Category: business

Physical activity, mental health, alcohol consumption and productivity

The Victorian Government’s workplace health strategy may be “coughing up blood” but health promotion continues.  Last week, Australian health insurer, Medibank Private, released some statistics and cost estimates related to physical inactivity.

According to the media release, physical inactivity costing the Australian economy $13.8 billion a year. The findings are based on research conducted in conjunction with KPMG-Econtech which builds on Medibank’s 2007 research and “captures the healthcare costs, economy wide productivity costs, and the mortality costs of individuals passing away prematurely as a result of physical inactivity.”

Craig Bosworth of Medibank Private says, 

“Most Australians are aware of the benefits of physical activity but this latest round of Medibank research has revealed some alarming effects of physical inactivity. An estimated 16,179 people die prematurely each year due to conditions and diseases attributable to physical inactivity and that is frightening. And whilst the majority of these are from the older population there is also a large number of people dying under 74 years of age due to physical inactivity, particularly in the male population.”

Bosworth goes on to say:

“Like other health risk factors, physical inactivity can have an adverse effect on organisations as well as individuals. Specifically, physical inactivity can impact on employee productivity by causing increased absenteeism and presenteeism, which impose direct economic costs on employers. The Medibank research has found that productivity loss due to physical inactivity equates to 1.8 working days per worker per year.”

Three audio statements on this research are available – physical-inactivity-telephone-grabs-edit

The SuperFriend Industry Funds Forum Mental Health Foundation has also released statistics on mental health in the workplace. The survey also found that 50 per cent of Australians admit to often feeling stressed and a quarter often feel depressed. 

John Mendoza, Chair of SuperFriend’s Mental Health Reference Group, said, “There is increasing evidence of a link between stress in the workplace and mental illness. The cost of workplace stress to Australian business is potentially crippling.” Listen – workplace-mental-health-edit

The Superfriends survey found

StreetWise
StreetWise
  • One in two Australians believe that having a few drinks is a good way to maintain or improve their mental health;
  • 80 per cent of Australians believe watching TV has a positive impact on their mental health;
  • Australians are putting their bodies ahead of their brains, with three-quarters of Australians engaged in activity to maintain or improve their physical health, while only 50 per cent are actively engaging in activity to maintain or improve their mental health.
  • Older Australians are more likely to heed the call ‘use it or lose it’. While 57 per cent of all Australians feel they take good care of their mental health, 68 per cent of those over 50 feel they are looking after themselves emotionally.
  • Australians aged 40 to 49 are the unhappiest and unhealthiest. Those in this age group are more likely to feel stressed and depressed and less likely to look after their physical and mental health.

A good starting point in planning to manage stress is the StressWise publication by WorkSafe Victoria.

For many decades, perhaps centuries, unhappiness at work was countered, to varying degrees, through the consumption of alcohol.  According to the latest Australian Unity Wellbeing Index people who drink everyday are the happiest, whereas non-drinkers have a lower sense of wellbeing.

Amanda Hagan of Australian Unity summarises some of the research findings and supports the link between physical activity and positive wellbeing. Listen – australian-unity-wellbeing-index-aap-medianet-edit

Worker’s Compensation Funds and global financial problems

(Particularly) since the fall of Lehman Brothers, the returns on investments throughout the world have dived.  Australia has been relatively unaffected but the signs are starting to look bad and if it wasn’t for China and India buying the country’s resources, Australia’s economy would more closely resemble Europe and the United States.

 

Martin Hamilton-Smith talking with listeners on 5AA radio
Martin Hamilton-Smith talking with listeners on 5AA radio

This turmoil provides a free-kick for opposition political parties who can question governments on their economic performance and foresight.  For some time the South Australian opposition leader, Martin Hamilton-Smith, has been attacking in just this manner.  Last week the WorkCover Corporation released its annual report.  It happened to be during a sitting of Parliament so question time was peppered with WorkCover-related questions.

 

Often, the discussion is empty argy-bargy but Liberal Party leader Hamilton-Smith asked the most important question based on the 2008 Annual Report.

Can the Minister for Industrial Affairs explain to the house why WorkCover Corporation’s income from investments appears to have fallen by a quarter of a billion dollars in one financial year?

