04/19/23

Exploring the Relationship Between Ergonomics and

Economics:

“Costs and Benefitsand

Macro-Ergonomics”

Some Questions...

Why is it that more organisations with Why is it that more organisations with their their

strong need to obtain employee strong need to obtain employee commitment, commitment,

reduce expenses and increase reduce expenses and increase productivity don’t productivity don’t

have ergonomists on management have ergonomists on management committees?committees?

Some Questions...

Why aren’t agencies and watchdogs Why aren’t agencies and watchdogs lobbying lobbying

for legislation to ensure that for legislation to ensure that ergonomics are ergonomics are

systematically considered in the systematically considered in the design ofdesign of

products and work environments?products and work environments?

Some Questions...

Why are ergonomists viewed as Why are ergonomists viewed as added expenses added expenses

which increase the cost of which increase the cost of production and production and

hinder the bottom line?hinder the bottom line?

Some Answers?

Some individuals and organisations have been Some individuals and organisations have been exposed to bad ergonomics!exposed to bad ergonomics!

Ergonomists believe that since it is the “right Ergonomists believe that since it is the “right thing to do” why isn’t the technology/discipline thing to do” why isn’t the technology/discipline accepted as a matter of fact!accepted as a matter of fact!

There has been limited effort to convince There has been limited effort to convince leaders in government and industry of the leaders in government and industry of the importance of ergonomics.importance of ergonomics.

Ergonomist have done a poor job documenting Ergonomist have done a poor job documenting and advertising the cost-benefit relationship of and advertising the cost-benefit relationship of good ergonomics.good ergonomics.

Ergonomists lack frameworks and models Ergonomists lack frameworks and models capable of expressing benefits in terms relevant capable of expressing benefits in terms relevant to the function of wider sociotechnical macro-to the function of wider sociotechnical macro-systems.systems.

Legislation and Regulation

What is an What is an ActAct and a Regulation? and a Regulation?

An Act is a statute (law) that is passed by the House of Assembly

It gives the Lieutenant-Governor in Council or a specific Minister/Department the authority to develop specific rules

These specific rules are called regulations

What About Guidelines?

Standards Associations (CSA, ISO) Standards Associations (CSA, ISO) promote these for adoption in working promote these for adoption in working environments.environments.

Guidelines are not legislated (but often Guidelines are not legislated (but often form the basis for eventual legislation).form the basis for eventual legislation).

Purpose of the Purpose of the OH&S ActOH&S Act

Maintain a safe and healthy workplaceRegulate OH&S in the workplaceIdentify the rights/duties of workplace partiesProvide for "enforcement"Set minimum standards for OH&S

Requires employers and workers to work together to...

What is Industrial Hygiene?

Occupational hygiene is a multidisciplinary profession Occupational hygiene is a multidisciplinary profession drawing upon many basic and applied disciplines in the drawing upon many basic and applied disciplines in the life, physical, engineering and behavioral sciences.life, physical, engineering and behavioral sciences.

It involves the identification of health hazards, the It involves the identification of health hazards, the evaluation or assessment of the extent of risk posed by the evaluation or assessment of the extent of risk posed by the hazards, and the elimination or control of the risks. hazards, and the elimination or control of the risks.

Occupational Hygienists require a sound understanding of Occupational Hygienists require a sound understanding of modern technology and industrial processes, and their modern technology and industrial processes, and their impact on health. impact on health.

Occupational Hygiene is a developing profession, with Occupational Hygiene is a developing profession, with over 10,000 active professionals in North America. over 10,000 active professionals in North America.

OCCUPATIONAL HEALTH AND SAFETY

Dept. of Government ServicesOccupational Health & Safety Division

What is Safety? Safety is doing something, not just thinking Safety is doing something, not just thinking

about it.about it. Development of safety policy and programDevelopment of safety policy and program It’s … a responsibility …. a commitment … It’s … a responsibility …. a commitment …

an obligation.an obligation. It’s understanding that hazards exist and a It’s understanding that hazards exist and a

willingness to contribute to control these willingness to contribute to control these risks.risks.

