Estimating and Calculating Costs of Workplace Accident in Agriculture Industry

Transcription

1 Estimating and Calculating Costs of Workplace Accident in Agriculture Industry Anita Abd Rahman, Mohd Rafee Baharudin, Azizah Ahmad, Harun Bakar, Afida Miskam, Solehan Azmi, Saiful Anuar & Ahmad Fuad Mansur

2 Presentation Outline Introduction Objectives Methodology Results Conclusion

3 Introduction In the context of OSH, the term agriculture is generally used in a broad sense including all activities directly related to cultivating, growing, harvesting and primary processing of agricultural products, animal and livestock breeding including aquaculture, and agroforestry. The term also refers to all agricultural undertakings, irrespective of size.

4 Introduction Agriculture ranks among the most hazardous industries. Farmers are at very high risk for fatal and nonfatal injuries. Farming is one of the few industries in which family members (who often share the work and live on the premises) are also at risk for fatal and nonfatal injuries.

5 Introduction In Malaysia, agriculture sector, the 4th largest contributor to the GDP of RM 57 M. The 3rd largest industrial employment in Malaysia. The level of OSH compliance is still an issues to be look into.

6 Introduction The variable working conditions in agriculture can be compressed into some specific features, which increase the risk of occupational accidents : The work is carried out in the open air, exposing the workers to climatic conditions. The work is of a seasonal nature and certain tasks are urgent in specific periods.

7 Introduction A variety of tasks must be performed by the same person. There is great variation in working postures and the length of the tasks performed. and many others.

8 Introduction The right to be safe and healthy has been acknowledged as a matter of national and international interest. Recently, there was an interest in the economics of OSH which focusing on estimating costs in a workplace accidents.

9 Introduction The general approach taken in aggregate OSH cost research is from the bottom-up, generating totals for fatal and nonfatal work-related injuries and illnesses, identifying a range of worker, employer and social costs, and matching costs to incidents.

10 Introduction Employer costs Collateral damage to equipment and materials. Downtime. (the production process may be halted due to an accident). Absence of the insured or sick worker. Negative effects on coworkers. Coworkers may be distracted or suffer a loss of morale as a result of an injury or illness episode.

11 Introduction Employer costs Reduced productivity when workers health is impaired. Costs of administrative response. Additional recruitment costs.

12 Introduction Worker costs direct financial cost arises when workers must pay for medical care and pharmaceuticals without being fully reimbursed by either the employer or employment injury insurance schemes.

13 Introduction Costs to society costs of administering the public OSH system claims on insurance systems other than employment injury insurance

14 Introduction

15 Accident Data in Agriculture Sectors cases cases - Fatal = 55 workers - Disability = 2212 workers (Statistics of Labor and Human Resources, 2012).

16 Objective The main objective of this study is to estimate and calculate the cost of workplace accidents (costs to the employer, workers and society) in the agricultural industry.

17 Methodology

18 Type of study Cross-sectional study (12 months period) 20 case studies

19 Study Location Region Northern States Perak, Perlis, Kedah, Penang Central Southern Selangor, Wilayah Persekutuan, N. Sembilan Melaka, Johor Eastern Kelantan, Terengganu, Pahang Borneo Sabah, Sarawak

20 Study Population

21 Conceptual framework

22 Inclusive Criteria Only SOCSO s. Industrial classification codes of 01111, and Completed cases for the year 2012.

23 Sample size 540 respondents case study

24 Sample size by region Region Cases Northern Central Southern Eastern Borneo Total

25 Sample size by sector Sector Cases % Palm oil Rubber Paddy Palm oil & Rubber Total % 3.6% 3.4% 7.1% 100%

26 Study Instruments Records of cases Questionnaires (reliability of 0.89) Interview

27 Formula Conceptual Framework

28 Calculation of Costs

29 Results

30 Gender Distribution

31 Nationality vs Agric. Sector Local Foreign Total Oil Palm Rubber Paddy Total

32 Type of Injury vs Nationality Type of injury Local (%) Foreign (%) Total (%) TD PD F 212 (81.2) 31 (11.9) 18 (6.9) 235 (84.2) 19 (6.8) 25 (9.0) 447 (82.7) 50 (9.3) 43 (8.0) 261 (48.3) 279 (51.7) 540 (100)

33 Accident cost according to types of accident (Sch. 9 NADOPOD) Cod e Description Mean Min Max 100 Fall of persons 6, , Struck by falling objects 1, , Stepping on, striking against or struck by 17, ,526.9 objects including falling objects 400 Caught in or between objects 1, , Overexertion or strenuous movements 70, , Exposure to or contact with harmfull , ,602.2 substances or radiations 900 Other types of accident, not elsewhere 26, classified,

34 Accident cost according to types of injury (Sch. 10 NADOPOD) Code Description Mean Min Max 10 Fractures 7, , Dislocation 3, , Sprains and strain 2, , Concussions and other internal injuries 92, , Other wounds 9, , Superfial injuries 1, , Contusions and crushings 36, ,926.7

35 TD Cost (employer) Type of cost RM Damage cost Medical cost Funeral management cost 6, , Employer extra payment cost PERKESO extra payment Production reduction cost Investigation cost 33, , , , Direct Indirect Total

36 TD Cost (worker) Type of cost RM Direct Damage cost Medical cost Funeral management cost 16, , Unpaid payment cost Lost future income cost Rehabilitation cost Travelling cost 67, , , , Indirect Total

37 TD Cost (society) Type of cost RM Direct Compensation cost Medical cost Funeral cost 93, , Rehabilitation cost Future compensation cost 19, , Indirect Total

38 TD Cost Summary Variables Total Direct Cost Total Indirect Cost Grand Total Ratio (Direct: Indirect) Cost/worker RM 147, , , : 1.4 1, RM 120, , , : ,815.24

39 PD Cost (employer) Type of cost RM Direct Damage cost Medical cost Funeral management cost , Employer extra payment cost PERKESO extra payment Production reduction cost Investigation cost , , , Indirect Total

40 PD (worker) Type of cost RM Direct Damage cost Medical cost Funeral management cost 2, Unpaid payment cost Lost future income cost Rehabilitation cost Travelling cost 7, , , , , Indirect Total

41 PD Cost (society) Type of cost RM Direct Compensation cost Medical cost Funeral cost 318, , Rehabilitation cost Future compensation cost 6, , , Indirect Total

42 PD Cost Summary Variables Total Direct Cost Total Indirect Cost Grand Total Ratio (Direct: Indirect) Cost/worker RM 328, , , : , RM 74, , , : ,961.12

43 F Cost Summary Variables Total Direct Cost Total Indirect Cost Grand Total Ratio (Direct: Indirect) Cost/worker RM 25, , ,537, : , RM 442, , , : ,238.37

44 Employer Type of cost RM Damage cost Medical cost Funeral management cost 23, , , Employer extra payment cost PERKESO Production lost cost Investigation cost 6, , , ,048, Direct Indirect Total

45 Worker Type of cost RM Damage cost Medical cost Funeral management cost 20, , , Payment cost Daily Wages cost Rehabilitation cost Travel cost 110, , , , , Direct Indirect Total

46 Society Type of cost RM Direct Compensation cost Medical cost Funeral cost 897, , , Rehabilitation cost Future compensation cost 44, , , Indirect Total

47 Cost Summary Variables Total Direct Cost Total Indirect Cost Grand Total Ratio (Direct: Indirect) Cost/worker RM 1,161, ,790, ,951, : ,357.09

48 Examples of case study

49 No Incident descrip. 1 TD Falling while cutting grass 2 TD Palm frond drop onto head Fertilizer fall on victim while removing/drop fertilizer from lorry 3 TD 4 TD 5 PD Victim accidentally kick a stump while carrying oil palms by using trolley Palm frond hit the eyes RM 3, , Control measures Administrative control (additional working schedule routine) Personal Protective Equipment (helmet) Eliminate & engineering control (close the drain and build fertilizer store) RM , , Engineering control (mini tractor) 170, Personal Protective Equipment (goggles) 41,760.00

50 No 6 PD 7F Incident descrip. Chemical spillage Workplace accident RM Control measures RM 9, Administrative control -Safety talk , Eliminate Administrative control 2,012.00

51 Conclusion

52 Estimation and calculation of agriculture workplace accident has a great variance between cases. Indirect cost 4 times higher than the direct cost An organisation should starts estimate and calculate the costs of workplace accident as to prevent further economic losses and investing on prevention control measures. Make used of OSHACC.