1.2 THE MORAL, SOCIAL AND ECONOMIC REASONS FOR MAINTAINING AND PROMOTING GOOD STANDARDS OF HEALTH AND SAFETY IN THE WORKPLACE

1.2.1 The Moral reasons-ILO Statistics

1. The ILO estimates that more than 230 Million people die every year from work related accidents or diseases.

2. There are about 270 million accidents and about 160 millions victims of workplace accidents and illnesses each year.

3. According to the ILP 3.9% of the worldwide deaths are due to occupational injuries or diseases.

4. 15% of the world population have incurred minor or major injuries from work in any one year.

5. 30% of the unemployed labor had reported that they have been exposed to minor or major occupational accident or illness when they used to work in the past.

6. 30% of the global work-related accidents are due to commuting accidents.

1.2.2 Moral Reasons

The main preventable factors for accidents are

1. Lack of a preventative safety and health culture

2. Poor management systems 3. Poor Supervision

1.2.1 The moral reasons- Accident Rates

Accident Rates : Employee should not have to risk injury or death at work.

1.2.1 The moral reasons- Accident Rates

1.2.1 The moral reasons- Accident Rates

1.2.1 The moral reasons- Accident Rates

Conclusion of Tables Fatality rates are lower in developed

countries or established market economies than under-developed or emerging economies of Asia and south America. However its important to stress that many hazardous industries have relocated from developed to emerging countries.

1.2.1 The moral reasons- Disease rates

Out of the 2.2 million work related deaths each year, about 1.7 million are due to work related diseases.

Work related diseases can cause economical loss for governments and organizations. ( Costs include sick pay, and compensation pays).

Hazardous substances claim about 438000 lives each years. Asbestos alone claims about 100,000 lives annually.

Women tend to be more preventive than men at work. However women are more vulnerable for diseases in agricultural works simply because more women do jobs in this sector than men.( Malaria Hepatitis..etc)

1.2.1The moral reasons- Disease rates

Men are more vulnerable to fatal accidents at work.

In UK during 2007/2008 there were 2.1 million people suffering from work related illness, of whom 563000 were new cases in that year. This led to 28 million working days lost compared to 6 million days lost due to workplace injuries.

Musculoskeletal disorders were responsible for 8.8 million working days lost causing.

1.2.1The moral reasons- Disease rates

This is an average of 21 days 0ff work for each illness. 13.5 million days off were lost due to stress,

depression, and anxiety causing each sufferer to have ,on average, a 31 days off.

Researches show that one of five employees with sickness leave from work for six weeks will stay off work permanently.

The World Health Organization WHO had estimated that 37% of Low back pain, 16% of hearing loss, 13% of chronic obstructive pulmonary disease, 11% of asthma, and 8% of injuries are related to work place activities.

1.22 Social Reasons

In all countries, employers owe a duty of care to each of their employees and others that might be affected by their undertaking, such as contractors and members of the public. This duty must not be assigned to others , even of a consultant is employed to advise on Health and safety, or employees are subcontracted to work with another employer. This duty must be sub-divided into five groups. Employers must

1. Provides a safe place of Work, including access or egress2. Provide safe plant and equipment3. Provide a safe system of work4. Provide safe and competent fellow employees.5. Provide adequate levels of supervision, information,

instruction and training.

1.22 Social Reasons

Vicarious Liability : In many countries, Employers are responsible for the action of their employees, provided that the action in question took place during the normal hours of work.

Employer duties are often mirrored in national legislation and apply even if the employee is working at a third party premises or if he/she has been hired by their employer to work for another employer.

These duties indicate clear social reasons for sound Health and safety management systems to protect employees, members of the public and in some case the general environment.

1.22 Social Reasons

EnforcementOccupational Health and Safety maybe re

enforced by the civil law and-or criminal law. Many countries believe that with out the extra encouragement.

‘Prevention is paying not only in human terms but also in better performance by business and national economic strength. Together we can make sure that decent work is safe work’

Thaksin ShinwatraPrime Minister of Thialand.

1.23 Economic Reasons

Poor Occupational health and Safety performance results in additional costs to both public and private sectors of the economy of a country.

