flagship march 2009

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Drivers’ oil check failures add to fleet operating costs

Driver-induced engine failures are collectively costing fleets millions of pounds in repairs - and in some cases resulting in it being more cost-effective to write the vehicle off.

A failure by drivers to check vehicle oil levels - best practice suggests a weekly check - is resulting in Fleet Support Group’s technical services team recording on average at least one blown engine a week.

Collectively, oil and car care company Comma estimates that Britain’s 35 million motorists could save a massive £300 million in annual repair bills by carrying out regular oil level checks.

And with a new engine costing on average £1,413 according to Warranty Direct - although the charge for some engines can run to £4,000 or more - National Oil Check Week from June 15-19 is designed to highlight the importance of cutting motoring costs with regular oil checks.

Too many drivers believe that extended service intervals, sometimes to 20,000 miles, means that they don’t have to check fluid levels in between garage visits. Meanwhile, other drivers use a dashboard oil pressure warning light to highlight the need for oil, although some of today’s latest models also have a dashboard ‘dipstick’ that displays oil levels.

In both cases - waiting for a service and the dashboard oil pressure light to flash is inviting a huge repair bill. Indeed, by the time the oil pressure warning light appears on the dashboard it is almost certainly too late to avoid a huge repair bill.

The quantity of oil used varies from car to car and on the way a vehicle is driven and how many miles are clocked up. Consequently, expert advice suggests that oil levels should be checked at least once a month and ideally weekly.

Pete Hitt, FSG’s technical services manager, said: “Driver-induced engine failure could be caused by a lack of oil or a lack of engine coolant, which has caused overheating invariably brought on by a lack of oil.

“Whatever the cause of the engine failure, today’s modern engines, and particularly diesel engines, consume a lot of oil. But while there is an expectation among vehicle manufacturers of that, drivers fail to take note because they don’t read their vehicle handbooks or follow their employer’s best practice procedures listed in company car handbooks.”

A spokesman for oil company Mobil added: “Thanks to advances in engine technology, today’s cars are exceptionally reliable and can go much further between services than earlier models - often, thousands of miles further. Of course, that’s good news. But it does mean that, between visits to the garage, it’s more important than ever for drivers to check their oil level regularly and top it up when necessary. Most car manufacturers recommend a weekly oil check.

“If you don’t, you may be taking a risk with your engine’s health. This is because, as the oil level drops, the remaining oil in your engine has to work harder, becoming dirtier and wearing out faster - with the result that your car’s performance may start to suffer. Also, your engine could be in real danger of increased wear, overheating and even total seizure.”

With a driver-induced engine failure unlikely to be covered by warranty - or on older vehicles warranty cover having expired completely, particularly with the current recession-induced trend for extending replacement cycles - for some companies it is more cost-effective to look to scrap the vehicle than fund an engine replacement.

Mr Hitt said: “One solution that we have seen on a leased vehicle is for the agreement to be terminated and the outstanding rental charges paid in full. With a residual value of perhaps only £3,000 and the cost of engine repair/replacement higher with no manufacturer warranty support, fleet decision-makers find it difficult to justify repair costs.”

In the build-up to National Oil Check Week, research carried out by Comma shows that:

  • 60% of drivers only check their oil every two months or more
  • 10% never check their oil level at all

How to check oil levels:

  • Ensure engine is cool and vehicle has been stationary for a while
  • Withdraw dipstick and wipe clean with tissue to ensure a clear reading
  • Insert dipstick and withdraw slowly and smoothly
  • Check oil level line against minimum and maximum lines on dipstick - oil level should be between the two
  • If level is below or close to minimum line, top up
Further information is available at www.checkyouroil.co.uk and Halfords is offering customers a free oil check during National Oil Check Week.

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Performance managing drivers is key to delivering fleet cost savings

Managing employees and ultimately forcing them to change their behaviour through disciplinary action if required is the key to securing cost savings with RiskMaster, Fleet Support Group’s multi-award-winning online at-work driver safety system.

While performance management is key to successfully implementing an at-work driver safety strategy, too many companies introduce technology solutions but fail to use the data provided to deliver risk reductions and, as a result, cost savings.

