Wolfgang Frhr. von Richthofen , International Consultant on Labour Inspection/Protection

1. Successful OS&H PreventionOutline of a Presentation for the AZ/World Bank/EU Twinning Project Closing Conference & RALI International Conference Wolfgang Frhr. von Richthofen, International Consultant on Labour Inspection/Protection Baku, 20/21 November, 2012 Wolfgang Frhr. von Richthofen

2. Contents • Introduction: Need for OS&H Prevention • National Data from selected IMECs • Who benefits from OS&H Prevention? • Effective OS&H Prevention Policies • Organizing for OS&H Prevention • The Role of the State • Where is OS&H Prevention in AZ today? • Major achievements/future perspectives Wolfgang Frhr. von Richthofen

3. Introduction: The Need for effective OS&H Prevention: ILO Data • > 2,2 million work fatalities EVERY YEAR and rising ! • > 450.000 fatal work accidents; > 1.8 million fatal occupational illnesses annually, year for year • > 250 million work-related accidents annually • > 160 million occupational diseases annually • Up to 5 % of global GDP lost annually: Billions of $$$ • Transition economies (RALI Member countries): 2 – 5 x higher rates than (old) EU member States • Developing countries: up to 10 x higher in sectors such as mining, construction, agriculture, fishing Wolfgang Frhr. von Richthofen

4. National Data from selected IMECs • USA: > 210.000.000.000 US$ annually (manufacturing sector only) • EU (old 15): > 10 million work-related accidents annually • Approx > 10.000 fatal accidents • Occupational diseases: higher by a factor of up to 10 • Workers compensation payments: > 28.000 million EUR p/a • Indirect costs: higher by a factor of up to 40 • In some EU countries, companies lose up to 1/3 of annual profits through work-related accidents Wolfgang Frhr. von Richthofen

5. National Data from selected IMECs • Germany: > 45.000 million EUR lost annually • Average cost of treatment/rehab./compensation of each occupational asbestos cancer: >350.000 EUR • UK: fatal occ. cancers > annual fatal traffic accidents • Norway (half the population of Azerbaijan): 25.000 accidents, 250.000 work-related health cases p/a • Luxembourg: average reportable (>3 days off work) accident costs industrial enterprises 15.000 EUR • AND WHAT ABOUT THE HUMAN COSTS ?! Wolfgang Frhr. von Richthofen

6. Who benefits from effective OS&H Prevention? Obviously, the Workers: • Greater safety on the job; • Better life-long health; • Secure, durable family income; • Increased earning capacity, later higher pensions; • Better overall employability; • Better chances for advancement and higher income; • Better chances to improve skills and qualifications; • Less stress/psycho-social disturbances; • Higher job satisfaction, and thus: • A better overall quality of life! Wolfgang Frhr. von Richthofen

7. But who else benefits from effective OS&H Prevention? The Employers!! • Greater awareness and control of workplace risks; • Better availability of skilled workers; • Reduced costs (better loss control), thus increased productivity; • Better product quality leading to higher competitiveness; • Worker absence and turnover rates reduced; • Less accidents mean less DIRECT COSTS like business disruptions, machine damage, repair costs, sick leave etc; • It also means less INDIRECT COSTS: less lost business opportunities, reduced social insurance contributions, etc; • Improved standing among suppliers, business partners; thus a better reputation for corporate social responsibility; and • Better compliance, thus less trouble with Government. Wolfgang Frhr. von Richthofen

8. Effective OS&H PreventionPolicies/Strategies • Recognize OS&H Prevention as a valuable business asset; • Support quality human resource development; • Minimize financial losses arising from avoidable, unplanned events; • Recognize accidents, ill health and incidents resulting primarily from deficits in management control; • Recognize the necessity of developing a prevention culture supportive of health and safety to achieve adequate analysis of, and control over risks; • Ensure a systematic approach to the identification of risks and the allocation of resources to control them; and • Support quality initiatives and incentives aimed at continuous workplace OS&H improvement. Wolfgang Frhr. von Richthofen

