Global pressures on Australian workers compensation schemes

Around 18 months ago the Victoria Government launched WorkHealth, a health prevention program that would be funded from the interest generated from the pool of workers compensation funds.  SafetyAtWorkBlog has previously questioned how the program will be funded when its income source is likely to have been severely reduced due to the global economic problems.

On 1 April 2009 WorkCover in South Australia reported a half-year net loss of $313 million. WorkCover CEO Julia Davison said in a media release that

“the global crisis is, as expected, taking its toll.  In the last six months stock markets have declined, investors have experienced significant losses, and interest rates have fallen significantly,” she said  “Like all investors, WorkCover has been hit hard by the global financial downturn.”

Earlier in March 2009, the Chair of the WorkSafe Board Elana Rubin said 

“the significant downturn on the world financial markets and reduction in interest rates had combined to drive a net loss of $1.42 billion for the half year.  Whilst interest rate reductions are good news for those of us with mortgages, they have the opposite effect on our scheme – in the half year to 31 December 2008, the unprecedented level of interest rate cuts negatively impacted our net result by $645 million.”

On 1 April 2009 SafetyAtWorkBlog asked John Merritt why WorkHealth was not mentioned as part of his keynote presentation at the Safety In Action Conference.  He reiterated the importance of the program in easing the recovery time, particularly, for manual handling injuries but acknowledged that the program’s funding source was based on interest

“from the [$600 million of the assets of the] workers compensation scheme over the next five years ….well there used to be interest from assets – there should be one day, there will be again –  around $40 million each year for the next five years will be invested in worker health.”

It is good to hear that the WorkHealth program is going to continue but the fragility of the program’s funding should have been evident in the planning phase.  Governments around the world are pulling back on government funded programs in a wide range of areas.  Ideas that seem good in the good times are now looking like luxuries.  It will be interesting to see if WorkHealth continues in the WorkCover area or moves to Health, where many of its critics have always said it belongs.

Kevin Jones

Mental Illness and Workplace Safety

Reports in the Australian media this week indicated that “nearly half the population has a common mental health problem at some point during their lives”.  Safety professionals and HR practitioners should take note of these statistics and hope that it does not manifest in their shift, even though it is likely.

The difficulty with trying to manage or anticipate mental health issues is that they seem to have evolved over time and multiplied.  There is the common phrase of “trying to herd cats” and it seems that mental health issues are the cats.  One could apply lateral thinking and propose the solution is to get a dog but will the dog herd a cat that doesn’t look like a cat, smell like a cat, or worst scenario of all, a cat that resembles a dog!

Because of the fluctuating psychiatric states of everyone everyday how does one recognise when a mood swing becomes a mental health issue.  Does one take everything as a mental health issue and waste time on frivolous matters?  Or is there no such thing as a frivolous matter?

In the one article there are these confusing and inconsistent terms for mental health:

  • “common mental health problem”
  • “mental condition”
  • “non psychotic psychiatric problems”
  • “mood disorder”
  • “anxiety disorder”
  • “mental health disorder”
  • “substance abuse or dependency”
  • “mental disorder”
  • “mental illness”
  • “psychiatric condition”

In this report it is unlikely that the synonyms have been generated by the journalist as the data quoted is from the Australian Bureau of Statistics, but it indicates the confusion that safety professionals can feel when they need to accommodate more recent workplace hazards – the psychosocial hazards.

The list above does not include the “established” hazards of bullying, occupational violence or stress.  The fact that there may be a clear differentiation between mental health symptoms and mental disorders but that needs to be clearly communicated to those who manage workplaces so that control resources can be allocated where best needed.

The article referred to above provides interesting statistics and there are gems of useful information in the ABS report but the article provides me with no clues about how to begin a coordinated program to address the mental health issues in the workplace.  It is an article without hope, without clues, without pathways on which the professional can act.

There is no doubt the psychosocial hazards at work are real but the advocates of intervention need to clarify the message.

Kevin Jones

(This blog posting does not discuss the recent changes to compensation for defence personnel and soldiers for mental health from combat, but mental health in that “industry” is a fascinating comparison to what occurs in the private sector.)

Safety In Action Conference

For three days next week, SafetyAtWorkBlog will be reporting from the Safety In Action Conference in Melbourne. This is the 12th annual conference and it remains the dominant OHS conference on the Australian circuit for duration, affordability and credibility.

