business – Page 150 – SafetyAtWorkBlog

Labour productivity is “soaring” in a period of IR/OHS variability

Mental health, happiness, well being, safety, red tape …. each of these have been linked to productivity recently in Australian discourses but, as has been mentioned previously, productivity has a flexible definition depending on one’s politics and political agenda. There is multi-factor productivity and labour productivity. Each measure provides different results. So where does OHS sit?

An article in The Weekend Australian on 27 July 2013 illustrates the flexible definitions and includes a rare acknowledgement on labour productivity.

“On the measure of labour productivity, which captures the output of each worker, productivity growth is in fact soaring, hitting 3.4 per cent in 2011-12. [emphasis added]

But on the broader measure, which includes the use business makes of capital equipment, growth is still a negligible 0.1 per cent and has declined on average 0.7 per cent a year ever since Labor was elected.”

The labour productivity figure is important to remember when one hears about excessive workloads, excessive hours of work and other potential causes for psychosocial hazards. Continue reading “Labour productivity is “soaring” in a period of IR/OHS variability”

A busy week in Victoria – politics, reviews and common law

Victorian Workcover Authority (VWA),was in the pages of the Australian Financial Review in July 2013 over several issues –

CEO Denise Cosgrove told staff of her wonderful holiday in Daylesford in the same email in which she advised of a review of operating budgets “including people costs” and of job losses,
Former Minister for Workcover, Roger Hallam, has been appointed to undertake a review of the Victorian Workcover Authority ,
Hallam is said to have been on the panel that appointed Cosgrove recently to the CEO post,
Cosgrove has pushed for a change in common law (Common law was controversially dropped during Roger Hallam’s time as Minister).

There seems to be many issues bubbling away at VWA – common law, declining profitability, “dividends” and a secret review. Continue reading “A busy week in Victoria – politics, reviews and common law”

How good intentions can lead to workplace deaths

The recent coronial finding into three workplace deaths related to an Australian government economic stimulus package in 2009 has muddled the safety profession over the political context and the OHS context of these deaths. But the finding and resulting discussions could be the catalyst for a much-needed analysis of how decisions made with good intentions in Canberra can lead to the tragic personal and shopfloor decisions in the suburbs.

Nanny State

The Home Insulation Program (HIP) could have been interpreted as government “interference” in the market and been badged as “nanny state” economics. However it may be possible to argue that Prime Minister Rudd could have been an economic hero if the Home Insulation Program had continued without any deaths. Continue reading “How good intentions can lead to workplace deaths”

Insurance over OHS prosecution hits the deterrence effect

In response to proven breaches of occupational health and safety laws, judges usually apply financial penalties to companies and individuals. These penalties, like all court-ordered punishments are to deter the offenders from re-offending but also to show others the consequences of their actions. But what if an insurance company would pay for that penalty in return for regular premium payments? If the offender does not pay the penalty, deterrence is gone.

On 27 June 2013, a company and its director were fined $A200,000 each in relation to workplace incident that resulted in the gruesome death of one man and a near miss for another but the director had taken out a general insurance policy and the insurance company paid out!!??. A fine of $A200K awarded but the offender may pay no more than $A10K. Continue reading “Insurance over OHS prosecution hits the deterrence effect”

Very useful workplace mental health guidelines released

The Institute for Safety, Compensation and Recovery Research (ISCRR) has released a set of guidelines for the prevention of mental health problems at work. Such guidelines have been sorely required in Australia where workplace mental health problems have become an increasing problem for workers and organisations and workplace bullying dominates the policy landscape. It recommends the development of a mental health and wellbeing strategy that includes the following elements:

“the development of a positive work environment that supports and encourages mental health

balancing job demands with job control

appropriately rewarding employees efforts

creating a fair workplace

provision of workplace supports

effective management of performance issues

provision of training to develop management and leadership skills

supportive change management processes Continue reading “Very useful workplace mental health guidelines released”

Nitpicking or forensic analysis?

It is common for regulators, major clients and accreditation bodies to require copies of a detailed health and safety management plan so that they can be assured the contractor is complying with OHS laws and contract safety obligations. Over the years, part of my job has been to assess these plans to determine their quality, validity and applicability. Some have accused me of nitpicking, others have appreciated the pedantry but my perspective is that such plans are a crucial method of establishing and communicating OHS practices and providing a base from which a positive safety culture can be constructed.

I would argue that any company that has a carelessly written OHS management plan is unlikely to fully understand its own OHS commitments. That company would also be providing conflicting and confusing safety information to its own workforce and its subcontractors.

Inaccuracies and inconsistencies

One example that comes to mind was a large company who submitted an OHS management plan which detailed many safety commitments, what I consider “promises”. However, there were inconsistencies such as the person who was responsible and accountable for safety at the start of the plan, let’s say a “safety manager”, and who was not mentioned any further. Continue reading “Nitpicking or forensic analysis?”

Safety should not be the red tape bastard of productivity

There is a logic being applied to workplace safety and public policy that does not ring true. The argument seems to be that productivity levels in Australia are low, that part of the reason for this low productivity is excessive business paperwork and that workplace safety regulators are a major contributor. (SafetyAtWorkBlog has written around this topic previously.)

The authority on productivity in Australia is, unsurprisingly, the Productivity Commission (PC). In mid-June 2013, the commission released its Productivity Update, the first of promised annual reports. Search in the document for “workplace safety” and there is no mention, even “safety” only pulls up a couple of public safety references. Nothing for “workplace” either.

In fact, the report states that

“Strong growth in labour productivity in the December quarter of 2012-13 could be a sign that a broader improvement in MFP growth is now underway” (page 2)

and

“modelling shows that a comparatively small increase in the rate of labour productivity growth (primarily due to higher MFP growth) could lead to a comparatively large increase in the level of real GDP per person by 2050.” (page 2)

2050 is a long way off but the forecast is for an increase in productivity and the growth in the December quarter could indicate a trend. So for all the productivity gloom and doom being written about in the business newspapers, the reality may be different. Continue reading “Safety should not be the red tape bastard of productivity”

Category: business

Labour productivity is “soaring” in a period of IR/OHS variability

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A busy week in Victoria – politics, reviews and common law

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How good intentions can lead to workplace deaths

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Insurance over OHS prosecution hits the deterrence effect

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Very useful workplace mental health guidelines released

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Nitpicking or forensic analysis?

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Safety should not be the red tape bastard of productivity

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