9. OS&H Prevention Policies should also recognize that: • Health and safety can contribute to business performance by preserving and developing human and physical resources, by reducing costs and liabilities and as means of expressing enterprise social responsibility; • Managers must develop appropriate organizational structures and a culture supporting risk control and secure the full participation of all employees of the organization; • There is a strong need to resource and plan OS&H prevention policy implementation adequately. Wolfgang Frhr. von Richthofen

10. Policies should further recognize that: • The employer is unequivocally responsible for OS&H Prevention in his/her organization; • The only effective approach to injury, ill health and loss prevention is one based on the systematic identification and control of all manner of risk; • The need for all members of the organization to develop an understanding of risk control and to be responsive to internal and external change; • The need to continuously scrutinize and review performance to learn from experience; and (again) • The connection between quality, productivity, workers’ motivation, business success and health and safety. Wolfgang Frhr. von Richthofen

11. Organizing for Enterprise OS&H Prevention (Managers must lead by example!) • AssignClear responsibilities to line managers, with specialists acting as advisers; give them time and resources to carry out their duties effectively; • Establish and maintain effective management Controlwithin every level of the organization/enterprise; • PromoteCo-operationbetween all individuals, safety representatives, OS&H specialists and groups so that OS&H becomes a collaborative effort; • Ensure the Communicationof all necessary information throughout the organization; and • Develop and secure the Competenceof employees. Wolfgang Frhr. von Richthofen

12. The Role of the State • Effective, compliable and enforceable OS&H (ENABLING=user-friendly) Laws and Regulations; • A modern, comprehensive national OS&H Prevention Policy; • 3-Partite structures (e.g. NOSHC) for continuous involvement of principal actors in policy development, implementation and monitoring/evaluation; • A well-organized, well-resourced, preferably INTEGRATED State Labour Inspection, capable of giving quality advice and ensuring strong, professional enforcement; • Implementing an agreed clear, coherent and consistent national Labour Inspection Enforcement Policy covering all sectors of economic activity, both private and public. Wolfgang Frhr. von Richthofen

13. Where do I see Azerbaijan today? • Very impressive, far-reaching initiatives in recent years, including in the development of OS&H Prevention; • Strong leadership, guidance and political support in LI system development from MoLSSP (E. Sultanov); • Strong, consequential, effective implementation of WB and EU reform projects by SLIS (R. Tagyev); • Competent and committed staff in both Organisations; • Excellent WB and EU Project Implementation teams; • Solid support from Social Partners, ILO Moscow; • Developments exemplary for other countries in the Region and beyond (e.g. RALI, Transcaucas, Central Asia). Wolfgang Frhr. von Richthofen

14. Some major Achievements • Comprehensive review/revision of the AZ Labour Code in line with International (ILO/EU) Labour Standards; • A national OS&H Policy developed that focuses on prevention of workplace accidents AND diseases; • National tripartite Social Agreements that include OS&H goals/provisions/incentives for further improvement; • A (permanent) national Tripartite OS&H Council set up, Standing Orders adopted and the Council working; • Ultimate goal: to integrate the Tripartite OS&HC into a new National Economic and Social Council (ECOSOC). Wolfgang Frhr. von Richthofen

15. But that is not the end of the story(One should not “rest on one’s laurels”) • Continued system development/improvement of policies, structures, organization will be necessary; • Full integration of all labour law enforcement functions into the SLIS, including occupational hygiene/health must be aimed for as the most effective way forward; • This requires continued strong support at all levels; • And in particular also comprehensive on-going capacity-building and qualification programmes for all actors: employers, workers and especially labour inspectors; • Lastly: a Code of Professional Conduct for SLIS in line with the IALI Code of Integrity would be desirable. Wolfgang Frhr. von Richthofen

16. For those interested in more on successful OS&H Prevention, please refer to: • NOW AVAILABLE IN 12 LANGUAGES Wolfgang Frhr. von Richthofen

17. Thank you for your attention! Wolfgang Frhr. von Richthofen, International Consultant on Labor Inspection/Protection, Technical Adviser to IALI, and Consultant for the World Bank 23, ch. Grotte-Garin, F - 01710 Thoiry, France Tel/Fax: + 33 450208650 E-mail: vonrichthofen@wanadoo.fr Wolfgang Frhr. von Richthofen