economics – SafetyAtWorkBlog

Caution. Misery (and Enlightenment) Ahead.

Having been born in the north of England, I enjoy watching movies and TV shows from there, even though I need subtitles sometimes. As a child watching Ken Loach’s film Kes for school, I thought that I could easily have been that kid standing in a cold muddy soccer pitch on an estate not far from our commission house. (I have been told our previous house was demolished because it was in a block of slums) So Loach’s latest film sounded interesting and given that it depicted life in the precarious and “gig” economy, I recently joined the hundreds in the audience at the Melbourne International Film Festival to watch “Sorry We Missed You”.

I really enjoyed the film but found the story very upsetting. It’s taken me almost a week to starting writing this article and the trailer still makes me cry, so I am split on whether to recommend you see the film.

The economics, and politics, of prevention and the cost of doing nothing

LtoR: Terry Nolan, Rod Campbell, Tony Dudley, Rosemary Calder

On July 9 2019, the Committee for Economic Development of Australia (CEDA) conducted a lunchtime seminar in Melbourne about “the economics of prevention“. The event was supported by GlaxoSmithKline who launched a report about the value of vaccines so the lunch promised to be very medical but that quickly changed when Rod Campbell of The Australia Institute (a late replacement for Richard Denniss) spoke. On the issue of cost-benefit analysis, an important consideration in occupational health and safety (OHS) , Campbell was blunt:

“A huge amount of government decisions are not made by informed economic analysis. They’re made by political decisions.”

Hopefully prevention of mental injuries at work will emerge in this Royal Commission

LtoR: Professor Bernadette McSherry, Prof. Allan Fels, Penny Arnytage, Dr Alex Cockram

The first week of media coverage of Victoria’s Royal Commission into Mental Health is very thin on the roles and impacts of workplaces and work activities on people’s mental health, but it is part of the conversation.

The Public Hearings on July 4-5 had Prevention and Early Intervention as their theme. Prevention as occupational health and safety (OHS) people would apply was mostly absent. Prevention, in OHS terms, is usually about the elimination of a risk or hazard whereas the impression from the discussion in the Royal Commission over the last few days is that mental health is something that appears, strikes an individual (with ripples to relatives), is treated and a new psychological normal, a functional/social normal is established. Analysis of the social, occupational and environmental precursors, elements that OHS investigations are obliged to consider, seems missing, at the moment.

According to the Commission’s transcript Chair Penny Armytage said on July 2, 2019:

“We start these hearings with a wide lens. Not in hospitals or clinics, but in our homes, our sporting fields and our workplaces.”

Robbing Peter to pay Paul – the “WorkSafe Tax” is challenged

More details of the “WorkSafe Tax” and WorkSafe Victoria’s new infringement notices and specialist construction inspectors emerged with the appearance of the Minister for Workplace Safety, Jill Hennessy, at the Public Accounts and Estimates Committee hearing on June 14 2019.

Liberal Member of Parliament, Richard Riordan went to town on the Minister. He opened with this question:

“….I refer to budget paper 5, page 23, which shows you are ripping $700 million out of the WorkCover Authority over the forward estimates. How does taking such a massive dividend tax to the government help workplace safety?”
page 5, Verified Transcript

But this issue has been bubbling along since at least 2011 when the now Premier, Daniel Andrews, vehemently opposed it.

New estimates of the Total Harm from workplace illnesses and injury

Barry Naismith, through his OHSIntros organisation, has released his latest independent report into the performance of WorkSafe Victoria and occupational health and safety (OHS) more generally. Naismith’s contribution is a fresh context on Victoria’s safety and health regulator, and it is an excellent reminder of the prominent issues in the previous 12 months.

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