Why We Should Manage Workplace Health and Safety

Important Definitions

Why We Should Manage Workplace Health and Safety? The non-existence or absence of disease is termed as health. It is a condition in which there is no symptom of illness or sickness. It includes physical as well as mental health. Examples: Asbestos is harmful to health, and if someone inhales asbestos dust, he may develop lung cancer at some stage later in life. Mental extreme stress and strain can result in a nervous breakdown.

Safety:

It means no risk of severe personal harm or injury. It is a risk-free condition of human life. If you stay out of the dangerous area, you are in safety and protection. Examples:Working on high buildings without taking safety measures results in loss of life or severe injury due to fall from height. Walking under a load suspended from a crane is unsafe because the fall of weight may cause severe and fatal damage or death.

Welfare:

It means access to necessities and facilities of life to employees. It means that nothing is missing or lacking in necessary facilities, and an individual has easy access to them. Example: Provision of Toilet facilities, Handwash stations, Restrooms, Hygienic preparation of foodstuff Etc.

REASONS TO MANAGE SAFELY :

Moral Reason:

According to the International Labor Organization (ILO), in 2012, about 340 million incidents in occupational health and safety and a total of 6000 deaths recorded every day.

According to society, the practice is not acceptable if a worker makes any money to feed his family but gets killed or injured by the job or work he/she is doing. A worker will have to suffer a lot of pain, psychological stress, lifelong injury, permanent disability, with possible job losses due to an accident.

A worker may be a single person of his family who is on the job. Because of the accident, not only the worker but also his family have to suffer financial crisis.

So it is the employer’s moral duty to protect its workers and provide them with a safe and healthy working environment.

Financial Reason :

There is a commercial aspect of health and safety because unintended accidents and events can cost money. Different governments find that inadequate occupational health and safety management raises additional costs for the economy, such as disabled workers’ compensation and the expense of their medical treatment. Due to these sudden accidents, there are direct and indirect costs which organizations may face. Some of these costs insured, but others are not. Insurance means you save something as compensation.

What are Direct and Indirect Costs?

Meaning of Direct Costs:

Direct costs arise directly from accidents and can easily be calculated. Direct costs could be insured or uninsured, that depends on the reason for the loss. As well, many small costs may not be covered by insurance of the company due to their policies, because the insurance company wants the employer to meet some of the costs of losses.

Direct Costs :

Legal fees, for example, when defending a claim form the injured person for compensation or prosecution in court are typically insured.
Worker sick pays continual to the injured worker or his/her family.
Cost of the accident and ill health due to lost production.
Repairs to, or replacement of, damaged tools, vehicle, equipment and building. These are subject
to the type of accident and insurance company policy; for example, fire case may be covered by
insurance, and maybe machinery like vehicles are not included.
Compensation is payable to the victim (employee or others) of accident or ill-health, which could
be covered by employer liability insurance.
Overtime to meet the production target.
Costs associated with the recovery of the injured worker. Like medical treatment, first aid, hospital admission, doctor and medicine charges.
The insurance premium will be increased due to the accident.

Meaning of Indirect Costs :

These costs are indirectly arising out of the event. Indirect costs cannot be measured frequently. They can hardly be identified.

Indirect Costs:

Workers will not be able to perform their regular job while investigating an accident, e.g manager, supervisors.
Cost of remedial action following an investigation.
The morale of the workers will be affected, and they will not feel safe at the workplace, and it wili ultimately lead to a reduction in production.
The cost associated with corrective actions suggested after investigation.
Lots of time while preparing reports, attending enforcing agency meetings or during the hearing of courts
The cost associated with the hiring of new staff and their training etc.
Loss of organizational goodwill of customers due to delays in production meeting on-time orders.
Fine form court during the legal proceeding.
Industrial relations will be compromised, and it could lead to removal from a trade association.

Insured and Uninsured Costs :

Different types of insured and uninsured costs associated with an accident differ between undertakings and forms of accidents. In general, uninsured costs are several times greater than the Insured costs. They can be compared in iceberg picture. Costs that insurance premium can recover are clearly visible, but uninsured costs are normally hidden below the surface and are not Immediately apparent.

Insured costs :

Employees claim insurance (public liability insurance) against employer, because of injury.
Cost associated with the damage to the buildings and associated equipment or machinery.
Any revenue due, and any general loss of business.

Uninsured costs :

The sick pay is payable to support the worker during the time of injury.
Damage or loss of raw materials and products during the incident. Repairing cost of plant and machinery.
Extra salaries for work extra hours, and temporary labor to meet target.
Production delays and failure to deliver product on time.
investigation time lost while investigating accident reason.
Fines in the criminal court to the employer
Loss of contracts because of not meeting existing contract requirements.
Increased insurance premiums if the risk rating of a company is adverse.
Loss of experienced staff to deal with specific issues of the company.
Legal costs for remedial actions
Loss of business reputation leading to a reduction in the sale.
in different studies in recent years, it is showed that there is a massive difference between insured and uninsured costs, it has been demonstrated that uninsured cost is 8 to 36% higher than insured cost.

Employers’ Liability insurance Act 1969 :

An organization’s employers are liable for all of their workers’ health and safety when they are at work. There is a risk that their job may harm workers or that organization’s ex- employees may become sick as a result of their previous work. This time employees can claim compensation from employer if employees believe the employer is responsible for the injury or ill health.

Employers’ liability insurance will allow an employer to meet the cost of compensation of employees’ injuries or illness still if the employer has insufficient resources due to an accident.

Due to insurance claim, the insurance premium will increase, which will put pressure on the employer to provide safety to the worker.

It is often a legal requirement (depends on the legal requirements) to provide employer’s liability insurance. For example, in the UK you have to maintain £5 million.

Insurance also boosts employees morale, and they feel secure that In case of misshape they will be paid by insurance.