For three days next week, SafetyAtWorkBlog will be reporting from the Safety In Action Conference in Melbourne.  This is the 12th annual conference and it remains the dominant OHS conference on the Australian circuit for duration, affordability and credibility.

More information on the conference is available at www.siaconference.com.au.  Check out the videos below on this page for an introduction to some of the speakers.

Contact me through my email if you are going to be at the conference and want to meet up.

Kevin Jones

Happiness is a warm million

The Australian newspapers in late-February shared the “outrage” of politicians and then the community over training that was provided to public servants by the American “happiness guru” Professor Martin Seligman.

The cost to the taxpayer seems exorbitant but the psychologist was from the US and was training delegates for many days.  It is not unusual for US experts to charge over $US600 per hour plus travel and accomm0dation.

The Community & Public Sector Union‘s Assistant National Secretary Paul Gepp noted  in a media statement that news of the expensive conference, which paid an American psychologist’s team more than $440,000, came with news of more layoffs of  public servants, as 100 lost their jobs in the Crime Commission. 

“Public servants are working hard to keep essential services going, keep our communities safe and make the stimulus package work,” said Mr Gepp.  “Million-dollar, feel-good conferences don’t help get these jobs done. If the Government is looking to cut, we suggest it starts with junkets like this.” 

The OHS context of this furore comes from the reasons for the training and whether the same benefits could have been obtained at a reduced price.

Media reports say that in parliament on 26 February 2009

“[Deputy Prime Minister, Ms Julia] Gillard attacked Liberal frontbencher Andrew Southcott for attempting to “parody” Professor Seligman, who she described as a “noted educationalist”.
“He is the leader in the development of (a) resiliency program that has been shown to make a difference to mental health issues amongst young people, including issues like anorexia and depression.  That is actually serious and ought not to be cat-called about.”

SafetyAtWorkBlog has written previously about the workloads of the public sector under the Rudd government and how the government has chosen not to set reasonable production targets.  The Seligman seminars are an example of trying to treat the symptoms and not the cause.   Seligman’s programs are not the issue here as the results claimed may be absolutely justified.  

Part of the problem for the government is timing, and in this, it shares a lot with behavioural-based safety programs.  Whenever a company introduces a wellbeing program, or a happiness seminar, or resilience training, or a team-building extreme sports excursion, it indicates to me that either the company is one that has already tried the traditional approaches to controlling workplace hazards, hasn’t  the faintest ides what to do to improve the safety in their workplace , or has too much money in its human resources budget and needs to spend it by the end of the financial year.

Regrettably, the money spent on public service mental health has been poorly targeted and papers over the cracks whilst ignoring the structural instability of how it manages its people.

Kevin Jones

International Women’s Day (of safety)

The global theme for the 2009 International Women’s Day (8 March 2009) is 

“Women and men united to end violence against women and girls”

The organising committee is at pains to stress that although this is a global theme, individual nations, individual states and organisations are able to set their own themes.  Some themes already chosen include

  • Australia, UNIFEM: Unite to End Violence Against Women 
  • Australia, QLD Office for Women: Our Women, Our State 
  • Australia, WA Department for Communities: Sharing the Caring for the Future 
  • UK, Doncaster Council: Women’s Voices and Influence 
  • UK, Welsh Assembly Government: Bridging the Generational Gap

Given that Australian health care workers suffer occupational violence, amongst many other sectors, and that employers are obliged to assist workers who may be subjected to violence at work or the consequences of non-work-related violence, it seems odd that so often the major advocates of International Women’s Day remain the unions.

It is also regrettable that many of the themes internationally and locally are responding to negatives rather than motivating action from strengths.

As is indicated from the list above, the public sector agencies are keen to develop programs around the international day.  The societal and career disadvantages of women are integral to how safety is managed.  

Stress, violence, adequate leave entitlements, security, work/life balance, chronic illness – all of these issues are dealt with by good safety professionals.  Perhaps a safety organisation or agency in Australia could take up the theme of “Safe work for women” and look at these issues this year using gender as the key to controlling these hazards in a coordinated and cross-gender fashion.

