So why do we need occupational health?

By Rory Harrington, Regional Manager Western Kazakhstan, Abermed Limited

There was a time in the oil and gas industry, and not that long ago, when this question was asked with alarming regularity. A focus on safety in the workplace was frowned upon by many a hardcore driller or roustabout as, at best, a hurdle to getting the job done, and at worst, a rather over refined preoccupation of effete managers in pinstripe suits. And although I do still meet the occasional “good ol’ boy” who’ll proudly hold up the stump of a missing finger while fondly recounting how he lost it at a wellhead back in ‘63, times have fortunately changed. As exploration and extraction techniques have become more sophisticated, allowing the industry to drill in increasingly dangerous environments, we’ve seen a concurrent focus on occupational health, and the greater Health, Safety, and Environment (HSE) arena. Or have we?

Well, that depends on who you ask. Ask any employee of one of the major international oil companies, and they’ll be in wholehearted agreement. All acknowledge the necessity of occupational health and safety in the workplace. It would be easier to find a needle in a haystack than a dissenting voice in the established oil community. But raise the issue of occupational health and HSE with many of the national oil companies (NOC’s) in places like the CIS, West Africa, and the Middle East, and you’re likely to encounter a rather different reaction. This might range from mercenary disregard to genuine ignorance of the issues. It must be said, however, that many of the NOCs, particularly those that have partnered with the major players on local projects, are making a concerted effort to adopt the HSE policies of their American and European counterparts. But still the divide exists.

So the question, why do we need occupational health, continues to be asked in many parts of the world. And particularly so now, with corporate profits being squeezed and companies looking to slash spending. Rather than look at the subject from a statistical viewpoint—and there is a great deal of statistical data attesting to the increase in productivity and profitability that sound occupational health practices promote – let’s look at it from a more subjective human perspective.

Firstly, it’s the right thing to do. From a moral and ethical standpoint, corporations have a responsibility to provide a safe and secure environment for their employees. In any employment contract there is an implicit understanding that the employee will do their best for the company, and the company will do it’s best for the employee. Proactive occupational health and HSE policies speak eloquently of management’s commitment to the welfare of their employees.

Secondly, from a company’s perspective, employees are an enormous expense. Not only do they need to be paid salaries, but they need to be recruited, trained, and mentored. All this costs money. The more highly skilled the industry the greater the cost to company. The bottom line is that any company wants to retain their best and brightest. Not only to protect their existing investment in the employee, but also to ensure that the employee continues to contribute to corporate profits by being a productive member of staff. In this regard, occupational health and HSE are valuable retention tools. Who wouldn’t want to work for a company that demonstrably shows it’s commitment to employee wellbeing and safety?
Thirdly, it’s an effective public relations tool, not to mention a very effective liability limitation tool. I doubt there’s an oil and gas company on the face of the earth that has not suffered the brunt of negative public opinion at some point. Workplace accidents and incidents make not only for lost lives and productivity, but also very bad press. And in the litigious age in which we live, bad press often makes for big law suits. The oil and gas industry is hazardous enough under the best of circumstances, without companies compounding the danger by not mitigating against it with vigorous HSE and occupational health programs. The CEO of any company who cannot demonstrate a tangible commitment to employee safety will likely find himself the star of his own courtroom reality show.

And finally, there are the countless social benefits. There is no doubt that healthier employees make healthier mothers, fathers, husbands, wives, etc. Safety and health promotion in the workplace means that fewer people get injured or killed, and fewer families lose breadwinners. It can be argued that a company that promotes a strong occupational health and HSE policy is not only contributing to its own welfare, but to that of the community at large. Occupational health practices and HSE policies are proof of a corporate value system that recognizes the worth of an employee, not only as an employee, but as a human being. A strong commitment to the safety of one’s employees enhances their sense of self worth and dignity, and these individual values are essential to the evolution of a society.

These are just some of the myriad benefits of a strong occupational health and HSE program. And yet, implementation challenges persist, specifically in the emerging economies of the world. So what are some of these challenges, and how can they be overcome?

