Insights – Validating Safety Expenditure
An International manufacturer with a location in Melbourne Australia was facing cost cuts and safety was considered a discretionary spend. While the organisation was meeting legislative requirements, it was aware that some of the work tasks had higher risk of WRMSD injury to workers.
An approach was made to their insurer to see whether the insurer would invest some of the company’s premiums into a risk reduction plan with the view to cut worker injuries and claims. The insurer agreed provided that the company could demonstrate risk reduction as a result of the spend was objective and not simply subjective.
JointAction Premium Solutions were used to analyse some suspected high risk tasks to establish a baseline. The tasks were then tested post control to verify that risk reduction had occurred. The results of the assessment and demonstrated risk reduction have caused the insurer to fund an analysis of dozens of work tasks to develop a priority list for the application of engineering controls.
The results are such that the company has been able to demonstrate to management that safety is more than meeting compliance check lists. The work proved that investment in worker health and safety can reduce the operational costs to the company when based on objective information regarding degree of risk, particular risk sources and targeted control effectiveness.