economics – Page 43 – SafetyAtWorkBlog

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”

New campaign indicates old-school thinking

Today WorkSafe Victoria launches a new return-to-work campaign which will use Paralympian Jack Swift as the “face” of the campaign. The campaign is sure to be successful but the increasing focus of safety regulators on return-to-work (RTW) may illustrate a growing trend where rehabilitation policy strategies are gaining priority over injury prevention. Yet innovative approaches to injury prevention provide the greatest potential for personal, economic and social savings.

In 2001 WorkCover NSW began its Paralympian Sponsorship Program, a program that continues. The advantage of the New South Wales program is that it features a range of incident scenarios and, most importantly, the paralympians speak about “workplace safety, injury prevention and management and their personal road to recovery, return to work.” (emphasis added) This broad, multi-category approach seems to be missing from the new Victorian campaign. Continue reading “New campaign indicates old-school thinking”

Where to for the “the expensive and failed WorkHealth scheme”?

The Victorian Workcover Authority’s (VWA) WorkHealth program is coming to the end of its five-year life. But what is the way forward? Has the $A600 million program achieved its aims?

Aims and Results

VWA’s annual report for 2008 (page 33) stated the following aims for WorkHealth, reiterated in the WorkHealth Strategic Framework 2010-12 (page 1):

“Over the long term, the program aims to:

cut the proportion of workers at risk of developing chronic disease by 10%

cut workplace injuries and disease by 5%, putting downward pressure on premiums

cut absenteeism by 10%.

These goals aim to drive productivity and reduce health expenditure that is associated with chronic disease.”

None of VWA’s annual reports since 2008 have included any mention of these benchmarks. Continue reading “Where to for the “the expensive and failed WorkHealth scheme”?”

Double your money, invest in OHS

The corporate wellness advocates have been able to estimate the return-on-investment (ROI) for their programs but there has been little research on the return-on-prevention, until recently. In 2012 the International Social Security Association (ISSA) determined that, in microeconomic terms,

“…there are benefits resulting from investment in occupational safety and health… with the results offering a Return on Prevention [ROP] ratio of 2.2.”

This means that for every one dollar spent per employee per year the potential return is 2.2 dollars.

The report also found that OHS provides, amongst other benefits:

Better corporate image
Increased employee motivation and satisfaction, and
Prevention of disruptions.

But why bother costing harm prevention when there is already a legislative requirement to provide safe and healthy workplaces? Such a question usually comes from those whose understanding of OHS is principally compliance and who believe compliance equals safety.

The calculation of ROP, in the ISSA report at least, counters the belief that safety is always a cost with no economic benefit to the company. A positive ROP provides an opportunity to actively participate in the economic debate over productivity and, in some countries, austerity.

Kevin Jones

Category: economics

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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New campaign indicates old-school thinking

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Where to for the “the expensive and failed WorkHealth scheme”?

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Double your money, invest in OHS

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