Category: economics

OHS objectors get support from South Australia parliamentarian

The last seven days has seen many of the conservative speakers express concerns or objections to the Australian government’s close-to-completed process for harmonising workplace safety laws.  Although one may not agree with the objections, in most cases there is some ideological sense.  On 15 September 2011, South Australia’s shadow Minister for Industrial Relations (IR), Rob Lucas, launched a broadside attack on the OHS laws but with dubious claims.

Lucas’ media release states that

“There is growing opposition to Labor’s proposed bill from industry and business organisations such as Business SA, Master Builders Association, Housing Industry Association, Motor Trade Association, Self Insurers of SA and the Australian Hotels Association.

“The Liberal Opposition believes this bill is a massive full frontal assault on subcontractors and small business in SA which will lead to significant increases in house prices,” Shadow Industrial Relations Minister Rob Lucas said.

“For example, the HIA have estimated the new laws will increase costs by $12,000 for a single story construction and approximately $20,000 for a double story construction.”

The $A20,000 claim has been used by the HIA in the past in South Australia .  A former (Labor) IR minister, Paul Caica, was confronted by the claim in 2008.  The costs seemed to concern the provision of scaffolding on domestic construction sites for work above two metres but no clarification was made publicly.

In May 2011, SafetyAtWorkBlog investigated the $A20,000 claim.  The claim  was quoted at the time by Rob Lucas in a media statement.  The blog article in May said:

“On looking for the evidence on the potential business costs, an HIA spokesperson has advised SafetyAtWorkBlog that no figures were provided by the HIA to the minister for this media statement.  The spokesperson said that the cost figures may have been extracted from earlier submissions to government.” Continue reading “OHS objectors get support from South Australia parliamentarian”

Safety costs of harmonised laws revealed

The Regulatory Impact Statement (RIS) on Australia’s Work Health and Safety laws has been released and will be available through the Safe Work Australia website shortly (probably today given the media attention).  Much attention will be given to the cost estimates of the laws’ introduction but the 336-page RIS seen by SafetyAtWorkBlog  emphasises in the Executive Summary that

“While monetary values of impacts are estimated and an appropriate sensitivity analysis is undertaken, these results should be treated with some caution given the uncertainties associated with estimating changes in work health and safety benefits. Greater weight should be given to the general direction that the estimates suggest is the likely outcome from these reforms.”

This important point is likely to be lost in some of the expected argy-bargy over economic impacts and cost v benefit.

The core figures provided in the RIS are:

“While there will be one‐off implementation costs, the quantitative analysis undertaken at the national level for adopting the model WHS Regulations indicates net benefits (i.e. after implementation costs) of around $250 million per annum to the Australian economy over each of the next 10 years. This estimate does not include expected productivity benefits. While noting the difficulties Continue reading “Safety costs of harmonised laws revealed”

Is the trickling down of safety information sufficient?

A recent article in the Journal of Health Safety Research & Practice (JHSRP) quoted the findings of some research into construction and safe design by the National Institute of Occupational Safety and Health (NIOSH).  One of the NIOSH recommendations listed was that “… the trickle-down concept is appealing.”  The “trickle-down concept” may be appealing in many areas of policy, practice and the advocacy of leadership but its effectiveness is questionable.

It has become a mantra of some areas of the safety professional that safety can only be improved when introduced from the top.  A whole sector of safety leadership sellers has been created on this belief and an important element of the salesmanship is that good safety practices will trickle-down.  This sounds logical but it is necessary to analyse this concept, a concept that originated well outside of safety management.

Trickle-down has been described as a marketing concept, which seems based, partly, on envy.  Wikipedia says that, when applied to fashion,

“…this theory states that when the lowest social class, or simply a perceived lower social class, adopts the fashion, it is no longer desirable to the leaders in the highest social class.”

If this can be applied to safety leadership, it may be that by the time the leadership values reach the shopfloor workers, the leadership advocates, the executives, may be no longer interested.  The transience of trickle-down should be considered when leadership is applied.  How can safety change be sustained through leadership?  What can keep leadership fresh and relevant? Continue reading “Is the trickling down of safety information sufficient?”

