economics – Page 54 – SafetyAtWorkBlog

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

The simple introduction of new OHS rules (good news for Australia)
Taxes (although the impact is limited) Continue reading “The European experience with economic incentives for OHS improvements”

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……”

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”

Category: economics

The European experience with economic incentives for OHS improvements

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Conservative media begins to examine new OHS laws

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Directors Sentiment Index mentions OHS but……

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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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