The start of the year is a chance to review goals and issues we will face over the next 12 months.
I think it is timely to think about the insights from the prosecution of former Port of Auckland CEO Tony Gibson by Maritime New Zealand. It is a tragic case involving the death of a worker who was crushed by a container, and the subsequent prosecution is something all transport CEs and senior managers should be aware of.
It is the first time the CEO of a major New Zealand company has been found guilty under the Health and Safety at Work Act 2015 (HSWA). It’s also the first case to outline in more concrete terms the scope of officer obligations under HSWA.
I don’t think CEOs should panic. It is important to note the context at POAL around Maritime NZ’s decision to charge Mr Gibson as there’d been a number of serious-harm incidents and fatalities at the port within a short period before the tragic fatality. But it is important not to underestimate some of the expectations this case sets out for officers under HSWA.
In my view it is also a risk that hasn’t been appreciated as much as it should be. Last year we interviewed lawyer Ed Cox (that video is here) to give our members some insights on this case as we also did for the case involving Salters Cartage Ltd and the Criminal Proceeds (Recovery) Act 2009.
The Business Leaders Health and Safety Forum also ran some webinars on actionable insights for CEOs. All the panellists on those webinars agreed that all senior leaders should read the full judgment.
A key part of the judgement is:
“[500] I conclude that a reasonable CEO would have recognised the shortfalls in POAL’s management of exclusion zones and would have ensured POAL utilised appropriate resources and processes to address those shortfalls. Mr Gibson did not do so. In these circumstances, I am satisfied beyond reasonable doubt that Mr Gibson’s breach of his s 44 duty [requiring an officer to exercise “due diligence” to ensure the PCBU complies with its duties under the Act], in relation to particulars 1(a) and 2 of the charge made it materially more likely that POAL would breach its duty of care to ensure that stevedores were not exposed to the risk of death or serious harm. His failure thereby exposed the stevedores to the risk of death or serious harm by being struck by objects falling from operating cranes.”
It also makes the point: “A ‘good’ CEO may still fall short” and this case teaches us that a good leader and a conscientious officer may have the best intentions, but still breach HSWA.
There were a number of insights shared in this case. A few that stood out were the suggestions that, particularly in the areas of critical risk, you have to challenge yourself about the effectiveness of your risk controls, particularly “soft controls”. The reliance on, and effectiveness of, soft risk controls such as training, procedures and discipline, can be hugely over-estimated.
Another insight is what’s called visible leadership. That means considering how the Executive Leadership Team and the Board demonstrate safety leadership and have an understanding of ‘work as done’. People have to purposefully reflect on their leadership work as CEO and ask themselves:
How am I going to hold myself to account for setting the tone from the top?
How do I “turn up” on health safety in different situations across the business?
How do I respond to bad news?
How do I purposefully maintain that focus and attention through the year?
Am I benchmarking stats, or different approaches by other leaders?
Over the last decade or so, I think the emergence of the adage “work done vs work as imagined” demonstrates an important shift in thinking. It’s an acknowledgement that we need to consider more carefully how risk is managed.
While there was lots of good information and insights from the health and safety webinars, the point I found most useful was a question proffered by the judge along the lines of: If you can make a change when someone is killed, why could you have not done that before?
While the case involved a CE, I’m also a firm believer that health and safety is everyone’s responsibility.
Change of Minister
While not totally unexpected we welcomed the news from last weekend that Chris Bishop has taken over the transport portfolio after the Cabinet reshuffle.
Minister Simeon Brown made a lot of progress during his tenure, focussing on transport investment on the essentials, particularly road maintenance and improvements, road policing, an emphasis on achieving value for money and discussion on additional revenue tools.
Chris Bishop’s appointment will provide continuity to the portfolio, given his roles as Minister for Infrastructure and Minister Responsible for RMA Reform. He was also the shadow transport minister while in Opposition, so he knows the sector well and we look forward to working with him.
– By Dom Kalasih, chief executive officer, Ia Ara Aotearoa Transporting New Zealand.
