Research Application -Fa 60 J. Larisch W. Ritter A. Saßmannshausen K.-H. Lang R. Pieper W. Hien
Occupational health and safety
management in the retail trade:
Pilot project REWE
This publication is the summary of the final report of a project ”Occupational health and safety management systems OHSMS in the trading sector: A pilot project with the REWEGroup” -Project F 2088 - on behalf of the Federal Institute for Occupational Safety and Health. The respon-sibility for the contents of this publication lies with the authors.
Authors: Dipl.-Oec. Dipl.-Soz. Joachim Larisch1 Dr. Wolfgang Ritter1
Dipl.-Psych. Andreas Saßmannshausen2 Dipl.-Ing. Karl-Heinz Lang2
Dr. Ralf Pieper3 Dr. Wolfgang Hien1
1 Bremer Institut für Präventionsforschung und Sozialmedizin (BIPS) Linzer Str. 10, 28359 Bremen, Germany
2 Institut ASER e. V. an der Bergischen Universität Wuppertal Corneliusstr. 31, 42329 Wuppertal, Germany
3 Bergische Universität Wuppertal,
Fachgebiet Sicherheits- und Qualitätsrecht Gaußstr. 20, 42097 Wuppertal, Germany
Publisher: Federal Institute for Occupational Safety and Health Friedrich-Henkel-Weg 1-25, 44149 Dortmund, Germany Telephone: +49 231 9071-0
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1 Introduction
In 2001 the International Labour Organization (ILO) endorsed its Guidelines on Safety and Health Management Systems (ILO-OSH 2001). As, according to ILO re-gulations, there is no formal procedure of national acceptance the required translati-on into a natitranslati-onal OHSMS can translati-only be achieved translati-on a voluntary basis. As to Ger-many, a national OHSMS guideline has been developed, and there are initiatives to implement specific guidelines tailored for the individual economic branches. REWE, a leading German trading company with about 9,000 stores in Germany, 135,000 full-time employees and annual retail sales of EUR 31.5 bn (net), took part in a project testing the feasibility of the national OHSMS guideline with regard to a trading com-pany.
2
The international and national concept for
occupational health and safety management
systems (OHSMS)
Since 2001, the ILO-OHS-Guidelines has become a framework for national initiatives to im-plement OHSMS. The two prime objectives of the ILO-OHS-Guidelines are to assist countries with the establishment of a national framework for occupational health and safety management systems, and to provide guidance for individual orga-nizations regarding the integration of OHS elements into their overall policy and ma-nagement arrangements.
4
The guidelines consist of three parts: A short section on objectives, a second section on transforming the guidelines into national practice, and a third section on integra-ting the OHS management system into the organization. This third section covers 21 topics, including the employer’s OHS policy, workers´ participation, responsibility and accountability, training, hazard prevention, performance monitoring and evaluation, preventive action, and continual improvement (Bennett 2002). The OSH manage-ment system should contain the following major elemanage-ments: policy, organizing, plan-ning and implementation, evaluation, and action for improvement (Figure 1). On a national level, the Federal Institute for Occupational Safety and Health (FIOSH), state labour inspectorates, industrial statutory insurance associations (Berufsgenossen-schaften), and employers´ associations have started a joint initiative in order to de-velop a national OHSMS guideline referring to ILO-OSH 2001 and including specific guide-lines for different economic branches (see FIOSH toolbox: www.baua.de/prax/ ams).
3
Integrative OHSMS as a learning organization
Organizations have to tackle a number of different problems and challenges: New and emerging markets, advanced and ever changing technical processes, new structures in working conditions, and changing attitudes towards human resources. In order to cope with these challenges organizations have to develop a concept of lear-ning which assures a high degree of flexibility making efficient use of the knowledge and the potential of their employees. Similarly, the implementation of OSH manage-ment systems requires organizational structures enabling each member to participate in this process which they are a central part of. Organizational learning is based on individual learning, and it requires a common knowledge base which has to be esta-blished through learning processes and structures. Thus the improvement of health and safety in organizations could be described as a multilevel process during which safety and health is systematically organized and integrated in an entire manage-ment system which is highly innovative by balancing dynamics and stability in a “le-arning organization”.
4
Economic and social conditions for OHSMS in
the trading sector
Retailing is one of the most important business sectors in the European Union with five million business enterprises and 22 million employees accounting for nearly 13 % of the total gross domestic product. In Germany, there are more than 400,000 business enterprises with 2.8 million employees in the retail sector. On average, each entity employs 9.2 persons, the majority of which being female and working part-time. Retail trade in Germany has undergone profound structural changes in the past decades. As a result, competition has become even stiffer, and profit margins have shrunk accordingly. Competition in food retail trade is predominantly based on personnel costs which differ between 4.5 % in discount shops and 12 - 20 % in de-partment stores (Glaubitz 1996: 27). During the past decade, German retail compa-nies have been quite active in other European countries and worldwide. They have
almost tripled their direct investments abroad whereas international competitors could hardly challenge German companies in their home market due to very low pro-fit margins (Jacobsen 2002: 23). Due to the pressure of increased competition and to mergers throughout Europe, there is a process of concentration and centralization on company level which especially affects food retailing. About 60 % of German grocery retailing is covered by only five companies (Wortmann 2003: 3; Boylaud / Nicoletti 2001: 257). This does not necessarily lead to a concentration on shop level because a significant part of food retailing in Germany is based on affiliations of independent retailers such as REWE or EDEKA (Wortmann 2003: 7).
According to surveys on working conditions, employees are exposed to heavy physi-cal workload, repetitive work, aggressive behavior of customers, time pressure, and violent attacks by shoplifters (Infratest Burke 1997: App. 4). Surveys on European level show that 22 % of all workers in retail trade and vehicle repair complain about heavy physical workload (forestry: 43 %; construction: 41 %). Absenteeism due to occupational accidents, however, is remarkably low (Dupré / Dyreborg 1998: 147). Data on 46,635 employees in supermarkets, department stores, warehouses, and administration in Germany show high risks for workers in warehouses and for super-market cashiers (Bellwinkel et al. 1998). Part-time work and the substitution of parts of the regular workforce by side-line workers also seem to be a risk (Kirsch et al. 1999). However, there is a considerable lack of research as far as the specific situa-tion of women, apprentices, and the elderly is concerned.
5
OHSMS in the REWE group: approaches and
examples
In order to adopt the national OHSMS guideline in trade companies one has to take into account the specific levels of decision making and authority. Concentration and centralization in food retailing often are combined with rather highly decentralized financial resources. Furthermore, regional differences in decision-making compe-tence have to be considered, and - last but not least - the level of point-of-sale ma-nagement should be involved in the process. Preferably, occupational safety and health should be part of human resources in order to ensure that emphasis is being laid on this area within the functional structure of firms. Since human resources have to be managed in small and medium companies as well, there are no specific diffe-rences related to company size. It seems to be reasonable to use existing manage-ment systems when introducing OHSMS (European Agency 2002).
5.1
Evaluation of REWE’s safety quality
Evaluating REWE using the “Management Instrument for the Evaluation of the Qua-lity of Occupational Safety in Companies” linking the 'Basic Dimensions of Occupa-tional Safety' - extracted from the statutory occupaOccupa-tional safety requirements - with the 'EFQM-Model for Excellence' of the 'European Foundation for Quality Manage-ment (EFQM)' has shown good results for this group. In a survey, which due to orga-nizational restrictions covered only one regional REWE branch, 11 shop managers, seven safety experts and four managers on regional and headquarter level were in-terviewed. Additionally, seven discount shops have been inspected. A detailed
ana-6
lysis of strengths and weaknesses has been discussed with company representati-ves and safety experts. Documentation, standardization, and the improvement of in-formation resources are the main areas the company has to work on.