Harmonisation timetable stoush

The Australian newspaper has reported serious threats to the Australian Government’s timetable for the harmonisation of OHS laws.  A threat to the government’s strategy was always possible from the fact that State government’s were likely to change from predominantly Labor Party States to Conservative parties over the period of harmonisation.  The Australian says that the threat is becoming a reality.

Western Australia, an unhappy participant in harmonisation, has begun questioning the deadline of 1 January 2012 for the introduction of harmonised OHS laws.  The WA government has been a consistent critic of some of the element s of the process but, to some extent, the latest statement from West Australia’s Commerce Minister Simon O’Brien could be interpreted as a willingness to sign up to the changes if more time for implementation is granted.

O’Brien and the WA government may be receiving some support from political colleagues in Victoria going by the comments from the Victorian Government.  In an almost unique acknowledgement of the harmonisation process a spokesperson said:

“The focus of developing a national OHS framework should be not on harmonisation for harmonisation’s sake, but rather on achieving beneficial outcomes, both for the nation as well as Victoria…..In addition, any harmonised national OHS framework must not result in increased compliance costs and more onerous regulations.”

The mention of national interest aligns well with WA’s objections. Continue reading “Harmonisation timetable stoush”

The European experience with economic incentives for OHS improvements

Last decade the New South Wales government operated a “premium discount scheme” intended to reinvest workers’ compensation funds into preventative safety measures and programs.  Other OHS jurisdictions had a similar authority but chose not to apply it.  Since then economic safety incentives have not been on the political agenda. 

However this is not the case in other parts of the world.  In 2010, the European Agency of Safety and Health at Work undertook a review of economic incentives (“Economic incentives to improve occupational safety and health: a review from the European perspective”).  Those findings may be worth considering in light of some of the political changes on incentives in other areas of public policy, such as carbon taxes.

From outside the European Union, the comparative charts of member schemes are of less interest than the literature review and report conclusions.  The incentives that the report says have some positive benefits include

Conservative media begins to examine new OHS laws

Workplace health and safety made the front cover of the Australian Financial Review on 1 July 2011 (once the liftoff financial special cover was thrown away).  When this happens there is a serious issue to be dealt with or it is a beat-up.  Today’s article entitled “Danger: work safety laws just got stricter” (not accessible online) is a bit of both.

Reporters Fiona Carruthers and John Stensholt reference several cases that should have generated considerable debate in the OHS fraternity.  The first is the case where Clean Seas was fined $A27,000 after not preventing an alcohol-affected diver from entering the water where he blacks out and requires hospitalisation.  Curiously they also discuss, in a textbox, fines handed out to RailCorp and Esso, events that occurred in 2003 and 1998 respectively.

Perhaps not surprisingly a financial newspaper focuses on the financial penalties of OHS breaches, injuries and deaths but the timing of the article is also curious as the law changes, stemming from the OHS harmonisation process, have been scheduled for some time and do not come into effect across Australia until 1 January 2012. Continue reading “Conservative media begins to examine new OHS laws”

Directors Sentiment Index mentions OHS but……

The survey results of the inaugural Directors Sentiment Index have been around for several months but recent breakfasts discussing the findings have generated renewed media interest.

The survey provides a useful profile of how directors see their role and lists forecasts of trends but in none of the recent media reports does workplace health and safety receive attention although it is mentioned in the survey results.

The survey, conducted for the Australian Institute of Company Directors (AICD), lists occupational health and safety (OHS) as one of the components of what is described as Environmental, Social and Governance (ESG) issues (page 64).

(Curiously “Work Health & Safety” continues to be abbreviated to OH&S showing the persistence of OHS).

The chart shows that 54% of respondents believe that the importance of OHS issues will increase a little.  This can be interpreted in many ways – directors do not know what they are talking about,  the OHS profession has a bloated sense of its own importance, a survey over time may provide a better reflection of perception or that the work of Safe Work Australia on OHS and corporate governance is not gaining traction on the agendas at board meetings. Continue reading “Directors Sentiment Index mentions OHS but……”

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