Category: economics

Unanswered questions on Safety Institute activities

Earlier this year, the Safety Institute of Australia (SIA) launched its OHS Body of Knowledge (BoK) project, an excellent collection of workplace safety information and research but one that has had restrictions imposed on it that seem contrary to its purpose.

SafetyAtWorkBlog has communicated repeatedly to the SIA about the BoK project and the, seemingly, related operation of the Australian OHS Education Accreditation Board (AOHSEAB) but, although the communications have been acknowledged, no responses have been received.  Some of the questions go to the heart of the meaning of an OHS profession and body of knowledge but also to the relationships of various organisations under, or connected to, the SIA such as the Health and Safety Professionals Association (HaSPA) and AOHSEAB.

OHS Body of Knowledge

BoK contains over 30 articles about most of the major workplace safety issues of modern times.  These have been produced by some of the most prominent OHS researchers in Australia.  But it can only be read on a computer screen and the PDF files have a security level that forbids any cutting and pasting.  Why would this important safety information be any different to guidance and data that OHS regulators provide for fair use?  The SIA has never provided a reason for this peculiar approach to spreading OHS knowledge.

The SIA professes the organisation to be about the following:

“We are committed to creating a profession that can deliver the highest standards of OHS and we do this through the engagement of our individual members, corporate and strategic partners, governing bodies and key profession stakeholders.

Through the SIA, individuals have access to qualified timely advice into public policy and regulation, research and development to advance OHS knowledge and guidance. We have developed a body of knowledge to set health and safety standards, procedures and practices to be adopted on a national basis across the profession.”

SafetyAtWorkBlog posed the following questions to the appropriate contact person, Pam Pryor, Registrar, of the  Australian OHS Education Accreditation Board  in early May 2012.  The AOHSEAB issued its first ever newsletter on 5 July 2012. (Hyperlinks have been added) Continue reading “Unanswered questions on Safety Institute activities”

More details of the costs of managing safety required from OHS regulators

In a recent edition of Safety Express, a newsletter from WorkSafe Victoria, Clarke Martin outlined the benefits of WorkSafe’s Owner Visit program to one regional company.  This good news story needed more depth and detail so Clark Martin provided SafetyAt WorkBlog with additional information.

The Safety Express article outlined that a company of over 200 employees gained advice through WorkSafe’s free 6-hour consultancy service and has

“…made significant savings in insurance premiums over a two-year period. The financial and safety benefits are continuing today.”

“The company agreed to make significant changes to the way the business managed its OHS and RTW, and the financial management of premium costs.”

“WorkSafe worked with the company for two years and in this time the EPR dropped to just 34 per cent above average and work is continuing to further improve its performance. The company advised WorkSafe that savings achieved from reduced insurance premiums was equivalent to the profits on producing and selling an additional $16m of product.” Continue reading “More details of the costs of managing safety required from OHS regulators”

OHS inspections save businesses money

A recent article in Science about OHS inspections has gained considerable attention after Michael Blanding wrote about the findings in a Harvard Business School blog. According to the executive summary:

“In a natural field experiment, researchers [ Associate Professor Michael W. Toffel and colleague David I. Levine] found that companies subject to random OSHA inspections showed a 9.4 percent decrease in injury rates compared with uninspected firms.

The researchers found no evidence of any cost to inspected companies complying with regulations. Rather, the decrease in injuries led to a 26 percent reduction in costs from medical expenses and lost wages translating to an average of $350,000 per company.

The findings strongly indicate that OSHA regulations actually save businesses money.”

That research should give enormous heart to OHS regulators around the world and reduce criticism from business groups. The findings have been defined as “definitive” but this is like saying that research into Scandinavian workplaces and society can be relevant to other countries. Research in OHS and workers compensation in the United States is relevant to the United States with mostly curiosity value to other nations. Continue reading “OHS inspections save businesses money”

Another salary survey shows increased demand for OHS professionals

Australian recruiting company, Hays, has released its annual salary surveyin which it says that there is increasing demand for OHS professionals in Australia however the salary levels seem comparatively low, particularly at the entry-level. The survey says that the introduction of harmonised OHS laws in most Australian States has:

“…led to increased accountability and thus demand for high risk safety experts.”

