economics – Page 45 – SafetyAtWorkBlog

Australia’s psychosocial barometer provides strong evidence for policy and corporate change

OnlineMBA.com recently uploaded a video about “The True Cost of a Bad Boss“. It is a good summary of the spread of negative organisational and employee effects that can result from poor management poor understanding and poor communication. It is well worth remembering this spread when determining the best way to manage workplace safety and increase productivity.

Although the video is from the US, there is research evidence to support many of the points raised. In December 2012, Safe Work Australia released The Australian Workplace Barometer Report On Psychosocial Safety Climate and Worker Health in Australia, a report that has been largely missed by the Australian media. The report says that:

“A standout finding here is that depression costs Australian employers approximately AUD$8 billion per annum as a result of sickness absence and presenteeism and AUD$693 million per annum of this is due to job strain and bullying.” (page 6)

This is a significant impact on Australian business costs and, if one takes the OnlineMBA information concerning bad bosses, Australian bosses may need to undertake a considerable amount of self-analysis when lobbying for red-tape reductions and calling for productivity increases. Continue reading “Australia’s psychosocial barometer provides strong evidence for policy and corporate change”

Evidence exists of productivity benefits of OHS but no one is using it

Cover of 47workhev1 A lot of recent discussion of the impacts of workplace safety and productivity has centred on the Productivity Commission’s “Performance Benchmarking of Australian Business Regulation: Occupational Health & Safety” Report of 2010. However there was a 1995 report by the then-Industry Commission that can provide some broader context to the safety/productivity discussion. Recent evidence and research does not negate earlier reports and the safety/productivity debate should be considered over the longer time period, when there were different economic and political situations.

In 1995, the Industry Commission estimated the cost

“…to injured employees, their employers and the rest of the community of work-related injury and disease is at least $20 billion a year.” (page xiii)

(The March 2010 report stated the Australian Safety and Compensation Council

“…found the total economic cost of work-related injury and illness for the 2005-06 financial year to be $57.5 billion, representing 5.9 per cent of GDP.” Page 45)

The Industry Commission identified a ratio of costs associated with workplace injuries – 30-40-30:

“Around 30 per cent of the total cost

Continue reading “Evidence exists of productivity benefits of OHS but no one is using it”

Economic austerity should not be allowed to override safety priorities

iStock_000009374843XSmall In 2012 many countries have been required to pursue economic austerity measures. A national or international economy rarely has any direct effect on safety management but the current economic status has led to an increase in harsh, or strong, political decisions and some of these decisions will affect safety management and professionals. One obvious manifestation of political safety decisions is the UK Government’s decision to allow small businesses to step outside its occupational health and safety (OHS) laws in its pursuit of reducing supposed “red tape“. This strategy is attractive to other government’s, including Australia’s, but the strategy could marginalise the safety profession even further if the profession remains insular and silent.

The Institute of Occupational Safety and Health (IOSH) has been campaigning for some time on the governments decisions to change its OHS laws in its quest for greater efficiencies and reduced business costs. In the last few months, IOSH has turned its attention to the proposed changes to the Continue reading “Economic austerity should not be allowed to override safety priorities”

NSW follows Victoria’s lead on construction industry safety code

Tower Crane In 2012, the Victorian Government introduced a construction industry compliance code intended to control industrial relations in that industry sector. Significantly, this Code included specific work health and safety (WHS) obligations. On 6 December 2012. the New South Wales Government, led by the Liberal Premier Barry O’Farrell proposed a similar code with exactly the same WHS obligations.

