Category: economics

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”

Coronial report into insulation deaths slams government actions

This week a Queensland Coroner brought down the findings into the deaths of three men, Matthew Fuller (25), Rueben Barnes (16) and Mitchell Sweeney (22). Each of these men were electrocuted whilst installing foil insulation in the roofs of Queensland houses as part of a Federally funded economic stimulus project during 2009 and 2012.

Since the Coroner’s findings were published on 4 July 2013, the Australian media has focussed its attention, principally, on Kevin Rudd.  Rudd was the Prime Minister and a major motivator at the time for the stimulus package, named the Home Insulation  Program or HIP by the Coroner.  Rudd recently regained the Prime Ministership providing a fresh political newsworthiness to the HIP issues.  But in this attention, the Coroner’s broad findings are often being overlooked. Continue reading “Coronial report into insulation deaths slams government actions”

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.)

Businessman with devil or angelThe 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”

No one is mentioning OHS prosecution in Telstra/NBN asbestos stoush

Australian politics is currently embroiled in a dispute generated by a contractor entering the telecommunications pits of the asset owner. Some, or many, of the pits contain asbestos and the contractor’s work, the laying of new fibre-optic cables, may disturb the asbestos. There are many other concerns but that is the nub.

The Australian newspaper has been running on this issue for many weeks but one article in today’s edition called “Tak​ing a dig: will Bill come up short?” (page 9 – online paywall), by David Crowe, caught my attention. Crowe reports that:

“The Aus­tralian has been told Tel­stra chief ex­ec­u­tive David Thodey wrote to Shorten in De­cem­ber 2009 to ar­gue against his pro­posal for a ‘‘proac­tive’’ pro­gram to re­move as­bestos from the com­pany’s pits. Thodey gave three rea­sons for not pro­ceed­ing: the cost; the risk of re­leas­ing as­bestos; and the fact plans for the NBN were in train but had not been locked in.”

I realise that the OHS legislative concept of “reasonably practicable” does not extend to all facets of life but if it were applied to the current asbestos exposure (and I think it could) Thodey’s three reasons given above would be crucial in any potential prosecution, particularly if the reasons in Thodey’s response to Bill Shorten were listed in order of priority. In OHS law, cost is the last element to be considered in determining a reasonably practicable hazard control measure.

Continue reading “No one is mentioning OHS prosecution in Telstra/NBN asbestos stoush”

Serious questions raised over the role of Safe Work Method Statements

Any safety conference involving the Australian construction industry will have some discussion on Safe Work Method Statements (SWMS) and this weekend’s Building Safety conference was no different. During the presentation on Saturday by the Federal Safety Commissioners, SWMS was bubbling along underneath many of his words and statements. Sadly, the audience (now) seems to have been too polite to ask him questions about the elephant in the room. There was no such hesitation following the presentation by Brookfield-Multiplex’s Paul Breslin on the Sunday.

Several delegates stated their belief that the Office of the Federal Safety Commissioner (OFSC) is largely to blame for the over-emphasis on SWMS in the construction sector and for the bloating of SWMS into a document that does little to improve safety and is more related to meeting the audit criteria of the OFSC.

Continue reading “Serious questions raised over the role of Safe Work Method Statements”

© Workplace Safety Services P/L (ABN: 68091088621) and SafetyAtWorkBlog, 2008-2025. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Kevin Jones and SafetyAtWorkBlog with appropriate and specific direction to the original content.

Concatenate Web Development
© Designed and developed by Concatenate Aust Pty Ltd