It could be said that many safety experts have been “high risk” but the quote above places safety in a risk context.  Safety professionals must be able to understand and deal with business risks in the broader context.  In some sectors risk management integrates OHS but in others, where risk management is almost exclusively concerned with insurances and safety is the purview of a Health and Safety Representative, OHS is shunned as a foreign concept or a poorly under threat. Continue reading “Another salary survey shows increased demand for OHS professionals”

Victoria’s Workcover Minister reveals more of the “secret” inquiry into Workcover and the Transport Accident Commission

The terms of reference of the Victorian Government’s review of the Victoria Workcover Authority and the Transport Accident Commission remain hidden in the inquiry by the Essential Services Commission but some hints about the review are appearing in the press and official records.

The Australian Financial Review of 21 May 2012 reported that the Victorian Minister for WorkCover, Gordon Rich-Phillips would not rule out the option of merging the two organisations.  A reading of the transcript of the budget estimates inquiry conducted by the Public Accounts and Estimates Committee (PAEC) illustrate the reasonableness of Rich-Phillips statement – an inquiry has commenced and he should not pre-empt the inquiry findings.

Rich-Phillips said that the inquiry will be looking at

“how [the functions of both organisations] can be improved and how the two agencies can work together better.”

The concerns, principally raised by the Shadow Finance Minister, Robyn Scott, seem to be over potential changes to the TAC, including the use of private insurance companies to manage injuries from motor vehicle accidents, and not about the VWA or WorkSafe. Continue reading “Victoria’s Workcover Minister reveals more of the “secret” inquiry into Workcover and the Transport Accident Commission”

Robust analysis of Work Health Safety laws shows considerable economic benefits

Recently SafeWorkSA released its “Regulatory Impact Statement: Model Work Health and Safety Regulations in South Australia“.  This report presents radical different economic data compared to the (increasingly discredited) OHS business cost analysis undertaken by PricewaterhouseCooper (PwC) for the Victorian government.

The South Australian report, conducted by Deloitte, found the following economic and social impacts of new work health and safety laws:

“Our analysis indicates that adoption of the work health and safety reforms is the preferred option because it achieves the objectives of work health and safety harmonisation as determined by COAG. Moreover, the safety benefits of harmonisation exceed the compliance costs, and the long-term return to the SA economy significantly exceeds the one-off cost of implementation of the new laws, even without taking into account the expected productivity benefits of the reforms.”

The Executive Summary provides a good level of cost data with far less equivocation than does the PwC report and therefore provides an impression of greater validity. Continue reading “Robust analysis of Work Health Safety laws shows considerable economic benefits”

Latest Productivity Commission data on Australia’s OHS costs

On 15 May 2012, Australia’s Productivity Commission (PC) released its findings into  ” the impacts of the Council of Australian Governments (COAG) Reforms: Business Regulation and Vocational Education and Training (VET)”.  The report includes a chapter on Occupational Health and Safety (OHS). That chapter states:

“Uncertainty exists over the implementation of the agreed [OHS harmonisation]reforms by the remaining three jurisdictions.

If implementation proceeds, and the agreed reforms become operational:

  • all employers are likely to face transition costs in the order of $850 million in aggregate (around $75 per worker);
  • multi-state businesses are likely to see compliance costs fall and safety outcomes improve, generating total possible net cost savings of $480 million per year; and
  • for single-state businesses, despite possible improvements in safety outcomes, additional compliance activities are likely to increase business costs in aggregate for this group by around $110 million per year.”

$A75 per worker seems an acceptable impact although, at first view, single-state businesses, the vast majority of Australian businesses, look to be disadvantaged.  However, the report also states that

“Without full implementation [of OHS harmonisation], there is a risk that businesses will face significant transition costs without realising the possible cost savings from harmonised laws.” (emphasis added)

Here is the political and economic need to play well with each other. Continue reading “Latest Productivity Commission data on Australia’s OHS costs”

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