Tab. 1 Core dimensions, strengths, and weaknesses in REWE safety orga-nization
Core dimension Strengths Weaknesses
1. Creating an appropriate organisational structure
• OSH policy in writing (REWE OSH Principles; Luxembourg Declaration on Workplace Health Promotion) • Management responsibilties are defined • Workers´ participation (works council)
• At headquarter level an OSH coordinator should be appointed • Structures and processes should
be synchronized
• Corresponding company depart-ments (quality management, construction) should be more deeply involved
2. Assignment of safety experts •
Safety experts are working at head-quarter, regional, and local level • Task forces (dangerous chemicals,
fire prevention)
• Safety experts are trained on a regular basis
• Communication should be impro-ved by using electronic media • Company doctors should be
in-tegrated and assigned in all regions
3. Providing a financial budget
• There are financial budgets at head-quarter, regional, and local level
• A higher degree of transparency is needed (cost-benefit-analyses)
4. Assessment of working conditions
• Risk assessments on regional level • A handbook on OSH is available at each
point of sale
• In cooperation with the health insurance funds improvement teams have been established (health circles)
• Data on sickness leave are compiled by the health insurance funds on a yearly basis
• Psycho-social factors should be covered by risk assessments • Internal survey data compiled by
human resources should be used as well
• Shop managers and district managers should be trained in risk analysis
5. Taking necessary steps
• Timeline for decisions is appropriate • Solutions are discussed with
represen-tatives of the labour inspectorate and other institutions
• Participation of employees is organized • Psychological supervision after shop
lifting is offered
• Cooperation with other depart-ments should be improved (construction)
• Internal database on models of good practice should be created
6. Audits • Safety experts evaluate standards in shops, warehouses
• External know-how is used in case of complex problems
• Audits should be standardized • Internal database on models of
good practice should be created
7. Documentation • Documentation at regional and local level • Safety standard is monitored regularly
together with managers and works council • Regular information on safety regulations
is guaranteed
• Documentation should be standardized
• Evaluation of documents should be organized at headquarter level
8. Training • Training of safety officers is organized on a regular basis in co-operation with external institutions
• Training for managers on regional and local level is organized
• Computer based training has been introduced recently
• Training for district managers and shop managers should be organized systematically • Training material should be
Furthermore, 110 reports by the institution for statutory accident insurance and pre-vention in the retail industry (BGE) have been evaluated, and 28 shop managers and deputies have been interviewed by BGE representatives.
Strengths and weaknesses of REWE’s safety quality are summarized in Table 1.
5.2
Managing safety and health: National guideline elements
and approaches in the REWE group
The REWE trading group, founded in 1927 as umbrella organization of 17 indepen-dent purchasing cooperatives, still is a cooperative commercial group owned by about 3,000 independent retailers. Three quarters of retail sales, however, are achie-ved by chain stores. Food retailing is REWE’s most important part of business ac-counting for 83 % of total turnover in Europe reaching EUR 39 bn in 2003. Business in food retailing is dominated by discounters (Penny) and supermarkets (HL, mini-MAL). Although REWE is an important trading group in Europe and ranked among the first ten leading trading companies in the world, discount shops and supermar-kets can be regarded as small or medium sized enterprises with less than 10 or 50 employees. Occupational health and safety are part of human resources. About 30 safety experts work on central and regional level visiting some 600 - 800 shops per year. The head of human resources contacts other departments such as purchase, logistics, marketing, construction, and sales in health and safety matters (Figure 2).
Policy
- OHS Principles - Lux. Declaration on WHP from Mai 1998 - HACCP - Environment - ManagementPolicy
- Internal goal setting - Report on absenteeism - Health teamsPolicy
Local agenda: - Training (CBT) - Improvement of cashiers working conditions Headquarter - Personnel Department - Purchase - Quality - Construction - Sales Region - Personnel - Construction - Sales - Supermarkets (HL / miniMAL) - Discount (Penny) - Specialty Stores - Consumer Electronics Point of SaleFig. 2 OHSMS in Retail Trade: Policy
National OHSMS guideline elements “Policy” and “Organizing” and approaches in the REWE group are detailed in Tables 2 and 3. Similarly, the elements “Planning and implementation”, “Evaluation”, and “Action for improvement” have been analyzed.
8
Tab. 2 OSH policy in REWE safety organization
OHSMS-Element Details Transformation in REWE group
1. Policy
1.1 OHS policy • Document signed by CEO
• Participation of employees
• Accident prevention
• Continuous improvement
• Compatible to existing management systems
• REWE principles on OSH (May 1998)
• REWE statement: No chance for accidents (2003)
• Luxembourg Declaration on Workplace Health Promotion (November 1998, signed by REWE on May 5, 1998) 1.2 OSH goals • Goal setting by CEO
• Definition of goals and quantification
• Roadmap for OSH goals
• Criteria for evaluation
• Yearly report on health and safety by headquarter representatives
• Detailed goals:
- Reduction in workplace accidents
- Improvement of working conditions for cashiers
OSH policy is defined at headquarter level (top-down-approach). In food retailing, existing quality management systems such as Hazard Analysis and Critical Control Points (HACCP) referring to food safety and environmental management systems should be included in OSH policy. Since 2000, REWE have introduced a quality ma-nagement system based on EFQM for independent retailers which is externally au-dited. So far no complete quality management system has been introduced for chain shops but there are internal audits and standardized inspections by management representatives. A specific policy on regional or local level does not seem to be ap-propriate but there are contracts on OHS goals on regional level signed by the regio-nal management, safety experts, and company physicians which are reported upon to the works council.
