New research on OHS business case 1

cover of business-case-for-safe-healthy-productive-workSafe Work Australia recently released its second research paper related to developing or communicating a business case for occupational health and safety (OHS).  The paper has been authored by Sharron O’Neill and is called “The Business Case for Safe, Healthy and Productive Work – Implications for resource allocation: Procurement, Contracting and infrastructure decisions“.  O’Neill’s paper clearly challenges the dominant thinking of OHS and costs.

O’Neill states that the quality of previous analyses of OHS business costs have been “fundamentally poor”, partly because

“Rather than strategically examining the cost-benefit to business of work health and safety, the typical ‘silo’-driven analysis produces a narrow focus on a very different concept; the cost-benefit to business of health and safety interventions. This has obscured much of the potential for improving  organisational productivity and operational decision-making.” (page 4, link added)

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Will workers be safer through an expansion of Comcare? 4

At a recent breakfast seminar, Steve Bell of Herbert Smith Freehills mentioned that a Bill is with the Australian Senate that will open up the Comcare scheme to Australian businesses through the removal of the national competition test.  This move has been flagged for some time with several lawyers expressing reservations.  Bell mentioned this to the audience of OHS professionals as the law changes could present a substantial change to their operational knowledge base. The Bill is part of a larger debate on OHS.

In a July 2014 article, the Australian Lawyers Alliance (ALA) warned that:

“The proposed changes to Comcare will not only throw state and territory-based workers’ compensation schemes into fiscal chaos, but will also see injured workers left out in the cold,” ALA National President Geraldine Collins said.

“If this legislation is passed, employers may move their workers into the Comcare scheme, thus leaving huge holes of unfunded liability in state schemes which is likely to result in state-based premiums soaring.”

“Opening up the Comcare scheme will be disastrous for workers. Comcare has no meaningful access to common law damages for injuries caused by the negligence of an employer. The scheme is burdensome, paternalistic, and bureaucratic for workers and employers.  Its design means premiums have to go up unless benefits are slashed ,” Ms Collins said.

“Comcare also has no meaningful workplace health and safety regime.  Work environments will develop where lives are lost and permanently damaged with little oversight and enforcement of workplace health and safety.  It is a fundamentally flawed minimalist scheme.  Migration en masse will strike at the heart of the financial stability of state schemes, which are mostly running fairly,” Ms Collins said.”

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Queensland’s workers’ compensation performance is “double plus good” 10

The Queensland Premier, Campbell Newman, called a “snap” election for the end of January 2015. On 11 January 2015, Newman tweeted:

“Queenslanders injured at work are covered by Australia’s strongest workers’ compensation scheme.”

This is a further example of political newspeak as what does a “strong” workers’ compensation scheme look like? Newman’s tweet included an image that provides some clarity to his claim.

LNP WC Twitter graphic More…

Some are losing faith in the Victorian Workcover Authority 8

At a remembrance service in December 2014, the founder and outgoing deputy director of the Creative Ministries Network (CMN), John Bottomley, explained his refusal of funding from the Victorian WorkCover Authority (VWA) for CMN’s work-related grief support services (now called GriefWork). VWA has a different take on his comments.

In discussing the relevance of the Book of Isaiah to the motivations of the CMN to help people, Bottomley said that

“… it is God’s response to injustice and suffering that has planted this same spirit at the heart of our endeavours to transform work-related harm.

So CMN rejected VWA’s contract in April this year, after WorkSafe had funded our agency for over ten years to provide grief support services. My reason for rejecting the new contract was that VWA wanted to hide bereaved families grief from the public domain of injustice at work. The contract brief treated grief as an individual psychological problem to be addressed behind the closed doors of a clinic shut off from the rest of society. The contract wanted to treat work-related grief like an illness, and treat grieving families as sick and lacking the ability to ‘cope’. This heaps injustice upon injustice.”

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Workplace Safety finally gets a mention in the Victorian election campaign (sort of) 4

On 25 November 2014 the Federal Minister for Employment, Eric Abetz, attacked the Victorian Labor Party over its pledge to revoke the Construction Compliance Code which, primarily, deals with industrial relations but also has some occupational health and safety (OHS) requirements.

Abetz states that

“the Victorian Shadow Industrial Relations Minister [Natalie Hutchins] falsely claimed that the Code would not improve workplace safety, despite the numerous improved safety standards that it contains.”

The claim, apparently in the Herald-Sun newspaper, cannot be verified except through a reference in a news.com.au article. The original quote seems unavailable.

It is curious that this OHS criticism has come from a Federal Parliamentarian instead of from Victoria’s own Industrial Relations Minister and Attorney-General, Robert Clark. Clark echoed Abetz’s statement yesterday but where Senator Abetz mentions the possible OHS ramifications of the Opposition’s Leader Daniel Andrews’ tearing up (page 16 of the ALP 2014 Platform) of the Construction Compliance Code, Robert Clark hardly mentions the workplace safety context. More…

Whitlam’s dismissal diverted workers compensation reform 6

In October 2014, one of Australia’s Prime Ministers, Gough Whitlam, died at the age of 98.  Whitlam introduced major social reforms, many which still exist today (just).  One reform he valued but was not able to achieve was a national accident compensation scheme. It is worth noting when reading of the current economic and moral arguments over workplace responsibility and over-regulation that Whitlam’s national accident compensation scheme included workers compensation.

