wise at least).
There has to be a personal consequence for the type of people Zaphod describes - otherwise it is like playing at a roulette table with tokens, rather than your salary.
If I as a director caused the loss of a lucrative contract, I might expect the sack - but the death of a few customers? I don't recall the headlines, but ...
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Posted By ken mosley
There has been alot of debate of late linking proportionality of fines to an organisations turnover and more importantly to its profitability. However, I personally feel that if we had a judiciary that was more capable of thinking laterally we would move on at a pace slightly quicker than glaciers.I can only recall one case where the little used sect.42 of HASWA has been employed, there may well be others.
The case in question was an architect on whom the court imposed a remediation order. He was ordered to go away and undergo training to incorporate H&S into the design process. Good shout by the judge/magistrate I say.
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Posted By Dave Wilson
psychological fiery reds me thinks.
We have to remember that we operate in 'folding green stuff' environment and all plc's have to answer to the 'board' for all of the descisions they make and must stand or fall by them.
However that does not exclude forseeable significant risk taking, thats what Business risk is all about, we as H&S professionals have to vie for the pot of gold which CEO/MD have to run and move the business forward against Production / Staff Costs / Cap Ex/ R&D / Pensions etc etc and these people have to make the judgement call, what we have to do in H&S is get better at getting your hands on the money. The BB descision to appeal the sentence was probably a Money driven exercise anyway.
Ther HOD in these departments have experience in getting this and may even have MBA's etc against the NEBOSH Dip / NVQ etc
If we have a H&S enlighted CEO/MD then its not to difficult but you still have to put a Business Case forward to do it! Hard facts / targets and benefits etc SWOT analysis / Cost Benefit analysis call it what you like but it has to be of some benefit not just safety but production or something which they can see will improve the bottom line and the ears will prick up.
Its already been done with a carrot and stick and nice to have does not wash!
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Posted By Zaphod
Ken
Just to come back on your last point, I'm getting too cynical. I have found that even enlightened CEOs/Directors will manage to find some tiny flaw in your hard facts/business case/ statistics/SWOT analysis and make that tiny flaw seem a big one - at least during their meetings - enough to defer making a decision until some other time. It's a skill and a character trait - they can't help it.
Sorry, to be so pesimistic, I'm sure there are some magic ways to get directors to support H&S decisions that involve funds - maybe by driving them mad by bringing up the same old issues every-time you see them - or by some cunning way of getting them to think your idea was their idea.
Having said that the threat of imprisonment/personal fines is probably unlikely to make a difference to such risk-blase people. At least it will make bereaved family members of accident victims feel that there is justice.
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Posted By Zaphod
Sorry, I meant Dave rather than Ken in my last reply
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Posted By Dave Wilson
I agree mate but its about PPP leading to PPP.
As far as bereaved relatives go its never about the money its about Justice and more importantly Seeing justice done and someone being held accountable.
If one of the large petro firms who make billions every year a £10,000,000 fine is peanuts and we as mere mortals can do the maths this would not hurt them and until it is a 'substatnial' fine in realtion to turnover then it will not change
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Posted By Kevin Walker
Giving a huge fine might be seen as a good result, however where does the fine go, straight to the government who use it for who knows what.
I must admit I agreed with the fine for the water company and the proviso that it was reinvested into what the fine was for. Simply fix the problem, now! If a company gets a large fine, it may make people feel better that justice is done but is it? The loss of the money may mean that those improvements cannot be made due to lack of available funds, which then puts others at risk.
If a company is fined £100k for breaching a H&S regulations wouldn't it be more appropriate if the fine had to be spent on improving H&S in that company rather than just giving it to the government. Otherwise the money is wasted, the firm may have to down size, people lose their jobs, etc etc; no one wins.
my thoughts anyway.
kevin
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Posted By Ian Mitchell
In agreement with Kevin. However, to reiterate if compliance would have cost the company say £10k, the fine (for investment into H+S) should be substantially more than that. Then, the directors are hit where they know about it and the people HASAW is designed to protect feel the benefit it originally intended back before I was even born!
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Posted By John Murgatroyd
"invest the money on H&S within that company"
What world ?
Not this one !
Until directors are personally liable for H&S breaches leading to serious injury and death and are PROSECUTED for same, then H&S within this country will continue to be the usual rubbish it's been for decades.
So, no 7.5 million fine?
Maybe investing the money into better H&S ?
Yeahhhhhhhhh...........so what happened to the H&S they already had.....answer: it didn't work. Reason: massive failings within the company to realise that they are responsible for people LIVES and not just for fixing the track.
Penalty: fine the DIRECTORS 7.5 million pounds.
Going to happen ?
Not in this world. Too much funny money wallowing about in various troughs. Too many people in H&S interested in their careers and money, and knickers to the public.
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Posted By Merv Newman
John Murgatroyd.
I'm with you. Fines should not be paid by the company but by the "controlling minds".
A board of directors has perhaps 10 members and a president. President pays half and every other member pays 5%
Percentage based on declared profit before dividend
Discuss
Merv
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Posted By IT
Agree with you also John.
Example a large Oil company several workers killed gas supply disrupted to an entire state, who do you think was blamed by the company, why yes it was those that were killed in the incident, after a lengthy court hearing the Authority proved organisational failure and the fine of 3 million dollars is like taking 20 p from your pocket, the CEO after the conviction apologized to the families for their loss. Class action for loss of business across the state and of course personal legal action.
Sorry for being blunt, but you can not even keep career criminals in jail let alone reach an agreement on Corp Manslaughter in safety.
Ban or permanently disqualify any Director/ Senior Manager from holding any Senior Management position for a period any fines MUST be paid by the Director/Senior Manager in the event the company pays the Company must pay an additional fine of (10 x original fine, example) and the fine of Directors/Senior Managers goes up also.
Having been through the Consultation process of Corporate Manslaughter bill back home and selling it to employers, jail is not the only answer
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Posted By jom
IT,
>who do you think was blamed by the company, why yes it was those >that were killed in the incident
I don't think this is correct.
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