Category: insurance

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”

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”

The social context of OHS laws is being poorly handled

Australian lawyer Michael Tooma is mentioned regularly in the SafetyAtWorkBlog, mostly because Tooma is one of the few who consider workplace safety in the broader social context.  In The Australian newspaper on 10 February 2012 Tooma wrote that new work health and safety laws being introduced in Australia present

“…a march … into the traditional heartland of the public safety, product safety and professional liability territory, and it brings with it a criminalisation of what was once an exclusively civil liability domain.  The new laws did not invent this trend, they just perfected it.”

Right-wing commentators would jump on this and declare “nanny state” but it is vitally important to note that this trend of “protectionism”, or the “compensation culture” as described in the United Kingdom, did not originate in occupational health and safety (OHS) laws.  The OHS profession, business operators and workers will need to learn to accommodate and manage this social trend that has been imposed.

Tooma writes that ”

“…we have not had a proper debate about the incursion of the laws into nontraditional areas and its impact on the resources of firms, regulators and ultimately work safety standards.”

The debate may already be over. Continue reading “The social context of OHS laws is being poorly handled”

UK’s approach to OHS reform is flawed by short-term political strategy

England’s Prime Minister, David Cameron, has described OHS as a “monster” in a speech to small business owners on 5 January 2012. It is important to note the PM’s comments prior to his monster reference that have not been repeated in the mainstream press. He refers to

“… a great big machine of health and safety that has built up over years.”

Cameron feels that he needs to address an OHS regulatory system and enforcement strategies that have become too complex for, particularly, small business to comply with. Part of his solution is to exempt the self-employed, in some specific sectors, from OHS laws. This is a questionable decision as it effectively establishes a two-tier safety management regime and sets a precedent for other similar sectors to lobby for an exemption from other, perceived, onerous laws.

It may be that OHS laws in the UK have become overly complicated over time but the role of the media must be considered in that it has focussed on many absurd managerial decisions that have resulted from a skewed understanding of OHS and risk. Frequently the media reports have no relation to OHS laws and all to do with an increasing litigious society and the pursuit of money through, potentially spurious, public liability insurance claims.

In the 5 January 2012 speech Cameron states that

“…the key about health and safety is not just the rules and the laws and the regulations – it is also the culture of fear many businesses have about health and safety.” (emphasis added)

Cameron explains his answer for reducing this fear of health and safety, the capping of fees that lawyers can earn from legal action against businesses on behalf of their clients, usually, employees. There is no fear of health and safety, it is a fear of litigation. Cameron is not on about OHS law reform, his concern is about “unnecessary” litigation costs. This is unlikely to be reduced by cutting the budget of the Health & Safety Executive (HSE) which must reduce services as the HSE resources have been contracting for some time. Continue reading “UK’s approach to OHS reform is flawed by short-term political strategy”

Work-related suicide gains some fresh media recognition

On 4 November 2011, Victoria’s 7.30 program broadcast a heart-rending story about the suicide of a woman who, her mother believes, took this action after suffering chronic pain due a work-related incident and being given insufficient support from her employer and workers’ compensation bodies.  The story of Rebecca Wallis (spelling uncertain) apparently generated sufficient communication to the Australian Broadcast Corporation for 7.30 to undertake a follow-up and more broad look at the relationship between workers compensation and suicide.

One of the people interviewed in the 11 November 2011 program was John Bottomley of the Creative Ministries Network.  Bottomley has published several research reports on work-related deaths and suicides.  The figures he mentions in the report, that around 30% of the work-related suicides identified in his research had a “work injury or work-related mental illness” as a contributory factor, are included in the online publication from 2002, “Work Factors in Suicide“.  What is not mentioned is another statistic in his report:

“Nine people (8%) were on workers’ compensation when they committed suicide.” (page iii) Continue reading “Work-related suicide gains some fresh media recognition”

Australian OHS experts call for a single OHS regulator and a unified insurance system

Some of Australia’s top work health and safety experts have stressed, to Safe Work Australia, the need for a single national OHS regulator.  Many also called for a radical overhaul of workers’ compensation and insurance structures to achieve a combined insurance/compensation similar to that of New Zealand, the Accident Compensation Commission (ACC).

These calls were made in a  whole day workshop, conducted by Safe Work Australia on 30 August 2011, on the development of the next ten-year national OHS strategy.  This was the latest of around ten consultative sessions whose notes will be summarised and posted online.  The notes from an earlier seminar list the following discussion topics:

  • “The need to focus on work health and safety prevention.
  • Engagement with target groups and industries to ensure advice and support is relevant to enable them to effectively respond to hazards.
  • Engineering hazards out through good design.
  • Influencing the supply chain inside and outside Australia.
  • Prioritising key work health and safety hazards and focusing national attention.
  • Creating opportunities for innovation in work health and safety particularly within the regulatory framework.
  • Enhancing the culture of safety leadership (promoting highly reliable organisations).
  • The importance of safety culture.
  • Enhancing the capability of workers to return to work following accident or illness.
  • Influencing or assisting academia to undertake research – focusing on intervention effectiveness.
  • Developing a shared communication strategy to promote the new principles of the new Strategy.”

These echo many of the comments in today’s seminar and illustrate what was a major missed opportunity.  The theme of today’s workshop was to imagine what OHS (or work health and safety or work health safety & environment, as some suggested) will be like in 2022 but there were few futuristic suggestions.  This was the opportunity to extend some of the practices currently undertaken by ten years. Continue reading “Australian OHS experts call for a single OHS regulator and a unified insurance system”

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