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THE COST OF HEALTH AND SAFETY

THE COST OF HEALTH AND SAFETY. PETER CORFIELD, DIRECTOR GENERAL THE NATIONAL ASSOCIATION OF STEEL SERVICE CENTRES. OCCUPATIONAL HEALTH AND SAFETY. ENCOMPASSES SOCIAL, MENTAL AND PHYSICAL WELLBEING OF WORKERS SUCCESSFUL BUSINESSES HAVE IN PLACE:- COLLABORATION PARTICIPATION ENGAGEMENT

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THE COST OF HEALTH AND SAFETY

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  1. THE COST OF HEALTH AND SAFETY PETER CORFIELD, DIRECTOR GENERAL THE NATIONAL ASSOCIATION OF STEEL SERVICE CENTRES

  2. OCCUPATIONAL HEALTH AND SAFETY ENCOMPASSES SOCIAL, MENTAL AND PHYSICAL WELLBEING OF WORKERS SUCCESSFUL BUSINESSES HAVE IN PLACE:- • COLLABORATION • PARTICIPATION • ENGAGEMENT WITH EMPLOYERS & ALL EMPLOYEES FULLY INVOLVED

  3. PETER DRUCKER “THE FIRST DUTY OF BUSINESS IS TO SURVIVE…. …THE GUIDING PRINCIPLE OF BUSINESS IS NOT MAXIMISATION OF PROFIT BUT AVOIDANCE OF LOSS”

  4. COST OF POOR HEALTH AND SAFETY AT WORK HSE STATISTICS (2010/11) • 1.2 MILLION WORKING PEOPLE SUFFERED FROM WORK RELATED ILLNESS. • 26.4 MILLION WORKING DAYS WERE LOST TO WORK RELATED ILLNESSES AND WORKPLACE INJURIES (EXCLUDING CANCER). • 200 PEOPLE ARE KILLED AT WORK IN THE UK EACH YEAR (EXCLUDING TRAFFIC INCIDENTS).

  5. COST OF POOR HEALTH AND SAFETY AT WORK CONTINUED… • WORK RELATED HEALTH AND INJURY COST THE UK £14BN PER YEAR. • HALF OF COSTS ARE FUNDED BY INDIVIDUALS, THE REMAINDER IS SHARED BETWEEN EMPLOYERS AND GOVERNMENT. • BUSINESSES CAN INCUR FURTHER COSTS WHICH RELATE TO UNINSURED LOSSES AND LOSS OF REPUTATION.

  6. BENEFITS OF GOOD HEALTH AND SAFETY ADDRESSING HEALTH AND SAFETY SHOULD NOT BE A BURDEN. IT PROVIDES OPPORTUNITIES FOR BENEFITS TO BE REALISED, INCLUDING:- • REDUCED COSTS/RISKS • EMPLOYEE ABSENCE/ TURNOVER RATES ARE LOWER • ACCIDENTS ARE FEWER • THREAT OF LEGAL ACTION IS MINIMISED • INCREASED PRODUCTIVITY

  7. BENEFITS OF GOOD HEALTH AND SAFETY CONTINUED… • EMPLOYEES ARE HEALTHIER, HAPPIER AND MORE MOTIVATED • ENHANCED REPUTATION • INCREASED CORPORATE RESPONSIBILITY TO:- • INVESTORS • CUSTOMERS • COMMUNITIES • IMPROVED STANDING AMONG SUPPLIERS/PARTNERS

  8. DIRECT COSTS OF ACCIDENTS & INCIDENTS THESE ARE NORMALLY TANGIBLE, MEASURABLE AND INCLUDE:- • DAMAGE TO PREMISES, PLANT OR EQUIPMENT • SICK PAY • OVERTIME TO COVER INJURED PARTIES • FINES • EMERGENCY/ ALTERNATIVE SUPPLY ARRANGEMENTS • CLEANING SITE/FACILITY

  9. INDIRECT COSTS OF ACCIDENTS & INCIDENTS THESE ARE OFTEN IN INTANGIBLE, MORE DIFFICULT TO QUANTIFY AND INCLUDE:- • LOSS OF EMPLOYEE SKILLS AND WORK OUTPUT • LOSS OF OUTPUT DUE TO DOWNTIME TO UNDERTAKE INVESTIGATIONS • COST OF INVESTIGATION • TRAINING COSTS FOR REPLACEMENT OPERATORS