With financial savings being delivered as a result of managing drivers effectively, FSG Chairman Geoffrey Bray said: “We are on a mission to encourage companies to manage people and manage performance. In the current economic climate there has never been a better time to take cost out of fleet operations.”

Specialist employment lawyer Kevin Basnett, a partner in West Country-based Goughs Solicitors and an adviser to FSG’s RiskMaster User Group, warned that businesses that had bought RiskMaster but were failing to use the driver and vehicle information provided to reduce their risk exposure, could be in a worse position than had they not acquired the system.

He explained: “The police and Health and Safety Executive expect companies to be compliant with all at-work duty of care legislation. While businesses that take no action to improve the safety of their at-work drivers may be negligent, perhaps the greater crime is failing to take any action with the data that is available from newly-introduced systems.”

The six key steps to successful performance management are:

  • Explain the company’s expectations and why RiskMaster is being introduced
  • Talk to drivers about their vehicles and what is expected in terms of looking after them
  • Having set expectation levels, businesses must facilitate their achievement
  • Those achievements must be measured and monitored against pre-determined benchmarks
  • Employee successes should be celebrated
  • Individual driver disobedience and misconduct should be penalised

Mr Basnett said: “Effectively managing driver and vehicle safety using RiskMaster allows firms to set expectations and manage performance. If necessary, disciplinary proceedings should be launched against non-compliant drivers.

“Abuse of safe driving policies and procedures should not be rewarded as often happens in an unmanaged regime. Firm action should be taken.”

For example:

  • Company car drivers could have their vehicle removed
  • Cash for car drivers could have their monthly allowance withdrawn
  • Employees who drive their own car on business may have their mileage reimbursement withdrawn

“As a result, employees will be unable or unwilling to perform the job for which they have been employed until the issues have been addressed,” said Mr Basnett.

“Following a work-related crash, investigating police officers will want to see evidence of risk management. Firms that are not managing individuals who pose a risk are clearly failing to do everything they should reasonably be doing to prevent road crashes from happening. Police officers will then take a judgement on whether to prosecute.”

Companies that fail to effectively implement risk management measures often plead a lack of time, while also highlighting the dislike of confronting non-compliant drivers.

Mr Basnett acknowledged that managing people and making them change their behaviour was "very hard work".

But, he added: “There are huge gains to be gathered by focussing on a small number of seriously non-compliant employees. The benefits can be quickly leveraged throughout the business by taking a handful of staff through a disciplinary process.”

RiskMaster benefits

  • Lower fleet operating costs
  • A reduced number of crashes improves business efficiency
  • Fewer crashes mean less ‘lost’ staff time due to injury
  • Less crashes will mean lower insurance premiums
  • Vehicle use will be more effective as downtime due to crashes will be cut
  • Staff morale will improve as disruption caused by death or injury will be cut
  • Safe driving practices adopted by staff at work are also likely to be reflected in improved ‘off the job’ road safety
  • An organisation’s reputation will improve through the promotion of safe driving practices
  • Organisations will comply with the law in countries of operation
An improved road safety culture will pervade all activities.

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Prison looms for senior staff that breach health and safety rules with new law

There are likely to be more convictions for breaches of the Health and Safety at Work Act following the recently introduced Health and Safety (Offences) Act than under the Corporate Manslaughter and Corporate Homicide Act, according to a leading lawyer.

Meanwhile, this year’s introduction of the Health and Safety (Offences) Act, which deals with sentencing under the Health and Safety at Work Act, could result in some employees declining promotion and new job opportunities if they don’t believe they will receive board level support for the implementation and effective management of best practice duty of care policies and procedures.

The Act has raised the maximum penalty for breaches of health and safety for most offences dealt with by the Magistrates’ Courts from £5,000 to £20,000 for individuals and firms with the possibility of a maximum two-year jail term for individuals and unlimited fines in the Crown Court.

Crucially, unlike for charges to occur under corporate manslaughter legislation, there does not have to be a death for prosecutions to take place under the new Act.

As a result, Kevin Basnett, a partner in west country-based Goughs Solicitors and an adviser to Fleet Support Group, said: “We are more likely to see more convictions based on the Health and Safety (Offences) Act than under the Corporate Manslaughter and Corporate Homicide Act simply because breaches of the legislation are likely to be more prevalent and easier to prosecute.