In support of women’s OHS (if there can be such a specific category), readers are reminded of an excellent (and FREE)  resource written by Melody Kemp called Working for Life: Sourcebook on Occupational Health for Women

Kevin Jones

Chronic disease report

The Australian Institute of Health and Welfare has released a report on the labour force effects of chronic illnesses.  The report, Chronic disease and participation in work,

shows that chronic diseases are associated with more days off work and/or being out of the workforce, and some of the biggest culprits are depression, arthritis and asthma.

The report focuses on chronic illnesses rather the workplace impacts of the illnesses themselves but there is information that is relevant to how we manage our employees and psychosocial hazards.  For instance the report says

Arthritis, asthma and depression were associated with 76% of the total loss due to days away from work (29% associated with depression, 24% with arthritis and 23% with asthma).

For people participating full-time in the labour force, there was a loss of approximately 367,000 person-years associated with chronic disease, approximately 57,000 person-years in absenteeism associated with chronic disease and 113,000 person-years were lost due to death from chronic disease.

The report acknowledges that any estimates of loss are underestimated and also provides very useful data on chronic diseases and absenteeism

Loss due to absenteeism from full-time and part-time employment was calculated as the difference between the number of days off work for people with chronic disease, and the number expected if age and sex-specific rates of absenteeism among people without chronic disease applied.

The loss from absenteeism associated with chronic disease was approximately 500,000 days per fortnight. This was equivalent to approximately 13.2 million days per year or 57,000 person-years of full-time participation (assuming 48 working weeks of 5 days duration with 10 public holidays per year).

About two-thirds of this cost was carried by males, and people aged 35-44 and 45-54 years accounted for the majority (75%) of lost days.

Analysis of absenteeism by specific chronic disease showed that depression, arthritis and asthma were associated with around 76% of days away from work.

Workplace bullying – interview with Lawrence Lorber (2002)

In April 2002, I interviewed Lawrence Lorber of US law firm Proskauer Rose on workplace bullying.  It was at the height of the Enron collapse and corporate behaviour towards staff was gaining a lot of attention.  Over the last fortnight I have been researching some of the management books and concepts concerning leadership, emotional intelligence, modern expectations of managers – all of which could be thrown into “workplace culture.”

As I was reading back issue of the SafetyATWORK magazine, I used to published, there seemed to be valuable comments from Lawrence that remain relevant.  Below is an extract of the interview.  The full interview is available HERE

SAW: In Australia, the approach to workplace bullying seems to be coming from a systemic management system rather than one relying on psychological assessment.

LL: The highly competitive and highly contentious nature of what is coming out about Enron, the “up or out” atmosphere is one aspect of a system that can lead to managers or co-workers to engage in bullying. The characteristics of being tough or abrasive may be necessary to get ahead in the organisation. The environment can encourage or create bullying tendencies. However, not everybody turns into Attila the Hun in a highly competitive environment. Others survive without taking on the attributes of the bully.

Psychological testing is frequently applied in the States with regard to executive promotions. Dealing with bullying does require a combination of the systemic and individual approach. I work for some companies who are publicly perceived as fairly aggressive, there are tough people there who I might not want to work for but they are effective. They might be perceived as bullies. But looking at bullying as an environmental issue does mask the problem.

SAW: Managers sometimes need to motivate a staff member, perhaps, by rebuking them. The receiver of the rebuke may perceive that as bullying. How can we balance these perceptions?

LL: There were management books in the States in the 1980s, which encouraged management by intimidation. At one point that was the vogue. After the movie PATTON came out, everyone wanted to be General Patton.

If you look at a harsh manager who is demanding in an abrasive manner, that could be bullying.

How do you define bullying? Do you define it by your own reaction? A very US example is sex harassment. Is harassment in the eyes of the beholder? Does it have to be a reasonable woman who believes she is being harassed? In the circumstance where the bully is a male and the recipient is a female, frequently that becomes harassment.

SAW: That is a problem for the managers where for the last 30 years, harassment, bullying and discrimination has been handled outside the OHS field, in Human Resources. Now there are national and international moves to combat bullying because of the stress at work issues. I haven’t seen that approach in the United States.

LL: Here it’s not health and safety. Our definition of harassment is an “intimidating atmosphere”. That can also be a definition of bullying.

I don’t think it will be considered as a health and safety issue because workplace stress is not a field that is devoid of regulation. It is simply being regulated in a different context-employment discrimination and to a lesser extent under the disability laws. 

 

SafetyATWORK magazine April 2002 cover image
SafetyATWORK magazine April 2002 cover image
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