Successful OS

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Successful OSH PreventionOutline of a
Presentation for the AZ/World Bank/EU Twinning
Project Closing Conference RALI International
Conference

• Wolfgang Frhr. von Richthofen,
• International Consultant on
• Labour Inspection/Protection
• Baku, 20/21 November, 2012

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Contents

• Introduction Need for OSH Prevention
• National Data from selected IMECs
• Who benefits from OSH Prevention?
• Effective OSH Prevention Policies
• Organizing for OSH Prevention
• The Role of the State
• Where is OSH Prevention in AZ today?
• Major achievements/future perspectives

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Introduction The Need for effective OSH
Prevention ILO Data

• gt 2,2 million work fatalities EVERY YEAR and
  rising !
• gt 450.000 fatal work accidents gt 1.8 million
  fatal occupational illnesses annually, year for
  year
• gt 250 million work-related accidents annually
• gt 160 million occupational diseases annually
• Up to 5 of global GDP lost annually Billions
  of
• Transition economies (RALI Member countries) 2
  5 x higher rates than (old) EU member States
• Developing countries up to 10 x higher in
  sectors such as mining, construction,
  agriculture, fishing

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National Data from selected IMECs

• USA gt 210.000.000.000 US annually
  (manufacturing sector only)
• EU (old 15) gt 10 million work-related accidents
  annually
• Approx gt 10.000 fatal accidents
• Occupational diseases higher by a factor of up
  to 10
• Workers compensation payments gt 28.000 million
  EUR p/a
• Indirect costs higher by a factor of up to 40
• In some EU countries, companies lose up to 1/3 of
  annual profits through work-related accidents

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National Data from selected IMECs

• Germany gt 45.000 million EUR lost annually
• Average cost of treatment/rehab./compensation of
  each occupational asbestos cancer gt350.000 EUR
• UK fatal occ. cancers gt annual fatal traffic
  accidents
• Norway (half the population of Azerbaijan)
  25.000 accidents, 250.000 work-related health
  cases p/a
• Luxembourg average reportable (gt3 days off work)
  accident costs industrial enterprises 15.000 EUR
• AND WHAT ABOUT THE HUMAN COSTS ?!

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Who benefits from effective OSH Prevention?
Obviously, the Workers

• Greater safety on the job
• Better life-long health
• Secure, durable family income
• Increased earning capacity, later higher
  pensions
• Better overall employability
• Better chances for advancement and higher income
• Better chances to improve skills and
  qualifications
• Less stress/psycho-social disturbances
• Higher job satisfaction, and thus
• A better overall quality of life!

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But who else benefits from effective OSH
Prevention? The Employers!!

• Greater awareness and control of workplace risks
• Better availability of skilled workers
• Reduced costs (better loss control), thus
  increased productivity
• Better product quality leading to higher
  competitiveness
• Worker absence and turnover rates reduced
• Less accidents mean less DIRECT COSTS like
  business disruptions, machine damage, repair
  costs, sick leave etc
• It also means less INDIRECT COSTS less lost
  business opportunities, reduced social insurance
  contributions, etc
• Improved standing among suppliers, business
  partners thus a better reputation for corporate
  social responsibility and
• Better compliance, thus less trouble with
  Government.

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Effective OSH PreventionPolicies/Strategies

• Recognize OSH Prevention as a valuable business
  asset
• Support quality human resource development
• Minimize financial losses arising from avoidable,
  unplanned events
• Recognize accidents, ill health and incidents
  resulting primarily from deficits in management
  control
• Recognize the necessity of developing a
  prevention culture supportive of health and
  safety to achieve adequate analysis of, and
  control over risks
• Ensure a systematic approach to the
  identification of risks and the allocation of
  resources to control them and
• Support quality initiatives and incentives aimed
  at continuous workplace OSH improvement.

