Calculating the Return on Prevention for Companies

Transcription

1 Implemented by Calculating the Return on Prevention for Companies Costs and Benefits of Investments in Occupational Safety and Health in Pakistan's Textile and Garment Sector Romina Kochius, Project Manager, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) Pakistan Muhammad Mujahid, EHS Officer, Saeed Ahmed Awan Centre for the Improvement of Working Conditions and Environment, Pakistan 29/11/2017 Page 1

2 The GIZ Project on Labour Standards in the Textile Industry in Pakistan With ca. 15 million workers, the textile and garment industry provides employment to almost 40% of the nation s workforce. It is the backbone of Pakistan s economy. The industry covers the complete textile value chain and produces for the local market as much as for export, covering almost all international markets. The BMZ funded GIZ project focusses on carving out incentives for improved compliance with labour standards, using the momentum created by Pakistan s GSP+ status. Page 2

3 The GIZ Project on Labour Standards in the Textile Industry in Pakistan The project s main partner is the Labour and Human Resource Department of the country s biggest province, the Punjab. Target of the cooperation is the integration of prevention, rehabilitation and compensation to increase the efficiency and effectiveness of labour inspections. Page 3

4 The GIZ Project on Labour Standards in the Textile Industry in Pakistan The cooperation with the Labour and Human Resource Department is supported by social dialogue, involving business associations, trade unions and other stakeholders. Moreover, the project cooperates with selected companies to improve both labour standards and productivity, specifically in their interplay, using a dialogue-based change management tool. Page 4

5 Why Calculating the Return on Prevention for Companies? A reduced number of accidents and diseases benefit the worker s physical integrity and quality of life as well as the public health system. But is there a return on preventing accidents at the workplace and occupational diseases for the entrepreneur? Page 5

6 The Partners Saeed Ahmed Awan Centre for the Improvement of Working Conditions & Environment, Labour and Human Resource Department, Government of the Punjab, HomeNet Pakistan, Bavarian Employers Association (Bfz)/ESPIRE, German Statutory Accident Insurance Institution for the Energy, Textile, Electrical and Media Products Sector (BG ETEM), German Statutory Accident Insurance (DGUV) Deutsche Gesellschaft fu r Internationale Zusammenarbeit (GIZ) GmbH Page 6

7 Background of the Study The study is based on the international study Calculating the International Return on Prevention for Companies: Costs and Benefits of Investments in Occupational Safety and Health which was carried out in 19 countries in various sectors. To be more convincing for local entrepreneurs, we wanted to source local data. Page 7

8 Approach The companies were selected on a basic criteria: They need to have basic OSH knowledge; 51 companies were selected from the formal economies; Additionally, 7 units from informal sector were included in the study. Page 8

9 Structural Data Page 9

10 Methodology The methodology is taken from the international study calculating the Return on Prevention; The indicator Return on Prevention focuses in a quantitative sense on the ratio between: The costs of prevention and The monetary benefits of prevention Page 10

11 Methodology Companies were asked standardised questions to: Qualitatively rate the effects of occupational safety and health and Quantitatively provide monetary values of occupational safety and health costs per employee. The questionnaire contains 8 questions: 5 qualitative and 3 quantitative questions. Page 11

12 Results According to the companies interviewed, spending on occupational safety and health is an investment that pays off. The Return on Prevention is assessed to be 2.5. Page 12

13 Relative Importance of Occupational Safety and Health within the Company Page 13

14 Impact of Occupational Safety and Health within the following Areas of the Companies Page 14

15 Current Occupational Safety and Health Measures within the Company Page 15

16 YES, IT PAYS OFF! 1. It protects employees against workplace accidents and illnesses. 2. It ensures the employees social protection. 3. It can directly benefit the entrepreneur profit, both in formal and informal economies. Page 17

17 Implemented by As a federal enterprise, GIZ supports the German Government in achieving its objectives in the field of international cooperation for sustainable development. Published by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered offices, Bonn and Eschborn, Germany Labour Standards in the Textile Industry of Pakistan GIZ Textile Cluster Office, Cavalry Ground, Street Nr. 2, House Nr. 65 T E romina.kochius@giz.de I Responsible Romina Kochius Authors Muhammad Mujahid, Steffen Bitterling, Romina Kochius In cooperation with 29/11/2017 XXX Page 18