One has to remember that that Annual Report covers 2007-2008 and the financial crisis has only really cranked up in 2008.  WorkCover Corporation lost $238 million.  WorkCover Minister Paul Caica responded by blaming global problems so Hamilton-Smith asked another question, how much has been lost in the current financial year?

Paul Caica, understandably, did not have those figures available but the question highlighted the importance of chronology in the management of workers compensation funds.  When the international investment market started to fail, how did the fund managers of WorkCover Corporation react?

This will become increasingly important as other State Governments in Australia begin releasing their departmental annual reports over the next few months.  The Victorian Government has a habit of releasing their annual reports in such a way that adequate scrutiny is impossible.  The honour and trustworthiness of governments will be shown by how open and accountability they can be in the next 12 months.

But don’t allow them the easy “out” of blaming the global financial crisis for underperformance.  In the area of workers compensation, it is our premiums that provide them their economic base.

New South Wales Safety Awards Night

On the night of the 29 October 2008 over 570 people attended the WorkCover NSW Safety Awards.  The awards are in their fifth year and the ceremony was professional, well organised and, perhaps most importantly, an excellent opportunity for safety professionals to meet others.  There were clients and advisers, ergonomists and hygienists, health and safety reps, regulators and employer groups in the audience.  As the CEO of WorkCover NSW, Jon Blackwell said, there were over 570 safety advocates and believers.

The award winners were all worthy of the awards but there needed to be more innovation and there needed to be a spark of inspiration in the nominees and the award winners.  Of the winners, the Dorsal Boutique was a standout for several reasons.  The solution was innovative, quirky and applicable to a wide variety of hospitality worksites.  The boutique won the award for the “Best Solution to an Identified Workplace Health and Safety Issue with bed lifting system that reduced the manual handling hazards associated with making a bed.

Many of the other finalists were often tweaks on existing technology but none were breathtaking.  And it is this extreme that such award processes should aim to reward.  It may be that the pool was small although there were more applications in 2008 than in previous years.

The shallowness of the pool was also indicated by many on the systems awards coming from companies undertaking the legislative OHS duties that have existed for decades.  They were not in new industry sectors or challenging sectors which would have added value. 

This is not to belittle the personal achievements of the finalists and award winners.  Speaking to several on the night, their efforts and sacrifices were clear and in some cases, life-changing for themselves and others but the consultative, compliance standards being rewarded were where the businesses should have been already.

There were several award finalists who, it was stated in the introductions in the Leadership category, had already participated closely in WorkCover’s Assist and mentoring programs.  Participation should not exclude companies from eligibility for a WorkCover Award but the WorkCover involvement would provide a considerable leg-up in the stakes and provide a prominence that other companies may not have access to.

However, it is acknowledged that these are the WorkCover Awards.  The judging panel has three WorkCover representatives, one union representative and one form the employers.  There were no independent safety professionals, ergonomists, engineers or hygienists.

Over the last few years in OHS awards around the country there have been many solutions that have gone on to The New Inventors and many have come through that show.  It’s judging criteria is just as questionable as any other but at least that program is from outside the industry sectors of the inventors, there is some effort for independence, and some understanding of the commercial reality facing many of the applicants.

WorkCover is to be congratulated for providing as much judging criteria as it has on each award.  This adds value and veracity to the award winners and finalists but perhaps with the harmonisation of OHS laws and processes, it is time to save each State regulator big dollars and to put finalists onto a proper national platform by putting all our efforts into the national award process

 

WorkCover New South Wales Safety Awards 2008
WorkCover New South Wales Safety Awards 2008

WorkHealth – end is nigh after less than one year

Early in 2008, the Victorian Government sprung a surprise on the OHS and health promotion industries by announcing a world-first initiative – WorkHealth.  This program was to be funded by interest generated from the WorkCover scheme to the tune of hundreds of millions of dollars over the next five years.

WorkHealth loses stakeholder support

Two weeks ago, a well-respected OHS professional advised that key stakeholders in WorkHealth were very cool on the program.  This confirmed previous questions raised in SafetyAtWorkBlog about the promotion, transparency and organisational support for WorkHealth.  The professional stated that others were questioning the placement of WorkHealth in the OHS field rather than in health promotion.

Rumour has existed for some months that WorkHealth is a scheme that has been pushed by a narrow range of OHS and workers compensation advocates.