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OSH Prevention Policies should also recognize
that

• Health and safety can contribute to business
  performance by preserving and developing human
  and physical resources, by reducing costs and
  liabilities and as means of expressing enterprise
  social responsibility
• Managers must develop appropriate organizational
  structures and a culture supporting risk control
  and secure the full participation of all
  employees of the organization
• There is a strong need to resource and plan OSH
  prevention policy implementation adequately.

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Policies should further recognize that

• The employer is unequivocally responsible for
  OSH Prevention in his/her organization
• The only effective approach to injury, ill health
  and loss prevention is one based on the
  systematic identification and control of all
  manner of risk
• The need for all members of the organization to
  develop an understanding of risk control and to
  be responsive to internal and external change
• The need to continuously scrutinize and review
  performance to learn from experience and (again)
  
• The connection between quality, productivity,
  workers motivation, business success and health
  and safety.

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Organizing for Enterprise OSH Prevention
(Managers must lead by example!)

• Assign Clear responsibilities to line managers,
  with specialists acting as advisers give them
  time and resources to carry out their duties
  effectively
• Establish and maintain effective management
  Control within every level of the
  organization/enterprise
• Promote Co-operation between all individuals,
  safety representatives, OSH specialists and
  groups so that OSH becomes a collaborative
  effort
• Ensure the Communication of all necessary
  information throughout the organization and
• Develop and secure the Competence of employees.

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The Role of the State

• Effective, compliable and enforceable OSH
  (ENABLINGuser-friendly) Laws and Regulations
• A modern, comprehensive national OSH Prevention
  Policy
• 3-Partite structures (e.g. NOSHC) for continuous
  involvement of principal actors in policy
  development, implementation and
  monitoring/evaluation
• A well-organized, well-resourced, preferably
  INTEGRATED State Labour Inspection, capable of
  giving quality advice and ensuring strong,
  professional enforcement
• Implementing an agreed clear, coherent and
  consistent national Labour Inspection Enforcement
  Policy covering all sectors of economic activity,
  both private and public.

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Where do I see Azerbaijan today?

• Very impressive, far-reaching initiatives in
  recent years, including in the development of
  OSH Prevention
• Strong leadership, guidance and political support
  in LI system development from MoLSSP (E.
  Sultanov)
• Strong, consequential, effective implementation
  of WB and EU reform projects by SLIS (R. Tagyev)
• Competent and committed staff in both
  Organisations
• Excellent WB and EU Project Implementation teams
• Solid support from Social Partners, ILO Moscow
• Developments exemplary for other countries in the
  Region and beyond (e.g. RALI, Transcaucas,
  Central Asia).

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Some major Achievements

• Comprehensive review/revision of the AZ Labour
  Code in line with International (ILO/EU) Labour
  Standards
• A national OSH Policy developed that focuses on
  prevention of workplace accidents AND diseases
• National tripartite Social Agreements that
  include OSH goals/provisions/incentives for
  further improvement
• A (permanent) national Tripartite OSH Council
  set up, Standing Orders adopted and the Council
  working
• Ultimate goal to integrate the Tripartite OSHC
  into a new National Economic and Social Council
  (ECOSOC).

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But that is not the end of the story(One should
not rest on ones laurels)

• Continued system development/improvement of
  policies, structures, organization will be
  necessary
• Full integration of all labour law enforcement
  functions into the SLIS, including occupational
  hygiene/health must be aimed for as the most
  effective way forward
• This requires continued strong support at all
  levels
• And in particular also comprehensive on-going
  capacity-building and qualification programmes
  for all actors employers, workers and especially
  labour inspectors
• Lastly a Code of Professional Conduct for SLIS
  in line with the IALI Code of Integrity would
  be desirable.

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For those interested in more on successful
OSH Prevention, please refer to

• NOW AVAILABLE IN 12 LANGUAGES

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Thank you for your attention!
Wolfgang Frhr. von Richthofen, International
Consultant on Labor Inspection/Protection, Technic
al Adviser to IALI, and Consultant for the World
Bank 23, ch. Grotte-Garin, F - 01710 Thoiry,
France Tel/Fax [phone] E-mail
vonrichthofen_at_wanadoo.fr