Occupational health and safety - tripartism as a strategy to build a sustainable future National Council for Industrial Health and Safety Dhaka, 1 st February 2017, professor, PhD Aalborg University Copenhagen
A worldwide health challenge 2.3 mill. fatalities due to accidents and work-related diseases every year 350,000 caused by occupational accidents and close to 2 million by workrelated diseases Exposure to hazardous substances at work causes nearly 900,000 deaths every year 6,300 people die every day due to occupational accidents (1,000) and work-related diseases (5,300) In addition 313 million non-fatal occupational accidents (requiring at least four days of absence from work) -860,000 people every day ILO, 2014
An economic burden 4% of the world s gross domestic product (GDP) lost due to direct and indirect costs, including lost productivity, compensation, medical expenses, property damage, lost earnings and replacement training In comparison: Ready Made Garment in Bangladesh provide approximately 12% of GDP
The need for sustainability Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs. (The Brundtland report, 1987) Three basic dimensions: Economic: A private business viable in the long term A public organisation funded based on polical legitimacy Social: Work contributes to health and well-being as well as develops qualifications An inclusive and diverse labour market Environmental: Production secures environment for the next generations
Types of OHS cost Stakeholder Productivity Healthcare Quality of life Administration insurance Worker Loss of present & future income Medical & rehabilitation costs Physical & moral pain & suffering Cost of time claiming benefits, waiting for treatment, etc Employer Sick payments Production losses Production disturbances Damaged equipment Damaged company image Medical & rehabilitation costs Administrative & legal costs Cost for reintegration & reschooling of (disabled) workers Higher insurance premiums Government Sick payments State benefits (disability, early retirement) Tax revenue losses Medical & rehabilitation costs Administrative & legal costs Society Loss of national income (due to fatality or disability/ early retirement) EU-OSHA, 2014
Cost of OHS in selected countries Country Cost in pct of gross national product Billion Euro Year Australia 4.1 39.6 2013 New Zealand 3.4 2.9 2005 UK 1.0 20.8 2014 Denmark 3.8 8.5 2007 Singapore 3.2 6.6 2011 Share of cost in Singapore Employers 22.1% Workers 50.5% Government 27.5% EU-OSHA, 2014 and national statistics
The history of OHS Occupational accidents already mentioned in writings from among others the ancient Egyptians Ramizzini (Italian physician) published the first systematic book on occupational diseases 1700 The first OHS legislation (1802) and inspection (1833) established in UK Denmark followed in 1872 with legislation and inspection and in 1901 with tripartism Extensive expansion during the last century of Knowledge about OHS legislation and inspection OHS management systems
The perspective from factories OHS often considered as a hassle without benefits for the business Ends with window dressing and cost of useless activities Safety pays launched by Heinrich already 1931 in: Industrial safety prevention Since then development of OHS management systems such as OHSAS 18001 (soon to be an ISO standard) Factory level activities such as: OHS professionals Elected OHS employee representatives Policies and audits Supply chain requirements Compliance and audits
Linking OHS and productivity in practice Veltri et al. 2013
A model for the relations between OHS and operations OHS practices OHS performance Integrated management Operational practices Operational performance Developed from Veltri et al. 2013
Integrated management Supportive culture for efficient operations and OHS Commitment Discipline Proactive Participatory Integrated management System Process focus Accountability Design of work Communication HR OHS practices Operational practices Developed from Veltri et al. 2013
Lean as a key instrument for productivity and OHS Lean manufacturing has for the last 25 years been the key tool for industry to secure high productivity and quality A manufacturing philosophy which strive for continuous improvements and perfection Developed by Toyota (the Toyota Production System) Translated to manufacturing and service industries as lean Can secure competitive advantage and thereby jobs But Lean without involvement of workers can increase risk of stress and muscularskeletal disorders as well as resistance to change
Lean tools integrating productivity and OHS Value stream mapping to identify and remove waste of material and human resources 5S to secure an efficient and safe layout and good housekeeping Visual management to make performance and OHS transparent and involve workers Kaizen to secure continuous improvement of productivity and OHS and secure engaged and involved workers A large number of additional tools
Example from an ongoing RMG project in Bangladesh Productivity and occupational health and safety in the garment industry in Bangladesh (POSH) Funded by Danish Development Agency (DANIDA) 2015-19 In collaboration between Aalborg University (AAU) Ahsanullah University of Science and Technology (AUST) Objective: Document the business case for integrated improvement of OHS and productivity Identify the tools and methods necessary for integration
Occupational health and safety in RMG Severe OHS problems in garment production Not only related to buildings and fire hazards but also the concrete work related to accidents, musculoskeletal disorders and mental strain OHS is in most cases considered an economic and time consuming burden which is not contributing to productivity Main motivation for action is buyer demands and legislation
Productivity and quality in RMG The garment industry is dominated by cut and sew in the lower end of the market The margins are low and competition is strong Productivity in Bangladesh estimated to 77% of China Improvement of productivity and quality is a possibility to increase margins and move into higher ends of the market
Integration of OHS and productivity in garment Low productivity, quality problems and health & safety risks have often the same sources Poor housekeeping Inappropriately designed workstations Undesirable layouts Time consuming and heavy internal materials handling Fatigued and unhealthy workers Low motivation
OHS maturity
Productivity maturity
Productivity maturity Relations between productivity and OHS maturity in 50 RMG factories in Bangladesh 4,00 3,50 3,00 2,50 2,00 1,50 1,00 1,00 1,50 2,00 2,50 3,00 3,50 4,00 OHS maturity
OHS a challenge for society, employers and workers Government: Limits economic prosperity A burden for healthcare Conflicts and social unrest Employers Low productivity and motivation High absenteism and turnover Workers: Poor health Loss of income How to organise effective control of occupational health and safety?
Tripartism as a key to effective OHS regulation Government, employers and workers have legitimate interest Government: To secure a a prosperus society with healthy citizens Employers: To secure their busines Unions: to secure jobs and health of workers Tripartism implies recognitions of the other partners as legitimate Solutions developed through tripartism secure: Ownership and commitment with all partners Secure the broader societal perspectives, business needs to operate and gain profit, and workers needs for jobs and health The opposite implies conflicts, waste of resources for window dressing, media scandals and unhealthy work
Effective regulation of OHS Instruments Mechanism I n s p e c t i on E xpress s o c i e t al l e g i t imacy Legislative standard R e c o g n ition b y s o c i a l p a r t n e r s S i g n a ls s o c i a l a c c e p t T h e s t a n d a r d p u r s u e d b y c o m p a n i es I n f o r m a t i o n d i s s e m ination K n o wlegde about c o n s e q u ence Context
Orchestration of the OHS policy OHS Council A high standard for OHS Effective support systems Regulation The social partners Outreach activities Tools & knowledge Inspection: Concrete Advisory Dialogue Involvement Integration in legislation Responsibility Institutions Training Context Concrete Solutions Integration
Sustainable OHS in the future Health and well-being of workers High performance factories Growth of the economy Social order Government perspective Necessary signal from society that OHS is important Inspections Involvement of social partners to secure co-responsibility and legitimacy Outreach of information and training Factory perspective Integrated management Participation of employees Certification of OHS Supply chain collaboration Access to information and training
Thanks for your attention hasle@business.aau.dk