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.

Cover of The-Australian-Workplace-Barometer-reportAlthough 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 47workhev1A 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”

It can take a long time to learn how to manage workplace safety

On 21 December 2012 in the South Australian Industrial Court, Amcor Packaging (Australia) was fined $A96,000 over a breach of the occupational health and safety (OHS) laws.  That type of sentence appears frequently in SafetyAtWorkBlog but the difference this time is that it is the third similar OHS prosecution and fine applied to Amcor in South Australia.  Amcor Packaging has had similar OHS problems in Queensland and Victoria.

According to a SafeWorkSA media release (not yet available online), the latest prosecution involved an incident in November 2010 where:

“Two workers were walking on conveyor rollers to guide an unstable stack of cardboard when one inadvertently stepped into a gap between the rollers. The female worker was then struck by the arm of an automated pallet sweeper, sustaining multiple fractures to her lower leg and ankle.”

Cover  from 2012_sairc_59In his judgment on the case, Industrial Magistrate Stephen Lieschke said there was no risk assessment at the plant and a lack of engineering controls.  The two previous Amcor offences in South Australia also related to inadequate engineering controls.

Recurrence

Magistrate Lieschke also said that

“The two prior offences are highly relevant to this sentencing process, as the court is left with a low level of confidence that Amcor will not commit any future offences…..,”

In June 2008 law firm Holding Redlich mentioned an increase in an OHS penalty against Amcor by the Court of Appeals: Continue reading “It can take a long time to learn how to manage workplace safety”

Considering organisational violence may provide a more effective path to controlling psychosocial issues at work

Vaughan Bowie is an Australian academic who has chosen workplace violence as his major area of interest. Bowie came to general prominence earlier this century with several books and his contribution to the WorkcoverNSW guidance on workplace violence.

Cover from Proceedings_3rd_Workplace_Violence_2012His research has taken him to look at “organisational violence” and in October 2012, he addressed the 3rd International Conference on Violence in Healthcare (the proceedings are available HERE) on the topic in a presentation called “Understanding organizational violence: The missing link in resolving workplace violence?”

Bowie writes, in the conference proceedings (Page 155), that

“Initially much of the workplace violence (WPV) prevention and management responses focused on criminal violence from outside organizations. At the same time there was also a growing concern about service user violence on staff especially in the human services area. A later stage of this development was a growing recognition of relational violence at work.  This includes staff-on-staff violence and aggression, bullying, horizontal violence, sexual harassment and domestic violence.

Models based on these areas of WPV have been developed by the International Labor Organisation (ILO), the World Health Organisation (WHO), the Injury Prevention Research Center (IPRC) and the California Occupational Safety and Health Administration (Cal/OSHA) and other regulatory bodies. This presentation will show that the current models and responses based on these types of WPV are inadequate and ineffective because they largely ignore the fact that organizational culture and management style have a direct contributory effect on the types of violence experienced by employees, third parties, and service users.  The findings demonstrate that what at first appears to be criminal, service user or relational violence at work may in fact be the outcome of a type of ‘upstream’ organizational violence trickling down in a toxic way triggering further violence.” (emphasis and links added) Continue reading “Considering organisational violence may provide a more effective path to controlling psychosocial issues at work”

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”

Truly acknowledging failure provides a strong base for improvement

When one fails in safety management, people can get hurt or die, yet safety professionals and business executives rarely acknowledge this failure, even though companies may plead guilty in court. Instead “mistakes” are made, “deficiencies” are identified and investigations uncover “areas for improvement” but these are rarely described as “failures”.

October 13 was the International Day For Failure (IDFF), a day that is intended to provide a structure for the discussion of failure and how we respond to, and cope with, failure.  The quote that most summarises the day is

“Failure is not the enemy, the fear of failure is”.

Part of the impediment for growth in safety management is that people are encouraged to deny liability for their actions.  Executives receive legal advice to say as little as possible and to keep as much as possible under legal-client privilege.  This is anathema to the principles of safety management that require failures to be acknowledged and for new preventive strategies to be developed. Yes, shit happens but safety management is particularly required to not let the shit happen twice. Continue reading “Truly acknowledging failure provides a strong base for improvement”

Safety culture change through a regulatory-based market mechanism

In late August 2012 at a breakfast seminar, the Director of Construction Code Compliance, Nigel Hadgkiss outlined the 1999 Victorian Code of Practice for the Building and Construction Industry, which complements a 1997 National Code, and recently released implementation guidelines being imposed on many Victorian construction companies by the Liberal Government. The Code and implementation guidelines are ostensibly about industrial relations or, as Australia is increasingly calling them, workplace relations but do contain some interesting safety elements.

An intriguing element of the Code and guidelines is the introduction of a workplace culture through contract obligations and how this may affect workplace safety.

Hadgkiss stated, according to a copy of his presentation, that

“Where a party tenders for public work called for after 1 July 2012, the party is required to comply on any subsequent privately funded work.”

This quote means that any company that applies for a Victorian Government contract, of specific costs and other criteria, must comply with the Code.  Any client is entitled to impose their own contractual conditions. The obligation that  “the party is required to comply on any subsequent privately funded work” means that even if the contractor or party fails to win the contract it tendered for its management of  any subsequent project, even one from non-government funding, must also comply with the Code.

One of the four priority elements of the Code is occupational health and safety, so OHS requirements will spread from principal contractor, or tenderer, to contractor, sub-contractors and sub-sub-contractors like a virus or an “ITI”, an industry-transmitted infection.   Continue reading “Safety culture change through a regulatory-based market mechanism”

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