5.3
Evaluation and improvement of working conditions in retail
trade: instruments
Different instruments have been introduced to REWE managers, safety experts, and members of works councils in order to facilitate risk assessment and improve working conditions. For example, a questionnaire on working conditions using computer dis-plays has been introduced, covering 60 items. In order to reduce physical workload easy to use methods for defining them have been discussed with REWE experts. An electronic system providing information on safety matters from 130 qualified sources which has been developed since 2000 has been introduced to REWE experts (www.asinfo.de). The various functions provided by the system have been explained and tested at different conferences with managers, safety experts and members of works councils. Implementation in the REWE intranet, however, seems to be difficult due to a number of restrictions.
Tab. 3 OSH organizing in REWE safety organization
OHSMS-Element Details Transformation in REWE group
2. Organizing
2.1 Resources • Financial budget
• Human resources
• Equipment
• Time
• Headquarter: Budget “Social Affairs”
• Safety Manager, fire prevention, dangerous materials
• Region: Head of human resources, safety experts, company physician
• Shop: Manager, CBT for employees during working time
• Budget: EUR 1.8 m p.a.
• Cooperation with health insurance funds (external costs): EUR 0.2 m p.a. (Health circles, medical screening) 2.2 Responsibility,
accountability •
Line management • Region: Head of human resources
• Shop: Contract shop manager
• Risk assessment • Headquarter/Region: Safety expert
• Shop: Manager 2.3 Participation of employees • Internal conferences • Works council • Prevention
• Training for managers
• Conferences on safety matters
• Meetings with the works council
• Meetings with labour inspectorate and health insurance funds
2.4 Training • Training programs
• Evaluation
• Headquarter: CBT on safety (CD-ROM)
• Region: Instruction on medical first aid; training for young employees
• Shop: Training on safety issues 2.5 Documentation • Documentation of risk assessments
(safety experts, shop managers)
• Manual “Health and safety” (available in shops for managers)
• Periodical audit reports (quality, safety) 2.6 Communication,
cooperation •
Headquarter: Evaluation of reports
• Region: Meetings with managers, safety experts, physicians, works council
10
6
Cornerstones for national OHSMS guidelines
in the retail trade
According to German statistical data there are 82 different branches of economic ac-tivity in the retail trade. BGE´s danger list states 26 branches. In view of the number of enterprises as well as with regard to the number of employed persons there are considerable differences between the different business sectors in the retail trade (Larisch / von Diecken 2005). According to BGE statistics, the Berufsgenossenschaft in 2001 insured 1.7 million persons in 305,000 firms. About 280,000 (92 % of all enterprises) employed less than 10 persons. The number of persons working in the-se firms (owners, spouthe-ses, and employees converted to full-time) totalled 502,000 (30 % of all insured persons). On the other hand, more than 560,000 persons (33 %) were employed by 150 enterprises with more than 999 employees. Nearly 15,000 firms with 10 - 999 employees employed some 610,000 persons (Figure 3).
0
100,000
200,000
300,000
400,000
500,000
600,000
Firms
Employees
Firms
281,512
13,842
1,003
150
8,217
Employees
502,438
304,441
309,516
564,629
0
< 10
10 - 99
100 - 999
> 999
n.a.
Fig. 3 Firms and employed persons in German retail trade (BGE 2001)
Therefore it seems to be reasonable to adjust specific guidelines at least according to company size. Since two of the largest food retail companies in Germany are orga-nized as cooperatives, EDEKA and REWE are able to introduce OHSMS elements using quality initiatives with inde-pendent food retailers. Thus, about 7,400 small and very small firms could be covered. Using BGE safety checks for small companies, quality audits performed by suppliers (REWE, EDEKA) and support by la-bour in-spectorates substantial im-provements for occupational safety and health in the retail trade could be achieved. In this sense, a systematic approach to health and safety in big companies seems to be necessary in order to make progress in OSH in small companies as well.
7 Literature
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Dupré, D. / Dyreborg, J. (1998): Arbeitsumwelt - Aspekte des Arbeitslebens in unserer Zeit, in: Eurostat, Sozialporträt Europas, Luxemburg: Amt für amtlichen Veröffentlichungen der Europäischen Gemeinschaften
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Infrastest Burke (1997): Arbeitsbelastungen in der Erwerbsbevölkerung, Bericht im Auftrag des Bundesministeriums für Arbeit und Sozialordnung (BMAS Forschungs-bericht Nr. 273), München; Bonn
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