Safety Isn’t Sacked: What The US Federal Shutdown Teaches Firms About Resilience

In the wake of the furlough of OSHA employees as part of the US federal government shutdown, a key truth has emerged: safety must remain a priority for business resilience. Following a political stalemate in Congress, October 1 marked the lapse of critical funding to the US federal government, halting non-essential operations and leaving entire agencies in limbo. For firms operating under OSHA enforcement action, the shutdown weeks were marked with uncertainty: no compliance assistance, paused routine inspections, delayed settlements and permits, and reduced oversight. While limited activities continued – including inspections for imminent danger and investigation of workplace fatalities – these barely scratched the surface of the oversight workers depend on.

Regardless of governmental issues, complacency has no place in employee safety and wellbeing, and the impact of this disruption cannot be ignored: weakened protection for essential workers, scaled-back support for low-income families, and lack of compensation for federal workers and contractors. Yet, organizations and EHS leaders who were prepared were able to maintain safety and business continuity. The shutdown was not only a test of endurance but an opportunity to extract lessons on how to strengthen resilience amid uncertainty. It underscored how workplace resilience is built through:

• Maintaining a robust EHS management system.
  Throughout the shutdown, best practice for EHS professionals needed to be maintained, keeping comprehensive records of all incidents, safety data sheet (SDS) updates, corrective actions and all supporting evidence, ready for when agencies reopened and reviews resumed. With external routine inspections on pause, the shutdown allowed EHS functions the option to scale up internal audit programmes to maintain accountability. For firms with a mature EHS system, this was business as usual; for others, a necessary wake-up call. Given the continued global instability and political turbulence, the shutdown serves as yet another reminder that EHS preparedness is not optional, but essential.
  
• Creating a culture beyond compliance.
  A risk resilient firm is one built upon a strong culture, where safety and trust are shared values. When psychological safety is prioritized – and employees feel safe to speak up, report near-misses and challenge unsafe practices – organizations can detect weak signals before they turn into crises. NVIDIA, for example, displayed resilience during COVID-19 uncertainties, recognizing that employee wellbeing extends beyond the office doors. The tech provider offered mental health webinars and resources, prioritized salary increases, and invested in educational support for employees with children. For firms that have long relied on compliance checklists, the shutdown may have been rocky. But those grounded in engagement, accountability and a cohesive culture are far better equipped to adapt to uncertainty.
  
• Making risk management an ongoing discussion.
  Amid shifting government policies, post-pandemic workplace changes, extreme weather fluctuations and global trade tensions, risks to daily operations need continuous consideration. EHS leaders must ensure risk management isn’t confined to annual reports or safety meetings, but woven into everyday dialogue. Emerging technology can be key to facilitate this: General Motors, for instance, has implemented an AI tool to monitor and predict potential supply chain issues, enabling teams to prepare and respond to disruptions before escalation. Building this mindset requires open communication, regular scenario planning and leadership that models transparency from the top down.

To learn more about building a resilient workforce, look out for the upcoming report Verdantix Strategic Focus: Developing A Sustainable Workforce With EHS Technology.