small business – Page 18 – SafetyAtWorkBlog

Robust analysis of Work Health Safety laws shows considerable economic benefits

Recently SafeWorkSA released its “Regulatory Impact Statement: Model Work Health and Safety Regulations in South Australia“. This report presents radical different economic data compared to the (increasingly discredited) OHS business cost analysis undertaken by PricewaterhouseCooper (PwC) for the Victorian government.

The South Australian report, conducted by Deloitte, found the following economic and social impacts of new work health and safety laws:

“Our analysis indicates that adoption of the work health and safety reforms is the preferred option because it achieves the objectives of work health and safety harmonisation as determined by COAG. Moreover, the safety benefits of harmonisation exceed the compliance costs, and the long-term return to the SA economy significantly exceeds the one-off cost of implementation of the new laws, even without taking into account the expected productivity benefits of the reforms.”

The Executive Summary provides a good level of cost data with far less equivocation than does the PwC report and therefore provides an impression of greater validity. Continue reading “Robust analysis of Work Health Safety laws shows considerable economic benefits”

Latest Productivity Commission data on Australia’s OHS costs

On 15 May 2012, Australia’s Productivity Commission (PC) released its findings into ” the impacts of the Council of Australian Governments (COAG) Reforms: Business Regulation and Vocational Education and Training (VET)”. The report includes a chapter on Occupational Health and Safety (OHS). That chapter states:

“Uncertainty exists over the implementation of the agreed [OHS harmonisation]reforms by the remaining three jurisdictions.

If implementation proceeds, and the agreed reforms become operational:

all employers are likely to face transition costs in the order of $850 million in aggregate (around $75 per worker);

multi-state businesses are likely to see compliance costs fall and safety outcomes improve, generating total possible net cost savings of $480 million per year; and

for single-state businesses, despite possible improvements in safety outcomes, additional compliance activities are likely to increase business costs in aggregate for this group by around $110 million per year.”

$A75 per worker seems an acceptable impact although, at first view, single-state businesses, the vast majority of Australian businesses, look to be disadvantaged. However, the report also states that

“Without full implementation [of OHS harmonisation], there is a risk that businesses will face significant transition costs without realising the possible cost savings from harmonised laws.” (emphasis added)

Here is the political and economic need to play well with each other. Continue reading “Latest Productivity Commission data on Australia’s OHS costs”

Safety leadership and culture require accountability

At the recent Safe Work Australia Awards, the Minister for Workplace Relations had a dig at “safety culture“, according to an article from the National Safety Council of Australia. Bill Shorten said :

“It is not the systems or the fancy talk about culture that will save people’s lives.”

This has been interpreted by some as Shorten disparaging the advocates of safety culture. I agree that safety culture can be used as a euphemism for “Act of God” and therefore take no preventative action but safety culture is not designed by Gods, it is designed and implemented by Chief Executive Officers and Boards of Directors, often under the rubric of “leadership”. Continue reading “Safety leadership and culture require accountability”

Victoria bows out of OHS harmonisation

According to an official budget speech by Victoria’s Treasurer, Kim Wells, the State will not be enacting the model Work Health and Safety laws. Under the subheading “A Stronger Victoria” (page 14), the Treasurer states

“The Government will not sign up to the current proposal for harmonised legislation for occupational health and safety. It offers little benefit for Victoria to offset the $3.4 billion of estimated costs, the majority of which falls on small business. Victoria will continue to work towards best practice legislation.”

Award winner illustrates a potential new approach to small business OHS support

The most interesting winner at the Safe Work Australia was a small greengrocer, The Hub Fruit Bowl. This family run business improved their occupational health and safety management system (OHSMS) with little more than a free “Small Business Safety Pack” from SafeWorkSA (no longer available on the SafeWorkSA website). This is a remarkable contrast to the, presumably expensive, Dupont-based achievement of Australian construction company, Grocon. The win also illustrates the continued importance of the need for free, or cheap, practical plain safety advice. (Why isn’t there a Dummies Guide to Workplace Safety?)

The Hub Fruit Bowl’s achievement could have far-reaching effects as the low-cost approach can be applied to thousands of small businesses in Australia. The greengrocer has a healthy record of providing young people with their first jobs, jobs that include a solid understanding of workplace health and safety. The Grocon experience is more corporate and very common where solutions are sought from outside one’s business.

The Hub Fruit Bowl’s win should encourage OHS regulators to reassess their small business OHS strategies. Instead of funding OHS consultants to provide three or six hours of OHS advice, frequent encouragement and engagement with small business, structured round documented processes may be more effective. SafeWorkSA does not mention the concept of “case managers” but applying this to harm and injury prevention strategies may have merit. Providing sustained support and encouragement instead of a quick intense session should be seriously considered by OHS regulators.

It may also be useful to consider providing pro-bono safety services to small businesses, as a civic duty but also to freshen the experiences of safety professionals.

Kevin Jones

Australian OHS awards need reviewing now more than ever

The various government safety awards process in Australia needs a thorough coordinated review in order to maintain their relevance. Earlier last year WorkSafe Victoria tried a new strategy to increase community participation in their awards process. This involved monthly mini-awards and nominees calling on their friends and professional networks for support and votes. It was worth a try but WorkSafe Victoria went it alone and it will be difficult to sustain this strategy without broader support, probably from the other States.

SafetyAtWorkBlog stated following last year’s national safety awards ceremony that change was required but no one took up the challenge. The need for review was even more evident at this year’s Safe Work Australia Awards held last week. The lacklustre atmosphere could have been partly due to an MC, Paul McDermott, who is more comfortable piercing the pretensions of institutions. In these awards, it would have been rude to make fun of workplace safety. McDermott understood this and could only make jokes of his own brushes with danger, such as having his scrotum pierced with a winklepinker. But it is more likely that the awards had more serious deficiencies. Continue reading “Australian OHS awards need reviewing now more than ever”

Bill Shorten speaks at the Safe Work Australia Awards

Australia’s Employment and Workplace Relations Minister, Bill Shorten had a very busy day on 26 April 2012 with the recent actions over the management of the Health Services Union. Tha evening he spoke eloquently and passionately at the Annual Safe Work Australia Awards. Not only did he speak but he also spent several hours speaking with award finalists winners. At these sorts of functions many politicians cannot wait to escape. But Bill Shorten is enormously well qualified for his role as the minister for employment relations, including workplace safety.

He diverged strongly from his written speech yet there was one section that he clearly felt strongly about and it is a point that many safety professionals should remember:

“Hazards and risks and the entire approach to risk assessment and risk management generally do not address what really happens at work. Beaconsfield gold mine had such a system. Longford oil and gas refinery had such a system before sections of it blew up in 1998.

It is not the systems or the fancy talk about culture that will save people’s lives.” (link added) Continue reading “Bill Shorten speaks at the Safe Work Australia Awards”

Category: small business

Robust analysis of Work Health Safety laws shows considerable economic benefits

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Latest Productivity Commission data on Australia’s OHS costs

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Safety leadership and culture require accountability

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Victoria bows out of OHS harmonisation

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Award winner illustrates a potential new approach to small business OHS support

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Australian OHS awards need reviewing now more than ever

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Bill Shorten speaks at the Safe Work Australia Awards

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