What made WorkHealth so interesting was that the concept originated from within the workers compensation field with workers compensation money.  At the time, the wisdom of committing such a large amount of money to the initiative was questioned by many in the trade union and business areas.  Why head in this direction when there were established mechanisms to reduce OHS and workers compensation costs?

The global economic problems, it is suspected, would have flowed to the investments of the WorkCover scheme and it would be interesting to know what the revenue allocation to WorkHealth now is calculated at.

OHS/Industrial Relations conflict

In The Age newspaper on 26 October 2008, WorkHealth gained some attention as business groups have now seen the criteria for the health assessments of workers.  David Gregory of the Victorian Employers’ Chamber of Commerce and Industry described the criteria as a potential “industrial weapon”.  According to the article,

“WorkSafe told The Age the idea of an initial ‘tick test’ screening process had been abandoned, and the proposed $130 million worth of prevention programs are not in the pilot at all.”

As is evident from the quote, it is the pilot scheme that is being rolled out, however it is clear from the comments of David Gregory and the state secretary of the Australian Manufacturing Workers’ Union, Steve Dargavel that industrial relations sensitivities have not been considered.

Gregory makes excellent points that good OHS professionals are already aware of – workplace safety can only succeed when industrial relations implications and conditions are considered before any intervention process.

OHS has broadened to include the hazards of fatigue, stress, anxiety, depression, workloads, bullying and other matters that have encroached on health promotion and human resources over the last decade or so.  A worker health program would have been more likely to be accepted through this osmosis rather than a surprise announcement.

Is this the end?

WorkHealth could work if it had been generated as a workplace application of public health programs.  The challenge would have been to legitimise the expenditure in an already cluttered health promotion sector.  How would WorkHealth have achieved this testing regime when business is already assessing its workers for psychological disorders, cholesterol, prostate health, hearing, asthma, and a whole range of modern health issues?  It is unlikely that it could so.

It came down to health assessments in a different context – a context where there had been insufficient groundwork to establish the value of the program to its fundamental stakeholders, the unions and employer groups.  To a much lesser extent, the program was not sufficiently integrated into the WorkSafe authority’s program before the announcement.

Also, the timing has been proven to be wrong.  The global economic problems are beginning to squeeze business’ bottom line.  The calls for workers’ compensation premium relief will increase in the same way that businesses have begun questioning the viability of an emissions trading scheme.  WorkHealth is likely to be one of those program cut, so the government will claim, due to the changing economic climate.  The lessons to be learnt are more wide-ranging than just economics.

“Suitably qualified” OHS professionals – who benefits?

For many years OHS regulators have been concerned about the quality of advice that OHS experts have been providing to businesses in Australia.  Some States have a regulated profession, others do not. Certainly there is no regime in Australia that compares to the “closed-shop” of Singapore.

I have seen no evidence of bad OHS advice to business.  Looking through legal databases doesn’t help, as cases are too difficult to find and the regulators say they have evidence but they usually don’t share.

For over thirty years, OHS legislation has stated that OHS management in a workplace is, principally, the responsibility of the employer.  This also means that an employer is responsible for any OHS decisions made based on their own assessments, which may involve advice from an external adviser.

As an OHS consultant I provide the best advice I can.  If the client needs advice in an area that I am not knowledgeable in, I contract a suitably knowledgeable colleague as part of servicing my client.  Any advice I provide is clearly specified as coming from the information provided by the client and my observations on the day.  What decision the client makes is up to them. This point is made in the WorkSafe Victoria paper mentioned below.  The paper says

“It is important to note that employing or engaging a suitably qualified person to provide OHS advice does not discharge the employer from their legal responsibilities to ensure health and safety as required under Part 3 of the OHS Act. This duty cannot be delegated”

This week WorkSafe Victoria released a position paper to clarify a section of the OHS Act.  According to the website

“This document sets out WorkSafe’s position on the meaning of section 22(2)(b) in the context of duty holders meeting their obligations under Part 3 of the Occupational Health and Safety Act 2004 (OHS Act).

Part 3 (sections 21 to 23) of the OHS Act places duties on employers to ensure health and safety.

Section 22(2)(b) provides that employers must, so far as is reasonably practicable, employ or engage persons who are suitably qualified in relation to occupational health and safety to provide advice to the employer concerning the health and safety of employees of the employer.”