“Corporate manslaughter is rare, but the impact will be significant. Meanwhile, offences under health and safety law are more common, but the public are less aware of them.”

Mr Basnett’s comments came as the Crown Prosecution Service revealed that it had sanctioned the first use of the 2007 Corporate Manslaughter and Corporate Homicide Act. The law is being used to prosecute Cotswold Geotechnical Holdings Ltd in relation to the death of Alexander Wright on September 5, 2008.

Mr Wright, who was employed by Cotswold Geotechnical Holdings as a junior geologist, was taking soil samples from inside a pit which had been excavated as part of a site survey when the sides of the pit collapsed crushing him.

Peter Eaton, a director of the company has been charged with gross negligence manslaughter and with an offence contrary to Section 37, Health and Safety at Work Act 1974. Cotswold Geotechnical Holdings Ltd as well as being charged with corporate manslaughter has also been charged with failing to discharge a duty contrary to Section 33, Health and Safety at Work Act 1974.

Mr Eaton will appear at Stroud Magistrates’ Court on June 17. He faces charges both as an individual and on behalf of the company.

Kate Leonard, Reviewing Lawyer, CPS Special Crime Division, explained: “Under the Corporate Manslaughter and Corporate Homicide Act 2007 an organisation is guilty of corporate manslaughter if the way in which its activities are managed or organised causes a death and amounts to a gross breach of a duty of care to the person who died.  A substantial part of the breach must have been in the way activities were organised by senior management. I have concluded that there is sufficient evidence for a realistic prospect of conviction for this offence.”

Meanwhile, Mr Basnett warned that the wider implications of the recent health and safety legislation could result in managers being reluctant to take on responsibility for health and safety issues, and directors unwilling to be seen as health and safety champions, if there was a possibility that failure could result in a heavy fine or jail.

“Managers who don’t believe they will get support will simply turn down job opportunities. They will not want to be in the firing line for possible court proceedings,” said Mr Basnett.

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Public sector increase risk management focus, but businesses fail to link safety to cash savings

Public sector interest in systems to help manage occupational road risk was high at this year’s Safety and Health Expo, according to Geoffrey Bray, chairman of Fleet Support Group, which exhibited at the event.

But too many organisations continue to fail to appreciate that investment in work-related road safety will deliver operational cost savings.

The company was exhibiting its award-winning RiskMaster service at the NEC, Birmingham event, with interest fuelled by rumours that an educational establishment was facing a corporate manslaughter investigation following a road crash fatality.

There has yet to be a prosecution under the 2007 Corporate Manslaughter and Corporate Homicide Act following a work-related road crash.

However, recently the Crown Prosecution Service announced the first prosecution under the act. A company director and the business he runs is facing legal action following the death of a junior geologist, who was crushed when the sides of a pit he was working in collapsed.

Safety & Health Expo 2009 is the UK’s largest health and safety event and is organised by United Business Media with the support of the Royal Society for the Prevention of Accidents, the British Safety Industry Federation and the Institution of Occupational Health.

Mr Bray said: “We had a lot of interest in RiskMaster from health and safety professionals. There was significant interest in the system from the public sector and notably educational establishments in the wake of a possible corporate manslaughter prosecution.

“There is a growing awareness facing all organisations - public and private sector - that they must have in a place auditable measures that safeguard themselves from the threat of prosecution in the event of a serious road crash.

“At the Expo many public sector organisations were aware that they were dangerously exposed. Employees of these organisations often undertake short trips in a variety of vehicles and, in some cases, have not even had the validity of their driving licence checked.”

Meanwhile, although there is a growing awareness of the dangers of failing to effectively and efficiently manage occupational road risk, Mr Bray says that many organisations have not recognised the correlation between the introduction of an effective safe driving programme and cost reduction.

“Managing work-related road safety is almost exclusively seen as a business cost rather than a tool that will assist in cost reduction.

“However, businesses that are using RiskMaster to manage the at-work safety of their vehicles and drivers are reporting cost savings. We must focus on embedding the financial benefits of safe driving in the minds of decision-makers.

“All organisations want to address cost issues, but they are failing to appreciate that an investment in safe driving programmes will eliminate costs in numerous areas of their fleet operations - insurance premiums, administration, vehicle wear and tear etc.”

