Category: OHS

Australian Statistics – Part 2 – Workers’ Compensation

Safe Work Australia was released four statistical reports into worker health in Australia. These are important and useful reports that will assist many companies and safety professionals to better address workplace hazards.

Factors affecting applications for workers’ compensation

Pages from WCapplicationsThis report has identified several factors that affected the likelihood of employees making workers’ compensation claims and the reasons for not applying for workers’ compensation following a work-related injury. These include:

Sex

Female employees were less likely to apply for workers’ compensation for their work-related injury than male employees.

Of injuries that involved some time lost from work, 52% of female employees did not apply for compensation compared to 46% of male employees.

Reasons for not applying

Male and female employees did not apply for compensation for nearly four tenths of their injuries that involved some time lost from work because they considered the injury too minor to claim. For a further one-tenth of these injuries, male and female employees felt it was inconvenient or too much effort to apply.

Male employees did not apply for compensation for over two in ten injuries because they did not know they were eligible for compensation.

For female employees, nearly two in ten did not apply due to concerns about their current or future employment.

Age

Young female employees were least likely to claim workers’ compensation while males aged 45–54 years were most likely to claim compensation for injuries that involved some time lost from work.

Type of injury

The type of injury had little impact on whether an injured employee applied for workers’ compensation except in cases that involved stress or other mental conditions. While around half of all injuries that involved some time lost from work were claimed, injuries that involved stress were only claimed in 36% of cases.

Duration of employment

There was little difference in the percentage of employees who claimed workers’ compensation based on employment duration: employees with less than one year of employment claimed workers’ compensation for 52% of their time lost injuries compared to 47% of time lost injuries for those with more than one year of employment.

Alternative sources of financial assistance

Regular sick leave was used by nearly two in ten injured employees who did not apply for workers’ compensation

One in ten accessed government payments such as Medicare and Centrelink payments.

Full-time / part-time employment

Of the injuries incurred by full-time employees that involved some time lost from work, 47% applied for workers’ compensation compared to 53% of part time employees.

Unlike full-time employees, one of the main reasons why part-time employees did not apply for compensation was due to concern about current or future employment.

Leave entitlements

Of the injuries to employees with paid leave entitlements that involved some time lost from work, 56% applied for workers’ compensation compared to just 43% of employees without paid leave entitlements.

Injured employees without paid leave entitlements were three times as likely to think they were not eligible for workers’ compensation as employees with paid leave entitlements.

Australian Statistics – Part 1 – Employment Conditions

Safe Work Australia was released four statistical reports into worker health in Australia.  These are important and useful reports that will assist many companies and safety professionals to better address workplace hazards.

Pages from EmploymentconditionsSafetyAtWorkBlog is going to present some of the data in four blog articles, without commentary or interpretation, which is the usual approach.  Each article will be the summary of findings from each report.  Readers are strongly encouraged to download and read the full reports (links to each will be included in each article) as the summaries do not fully reflect the complexity of the analysis.

We want to thank the Safe Work Australia for their decision to provide such data.  It is an optimistic sign of improved communication for the national organisation.

The impact of employment conditions on work-related injuries in Australia

Employment status

  • Employees accounted for 88% of the total workforce in 2005-06.  Employees recorded a higher incidence rate of work-related injury compared to Employers or Own account workers (E/OAWs): 71 injuries per 1000 employees compared to 52 injuries per 1000 E/OAWs.
  • Employees recorded higher incidence rates in all industries except the Construction industry where similar rates were recorded for the two employment types.
  • Employees recorded higher incidence rates in all occupations except for Managers and administrators where E/OAWs recorded 76 injuries per 1000 workers compared to 53 for Employees.
  • Male employees recorded an incidence rate 1.4 times the rate for female employees whereas male E/OAWs recorded an incidence rate twice the rate of female E/OAWs.
  • E/OAWs recorded 19 injuries per 1000 E/OAWs for injuries involving five days or more compared to 21 for Employees.

Leave entitlements

  • Employees with leave entitlements recorded higher incidence rates of injury (76 injuries per 1000 workers) than employees without leave entitlements (66 injuries per million hours worked).
  • When hours of work were examined, it was found that full-time workers experienced the same frequency rate of injury regardless of whether they had access to paid leave or not. The same pattern was observed for part-time workers, though frequency rates for part-time workers were double those of full-time workers.
  • Male employees without leave entitlements recorded the highest frequency rates of work-related injury, substantially above male employees with leave entitlements and higher than female employees without leave entitlements.
  • Male and female frequency rates for employees with leave entitlements were similar.
  • Employees with leave entitlements recorded higher incidence rates than Employees without leave entitlements in all occupations. However, by industry employees without leave entitlements recorded higher rates in the agriculture, forestry and fishing and property and business service industries.

Full-time / Part-time

  • Part-time workers recorded a frequency rate of work-related injury more than twice the rate for full-time workers: 74 injuries per million hours worked compared to 35 for full-time workers.
  • Male part-time workers had higher rates of injury than female part-time workers.
  • Young part-time workers, who were less than 25 years old, had a higher rate of injury than older part-time workers.