MandateMandate

Accident and illness prevention is the Accident and illness prevention is the primary goal of Occupational Health and Safety primary goal of Occupational Health and Safety Division.Division.

It is recognized that all workers have a It is recognized that all workers have a fundamental right to a workplace that neither fundamental right to a workplace that neither impairs their health nor imperils their safety.impairs their health nor imperils their safety.

This is achieved by working with This is achieved by working with stakeholders to establish, promote and enforce stakeholders to establish, promote and enforce workplace practices, standards and procedures.workplace practices, standards and procedures.

Inspection Division

Responsibility AreasResponsibility Areas::

•Safety InspectionsSafety Inspections•Occupational Health Occupational Health

Industrial HygieneIndustrial HygieneRadiation ProtectionRadiation ProtectionErgonomicsErgonomicsHazardous MaterialsHazardous Materials

•Mining SafetyMining Safety

OCCUPATIONAL HEALTH AND SAFETY

Responsibility of the Division

Maintain up to date legislation to address Maintain up to date legislation to address health and safety in consultation with health and safety in consultation with stakeholdersstakeholders

Maintain standards of health and safety for Maintain standards of health and safety for the protection of workersthe protection of workers

Prepare accident and morbidity statistics of Prepare accident and morbidity statistics of workersworkers

Responsibility of OHS Officer

The OHS Officers are The OHS Officers are responsible for enforcing responsible for enforcing standards of safety by standards of safety by assessing workplace health assessing workplace health and safety conditions to and safety conditions to ensure employers and ensure employers and workers are complying with workers are complying with occupational health and occupational health and safety legislationsafety legislation

Authority of an Officer

Section 26 of the OH&S ActSection 26 of the OH&S Act• For the purpose of ensuring compliance with the Act or For the purpose of ensuring compliance with the Act or

Regulations the ADM or an Officer may:Regulations the ADM or an Officer may:• Enter a place of work at any reasonable hourEnter a place of work at any reasonable hour• Require production of documentation and remove Require production of documentation and remove

them them • Conduct tests, take photographsConduct tests, take photographs• Inspect and collect samplesInspect and collect samples• Conduct Investigations to determine causeConduct Investigations to determine cause• Compel the attendance of witnesses and take Compel the attendance of witnesses and take

evidence under oathevidence under oath

LegislationAdministered by the Division

• The Occupational Health and Safety Act and RegulationsThe Occupational Health and Safety Act and Regulations• OHS First Aid RegulationsOHS First Aid Regulations• WHMIS RegulationsWHMIS Regulations• Asbestos Abatement RegulationsAsbestos Abatement Regulations

• The Radiation Health and Safety Act and RegulationsThe Radiation Health and Safety Act and Regulations

The Mines (Safety of Workers) RegulationsThe Mines (Safety of Workers) Regulations

OccupationalHealth and Safety Act

Rights of WorkersRights of Workers To knowTo know To participateTo participate To refuseTo refuse

Authority/Power of:Authority/Power of: MinisterMinister OfficersOfficers

ResponsibilitiesResponsibilities EmployersEmployers SupervisorsSupervisors WorkersWorkers Principal ContractorsPrincipal Contractors SuppliersSuppliers CommitteesCommittees DivisionDivision OthersOthers

Common Safety and Health Hazards in the Workplace Safety HazardsSafety Hazards

Material HandlingMaterial Handling Mobile EquipmentMobile Equipment Electrical HazardElectrical Hazard Working at HeightsWorking at Heights Slips, trips and fallsSlips, trips and falls TrenchingTrenching Compressed gas Compressed gas

cylinderscylinders

Health HazardsHealth Hazards Chemical Chemical BiologicalBiological ErgonomicErgonomic PhysicalPhysical

Confined Space Confined Space HazardsHazards

Education

Memorial University Master of Science in Kinesiology

University of TorontoOccupational and Environmental Health

GOEHUGOEHU A collaboration between the A collaboration between the

Departments of Public Health Departments of Public Health Sciences and the Dept. of Medicine at Sciences and the Dept. of Medicine at U of T, and the Dept. of OEH at St. U of T, and the Dept. of OEH at St. Michael’s hospitalMichael’s hospital

The mission of the GOEHU is to The mission of the GOEHU is to contribute to the protection, contribute to the protection, conservation and promotion of health conservation and promotion of health within the workplace and the within the workplace and the environment generally. This is environment generally. This is accomplished by conducting accomplished by conducting research, teaching and service research, teaching and service programs in occupational and programs in occupational and environmental health, all at the environmental health, all at the highest level of possible excellence highest level of possible excellence

Job Prospects

Graduates in OEH are in demand across Canada entering Graduates in OEH are in demand across Canada entering directly into responsible positionsdirectly into responsible positions

40% in industrial sector, one quarter of the graduates work 40% in industrial sector, one quarter of the graduates work in the service/public sector, fifteen percent of the graduates in the service/public sector, fifteen percent of the graduates are employed by provincial and federal governments in a are employed by provincial and federal governments in a regulatory/policy role, another 15% of the graduates are regulatory/policy role, another 15% of the graduates are employed as consultants, either independently, in small employed as consultants, either independently, in small groups or for larger consulting firms. In addition, some of groups or for larger consulting firms. In addition, some of the graduates have gone on to careers in research and the graduates have gone on to careers in research and academia.academia.

A Graduate Student’s Current Position

OCCUPATIONAL HEALTH AND SAFETY

Atmospheric Issues

Carbon Monoxide Ozone

Biological Hazards

One Place, Many Issues!

Foundry – Silica Sampling

Gold Mill

Iron Ore – Open Pit

Underground Copper-Zinc Mine

Iron Ore Mine

The softer side of OHS…

Workplace Health Safety and Compensation Commission

(WHSCC) Employers’ Insurance SystemEmployers’ Insurance System ~96% workers in NL covered~96% workers in NL covered

Prevention ServicesPrevention Services ManagementManagement Safe and Early Return to WorkSafe and Early Return to Work

Shift of Focus

Now puts the responsibility on the Now puts the responsibility on the Employer and EmployeeEmployer and Employee

Get the injured person back to workGet the injured person back to work ““Early Safe Return to Work”Early Safe Return to Work” within 72 hours of medical clearancewithin 72 hours of medical clearance

Getting People Back to Work

After 1 Month – After 1 Month – 80% Return80% Return

After 6 Months – After 6 Months – 50% Return50% Return

After 1 Year – After 1 Year – 20% Return20% Return

After 2 Years – After 2 Years – 2% Return2% Return

Labour Market Re-entry Clause

Find a job for the injured person if cannot Find a job for the injured person if cannot return to previous positionreturn to previous position

Re-training; Re-educationRe-training; Re-education Job Selection CounselingJob Selection Counseling

Successful Claims Management Early InterventionEarly Intervention

Policies in PlacePolicies in Place EducationEducation Reporting MechanismsReporting Mechanisms

Active RehabilitationActive Rehabilitation Improve on Physical ConditioningImprove on Physical Conditioning Psycho-Social InterventionPsycho-Social Intervention

Ability FocusAbility Focus What can be successfully and safely doneWhat can be successfully and safely done Match interests with abilitiesMatch interests with abilities

A Step in the Right Direction…

Legislating an Occupational Health and Legislating an Occupational Health and Safety CommitteeSafety Committee

The requirements for an Occupational Health and Safety Committee and Worker Representative are as follows:

A workplace having 10 or more employees is required to have a A workplace having 10 or more employees is required to have a committee committee

A workplace with less than 10 employees is required to have a A workplace with less than 10 employees is required to have a worker representative worker representative

The committee may consist of two to 12 members The committee may consist of two to 12 members At least half the members shall be elected by workers At least half the members shall be elected by workers The other half shall be appointed by the employer The other half shall be appointed by the employer

REPRESENTS ALL INTEREST GROUPSREPRESENTS ALL INTEREST GROUPS

Who should be on the OH&S Committee In smaller companiesIn smaller companies

Those who have an interestThose who have an interest Those who have a history of OH&S Those who have a history of OH&S

problemsproblems What resources and baseline education What resources and baseline education

should be provided to these committee should be provided to these committee members?members?

