economics – Page 42 – SafetyAtWorkBlog

New Zealand railways, red tape, politics and workplace deaths

On 28 April 2013, New Zealand lawyer, Hazel Armstrong, published a 48-page book on how workplace fatalities and the management of the NZ rail industry has been related to politics and economics.

This is an ideological position more than anything else and the evidence is thin in much of this short book but there is considerable power in the description of the manipulation of occupational health and safety regulations and oversight during the political privatisation of the NZ rail sector. Many countries have privatised previously nationalised, or government-owned, enterprises usually on the argument of productivity and efficiency increases. Armstrong argues that these arguments were used to justify breaking the trade union dominance of the rail industry. Continue reading “New Zealand railways, red tape, politics and workplace deaths”

Short-sighted redefinition of worker

In May 2013, Workcover Queensland supported the government’s intention to change the definition of worker to match that of the Australian Taxation Office (ATO). The definition re-emphasises the significance of the employer/employee relationship. Workplace health and safety laws through most of Australia have recently changed to remove the reliance on the employer/employee relationship with the intention of clarifying the lines of responsibility for preventing harm. The diversity between workers’ compensation and OHS definitions unnecessarily complicates the management of a worker’s health through the linear experience of employment.

The government believes such changes will reduce “red tape” but only in the narrow context of workers compensation. The Work Health and Safety Act expands the definition of worker but another piece of legislation in the same State restricts it. Inconsistencies of concepts are likely to lead to duplications, confusion and arguments that may generate as much unnecessary business and legal costs as the initiatives were intended to save. Continue reading “Short-sighted redefinition of worker”

Safety, business costs and regulation

On the 28 April edition of the ABC TV show, Insiders, Gerard Henderson displayed a common misunderstanding about the role and existence of regulations. In discussing the childcare industry Henderson, Executive Director of the Sydney Institute, said that regulations always increase business costs, as if regulations are the start of a process when regulations are almost always a reaction to a hazard, an abuse, an exploitation or a risk.

Business leaders seem to be incapable of understanding that they have the power to reduce what they see as OHS red tape by changing their behaviours, perhaps by embracing and implementing safety leadership.

Many politicians and commentators have linked recent factory explosions and collapses around the World Day for Safety and Health at Work on 28 April. Continue reading “Safety, business costs and regulation”

Six years jail for injury reporting fraud

“If it can’t be measured, it can’t be managed”* has been a mantra of business for decades but all measurement can be corrupted. One of the most contentious elements of occupational health and safety (OHS) is the measurement of safety performance and a recent prosecution in the United States provides an important lesson for OHS managers everywhere, even though details are scarce.

“On Apr. 11, 2013, Walter Cardin, 55, of Metairie, La., was sentenced to serve 78 months in prison followed by two years of supervised release…. after being charged by a federal grand jury with eight counts of major fraud against the Tennessee Valley Authority (TVA), an agency of the United States.” [link added]

According to the US Attorney’s Office

“Cardin generated false injury rates which were used by the Shaw Group to collect safety bonuses of over $2.5 million from TVA. … Cardin was convicted of providing the false information about injuries by underreporting their number and severity… The evidence presented at trial encompassed over 80 injuries, including broken bones, torn ligaments, hernias, lacerations, and shoulder, back, and knee injuries that were not properly recorded by Cardin. Some employees testified that they were denied or delayed proper medical treatment as a result of Cardin’s fraud. Evidence showed that Cardin intentionally misrepresented or simply lied about how the injuries had occurred and how serious the injuries were.” [link added]

There are many safety management issues related to the conduct of Walter Cardin. Continue reading “Six years jail for injury reporting fraud”

An OHS look at the Liberal Party’s policy document

Following on from a look at the workplace safety-related elements of the current policy document of the Australian Labor Party, it is the Liberal Party of Australia‘s turn.

PressPhoto tony abbott — Liberal Opposition Leader Tony Abbott

The Liberals, currently lead by Tony Abbott, are the Australian equivalent of the Conservative Party in the United Kingdom and the Republicans in the United States and follow many of the free market principles that support capitalism. In terms of workplace safety, commitments are less obvious than those from the Left side of politics. Often workplace safety is wrapped in other concepts and there is an expectation that benefits to workers will somehow flow on from those benefits granted to employers and business, benefits frequently termed as part of productivity.

The Liberal’s policy document entitled: Our Plan, Real Solutions for All Australians lists the following productivity improvements: Continue reading “An OHS look at the Liberal Party’s policy document”

Quad bike fatalities cost an average of at least $2.3 million

Australian research has provided an important additional element to discussions on the safety of using quad bikes as work vehicles on Australian farms. According to a media release to be published on 3 April 2013 from the Australian Centre for Agricultural Health and Safety (ACAHS):

“Two new papers released today in the Australian and New Zealand Journal of Public Health ….indicate that the costs for fatal [quad bike] incidents between 2001-2010 were $288 million.” [links added, articles only available for purchase or by subscription]

Dr Tony Lower, ACAHS Director, says that

“This conservative estimate draws on deaths data from the National Coroners Information System and includes projected losses in future earnings, impacts on household contributions, insurance payments, investigation and hospital costs…. The average cost was $A2.3 million, with the highest average being in those aged 25-34 years at $A4.2 million”.

This estimation is shocking but refreshing. Shocking in that the cost is so high but refreshing because the data is not based, as so much OHS data is, only on workers compensation claims data Continue reading

CSB pushes for a more effective discussion on fatigue management

Occupational health and safety has many examples of addressing small or short-term issues rather than facing the difficult and hard, but more sustainable, control measures. I was reminded of this by a recent media statement from the United States Chemical Safety Board (CSB) in relation to fatigue management.

In 2007 the CSB recommended that, following the Texas City refinery fire,

“the American Petroleum Institute (API) and the United Steelworkers International Union (USW) jointly lead the development of an ANSI consensus standard with guidelines for fatigue prevention in the refinery and petrochemical industries.” [links added]

The progress of API and USW in developing the 2010 ANSI-approved Recommended Practice 755 (RP 755) has been reviewed by the CSB staff and they have found the following disturbing problems:

“The document was not the result of an effective consensus process, and therefore does not constitute a tool that multiple stakeholders in the industry can “own.” It was not balanced in terms of stakeholder interests and perspectives, and did not sufficiently incorporate or take into account the input of experts from other industry sectors that have addressed fatigue risks. Continue reading “CSB pushes for a more effective discussion on fatigue management”

Category: economics

New Zealand railways, red tape, politics and workplace deaths

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Short-sighted redefinition of worker

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Safety, business costs and regulation

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Six years jail for injury reporting fraud

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An OHS look at the Liberal Party’s policy document

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Quad bike fatalities cost an average of at least $2.3 million

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CSB pushes for a more effective discussion on fatigue management

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