economics – Page 49 – SafetyAtWorkBlog

Red Tape Commissioner starts work on reform including OHS

In Australia and the United Kingdom, workplace health and safety compliance has been considered a prominent element of allegations of business “Red Tape“. On 21 January 2013, Victoria’s Treasurer, Kim Wells, announced new guidelines into red tape in that State’s government authorities and regulators. Wells’ media release states:

“Stage one of the reform will focus on the Victorian WorkCover Authority (VWA), VicRoads, Environment Protection Authority, Consumer Affairs Victoria and the Victorian Commission for Gambling and Liquor Regulation.” [emphasis added]

Wells also says that the Red Tape Commissioner, John Lloyd, will administer the system which runs like this:

“Ministers will issue statements of expectations to key regulators which will require them to outline by 1 July 2013 how they intend to reduce red tape. Our aim is to see regulators reduce the cost of high-impact or high- Continue reading “Red Tape Commissioner starts work on reform including OHS”

Victorian Government refuses to release full costings of OHS laws

The Victorian Government has repeatedly claimed that new Work Health and Safety laws would cost billions of dollars to introduce. It has justified this political decision with a summary of a report produced by PricewaterhouseCoopers (PwC) in April 2012. SafetyAtWorkBlog applied for the full report under Freedom of Information (FOI) and was rejected.

The Department of Premier and Cabinet’s FOI Officer indicated that the full report existed but that it was not being released as the FOI Act

“…exempts from disclosure a document that has been prepared by a Minister or on his or her behalf or by an agency for the purpose of submission for consideration by the Cabinet.”

The rejection is difficult to understand as the government had already released a 34 page summary.

SafetyAtWorkBlog has been very critical of the summary report due to the amount of disclaimers, equivocations and selected data sources in the PwC report. The estimated costs have appeared in discussions about the Work Health and Safety laws in other States so the full analysis of the laws by PwC would be enlightening. It was hoped that the full report would provide additional background and context to discussing the “costs of safety” but that is not to be.

Kevin Jones

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”

Category: economics

Red Tape Commissioner starts work on reform including OHS

Like this:

Victorian Government refuses to release full costings of OHS laws

Like this:

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

Like this:

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

Like this:

Economic austerity should not be allowed to override safety priorities

Like this:

NSW follows Victoria’s lead on construction industry safety code

Like this:

Safety is missing from productivity debates

Like this:

Share this:

Like this:

Share this:

Like this:

Share this:

Like this:

Share this:

Like this:

Share this:

Like this:

Share this:

Like this:

Share this:

Like this: