business – Page 166 – SafetyAtWorkBlog

NSW inquiry into workers’ compensation illustrates short-termism

UnionsNSW are campaigning strongly on OHS issues during an inquiry by Joint Select Committee on the NSW Workers’ Compensation Scheme into workers compensation. They make the point that a focus on the reduction of injury is the most effective way of rendering a workers compensation scheme “profitable”. By neglecting worker safety, injuries increase and there is a higher demand on compensation and rehabilitation resources.

A major concern in the campaign is that the government is focussing on reducing costs and, in workers’ compensation schemes, that often results in fewer resources for injured workers and their families.

Tim Ayres, Secretary of the Australian Manufacturing Workers Union, was quoted in the Sydney Morning Herald:

“If NSW employers want to save money on workers’ comp premiums, they should focus on reducing their premiums by providing safer workplaces where workers don’t get injured and killed.”

But a draft submission, seen by SafetyAtWorkBlog, by the International Governance and Performance Research Centre (IGPRC) of Macquarie University provides some balance into the rhetoric. Continue reading “NSW inquiry into workers’ compensation illustrates short-termism”

Victoria’s Workcover Minister reveals more of the “secret” inquiry into Workcover and the Transport Accident Commission

The terms of reference of the Victorian Government’s review of the Victoria Workcover Authority and the Transport Accident Commission remain hidden in the inquiry by the Essential Services Commission but some hints about the review are appearing in the press and official records.

The Australian Financial Review of 21 May 2012 reported that the Victorian Minister for WorkCover, Gordon Rich-Phillips would not rule out the option of merging the two organisations. A reading of the transcript of the budget estimates inquiry conducted by the Public Accounts and Estimates Committee (PAEC) illustrate the reasonableness of Rich-Phillips statement – an inquiry has commenced and he should not pre-empt the inquiry findings.

Rich-Phillips said that the inquiry will be looking at

“how [the functions of both organisations] can be improved and how the two agencies can work together better.”

The concerns, principally raised by the Shadow Finance Minister, Robyn Scott, seem to be over potential changes to the TAC, including the use of private insurance companies to manage injuries from motor vehicle accidents, and not about the VWA or WorkSafe. Continue reading “Victoria’s Workcover Minister reveals more of the “secret” inquiry into Workcover and the Transport Accident Commission”

Robust analysis of Work Health Safety laws shows considerable economic benefits

Recently SafeWorkSA released its “Regulatory Impact Statement: Model Work Health and Safety Regulations in South Australia“. This report presents radical different economic data compared to the (increasingly discredited) OHS business cost analysis undertaken by PricewaterhouseCooper (PwC) for the Victorian government.

The South Australian report, conducted by Deloitte, found the following economic and social impacts of new work health and safety laws:

“Our analysis indicates that adoption of the work health and safety reforms is the preferred option because it achieves the objectives of work health and safety harmonisation as determined by COAG. Moreover, the safety benefits of harmonisation exceed the compliance costs, and the long-term return to the SA economy significantly exceeds the one-off cost of implementation of the new laws, even without taking into account the expected productivity benefits of the reforms.”

The Executive Summary provides a good level of cost data with far less equivocation than does the PwC report and therefore provides an impression of greater validity. Continue reading “Robust analysis of Work Health Safety laws shows considerable economic benefits”

Latest Productivity Commission data on Australia’s OHS costs

On 15 May 2012, Australia’s Productivity Commission (PC) released its findings into ” the impacts of the Council of Australian Governments (COAG) Reforms: Business Regulation and Vocational Education and Training (VET)”. The report includes a chapter on Occupational Health and Safety (OHS). That chapter states:

“Uncertainty exists over the implementation of the agreed [OHS harmonisation]reforms by the remaining three jurisdictions.

If implementation proceeds, and the agreed reforms become operational:

all employers are likely to face transition costs in the order of $850 million in aggregate (around $75 per worker);

multi-state businesses are likely to see compliance costs fall and safety outcomes improve, generating total possible net cost savings of $480 million per year; and

for single-state businesses, despite possible improvements in safety outcomes, additional compliance activities are likely to increase business costs in aggregate for this group by around $110 million per year.”

$A75 per worker seems an acceptable impact although, at first view, single-state businesses, the vast majority of Australian businesses, look to be disadvantaged. However, the report also states that

“Without full implementation [of OHS harmonisation], there is a risk that businesses will face significant transition costs without realising the possible cost savings from harmonised laws.” (emphasis added)

Here is the political and economic need to play well with each other. Continue reading “Latest Productivity Commission data on Australia’s OHS costs”

Safety leadership and culture require accountability

At the recent Safe Work Australia Awards, the Minister for Workplace Relations had a dig at “safety culture“, according to an article from the National Safety Council of Australia. Bill Shorten said :

“It is not the systems or the fancy talk about culture that will save people’s lives.”

This has been interpreted by some as Shorten disparaging the advocates of safety culture. I agree that safety culture can be used as a euphemism for “Act of God” and therefore take no preventative action but safety culture is not designed by Gods, it is designed and implemented by Chief Executive Officers and Boards of Directors, often under the rubric of “leadership”. Continue reading “Safety leadership and culture require accountability”

Favourable progress could be achieved on OHS if the current reality is accepted

The issue of “control” in Australian OHS law continues to be discussed as industry associations bristle against the introduction of Work Health and Safety laws, frequently on flawed or dubious costings.

Australian safety laws have been moving from the prescriptive tradition for decades. This has been due to various reasons including new workplace hazards that cannot be controlled in defined ways, diminished enforcement resources and confused roles in OHS regulators, the change in labour force dominance from blue- to white-collar occupations but, most of all, repeated demands from business associations for increased flexibility and autonomy on managing workplace safety.

Certainly the degree of control has varied from State to State with New South Wales being considered as having the most business-unfriendly OHS laws but most States are now running under a different set of OHS rules and criticizing the current laws by referring to now-repealed OHS laws in the most extreme State of New South Wales, as Ken Phillips does in today’s The Australian newspaper, is almost sophistry. Continue reading “Favourable progress could be achieved on OHS if the current reality is accepted”

Workplace safety and the human condition

Articles and reports about decent work, dignity at work and mental health issues are increasingly appearing on my desktop. Perhaps this indicates a convergence of perspectives to a better understanding of the human imperative in the modern workplace. It may be a realisation of where and how work fits the human condition.

On May 1 2012, the Australian Catholic Social Justice Council (ACSJC) issued a pastoral letter on the “Dignity of Work“. This came across my desk around the same time as I was looking at values-based safety. The parallels between dignity and values-based safety were obvious.

Category: business

NSW inquiry into workers’ compensation illustrates short-termism

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Victoria’s Workcover Minister reveals more of the “secret” inquiry into Workcover and the Transport Accident Commission

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Robust analysis of Work Health Safety laws shows considerable economic benefits

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Latest Productivity Commission data on Australia’s OHS costs

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Safety leadership and culture require accountability

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Favourable progress could be achieved on OHS if the current reality is accepted

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Workplace safety and the human condition

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