Workplace Accidents Costs & Effects PDF

Unit A-4 • Introduction to Plant and Fire Safety ================== OBJECTIVE ==================== 1 Discuss the cost and effects of workplace accidents. ( This chapter refers to material available from the Canadian Centre for Occupational Health and Safety (CCOHS). The CCOHS describes federa...

Unit A-4 • Introduction to Plant and Fire Safety ================== OBJECTIVE ==================== 1 Discuss the cost and effects of workplace accidents. ( This chapter refers to material available from the Canadian Centre for Occupational Health and Safety (CCOHS). The CCOHS describes federally legislated Acts, Codes, and Regulations that are applicable to all the provinces and territories. This information will be used as a reference for all provinces and territories, as they are similar in legislation. Still, there are some variations between the local jurisdictions. Some differences may be identified in this chapter; however, the CCOHS is recognized as presenting a federal standard for other provincial and territorial legislation. Thus, the CCOHS material is a good primary resource for study material. Make sure to review the jurisdictional Safety Acts, Codes, and Regulations legislation as well. EFFECTS OF WORKPLACE ACCIDENTS Financial Implications One of the functions of the International Labour Organization (a United Nations agency) is to promote labour rights. It estimates that four per cent of the world's gross domestic product (US $1.25 trillion) is lost due to the economic burden of work-related injuries and diseases. This cost is 20 times greater than all official development assistance to developing countries. Canadian business is not exempt from these costs. For example, in 2011 the financial burden to Ontario businesses was more than $6 billion. Similar details are available on the various provincial and territorial Workers' Compensation Board (WCB) websites. The main costs to businesses are: • Capital Costs • Administrative Costs • Employee Associated Costs • Insurance Costs • Production Costs Capital costs include: • Repair of damaged equipment and machinery • Purchase and installation of replacement equipment • Loss, removal, and disposal of damaged raw material or product • Site cleanup costs Administrative Costs include: • • • • Incident investigation Dealing with inspectors and improvement order Filing and managing the claim process Managing return to work or modifying work • Rescheduling and reassigning staff • Replacement staff recruitment • Developing new safe work procedures, health and safety policies, hazard awareness protocols, and job specific training 1-4 7----------------------s 4th Class Edition 3 • Part A ( Introduction to Plant Safety o Chapter 1 ================================ == Employee Associated Costs include: ( • Higher absenteeism and turnover • More overtime to cover production shortfalls • Wage supplements and benefits to injured workers and their families • Wages and benefits of replacement workers Insurance Costs include: • Increases to Workers Compensation premiums • Payments to Workers' Compensation for penalties or surcharges • Increases to short and long term disability benefit premiums Legal and Regulatory Costs include: • Legal costs and fines • Cost of compliance with Jurisdictional Safety and Health Department orders Production Costs include: • Loss of skilled productive workers • Lower-skilled, less experienced and less productive replacement workers, resulting in lower quality product • Reduced productivity of injured worker after returning to work • Low worker morale, resulting in lower productivity or product quality It is evident that the financial impact to businesses, and to the economy as a whole, is tremendous. This is why prudent businesses invest heavily to reduce and eliminate workplace accidents. The cost of the investments is far less than the cost of the accidents. ( Personallmpact Although the financial costs associated with workplace injuries are very high, they do not compare with the personal costs for a worker who gets injured. The worker often feels they are to blame for the accident. This results in loss of confidence and self-esteem, and problems with personal relationships. Although workers do not usually cause their own injuries, it is important to recognize that in many cases the worker's and supervisor's actions directly impact the situation. The worker's attitude both before and after a workplace injury occurs has a large impact on the outcome of the incident. In some cases, a worker's attitude deteriorates. This may result in difficulties with personal relationships, and possible family breakup. Social Implications Because of the strain on personal and family relationships that result from workplace injuries, social programs that provide support for injured workers a re necessary. The WCB provides support programs designed to help rehabilitate workers. In some cases, more help is required when workers are unable to resume their careers. The long-term social implications oflosing many workers from the industrial work force, usually at the most productive time of their careers, cannot be easily measured. Note that most injuries are among young workers in the 16- 25 year old age group. Legal Implications In cases where a serious or fatal injury occurs, an Occupational Health and Safety (OH&S) officer will issue a "stop work" order. The work being carried out must be stopped until the officer conducts an investigation, and determines that no further risk of injury exists. The investigation will vary in length, depending upon the type of work being carried out and the type of injury that occurred. 4th Class Edition 3 o Part A 1-5 Unit A-4 • Introduction to Plant and Fire Safety ====================================== The officer will want to determine: a) Who was responsible for conditions at the site. b) Who were the contractors involved. ( c) Who was the "principal contractor" (the contractor with the most control of the worksite). d) What were the arrangements for dealing with health and safety concerns, at all levels of responsibility. The law usually requires that the scene of a serious accident remain untouched until an OH&S officer has conducted an investigation. The scene may be disturbed only if it is necessary to attend to injured workers or to prevent further injury. The officer will conduct a thorough investigation of the scene. This usually includes: a) Taking photographs. b) Interviewing witnesses. c) Talking to workers, supervisors, and management at the work site who may have information regarding the circumstances leading to the incident. The OH&S officer has the authority under the law to look at records, diagrams, and other documents pertaining to the health and safety of workers at the site. Often, this will involve examining training records to determine if workers involved received adequate training to carry out their jobs safely. Documents may be inspected, copied, and temporarily removed from the site for copying. These documents would pertain to: • The safe use and maintenance of equipment • Engineered drawings • Plans • Procedures ( • Other related items Rehabilitation Finally, supervisors must understand the impact that their relationship with an injured worker can have on the worker's recovery and eventual return to work. In all cases, close communication should be maintained between the supervisor and the worker. The supervisor must let the injured worker know that blame is not being placed on the worker, and that the company does care about the injury. The supervisor must show that the company wants to do everything possible to assist the worker to return to work as soon as possible. The supervisor should inform the worker about the progress of the investigation. The worker should be asked for assistance in determining what could be done to prevent a similar occurrence in the future. Sometimes the worker may require assistance in rehabilitation and retraining. Management should help the worker to obtain the services and supports that are available. 1-6 7 .;.....----------------------- s 4th Class Edition 3 • Part A