In 1974, during Whitlam’s time as the Prime Minister of Australia, the New Zealand government established a no-fault accident compensation scheme following the 1967 Royal Commission of Inquiry into Compensation for Personal Injury in New Zealand chaired by Owen Woodhouse.  Woodhouse was invited to assess the likelihood of a similar scheme being introduced in Australia.  He completed his inquiry (not available online) for such a scheme and legislation was drafted. The bill was in the Australian Parliament when the Whitlam government was dismissed by Governor-General John Kerr.  As a result of the political machinations of the Liberal Party of Australia, Australia missed the opportunity to have a national accident compensation scheme. More…

Shadow IR Minister addresses trade union OHS conference 4

O'Connor photoAs part of Safe Work Australia month, or perhaps coincidentally, the Australian Council of Trade Unions held its annual occupational health and safety (OHS) conference in Melbourne, Australia.  On the morning of day 2, the conference heard from the Shadow Minister for Employment Relations, Brendan O’Connor.  The Minister is from the Australian Labor Party (ALP) and had a sympathetic audience but he made several interesting points, particularly when he diverged from the scripted speech (which will be available online shortly) and when he took questions.

Royal Commission into the Home Insulation Program 

O’Connor supports the ALP position that the Home Insulation Program (HIP) Royal Commission was a purely political affair to target previous ALP government ministers.  He emphasised that the Royal Commission was the last in a long line of inquiries into worker deaths and OHS prosecutions related to the HIP program and that this inquiry has achieved very little change.  O’Connor said (ad libbed)

“…. that Royal Commission has not recommended any changes to the regulations or obligations on employers to do the right thing at the workplace. It’s almost worse than doing nothing, than to use the health and safety of the workers as a political weapon against your political opponent. That’s how dismissive this government is with respect to health and safety.

Let’s set up a Royal Commission. Let’s summons a former Labor Prime Minister and other Ministers but, of course, all of which we could accept and we supported the establishment of the Royal Commission if that’s what they chose to do, with one caveat – that was, go ahead with the eleventh inquiry into these tragic deaths but make sure that when there are findings about the deficiencies in the law that protects the interests of working people, particularly young workers, do something about it.

Well we’ve seen nothing. We’ll see nothing in terms of changing the law by this government because that was purely a political exercise. To me this underlines how cynical this government is when it comes to health and safety. It only saw it as a political exercise and, I’m afraid to say, you won’t see too many good policy changes as a result of that Commission.”

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If everyone claimed compensation for work-related stress in Australia, the estimated annual cost would be $83 billion Reply

Lucinda Smith of Esteem People Management has made some excellent points about stress and mental health in her article – “The People Risk of Work-Related Stress“.  On determining the cost of mental stress she acknowledges authoritative government estimates but, significantly, states of the data:

“Although not fully exploring the issue of workplace stress because it only applies to accepted claims,…”

This is the core of much of the frustration in the OHS profession that injury and illness is always underestimated because data is based on workers’ compensation statistics.

Where Smith progresses the argument, though, is by comparing several important pieces of data.  Quoted in a Safe Work Australia report, Medibank Private estimated in 2008 that the direct cost of work-related stress was

“…$14.81 billion to the Australian economy, and $10.11 billion to Australian employers because of stress-related presenteeism and absenteeism.” (page 3 of the Safe Work Australia report)

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“Put the human being first” 14

One of the most contentious issues in safety management is the treatment of workers compensation claimants.  On 18 August 2014, a small qualitative research report into this area was launched in Melbourne.  The report, “Filling the Dark Spot: fifteen injured workers shine a light on the workers compensation system to improve it for others”* identified four themes in the workers’ stories:

  • a sense of injustice
  • a lack of control and agency
  • loss of trust, and
  • loss of identity.

These themes, or at least some of them, are increasingly appearing on the occupational health and safety (OHS) literature.  To establish a successful sustainable workplace culture, one needs to establish and maintain trust.  Workers also seem to need some degree of control, or at least influence, over their working conditions and environment.  Also workers, and managers, need to receive a fair hearing, what most would describe as “natural justice”. More…

How can an OHS regulator get the management of its own staff so wrong? 3

How can an OHS regulator get the management of its own staff so wrong?

In June 2014, a NSW Parliamentary inquiry released its final report into Allegations of bullying in WorkCover NSW, that State’s occupational health and safety (OHS) regulator. The report found that

“…Workcover has a significant organisational problem with bullying.  This problem is a longstanding one and operates at a cultural level.” (page x)

The Committee Chairman Hon Fred Nile MLC, wrote that

“more effective leadership and governance is essential.” (page x)

Longstanding bullying problems?  Problems with leadership and governance?  Many companies and public sector organisations have had similar issues ambulances, police, fire services, research organisations, to name a few, and are working them through. What happened in New South Wales?

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