workers compensation – Page 31

Cost of occupational injuries and illnesses rise

According to a report in the Australian Financial Review (page 5, not available online) on 14 April 2009, the costs of work-related injury and disease has increased to $A57.5 billion. This represents 5.9% of the country’s gross domestic product, up from 5% in 2000-01.

Of perhaps more concern is the sectors of society which are estiimated to bear these increasing costs. 49% of costs are borne by workers, 47% by the community and 3% by the employers. Even if the insurance costs were allocated to employers, this would only amount to 18% of the injury and diseases costs.

The figures from the report conducted by the Australian Safety & Compensation Council could justify the push by some in the OHS profession to move workplace safety into the area of public health. Regardless, the spread of the cost should be borne in mind when OHS organisations lobby government for more support and attention.

Kevin Jones

Financial dive for WorkCover NSW

SafetyAtWorkBlog recently reported on the financial results of the workers’ compensations schemes in South Australia and Victoria. WorkCover New South Wales results were released on 7 April 2009.

According to an article in the Australian Financial Review (page 4, not available on line) the WorkCover NSW fund fell by $2.3 billion – the $625 million surplus in 2007-08 has plunged to a $1.77 billion deficit.

WorkCover NSW has talked in the past about its positive achievements, and historically, they are right. In their Annual Report 2007-08, they say (page 8 )

“The WorkCover Scheme’s financial position has improved from a deficit of $3.2 billion in 2002 to a surplus of $625 million in June 2008.”

“Accentuate the positives” is the government mantra across all departments but how do you continue to do this when your funding model has collapsed. The AFR report says that Standard & Poor has estimated that this deficit represents 3% of the government’s consolidated revenue. WorkCover is just one authority that relies on stockmarket returns

The Minister, Joe Tripodi is quoted in media reports as saying that the deficit was expected and is understandable and that the workers compensation scheme is “sound”.

Richard Gilley, a risk management consultant, said that economic downturns often coincide with an increase in the “frequency and severity of claims”.

Tripodi has pledged not to increase premiums as that is the insurance cost to business, but one has to ask why not? Premiums have been reduced throughout Australia during the “good” economic times with the understanding that this would increase the profitability of business and, maybe, just maybe, provide additional funds for business to reinvest in the safety levels of the business.

Perhaps this is the wrong time to increase premiums but the question should be asked nevertheless.

It is recommended that those government authorities who accept their excessive high premiums as the cost of operating in their sector be audited and the results presented to the board and the governing authority. There are government authorities who do not recognize that the millions they pay in premiums originate from taxpayers and that, in 2008, maybe the community deserves the money that is being wasted in poorly-managed OHS and Return-To-Work systems in the public sector.

Kevin Jones

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

Latest Australian OHS Statistics

Below is an edited summary of the findings from the latest compendium of statistics issued by the Australian Safety & Compensation Council. The stats relate to 2006-07 primarily but with some comparative data from 2000-01 onwards. The full report is available for download as is a media statement from the Council Chairman, Bill Scales.

132 055 serious workers’ compensation claims in 2006-07 = to 14 claims per 1000 employees or 9 claims per million hours worked.

Men accounted for 68% of all serious claims

Incidence rates for male employees almost twice that of females

There were 9 claims per 1000 employees aged 15-19 years, which increased to 17 claims per 1000 employees aged 60-64 years.

“The Manufacturing, Transport and storage, Agriculture, forestry and fishing, and Construction industries had incidence rates substantially above the national rate of 14 claims per 1000 employees.”

The occupational group with the highest incidence rate of serious claims was Labourers and related workers (39 claims per 1000 employees).

Transport workers and some others had the second highest rate with 29 claims per 1000 employees.

The majority (73%) of the serious claims involved injury or poisoning (95 910 claims)

The remaining 27% (36 145 claims) were disease related.

The most common injury (41%of all serious claims leading to a serious claim was Sprains and strains of joints and adjacent muscles.

Fractures and Open wounds (8% of all serious claims )not involving traumatic amputation were the next most common injuries

The most common diseases were:

Disorders of muscle, tendons and other soft tissues (7% of all serious claims),
Dorsopathies – disorders of spinal vertebrae (6%), and
Mental disorders (5%).

23% of all serious claims involved the Back. Hand (13%), Shoulder (9%) and Knee (9%).

Manual handling mechanisms (Body stressing) were the cause of 41% of all serious claims, with:

lifting objects (18%)
handling objects (15%)

The most common mechanism was Falls on the same level (13%).