My belief is that OHS consultants should be called in, primarily, for a second opinion.  This opinion is provided after the employer and worker representatives have “had a go” at identifying hazards.  In my experience, businesses have a fair idea of the workplace hazards present but are not sure how to prioritise the controls of those hazards, and may be unaware of new control measures.  This is where the OHS consultant comes in.

Few OHS professional associations in Australia provide their members with information on how to do your job, or how to apply your knowledge in a commercial context.  Until recently few tertiary institutions provided this service and I would like to hear of those OHS courses that now do teach business practices to graduates.

(I remember attending a Ergonomics Society conference in Sydney almost ten years ago.  It was the first time anyone had spoken on the issue of professional ethics to the ergonomists.  I would be surprised if other Australian professional associations have progressed this far)

According to the position paper, these are the elements that they consider “may” make a suitable qualified person:

  • Knowledge
  • Industry experience
  • Professional activity
  • Reputation
  • Professional association
  • Communication skills
  • Technical expertise
  • OHS legislative understanding:
  • Risk management strategies

From that basis, below is my plain English checklist for businesses to assess their OHS advisers. Comments are in brackets:

  • Knowledge: Does the professional have an educational qualification that is relevant for your needs? (I have never been asked to show my education qualifications by a client. Also, having an educational qualification does not equate to competence, in itself, no matter what the education evangelists say)
  • Industry experience: Do they know what they are talking about? (This is impossible to verify unless they have worked in an industry for a long time in a prominent role. One could ask for references but the references are always friendly to the adviser)
  • Professional activity: Can the person demonstrate recent professional activity in the relevant OHS field? (Activity does not mean that the quality of that activity was any good. A snake-oil salesman could have been in business for a decade but they still sell snake oil. This is also relevant to the educational evangelists – academic papers in peer-reviewed journals do not indicate competence in advising companies on the best hazard control measures)
  • Reputation: Have they been any good in the past? (This can be indicated by googling their full name. I recently found an OHS adviser with a criminal record and jail time for “failing to act honestly as a director of various companies”. However, an internet campaign can be used to unfairly discredit someone. The best way of checking their reputation is the talk with the adviser’s professional association, should they be in one and should that association know what it’s on about.)
  • Professional association: Do they belong to a relevant professional association? (This is a good move but many associations allow advisers to buy membership without any verification of their competence? The flaw in this criterion is the validity of the association, its disciplinary procedures and its criteria for membership. Do not over-emphasise this criterion)
  • Communication skills: Can they read and write?
  • Technical expertise: Do they know how to use their tools properly?
  • OHS legislative understanding: Do they know there is an OHS law? Have they read it? Do they understand it?
  • Risk management strategies: Does their advice control the hazard or simply reduce its impact?

 But then, this could all be tosh.  Seek a second opinion.

Dust explosion update – podcast

Several months ago SafetyAtWorkBlog reported on the outcomes of a dust exploion in a sugar factory in the United States.  The ICIS Radio podcast for 6 October 2008 provides the latest information on dust explosions as well as a good update on OHS issues in the chemical industry.

It is clearly a promotion for ICIS Magazine but it is a good short news podcast.

Insurance for OHS penalties

OHS law is generally structured in a positive way and based on the logic that people will act appropriately if there is a deterrent for doing the wrong thing.  This logic applies to many levels of public administration, commerce and psychology.

Some years ago, this logic was challenged during some consultation I undertook for a prison workshop.  It was necessary to assess the guarding of a machine not just for the “accidental” injuries but for malicious and purposeful injuries.  This established a lower common denominator than in the majority of workplaces. 

In this work environment to some inmates, the penalty for harming oneself and others was worth the risk.  It did not deter everyone.

Recently, an allegation has come to the attention of SafetyAtWorkBlog that a company providing OHS compliance advice to small businesses in Australia is also offering insurance coverage for OHS penalties.  Should a business proprietor be financially penalized by the OHS regulator for a breach of the legislation, the business proprietor would pay an excess of around $2000 and the (unnamed) insurance company would pay the balance.

Such a service places a $2,000 cap on OHS penalties and would remove a major reason behind penalties for unsafe practices and workplaces.

This is of concern to OHS professionals as we “trade” on the importance of OHS having a strong business case as well as a social benefit.

SafetyAtWorkBlog would be interested to hear from anyone who may have come across such insurance options elsewhere or have an opinion on such an option.

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