Internal Responsibility System Internal Responsibility System Philosophy of OH&S legislation in all Canadian

jurisdictions

Based on commitment, involvement and accountability of all workplace parties

Belief that employers have a legal and moral duty to provide a safe and healthy workplace

Belief in open communication by workplace parties

The The Internal Responsibility SystemInternal Responsibility System is is based on...based on...

Personal responsibility

Cooperation

Right to know (transparency)

Basis of the Internal Basis of the Internal Responsibility System Responsibility System

Bring health and safety issues to the forefront

Focus attention on issue(s) until resolved

Promote and encourage a safety culture

Keep issues in "minutes" until resolved

Prioritize issues based on risk

Follow-up on recommendations

Employers must ensure...Employers must ensure...OH&S program is developed and maintainedWorkers know their duties and responsibilitiesOH&S committees/WH&S representatives are

put in placeAdequate funding for health and safetyOH&S training needs are metWorkplace inspections are conductedResponse to hazard control recommendations

Supervisors must ...Supervisors must ...Follow/enforce policies and proceduresSupervise work practices and proceduresRefer issues to employer/implement controlsIdentify OH&S training needsConduct safety meetingsEncourage reporting of safety issuesParticipate in workplace inspections and

accident/incident investigations

Workers can ...Workers can ...

Accept responsibility for health and safety for themselves and co-workers

Participate in safety initiatives

Report unsafe working conditions

Promote safety

Suggest OH&S improvements

Workers have...Workers have...

The right to know

The right to participate

The right to refuse unsafe work

RIGHT TO REFUSE

OH&S committee/WH&S representative

Not ResolvedResolution

Return-to-work Department of Labour

Resolution

Return-to-work

Report to Supervisor

No ResolutionResolution

Return-to-work

Introducing Ergonomics-Related Legislation

Ergonomics principles are “implied” in Ergonomics principles are “implied” in current legislation.current legislation.

Draft legislation in progress (modeled after Draft legislation in progress (modeled after British Columbia)British Columbia)

What will make it successful until adopted?What will make it successful until adopted? Create an ergonomics ethos in businessCreate an ergonomics ethos in business Educate what ergonomics is all aboutEducate what ergonomics is all about

Legislation is…

Minimum standards to which a business must Minimum standards to which a business must conform.conform.

What to strive for “Best Practices”What to strive for “Best Practices” This will best demonstrateThis will best demonstrate

Improved productivityImproved productivityReduce InjuriesReduce InjuriesTrue ECONOMIC BENEFITSTrue ECONOMIC BENEFITS

CO-OPERATIVE CO-RESPONSIBILITYCO-OPERATIVE CO-RESPONSIBILITY

PARTICIPATORY ERGONOMICSPARTICIPATORY ERGONOMICS

What are the Priorities ofWhat are the Priorities ofPrivate Enterprise?Private Enterprise?

How is Ergonomics Perceived? In spite of reasonable ergonomic In spite of reasonable ergonomic

evaluation models, the success of evaluation models, the success of ergonomics has been limited…ergonomics has been limited…

Will understanding the current Will understanding the current perceptions of management give perceptions of management give ergonomists some insight into the ergonomists some insight into the reasons for the limited success reasons for the limited success thus far?thus far?

MacKinnon SN and Negash M (1998) The relation MacKinnon SN and Negash M (1998) The relation between ergonomics and company profits: between ergonomics and company profits: perceptions of selected South African managers. perceptions of selected South African managers. Proceedings: Global Ergonomics Proceedings: Global Ergonomics Conference, Cape Town, South AfricaConference, Cape Town, South Africa, pp , pp 891-896891-896..

Negash M and MacKinnon SN (1998) Analysing Negash M and MacKinnon SN (1998) Analysing the economic implications of ergonomic the economic implications of ergonomic interventions: some conceptual and policy interventions: some conceptual and policy issues. issues. ergonomics SAergonomics SA, 10(1):30-35, 10(1):30-35..

What are the general management priorities?

Labour Relations (1.7%)Labour Relations (1.7%) Market Share (3.3%)Market Share (3.3%) Growth (10%)Growth (10%) Safety (10%)Safety (10%) Cost Management (13.3%)Cost Management (13.3%) Product Quality (16.7%)Product Quality (16.7%) Customer Satisfaction (20%)Customer Satisfaction (20%) Profitability (25%)Profitability (25%)

What are the reasons for purchasing new technology/workstation improvements?

Damage Due to MisuseDamage Due to Misuse Minimise Risk of InjuryMinimise Risk of Injury Change in Product NatureChange in Product Nature Introduction of a New ProductIntroduction of a New Product Improve ProductivityImprove Productivity

What are the CAUSES of ACCIDENTS/INJURIES? Defective Materials/EquipmentDefective Materials/Equipment Inadequate PPEInadequate PPE Undesirable Working ConditionsUndesirable Working Conditions Lack of Proper SupervisionLack of Proper Supervision Unsafe Work PracticesUnsafe Work Practices Inadequate Employee TrainingInadequate Employee Training Loss of Concentration/FatigueLoss of Concentration/Fatigue Employee NegligenceEmployee Negligence

What Cost Typologies can be MINIMISED by Ergonomic Programmes?

Insurance Related CostsInsurance Related Costs Purchase/Upgrading of EquipmentPurchase/Upgrading of Equipment Employee Selection/PlacementEmployee Selection/Placement Over Consumption of MaterialsOver Consumption of Materials Reduction of Non-Value Added TimeReduction of Non-Value Added Time Work Delays due to Discomfort/StressWork Delays due to Discomfort/Stress Production Related CostsProduction Related Costs Labour Costs due to Lost TimeLabour Costs due to Lost Time

Macro-Economic Issues

Economics of Health and SafetyEconomics of Health and Safety major industrial accidentsmajor industrial accidents cost of taking a productive individual cost of taking a productive individual

out of the economyout of the economy cost of creating disabled person into cost of creating disabled person into

the economythe economy international competitivenessinternational competitiveness spending resources on medical spending resources on medical

treatment rather than something treatment rather than something advantageous to societyadvantageous to society

Implement an ergonomic intervention if Implement an ergonomic intervention if the sum of the the sum of the SAVINGSSAVINGS from avoiding from avoiding accidents, injuries, and compensation accidents, injuries, and compensation

and the and the GAINSGAINS from the value chain are from the value chain are greater than the greater than the COSTCOST of implementing of implementing

the intervention.the intervention.

The problem is an empirical The problem is an empirical issue!issue!

Micro-Economic Issues

Multi-factorial influences on Multi-factorial influences on dependent dependent

measures such as productivity and measures such as productivity and health health

often make it difficult to identify the often make it difficult to identify the causal causal

effects of changes in the workplaceeffects of changes in the workplace..

Measuring the Micro-Economic Costs and Benefits of Ergonomic Activity

Costs of ergonomic projects are often easierCosts of ergonomic projects are often easier

to measure than the financial benefitsto measure than the financial benefits

Examples of WHSCC claimsExamples of WHSCC claims

$90,000 - back injury - assisting a patient

$94,000 - back injury - lifting a heavy can

$157,000 - arm/shoulder injury - using continuous awkward overhead postures

$175,000 - back injury - moving a heavy object

$558,000 - disabling brain injury - a young worker fell from a moving truck

Actual accident/injury costsActual accident/injury costs

For every $1 paid out in workers’ compensation costs, the actual cost to business is $3 - $14

Injuries CAN NOT be considered a “cost of doing business”

this is the wrong attitude that is driven by hard-line economic realities (cheaper to deal with the injury or implement a best practices approach based on sound ergonomic, health and safety principles)

The Direct Costs:

Costs of hiring/employing an ergonomistCosts of hiring/employing an ergonomist Training and implementing guidelines/standardsTraining and implementing guidelines/standards Ergo meetingsErgo meetings New Equipment and MaterialsNew Equipment and Materials

Productive time lost by injured workersProductive time lost by injured workers Damage/ Repairs to Damage/ Repairs to

materials/equipment/environmentmaterials/equipment/environment Overtime costsOvertime costs Clean-up and start-up costsClean-up and start-up costs