Non-powered handtools, appliances and equipment represented 26% of all serious claims.

Over the period 2000-01 to 2005-06, the number of serious claims decreased 6% from 144 740 claims to 136 575.

“The Agriculture, forestry and fishing industry recorded the highest time lost from work of 4.6 working weeks in 2005-06 but due to the lower salaries in this industry, it recorded one of the lowest median payment amounts ($5100 in 2005-06 compared to the all claims median of $6100). The highest median payments were recorded in the Mining industry ($10 400 in 2005-06).”

Compensated Fatalities

Preliminary data show that in 2006-07 there were 236 compensated fatalities = an incidence rate of 2.5 fatalities per 100 000 employees.

Of the fatalities, 91% were male employees.

Over the period from 2000-01 and 2005-06, the number of fatalities fell 21%.

Industry

The Construction industry recorded the highest number of fatalities (50).

Transport and storage industry = 45 fatalities (of which 31 were in Road freight transport).

Mechanism of injury or disease

A third of the fatalities (81) were due to Vehicle accident

33 deaths due to Long term contact with chemicals or substances,

19 due to Being hit by moving objects and

18 due to Being hit by falling objects.

Eye injury statistics for workplaces

In early February 2009, the Australian Institute of Health and Welfare released a statistical report on eye injuries in Australia. There was a small chapter on eye injuries that occurred in workplaces. Seeing as how the readers of SafetyAtWorkBlog love statistical reports, some of the data is presented below.

For further data, and graphs, it is recommended you download the report.

According to the report, Eye-related injuries in Australia,

A total of 8,640 workers compensation claims with eye injury or disease as the primary diagnosis were contained in the NOSI database for the period July 1999 to June 2005.

Median time lost because of eye injury in total decreased from 2.0 weeks in 2000-01 to 1.6 weeks in 2004-05. In 2004-05, injuries described as ‘eye: other and multiple’ resulted in the longest median time loss (2.0 weeks).

New evidence of the risks of using glyphosate

RoundUp and other glyphosate products are herbicides used domestically and commercially. New evidence supports the calls by the Institute of Science in Society for a ban on the use of these products.

Scientists pinpoint how very low concentrations of the herbicide and other chemicals in Roundup formulations kill human cells, strengthening the case for phasing them out, and banning all further releases of Roundup-tolerant GM crops

Research that shows an alternate perspective is available through Monsanto’s website.

This type of opinion or science war makes it very difficult for safety professionals to determine appropriate control measures when the evidence fluctuates however, as ever, protect to the lowest common denominator and eliminate the hazard wherever possible.

HR vs. OHS

I have written elsewhere in SafetyAtWorkBlog concerning the silo mentality of managers in relation to human resources and OHS. This weekend a reader posted the following comment on this blog:

“You are right about the divide between HR & OHS. Fact is HR are the culprits of negligence, they exist to support Management. Any one with a serious complaint thinks long and hard before sticking their neck out and going to HR…”

What struck me about this comment was that human resources was seen to be aligned with management whereas workplace safety was not. A successful safety management system cannot exist in conflict with other management systems but how much compromise does OHS need to make to achieve an integrated management position?

I am sure that HR professionals would not perceive their position in the same way as above but I remember a colleague once saying that safety professionals were on the same level of influence to companies as hairdressers. Perhaps OHS professionals are envious of the level of influence that HR professionals seem to have with senior management and say such things from bitterness.

At some time or other we all feel less than relevant to employers but circumstances have a way of re-establishing relevance, sadly in OHS this is often and injury or a compensation claim.

I don’t believe that the disciplines of HR and OHS are incompatible but I have seen many instances in companies where the HR Manager sees OHS as divisive, particularly in the areas of stress and bullying. I believe that HR professionals by-and-large have a poor understanding of how safety should be managed in companies but that is not necessarily the fault of the HR professional. OHS professionals need to be far more analytical of their own actions and purpose within organisational structures and start being active.

Kevin Jones

Category: workers compensation

Cost of occupational injuries and illnesses rise

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Financial dive for WorkCover NSW

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Global pressures on Australian workers compensation schemes

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Latest Australian OHS Statistics

Compensated Fatalities

Industry

Mechanism of injury or disease

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Eye injury statistics for workplaces

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New evidence of the risks of using glyphosate

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HR vs. OHS

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Compensated Fatalities

Industry

Mechanism of injury or disease

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