Category: business

The Safety Institute’s low profile needs to be seen in a media context

In recent weeks on several LinkedIn discussion forums there has been a series of highly critical postings about the Safety Institute of Australia. (I have participated in some of the discussions.)  Many comments have been unfair but almost all decry the absence of clear communication from the SIA and the very low profile of the organisation within Australia.

The SIA has struggled to gain traction in the Australian media even though the organisation has been in operation for over 60 years.  It seems there is little about workplace safety that is attractive to the general community.  (Who could not be fascinated by James Reason’s cheese?)  But a recent article by Mark Phillips, Communications Director with the Australian Council of Trade Unions, in the May-June 2012 edition of The Walkley Magazine (not available online), provides a contributory factor to the lack of traction. Continue reading “The Safety Institute’s low profile needs to be seen in a media context”

Latest Andrew Hopkins book focusses on engineering decisions

The latest Andrew Hopkins book steers clear of analysing corporate leadership, and this is a good thing.  Australian National University sociologist, Andrew Hopkins, has established an international reputation for his enlightening analyses of the failures of organisational culture in major disasters but his latest book, Disastrous Decisions: The Human and Organisational Causes of the Gulf of Mexico Blowout, purposely leaves leadership out.

This may disappoint many but Hopkins says that

“The critical role of top leaders in accident prevention cannot, however, be overstated.  It is they who must learn from major accidents and, unless they do, nothing can be expected to change.

There is one group of decision-makers that has received rather less attention in accident investigations: office-based engineers.” (page 8) Continue reading “Latest Andrew Hopkins book focusses on engineering decisions”

South Australia’s politicians prepare to grill the OHS regulator, SafeWorkSA

On 19 May 2012, South Australia’s Parliamentary Committee on Occupational Safety, Rehabilitation and Compensation (OSRC) announced in the Adelaide Advertiser and inquiry into the operations of SafeWorkSA.  SafetyAtWorkBlog has been told that the inquiry was self-initiated by the committee as a result of no one particular reason.  The Minister for Industrial Relations was apparently unaware of the inquiry and nor was SafeWorkSA.

As the passing of Work Health and Safety laws stall in the Parliament, the politics of safety in South Australia is about to get even messier.

The notification from the OSRC committee lists the inquiry’s terms of reference: Continue reading “South Australia’s politicians prepare to grill the OHS regulator, SafeWorkSA”

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”

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