PSA: Statoil needs to improve workers’ participation (Norway)

Between September and December 2014, the Petroleum Safety Authority (PSA) Norway has carried out an audit of improvement activities within Statoil and the company’s arrangements for employee participation. The audit showed that Statoil’s involvement of its employees was not in compliance with regulatory requirements.

According to the PSA, for a number of years, the agency has followed up on the health, safety and environment aspects of Statoil’s change and improvement activities.

The audit activity continued in 2014 at which time it focused on Statoil’s own monitoring of improvement projects in relation to both previous improvement activities and new, ongoing change and improvement projects to reduce costs and raise efficiency.

The audit activity addresses three main topics: the company’s own monitoring, risk management and employee participation.

Two of the main programmes currently being carried out within Statoil target improvements in technical efficiency (STEP) and organisational efficiency (OE).

The regulations require employee participation in such processes. The PSA therefore decided to devote particular attention to Statoil’s arrangements for employee participation in connection with the change programmes.

Based on the audit components completed to date, the PSA has concluded that the company’s involvement of employees was not in compliance with the regulatory requirements for employee participation.

The agency’s conclusion of non-conformity is based on the following observations:

– STEP was developed and decided on without the employee representatives being party to the decision-making process.
– The safety representatives are not represented in the liaison body that was established.
– The employees express uncertainty regarding their own and the company’s competence and knowledgeability for assessing the materials they have been asked to address.
– The employees find that the reference documents do not provide sufficient information. At meetings concerning STEP, topics were largely presented on transparencies, which do not provide sufficient background information on the matters the audience is to be briefed on and subsequently discuss.
– The employees report that they are given insufficient time to familiarise themselves with the materials, retain expert assistance and discuss the issues properly within their respective organisation.

The PSA has requested a statement from Statoil as to how the non-conformity will be remedied.

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