Perhaps the obvious one is cost. Yes, it does cost money to recruit and train health and safety practitioners. It also costs money to formulate and enforce policies. And sometimes, at least in the short term, it may be cheaper, and easier, for companies to simply ignore health and safety considerations. The temptation to view a health and safety policy as a drain on revenues, instead of a contributor is ever present. There is no easy answer. Especially when faced with the cold logic of a drilling operator in, say, Equatorial Guinea, or a NOC in one of the former “……stans” of the Soviet Union. “If a worker gets killed, we’ll just hire another one,” is an oft heard refrain. “Why should I spend money on safety?”

It’s the same argument you’ll hear from sweatshop owners in some developing countries. And the same counter-argument applies to all of them because it’s not sustainable. Sooner or later, your practices will be exposed, your workers will leave, and your competitors will eat you like a cupcake. This may take a while, years even, but it will happen. And in the oil and gas industry, where project life spans are measured in years, and sometimes decades, only companies with a long term, sustainable vision will be around to reap the enormous rewards. Such companies make provision within their budget for HSE and occupational health, and regard it as an investment in the future of their business.

Another challenge is the rate of change in the industry. Every year brings forth new developments in technology and business practices. New projects are continuously being launched and existing projects expanded. Keeping pace with the evolutionary nature of the business is an enormous challenge to HSE and occupational health professionals. Safety practices deemed cutting edge today can be rendered obsolete within a couple of years. To remain relevant and provide the greatest degree of employee safety and wellbeing, HSE and occupational health must not only change with the times, but attempt to anticipate those changes.

A further challenge faced by many of the smaller NOCs and service companies operating around the world is where to start?  They may have the commitment to do the right thing for their staff, and even the budget, but lack the expertise. Much of the HSE function is handled in-house by major oil companies. The same applies to the larger oil and gas services companies, but outsourcing part or all of the function may be the only viable way for many smaller companies to go. Even the multinational giants regularly outsource part of their occupational health and HSE requirements. Given the highly specialized nature of the industry, it stands to reason that only the most reputable and experienced companies should be trusted with this function. Abermed is one such company. It has long been providing innovative HSE and occupational health services and solutions to the oil and gas industry, and is active in the North Sea, Kazakhstan, and the Middle East.

But perhaps the greatest challenge of all is indifference. Both from employees, who sometimes regard the efforts of safety professionals as obstructive and meddlesome, and from management, who might be inclined to pay lip service to the concept, but would really rather it didn’t get in the way of making money. Indifference, as opposed to ignorance, is the deliberate turning of a blind eye. As such, it’s very difficult to combat. Ignorance is easily addressed through training. But when that turns to indifference, there is little even the most dedicated safety professional can do. The only antidote to indifference is perseverance. For every HSE and occupational health practitioner who ever had cause to ask, “Why on earth do I bother?” the answer has to be, “Because someone has to.”  Even the indifferent are deserving of a safe environment in which to work, and one day they may have cause to thank you for your perseverance.

In conclusion, the oil and gas industry has had a vibrant, turbulent, and sometimes checkered history. What kind of future it will have is up to all of us. Certainly, the challenges are coming hard and fast. Diminishing hydrocarbon resources, unpredictable global markets, changing consumer demand, increasing regulation, environmental destruction, the list seems interminable. But one thing we know for sure, love it or hate, the industry is here to stay. Given that reality, we all have a responsibility to make it as safe, sustainable, and beneficial as we can. Occupational health and HSE has a vital role to play in that. The benefits of a well managed HSE program are manifest, on both the individual and corporate level. It enhances the quality of life of every individual it touches, it enhances corporate credibility and profits, and it enhances the community at large. In the developing world these effects are that much more pronounced. So the answer to the original question, why do we need occupational health, has to simply be, because it makes sense. 
            
Contact details:
Donald MacKenzie
International Business Development Director
T: +44 (0) 1224 788814
Email: Donald.mackenzie@abermed.com
www.abermed.com