Costs of Accidents1. Direct Costs2. Indirect Costs3. Employers’ liability insurance 4. Fault and no fault injury compensation

1.23 Economic Reasons

1. Costs of Accidents

1.23 Economic Reasons

UK HSE had shown in a study that indirect costs (Hidden costs) can reach up to 36 times greater than direct costs of an accident.

In 2000 costs of accidents in UK was 55 billion Euros with 120,000 deaths caused by occupational illness and 60,000 deaths caused by fatal accidents.

1.23 Economic Reasons

1. Direct costs: These are costs which are directly related to the accident and maybe

a) Insured direct cost or

b) Uninsured direct cost

1.23 Economic Reasons

a) Insured direct costs normally include Claims on employers and public liability

insurance Damage to buildings, equipment or

vehicles. Any attributable production and/or

general business loss The absence of employees

1.23 Economic Reasons

b) Uninsured direct costs include Fines resulting from prosecution by the enforcement

authority Sick pay Some damage to product, equipment, vehicles or

process not directly attributable to accident ( e.g. caused by replacement staff)

Increase in insurance premiums resulting from the accident.

Any compensation not covered by the insurance policy due to an agreement between the insurance company and the employer.

Legal presentation following any legal claim.

1.23 Economic Reasons

2. Indirect CostThese are costs that are not attributable to

the accident but may result from a series of accidents.

a) Insured Indirect Cost

b) Uninsured direct cost

1.23 Economic Reasons

a) Insured Indirect Cost include A cumulative business loss Product or process liability claims Recruitment of replacement staff

1.23 Economic Reasons

b) Uninsured Indirect Cost include Loss of goodwill and a poor corporate image; Accident investigation time and any subsequent remedial

action required; Production delays Extra overtime payments Loss time of other employees such as first aid staff, or

employees who tend to the need of an injured person. The recruitment and training for a replacement employee. Additional administration time incurred First aid-provision and training Lower employee morale possibly leading to reduced

productivity

1.23 Economic Reasons

3. Employers Liability insurance In many countries, employers are required to have a liability insurance to cover their liability in the event of accidents and work-related-ill-health to employees and others who may be affected by their operations. This insures that employees who sues their employers get compensated regardless of the financial situation of their employer.

1.23 Economic Reasons

4. Fault and no fault injury compensation In the UK compensation for an injury after an

accident is achieved by means of a successful legal action in a civil court. In such cases employee sues his employer and the employer are found at fault. This might take time.This process is adversarial, costly and can deter injured individuals of limited means from pursuing their means and had led to the increase of the cost of insurance premium. This had led to the no fault injury compensation.

1.23 Economic Reasons

The no Fault compensation was then introduced to over come the delay and cost of the fault compensation. In these systems amounts are agreed centrally at a national or state level according to the type and severity of the injury. The compensations is in the form of a structured payment rather than a lump sum and may be awarded in the form of a service, such as nursing care, rather than cash.

1.23 Economic Reasons

In 1974 a No –Fault compensation system was introduced and administered by the Accident Compensation Corporation (ACC). This followed a report that was issued in 1966 that advocated for a 24 hour accident cover for everybody in New Zealand. It suggested the following five principles for any national compensation system

1. Community responsibility2. Comprehensive Entitlement irrespective of income or

job status3. Complete rehabilitation for the injured party4. Real compensation for the injured party5. Administrative efficiency of the compensation scheme

1.23 Economic Reasons

The advantages of a no fault compensation scheme include:

1. Accident claims are settled much quicker than Fault schemes

2. Accident reporting rates will improve3. Accidents become much easier to investigate because

blame is no longer an issue.4. Normal disciplinary procedures within an organization or

through a professional body are unaffected and can be used if the accident resulted from negligence on the part of an individual.

5. More Funds are available from insurance premiums for the injured party and less used of the judicial and administrative process.

1.23 Economic Reasons

The disadvantages of a No Fault compensation scheme.1. There is often an increase in the number of claims, some

of which may not be justified.2. There is a lack of direct accountability of managers and

employers for accidents.3. Mental injury and trauma are often excluded from no-

Fault schemes because of the difficulty in measuring these conditions.

4. There is more difficulty in defining the causes of many injuries and industrial diseases than in a fault scheme.

5. The Monetary value of compensation awards tends to be considerably lower than those in fault schemes (Although this can be seen as an advantage to organizations).