economics – Page 50 – SafetyAtWorkBlog

Trade unions enter debate on profits vs safety

The Australian Council of Trade Unions (ACTU) has issued a media release aimed at addressing or countering some of the concerns over new OHS laws expressed by the business community and some politicians recently.

ACTU President Ged Kearney has said

“Attempts by employer groups to weaken the new regulations are yet another example of business putting profits before safety….. Employer groups called for a national set of health and safety laws, and we would have thought that business would welcome a tough approach to OHS regulations.”

Sympathy for business is unlikely from the union movement but some sympathy is warranted. Australian business was promised that new work health and safety laws would reduce the business costs of complying with laws that differed from across a number of jurisdictions. As companies begin to assess the impacts of new laws on their own business operations, as all companies surely must do, they are noticing additional costs for compliance. Continue reading “Trade unions enter debate on profits vs safety”

Dis-harmonisation over OHS laws

Victoria’s largest OHS conference and trade show has ended. The shadow of the impending harmonisation of OHS laws hung over both events. The OHS message throughout the conference was one of nothing to worry about. WorkSafe’s Ian Forsythe felt that Victoria was well-placed for minimal disruption as the OHS laws in that State had been thoroughly reviewed by Chris Maxwell QC in 2003. Forsythe described the current OHS review as “Maxwell on steroids”, a good line for the conference audience but one that reflects the, often, smug approach of many Victorians to the harmonisation process, an approach not shared elsewhere as shown by a front-page article in The Australian on 9 April 2011.

The Business Council of Australia is concerned about the different interpretations of the laws by each of the states. This has been a possibility from the very start of the reform process because the focus was always harmonisation, not uniformity. Continue reading “Dis-harmonisation over OHS laws”

Success from enlightenment not compliance

An article in the InDaily online newspaper for 4 April 2011 provides several safety management issues that are worth pondering. (Thanks to the readers who brought the article to my attention)

Keith Brown was the CEO of South Australia’s Workcover Corporation earlier this century. He has told InDaily that he lost his position due to a change in the politics of the state and has not been welcome since. (A more personal perspective on Brown was provided by Rosemary McKenzie-Ferguson in a January 2011 blog comment.)

Brown says that the most effective way of reducing the unfunded liabilities of workers compensation is to communicate with all stakeholders in the injury management process. He believes that

“WorkCover now operates more to service the needs of the bureaucracy compared to the operation he ran for six years in favour of the clients.” Continue reading “Success from enlightenment not compliance”

Transocean executives gain safety bonuses

News that Transocean are awarding their executives substantial safety bonuses has the internet aflame with outrage. Certainly it seems hard to justify the bonuses given after the death of 11 workers and the damage to the local environment, economy and community but the action will also affect safety management.

Safety management is increasingly relying on statistics to identify performance levels. Transocean’s actions illustrate that some statistics bear little relation to reality or, at least, the real-world context of its operations.

AFP quotes Transocean as reporting to the US Securities and Exchange Commission that:

“Notwithstanding the tragic loss of life in the Gulf of Mexico, we achieved an exemplary statistical safety record as measured by our total recordable incident rate and total potential severity rate” Continue reading “Transocean executives gain safety bonuses”

Election excitement masks OHS confusion

The Liberal Party of New South Wales won last Saturday’s State election in a landslide. The New South Wales employer associations are jubilant but the jubilation masks some confusion over OHS reforms.

The new NSW government is being urged to act promptly on OHS reform issues particularly by the Australian Institute of Company Directors (AICD) and the NSW Business Council but the media statement of the AICD illustrates the confused understanding of the national OHS reforms. It says

“Reforms should include reducing the burden on business of excessive regulation, re-committing NSW to participate in the national reform of occupational health and safety laws and reducing the excessive liability burden imposed on company directors by state legislation.”

“The new government must move decisively in its first term to reduce unnecessary regulation and red tape, which is strangling business.”

It is acknowledged that the introduction of new OHS laws will substantially increase the need for paperwork in order to produce the evidence required to support compliance, due diligence and positive OHS duties on managers. It seems impossible to achieve OHS reforms with also accepting the increased documentation. Continue reading “Election excitement masks OHS confusion”

Creating jobs is a waste unless those jobs are safe

Coming out of recession or, at least, a global financial crisis seems to mean that the creation of jobs is the only driver of economic growth. Governments around the world seem obsessed with employment creation but rarely is the quality of the employment ever considered.

The drive for jobs at the cost of other employment conditions such as safety was illustrated on 11 March 2011 in an article in The Australian newspaper. New South Wales’ election is only a short while away and, as it is widely considered to be an easy win for the conservative Liberal Party, government policies are already being discussed.

“Industrial relations spokesman Greg Pearce, a former partner at Freehills, said he was aware that concerns about the workplace safety system had emerged in the legal profession.

But the Coalition’s main goal was to minimise uncertainty to encourage job creation.”

The push for jobs is also indicative of short-term political thinking. Continue reading “Creating jobs is a waste unless those jobs are safe”

OHS harmonisation to result in a substantial increase in costs to business

Australian lawyer Andrew Douglas has provided a frank assessment of the OHS harmonisation process instigated by the Australian government to reduce red tape and administrative costs of safety. In Smart Company on 1 March 2011, Douglas wrote:

“…the Model Act, the regulations and documents that flow from it will dramatically increase state-based businesses legislative compliance, will massively increase the paperwork proving compliance and will inevitably lead to a substantial increase in costs to business in managing safety and OHS.”

Most State governments continue to support the harmonisation process, in almost all its elements, as a positive for business. So what’s the story here?

Andrew Douglas’ opinion needs serious consideration as it is one of the few contrary positions expressed to date. Continue reading “OHS harmonisation to result in a substantial increase in costs to business”

Category: economics

Trade unions enter debate on profits vs safety

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Dis-harmonisation over OHS laws

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Success from enlightenment not compliance

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Transocean executives gain safety bonuses

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Election excitement masks OHS confusion

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Creating jobs is a waste unless those jobs are safe

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OHS harmonisation to result in a substantial increase in costs to business

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