In Australia OHS management is red tape

The Australian newspaper of 1 September 2009 epitomised the ideological problems with OHS in a business management context.  Page 5 has two articles next to each other:

“Renewed pledge to cut business regulation” and

“Building chief ‘spat on an abused‘”.

The first article reports on a speech by the Competition Minister, Craig Emerson, where it is reported that the Minister

“has pledged his commitment to removing unnecessary regulation that hampered business”.

The Minister was speaking to a business audience and has been described as less friendly to regulation than his predecessor.  OHS compliance is often bundled as an element of unnecessary business paperwork by employer and industry groups however, in this speech, the Minister spoke more of open markets.

The second article focuses on an attack on the head of the much-hated Australian Building & Construction Commission, John Lloyd, but also reports on the national union protest scheduled for 1 September 2009, concerning the weakening of OHS laws through the harmonisation process.

The article reports on a union survey:

“Unions commissioned a poll that showed 78 per cent of those surveyed agreed employers should do more to protect the health and safety of their workers, even if it led to increased costs or red tape.”

That unions would even accept that OHS compliance could be considered red tape is a great concern, and the phrase is taken directly from the ACTU media release.

Union Survey figures

SafetyAtWorkBlog is endeavouring to obtain the original survey results (over 1000 respondents (workers) taken in the last week of August 2009) but for the moment it is worth quoting ACTU Secretary Jeff Lawrence’s interpretation of the statistics.

“… this poll shows the Australian public don’t want workplace safety rights undermined.”

“The poll shows there is significant support in the Australian community for stronger rights and protections for workers and an ongoing role for unions in checking workplaces where employees are worried they are in danger.

“The poll finds 81 per cent of those surveyed agreed workers should have the right to call in help from a union to check on health and safety issues regardless of their employer’s approval.

“Seven out of ten Australians (69%) believe that injured workers should be able to take their employer to court under workplace health and safety laws.”

Business and government in Australia are harmonising OHS laws to reduce the red tape business compliance costs.  Unions believe that OHS red tape and increased business cost is acceptable.

What does this leave the safety professional who says that they can minimise the red tape associated with OHS compliance AND that safety is not a cost but an investment?  Out in the cold with the Victorian WorkCover Minister, it is suggested.

Kevin Jones

The importance of handling professional complaints professionally

Any member of any profession can be subject to the complaints process of that profession’s governing body.  A complaints procedure is an essential element of any organisation.  In fact, one could argue that the professionalism and maturity of an organisation can be judged by how that organisation investigates and handles a complaint.

Not only must a complaint be handled professionally, it must be seen to be handled professionally.

Regardless of whether a complaint is valid or baseless, it is essential to have

  • Clear guidelines on how to make a complaint and the consequences of lodging a complaint;
  • Defined complaints handling procedures;
  • Complaints procedures that have been tested through desktop exercises and simulations;
  • An independent assessor/mediator;
  • An understanding that of natural justice;
  • An independent appeals process; and
  • The commitment to support, in practice, the professional ideals espoused.

Many executives, particularly of volunteer organisations whose good intentions are often not supported by the necessary administrative procedures, resources or skills, run the risk of exacerbating both frivolous and valid complaints.

As can be seen by some of the articles in SafetyAtWorkBlog, from James Hardie Industries to restorative justice to handling aggressive customers, people expect a certain dignity and accountability in their professional dealings.  A major element of safety management, and basic professionalism, is the ability to apologise when mistakes have been made.  For only through an acknowledgement of mistakes can the integrity of a process be (re)established.

Australia’s Prime Minister, Kevin Rudd, has shown the power of the apology when he acknowledged in 2008 the injustices done to Australia’s indigenous population.  It took courage to apologise for actions done long ago by someone else.  The ability to apologise shows a maturity and professionalism that is still lacking from many Australian organisations, voluntary and corporate.

Kevin Jones

The importance of independent advice at Board level

The recent court decision by Judge Gzell on the previous directors of James Hardie Industries generated considerable media attention in Australia for many reasons; a primary reason is that the company is perceived as making its profits at the cost of its employees’ health.  The social and corporate cost of inadequate workplace and product safety management is now clear to everyone, even public policy makers.

Another area of attention has come from how Judge Gzell’s decision has affected the operation of company boards and the roles of directors.  This is hugely important to the big end of town but the rules apply to boards big and small.  In August 2009 Regnan (Governance Engagement & Research Pty Ltd) identified three major points from Gzell’s decision; the third is the one that is most broadly relevant.

“Non‐Executive Directors – Today more than ever, investors need competent directors from diverse backgrounds, and this case highlights the critical role non‐executive directors play in overseeing and interrogating company management.  While the facts of the James Hardie case are very specific and do not create additional responsibilities for directors, it does underscore the value at risk when non‐executives fail to perform their role and highlights the role of independent directors to satisfy themselves through the taking of advice wholly independent of management.” [my emphasis]

The need for independent advice is regularly identified as an important element of effective risk management for all industry and professional sectors.  A board of “yes-men” can do a disservice to an organisation in a very short time.