  10. INDIRECT COSTS OF ACCIDENTS & INCIDENTS CONTINUED… • INCREASED INSURANCE PREMIUMS • LEGAL COSTS, COMPENSATION CLAIMS • WORKPLACE MORALE • EFFECT ON SALES • LOST ORDERS REPUTATION

  11. WORK RELATED ACCIDENTS & DISEASES ARE COSTLY THE EFFECTS ON THE LIVES OF EMPLOYEES AND THEIR FAMILIES INCLUDE:- • THE PAIN AND SUFFERING OF INJURY/ILLNESS • POTENTIAL LOSS OF INCOME • JOB SECURITY • HEALTH CARE COSTS • COMPENSATION PAYMENTS

  12. COSTS TO EMPLOYEES (2010/1011)

  13. WORK RELATED ACCIDENTS & DISEASES ARE COSTLY DIRECT COSTS TO EMPLOYERS CAN BE ENORMOUS, THEY INCLUDE:- • PAYMENT OF WORK NOT UNDERTAKEN • MEDICAL AND COMPENSATION PAYMENTS • REPAIR OR REPLACEMENT OF DAMAGED EQUIPMENT/PROPERTY • REDUCTION OR TEMPORARY HALT IN PRODUCTION

  14. WORK RELATED ACCIDENTS & DISEASES ARE COSTLY DIRECT COSTS CONTINUED… • POSSIBLE REDUCTION IN QUALITY OF WORK • NEGATIVE EFFECTS ON MORALE OF WORKFORCE • INCREASED TRAINING AND ADMIN COSTS • INCREASED INSURANCE PREMIUMS

  15. WORK RELATED ACCIDENTS & DISEASES ARE COSTLY INDIRECT COSTS FOR EMPLOYERS INCLUDE:- • REPLACING THE INJURED PARTY • TRAINING AND TIME TO ADJUST FOR NEW EMPLOYEE. • TIME TAKEN FOR NEW EMPLOYEE TO ACHIEVE PRODUCTIVITY LEVELS OF EXPERIENCED STAFF.

  16. WORK RELATED ACCIDENTS & DISEASES ARE COSTLY INDIRECT COSTS CONTINUED… • MANAGEMENT TIME TO UNDERTAKE OBLIGATORY INVESTIGATIONS, WRITING REPORTS AND FILLING IN FORMS. • ACCIDENTS GENERATE NEGATIVITY AND CAN INFLUENCE LABOUR RELATIONS • POOR HEALTH AND SAFETY CAN RESULT IN POOR PUBLIC RELATIONS.

  17. COSTS TO EMPLOYERS (2010/2011)

  18. THE IMPACT OF ABSENCE FROM THE WORKPLACE DIRECT CONCERNS:- • PAYMENT OF SALARY FOR ABSENCE • OVERTIME PAYMENTS REQUIRED TO COVER WORKLOAD • LOSS OF OUTPUT/LOST ORDERS

  19. THE IMPACT OF ABSENCE FROM THE WORKPLACE INDIRECT CONCERNS:- • TIME TO GET REPLACEMENT “UP TO SPEED” • RECRUITMENT OF TEMPORARY/REPLACEMENT STAFF LONG TERM ABSENCE EQUATES TO 80% OF ALL ABSENCE COSTS

  20. ARE YOU INSURED? SOME CASES ARE COVERED BY INSURANCE:- EMPLOYERS LIABILITY PUBLIC LIABILITY VEHICLES, PLANT AND EQUIPMENT A LARGE PROPORTION OF COST CANNOT BE RECOVERED. SUCCESSFUL CLAIMS SUBJECT TO EXCESS CLAUSES. INDIRECT COSTS CAN BE 10/40 TIMES DIRECT COSTS AND ARE NORMALLY UNINSURED.

  21. THE COST OF HEALTH AND SAFETY SUMMARY… POOR APPROACH: • TANGIBLE/INTANGIBLE ISSUES • DIRECT/INDIRECT COSTS GOOD APPROACH: • FULL ENGAGEMENT OF WORKFORCE • LOSS (AVOIDANCE) AND PROFIT OPPORTUNITIES

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