Workplace danger and the new Corporate Manslaughter Act

In the UK, as I other developed countries, the hot topic of recent years has been stress. It’s bad for productivity, expensive to prevent, generates absenteeism and if workers are coaxed or cajoled into work they may sue if they feel their employer hasn’t taken their ailment seriously enough.

Worrying about work is preferable to being physically endangered by it, of course. In this respect, more stress is good news. Workplace illness used to mean nasty diseases caused by asbestos, deafness from noisy machinery and skin problems caused by spilt chemicals. Stress is different. Like depression and other mental illnesses, stress is a matter of opinion. Unlike depression, though, there is no clinical definition of stress, so we can all be diagnosed with it. It’s very hard to know why more people complain of stress. Working hours are shorter for most people. Maybe it’s greater use of ICT. Most likely is our increased willingness to say we have it.

It’s worth reflecting on how dangerous work can be. China’s coal mining industry has a terrifying history. In the 1950s an average of 70,000 people died each year in coal mines, compared with 40,000 in the 1980s, 10,000 in the 1990s and roughly 6,000 since 2000. In mid-2005 the Chinese government embarked on a tough and often unpopular campaign to close down unsafe coal mines.

That’s the second main reason why there are fewer UK workplace deaths. We take the issue increasingly seriously. On the 6th April, a new Corporate Manslaughter and Corporate Homicide Act comes into force.

This law follows a series of high profile accidents where prosecutions against large companies and against individuals have failed. In essence, the new law makes it easier to convict organisations whose senior managers have breached their duty of care, causing death. Previously, prosecutions have failed against all but the smallest companies, so the new act could potentially see a dramatic rise in the number of corporate manslaughter cases against businesses of all sizes.

The new law will bring further scrutiny to businesses across all sectors. Increasingly, health and safety performance is seen as indicative of the culture and corporate governance of a business. A business that fails to address these issues may find itself not only on the wrong end of very serious charges, but also with a real impact on recruitment, retention, customers and reputation.

On top of this, the penalties will become far more severe with the Courts potentially encouraged to fine a guilty company based on a percentage of annual turnover, which can be vastly more expensive than a fixed fine of £Xm.