The Associated Octel Company Ltd

Associated Octel created a more open & accountable safety culture. The 700 employees at Ellesmere Port have benefited from fewer accidents and injuries, while the company has seen reduced production costs, reduced civil claims and enhanced reputation.

  • No. of employees: 2200 (1996) - 450 (2003)
  • Business sector: Manufacturing [part of Octel Corp. NYSE]
  • Business activities: Petroleum additives and speciality chemicals
  • Stakeholders: Employees, managers, T&G, Associated Octel, shareholders
  • Location: Ellesmere Port, Cheshire

Changing culture to improve safety

In 1996, following a series of major incidents at Ellesmere Port (including a major fire and fatality), and with core business declining rapidly, Associated Octel's recently recruited senior management team decided things had to change. They identified a lack of accountability as the heart of Octel's problems. A key focus for rejuvenation of the site was health and safety performance. The stakes were high: failure meant likely closure.

What did the company do?

'Accountability' (not 'blame') has become the watchword at Associated Octel.

  • Managers and supervisors report in person to the Manufacturing Director on injuries and incidents
  • Remedial actions following accidents are closely monitored
  • The health and safety management system has been changed to support the culture changes
  • Shop floor employees are positively encouraged to report issues and refuse to carry out tasks if they feel unsafe
  • Direct channels of communication to senior managers to increase trust and openness on safety issues

Business benefits

  • Effective 40% reduction in production unit costs and improvements in equipment reliability during a period of staff reductions (60% of workforce)
  • Reduction in insurance claims, from over 50 in 1997 to zero in 2002
  • Greater accountability in internal projects, particularly in capital investments made to the site
  • Improved trust and reputation in local community
  • Improved staff morale - absenteeism down from 10% to 2.5% of staff

Health and safety benefits

  • Reduction in lost time incidents from 35 in 1996 to zero in 2002 and 2003
  • 50% reduction in injuries compared to hours worked
  • Improved housekeeping procedures

The cost benefits

The new management team felt that the fundamental issues behind the unacceptable safety performance were also strongly related to many of their other business issues e.g. a very high cost base, poor productivity, confrontational industrial relations, poor reliability of equipment and product supply etc.

40% reductionin production costs

In making the site a sustainable operation - by downsizing the workforce, improving health and safety, increasing productivity and diversifying output - the management team has ensured a future for the site.

A Director's view

Zero lost-time injuries

The style and approach of the new Manufacturing Director and all senior managers was open and cooperative. They quickly established trust with the unions and changed what had become a strained relationship with employee representatives.

"Changing the culture at a site like this does not happen overnight. It is a 3-5 year journey. Leadership and a consistent intolerance of unacceptable behaviour are key"
Stewart Burley, Site Director

"It was a breath of fresh air to have a management that made it clear what it wanted, and then engaged with the employees to find the best way of delivering some very tough changes"
Phil Treasure, T&G Senior Shop Steward

Workers involvement

As a result of the improved relationship with management, the T&G and Amicus (formerly MSF and AEEU) representatives worked closely with Octel Management to improve safety culture. They worked hard to ensure that ownership of health and safety is seen as everyone's business.




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