In Premier O’Farrell’s media release, the Minister for Industrial Relations Mike Baird made no mention of the WHS obligations. The statement focuses on containing wages, controlling potential cost blowouts on infrastructure projects and, without mention it by name, productivity. Minister Baird missed a golden opportunity to argue both the economic and moral positions; an opportunity that was not missed by the Victorian Minister for Finance Robert Clark when he announced his State’s construction compliance code in July 2012. Continue reading “NSW follows Victoria’s lead on construction industry safety code”

Safety is missing from productivity debates

A March 2012 report from Safe Work Australia reminds us that the issue of productivity and safety is not a new ideological battle. The report states that

“In 1995, an Industry Commission study estimated that only 25 per cent of the total cost of work–related injury and disease was due to the direct costs of work-related incidents. The remaining 75 per cent was accounted for by indirect costs such as lost productivity, loss of income and quality of life.” [link and emphasis added]

The significance of this quote is that the Industry Commission (now the Productivity Commission) established a direct link between work-related injuries and lost productivity. The link was not established by an organisation focusing on safety but one that is all about productivity. But none of the safety advocates or lobbyists have entered the political debate on productivity, even though the relationship between safety management and productivity has been established for almost 20 years, at least.

Continue reading “Safety is missing from productivity debates”

The safety role of the Construction Compliance Code Unit

Recently SafetyAtWorkBlog was able to spend some time with the Director of the Victorian Government’s Construction Compliance Code Unit (CCCU), Nigel Hadgkiss. The CCCU and Hadgkiss have been in the Victorian media recently in terms of the CCCU investigation of industrial relations matters in several Grocon construction projects and some discussions with LendLease but an often overlooked, yet significant, element of the Construction Compliance Code is the occupational health and safety obligations. The CCCU has been working on early drafts of a Health and Safety Management Plan (HSMP) with which all those operating under the Code will need to comply.

Many of the questions SafetyAtWorkBlog posed stemmed from a presentation Hadgkiss made at a breakfast seminar on which SafetyAtWorkBlog previously wrote. That article is recommended for background and context.

Nigel Hadgkiss advised that since 1 July 2012 71 companies and associated companies have “signed up” to the Compliance Code with a full awareness that OHS is a key element of compliance.

OHS obligations of unsuccessful tenderers

The Code requires companies tendering for Victorian Government construction work to follow specific OHS obligations, whether they are the successful tenderers or not. In some ways this seem unfair.

Hadgkiss believes that the tenderers to government contracts are well aware of the safety obligations from the outset. From that point they are contractually bound whether they are successful or not.

Continue reading “The safety role of the Construction Compliance Code Unit”

Devil’s Dust – Australian movie on asbestos and corporate morality

On November 11 and 12 2012, the Australian Broadcasting Corporation will broadcast “Devil’s Dust”, a two-part movie about asbestos in Australia. This is not a documentary on asbestos-related diseases. It follows the story of investigative journalist Matt Peacock from the 1970s to the present day in parallel with the corporate machinations of James Hardie Industries and its former CEO, John Reid and the life, times and death of Bernie Banton.

To many Australians, bits and pieces of each of these narrative streams will be familiar but Devil’s Dust illustrates the moral linkages between these streams leading to a powerful story of corporate greed, strength of character and man’s inhumanity to man. The workplace safety context of Devil’s Dust is obvious – ignoring or hiding information about harm to workers, the management of many workplace risks through allowances and “danger money”.

The television production values depict the times perfectly and for those who know of the asbestos risks, particularly readers of Matt Peacock’s book “Killer Company” which inspired the movie, the opening few seconds summarise major issues in the asbestos story – sacks of asbestos on a truck, cigarette smoking and dust being bashed from work clothes. Later in the first part, other issues are touched on – the washing of asbestos-contaminated work clothes by wives, asbestos in trains, asbestos in carpet underlay and asbestos used as road toppings. Continue reading “Devil’s Dust – Australian movie on asbestos and corporate morality”

Category: economics

Australia’s psychosocial barometer provides strong evidence for policy and corporate change

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Evidence exists of productivity benefits of OHS but no one is using it

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Economic austerity should not be allowed to override safety priorities

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NSW follows Victoria’s lead on construction industry safety code

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Safety is missing from productivity debates

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The safety role of the Construction Compliance Code Unit

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Devil’s Dust – Australian movie on asbestos and corporate morality

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