The OHS professional often seeks a “devil’s advocate” role at senior management level yet to achieve that level of influence one often has to “sell one’s soul to the devil”.  It may be possible to be an independent director who holds strong OHS opinions but one would never achieve such a position unless one could demonstrate business acumen, and business acumen often requires the dilution of principles.

The environmental movement has shown one pathway to corporate influence but it is hard to identify an environmental advocate who has achieved corporate influence while maintaining a grass-roots credibility.  Similarly, at some point in the OHS professional’s career it is necessary to choose between the ideology from which progression has come and the career progression that requires a reinterpretation of that ideology into the corporate mould.

Is it possible to represent core OHS principles at board level without “joining the darkside”?

Kevin Jones

Challenges for US labor unions and lessons for all businesses

Doug Henwood releases regular podcasts of his radio broadcasting and occasionally there is content that provides an interesting perspective on occupational health and safety, as does the 3CR program, Stick Together.  On August 1 2009 Henwood interviewed journalist, Steve Early, author of “Embedded With Organized Labor”. The podcast is available online. The Early interview clicks in at the 38 minute mark.

(A video interview with Steve Early is also available)

Early talks about how difficult the United States union movement has found it to maintain the enthusiastic momentum from 15 years ago.  He says that several industrial relations programs have slowed due to a lack of support from the grass roots or perhaps the exclusion of this sector in the initial planning of the programs.

As with many policy issues in the early period of the Obama government, a lot of interest is being placed on labour relations.  The government has begun discussions with labour leaders but these leaders face the challenge of gaining the government’s attention during the miasma of policy changes and President Obama has clearly stated to labour leaders, according to Early, that health care is his primary policy area at the moment.  The last month has shown the level of the challenge on health care policy.

Steve Early echoes the thoughts of Tom Bramble, an Australian academic analyst of unions, when he advocates an increased role for the rank-and-file union members.  It is in this sector that the passionate values of industrial relations and trade unionism are felt the strongest, often because it has avoided the political baggage that comes with the upper levels of the union movement.

Early reiterates that the best asset for change is an organisation’s membership.  He agrees that there is often a class-divide between the rank-and-file members and union management.  In many large organisations, senior executives are being encouraged to gain a better understanding of their organisations by jumping across the structure to (re)experience the lot of the membership.

Early says that the union movement in the 1930s resolved this by a major reconstruction of unions.  Corporations and conservative organizations are loathe to deconstruct in order to rebuild because, primarily, the executives get too comfortable.  Executives who genuinely understand their organisation, particularly those organisations that are member-based, can rebuild and remain true.

Kevin Jones

Productivity is also the Government’s aim with OHS law reform

A few posts back the productivity priorities of Australian employer groups toward OHS harmonisation were noted, particularly that of the Australian Chamber of Commerce & Industry.

On 25 August 2009, Australia’s Workplace Relations Minister, Julia Gillard, addressed the 15th World Congress International Industrial Relations Association.  The Minister mentioned OHS and said:

“So, our new workplace relations system is now up and running. We are close to reaching agreement with State Governments to end the fragmentation of the past and have the entire private sector by the one national workplace relations system.

Additionally, for the first time ever, after a 25-year wait, Australian businesses and workers are close to having a uniform national occupational health and safety laws. A massive step forward in achieving a seamless national economy that Australia needs to release lasting and much-needed productivity improvements.

But the legal changes are the beginning, not the end, of the reform process.

Australians should now move beyond a focus on law changes to a new focus on cultural change in the workplace. We need to build partnerships between management and workers and their unions that operate for the benefit of all.

Change of this sort is slower to take root than rapid structural reform.

It is more dependent on intangibles, including the goodwill and motivation of those who take part. But in the long run it will have an important impact on our economic prospects.

So over the coming months and years we will be looking at ways of embedding change through workplace relations, innovation and leadership practices in workplaces.” [my emphasis]

Minister Gillard talks of OHS law reform in the same productivity terms as the employer groups.  This may be down to the audience at the conference and the congress’ theme as well as industrial relations being the main focus of the government’s reform agenda but it is an inclusion that, for fairness, it was worth highlighting.

Rather than taking the OHS paragraph by itself, it is telling to see the section in the speech that includes the only direct mention of OHS law reform.  Minister Gillard continues to emphasise the process of establishing harmony across industrial relations as much as in OHS law.

She also is clearly up on the latest business lingo, even though some of the phrases have a cloudy definition –

  • “cultural change”
  • “intangibles”
  • “innovation”
  • “leadership”
  • “collaboration”

The Minister rightly states that law reform is at the end of one process but often at the start of a far more difficult reform process.  There is no guarantee that the new OHS will have a smooth entry and, as with any law, the best test for its suitability is in the Courts, sadly.

Kevin Jones

© Workplace Safety Services P/L (ABN: 68091088621) and SafetyAtWorkBlog, 2008-2024. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Kevin Jones and SafetyAtWorkBlog with appropriate and specific direction to the original content.

Concatenate Web Development
© Designed and developed by Concatenate Aust Pty Ltd