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Look forward to a summer holiday – but be prepared

We’re all going on a summer holiday, but corporately responsible companies must make sure that employees travelling abroad in company cars or in privately-owned vehicles know the rules of the road in the countries in which they are travelling.

From Andorra to the Ukraine in Europe, driving laws are very different to those in the UK and an awareness of the regulations and having the correct documentation is vital - which, in some cases, may have changed since last summer.

Similarly, when hiring a car in Europe or further afield, responsible companies should make their staff aware of the relevant documents required, essential equipment that legally must be carried and the importance of observing relevant motoring laws.

Meanwhile, drivers are also reminded of the importance of adjusting tyre pressures if they load their car up with people and luggage for a summer holiday trip.

Many drivers, says Kwik-Fit Fleet, which is FSG’s preferred fast-fit partner, fail to increase tyre pressures in line with manufacturer recommendations to take account of a full load or if towing a caravan or trailer.

Most cars have two recommended tyre pressure settings - one for ‘normal’ use and one for ‘full loads’. Typically the levels can be found in the vehicle handbook and on a sticker displayed inside the driver’s car door.

Driving a fully-laden car on tyres inflated to the ‘normal’ setting severely impacts on road safety with vehicle handling compromised and stopping distances increasing. Tyre wear will also increase and punctures are more likely.

Meanwhile, if driving abroad this summer, it is important to check the rules of the road in the country in which you are holidaying and any countries being driven through en route. A good source of advice on a country-by-country basis is the Foreign and Commonwealth Office website at http://www.fco.gov.uk/en/travelling-and-living-overseas/travel-advice-by-country/

Regulations governing issues such drink-driving, mobile phone and radar detector use, the carrying of reflective jackets and warning triangles and the use of daytime lights are very different from the UK in many other European countries and often much stricter. Penalties can include on-the-spot fines, a driving ban, and even imprisonment.

Some countries now also prohibit the use of GPS-based navigation systems which have maps indicating the location of fixed speed cameras meaning that drivers must deactivate the ‘fixed speed camera PoI (Points of Interest)’ function.

In addition, regulations may have changed. For example, the Government recently amended vehicle registration plate regulations (April 27) to enable patriotic motorists in England, Scotland and Wales to display the Union flag, Cross of St George, Saltire or Red Dragon of Wales on their number plates.

However, motorists displaying national flags and identifiers must still display the conventional oval GB sticker when travelling in Europe.

Additionally, for leased/hired company cars the prompt issuing of Vehicle on Hire Certificates (VE103B) by the organisation owning the vehicle can eliminate hassle for fleet managers. 

Any motorist who is unsure about how to check tyre pressure for themselves can visit any of Kwik-Fit’s 670 centres nationwide, without appointment, for a free check-up.

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Editor’s comment

We make no apologies for, once again, highlighting in this issue of Flagship the importance of businesses effectively managing occupational road risk.

Despite the high profile given by Fleet Support Group and others to businesses effectively and efficiently managing the safety of their at-work drivers and the vehicles they drive, horror stories continue to emerge on a daily basis.

The Government, with the Health and Safety Executive and the police, is determined to reduce the up-to-200 road deaths and serious injuries a week resulting from crashes involving at-work drivers.

While the introduction last year of the Corporate Manslaughter and Corporate Homicide Act sent a shockwave across the fleet sector, the importance of this year’s Health and Safety (Offences) Act has, in many cases, been overlooked by many managers and boards of directors.

Yet, as we highlight in Flagship, it is this legislation that could be used significantly more frequently in a bid to punish rogue fleets.

As Flagship went to press we heard of an incident which saw a police spot check discover that an at-work driver was the only person in a vehicle and only in possession of a provisional licence.

That driver may have slipped through their employer’s net. However, it underlines the importance of carrying out regular audits of drivers and vehicles. It is too easy to be wise after the event.

FSG’s job is to promote best practice and advice at every opportunity and 100% compliance with occupational road risk legislation is essential. Not only that, but the financial returns on the investment are huge.

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© 2009 Published by Fleet Support Group, Gerald Jiggins House, Methuen Park, Chippenham, Wiltshire SN14 0GX