The Direct Costs:

Cost of preventative measures that Cost of preventative measures that have to be takenhave to be taken

Problems with technology transferProblems with technology transfer

Fines and prosecutionFines and prosecution HospitalizationHospitalization WHSCC rate increasesWHSCC rate increases

Hidden Costs:Hidden Costs:

Time lost by those attending injured workerTime lost by those attending injured worker Accident investigation timeAccident investigation time Disruption in service or productivityDisruption in service or productivity Time to recruit and train new workersTime to recruit and train new workers Management time to keep production goingManagement time to keep production going Time to complete paperworkTime to complete paperwork Loss of knowledge and experienceLoss of knowledge and experience Overtime paymentsOvertime payments Penalties for late deliveryPenalties for late delivery

The Indirect Costs*:

Bad publicity due to industrial accidents or Bad publicity due to industrial accidents or union grievancesunion grievances

Effects of chronic injuries - gradual change Effects of chronic injuries - gradual change in productivityin productivity

* Not normally accounted for in models * Not normally accounted for in models and whether these can be unambiguously and whether these can be unambiguously calculated is a matter of opinioncalculated is a matter of opinion

Human Costs:Human Costs: Personal loss to injured workers/familiesPersonal loss to injured workers/families Pain and sufferingPain and suffering Time away from familyTime away from family Disruption to activities of daily livingDisruption to activities of daily living Loss of self-esteemLoss of self-esteem Decreased morale among co-workersDecreased morale among co-workers Effect on the community at largeEffect on the community at large

Are these costs real?Are these costs real?

Can the firm pass the cost of ergonomic Can the firm pass the cost of ergonomic programmes on to its customers?programmes on to its customers?

Does the pricing system solve the problem?Does the pricing system solve the problem?

The Financial Benefits: Personnel savings

Reduced accidents and insurance costsReduced accidents and insurance costs Reduced absenteeismReduced absenteeism Reduced long-term disability compensationReduced long-term disability compensation Reduced training costsReduced training costs Reduced employee time required for given level Reduced employee time required for given level

of outputof output Reduced maintenance timeReduced maintenance time Reduced skill requirementsReduced skill requirements

The Financial Benefits: Productivity issues

Reduced scrap rateReduced scrap rate Reduced production parts and materialsReduced production parts and materials Reduced maintenance on tools and machineryReduced maintenance on tools and machinery

The Financial Benefits: Product design benefits

Increased salesIncreased sales Increased stock valuesIncreased stock values Reduced customer accidentsReduced customer accidents Reduced costs of litigationReduced costs of litigation

Other Benefits:

Ergonomic activity conveys management’s Ergonomic activity conveys management’s concern for employeesconcern for employees

Greater employee loyalty - good citizenship Greater employee loyalty - good citizenship behaviourbehaviour

Management’s unwillingness to accept qualitative measures as proof of success is still a problem.

Ergonomists must translate often nebulous, Ergonomists must translate often nebulous, vague and rather moralistic arguments into vague and rather moralistic arguments into sound business terms.sound business terms.

Methods Used to Quantify the Economic Benefits:

Is ergonomics a Is ergonomics a TECHNOLOGYTECHNOLOGY a firm a firm

may decide to buy?may decide to buy?

If one considers the ERGONOMIC PROCESS as a

continuous, reiterative one - then alternative cost accounting

approaches are probably more appropriate.

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1 2 3 4 5 6

1 - Receive Raw Goods2 - Distribute Raw Goods3 - Operation4 - Operation5 - Removal of Goods for Distribution6 - Delivery of Goods to Outlet

NVA VANVA VA NVA NVA

PROCESS and VALUE ANALYSIS

Ergonomics and the Risk Management Paradigm

High Frequency

High Consequence

Low Consequence

Low Frequency

Improving the Management Group

Ergonomics, as part of the risk management Ergonomics, as part of the risk management

strategy, should become another pillar, equal strategy, should become another pillar, equal

to presently accepted management functions to presently accepted management functions (financial, human resources, production and (financial, human resources, production and

marketing).marketing).