Business should stop complaining about paying for mental health. It’ll boost the bottom line.

[Article reprinted, with permission, from the May 24 edition of Crikey newsletter]

Luke Slawomirski

During the 2020 lockdowns, the business lobby showed a surprising concern for Victorians’ mental health: lockdowns were bad because they’d cause a spike in mental illness and suicides far worse than the COVID-19 cases and deaths they’d prevent.

The suicide spike never happened. What did happen was much-needed additional funding for mental health — $3.8 billion over four years — announced in the 2021-22 state budget on Thursday.

But the way business reacted suggests its interest in mental health has waned.

You see, the measures aimed at better prevention, diagnosis and treatment of mental ill health will be funded by a levy: 0.5% for businesses with payrolls above $10 million and 1% for those above $100 million. Critics, including the federal treasurer, claim this will cruel “job creation and confidence“.

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The causes of unsafe behaviours

This blog has always had strong reservations about the occupational health and safety (OHS) focus on the unsafe behaviour of workers to the exclusion of organisational and socio-economic factors. A recent research study on Iranian workers provides a fresh look at the causes of unsafe behaviours applicable to a wide range of occupations.

The report* by Mahdi Malakoutikhah, Mehdi Jahangiri, Moslem Alimohammadlou,
Seyed Aliakbar Faghihi, Mojtaba Kamalinia of the Shiraz University in Iran found three factors contributing to unsafe behaviours:

  • Organisational
  • Individual
  • Socio-economic

Nothing radical in those categories but the subcategories and themes are more useful as this table shows.

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Latest Psych Health Code released

The big occupational health and safety (OHS) news in Australia has been the New South Wales release of its Code of Practice for Managing Psychological Hazards at Work. This Code is not mandatory but is a very good indication of what the OHS regulators (and perhaps eventually the Courts) believe are reasonably practicable measures for employers and business owners to take. These measures are discussed in detail below.

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Australia gets serious on psychological health at work

Below is an article written by Carlo Caponecchia and published originally on May 25 2021. Caponecchia is a leading figure in workplace psychological hazards and strategies. The article is reproduced with permission.


Employers are about to ramp up their efforts to protect mental health at work.

Last week, workplace health and safety (WHS) ministers from around Australia agreed to changes that will formalise what’s expected of employers in relation to mental health in Regulation. 

These changes respond to a review of the model WHS laws by Marie Boland, former Executive director at Safework South Australia. The model WHS laws are a “blueprint” used since 2011 to make safety laws more consistent across the States and Territories. 

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Stepping forward a bit, maybe

Last week the Australian Council of Trade Unions (ACTU) issued a media release describing the meeting of Work Health and Safety Ministers presenting a

“… huge step forward on mental health…”

The “step” is more walking on the spot than a step forward as the obligation to address psychological hazards in the workplace has existed in Australia for decades. It has just been ignored.

However, what caught my attention was this statement:

“Up to 45 per cent of mental health issues are attributable to work…..”

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Psychological harm gets new regulations and funding access

The State of Victoria had a big week on mental health, with the Labor Government allocating billions of dollars to the improvement of the mental health of its citizens. Much of the justification for the spend (and the imposition of a mental health levy on large companies) is in response to the recent Royal Commission into Mental Health Systems. Workplace health and safety was on the agenda in that Royal Commission. Hence, it is worth looking at how, or if, this recent Budget helps employers improve the psychological health of their workers in anticipation of new regulations on this hazard promised by Victoria’s Minister for Workplace Safety, Ingrid Stitt.

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New workplace mental health info but no new strategy

On May 20, 2021, Australia’s Work Health and Safety (WHS) Ministers to discuss a range of occupational health and safety (OHS) matters. One matter will be the inclusion of a specific requirement on employers that, according to the Australian Council of Trade Unions (ACTU):

“…. would finally require employers to identify and address risks to mental health, in the same way, they are required to with risks to physical health.”

What the ACTU fails to make clear is why this regulatory change is required when the duty to provide a physically and psychologically safe and healthy workplace already exists in the current OHS/WHS laws in Australia.

The ACTU does, however, with the help of the Australia Institute and Centre for Future Work, provide more data on work-related mental health. The union movement is one of the few voices that acknowledge the structural elements of OHS but fails to consider any options other than regulation and, with a federal conservative government in power, it is unlikely to receive an attentive audience.

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