High cost of accidents at work

according to the Health and Safety Executive.

This first attempt to calculate the true cost of accidents is based on

the results of collaborative cost studies at five locations -- a

construction site, a creamery, a transport company, a North Sea oil

production platform and an NHS hospital -- which show that the more

routine accidents have a massive cumulative hidden cost.

None of the participating organisations suffered major or catastrophic

loss during the study periods. Nor were there any fatalities,

prosecutions or significant civil claims, all of which could have

increased the levels of loss well beyond those recorded.

In its report The Costs of Accidents at Work published yesterday the

HSE concludes that the national implications of the studies are

''striking''. Previously the 1.6 million accidents which result in

injury each year had been costed at between #4000m and #10 billion. But

this, says the HSE, did not include the costs that fall upon other

sections of society, such as Social Security, health provision and the

financial and non-financial losses to the victims of accidents and

occupational ill-health.

''When these are taken into account, the total cost to society as a

whole is estimated at between #10 billion and #15 billion a year.''

Each of the five targeted sites employed between 80 and 700 people and

had an average or better-than-average health and safety performance. Yet

the HSE was surprised at the study findings that uninsured costs --

including such items as product, material, building, and plant damage,

legal costs, site clearance, production delays, overtime working and

fines -- were between eight and 36 times the costs of insurance

premiums.

The construction site recorded 3626 accidents -- 56 minor injuries and

3570 property damage accidents -- during the 18 week study. The yearly

loss is worth #700,000, or 8.5% of the tender price.

Creamery employees totalled 340 who clocked up 926 accidents in the

study period, March -- June 1990, at a cost of #243,834 or #975,336

yearly, which equates to 1.4% of the company's operating costs.

Over the same period, 80 employees of the transport company were

involved in 296 accidents costing #48,928, or #195,712 yearly, which

equalled 1.8% of operating costs or 37% of profits.

Up to 120 people were employed on the North Sea oil platform, where

299 accidents were recorded during the 13 weeks ended in February 1991.

Two involved absence from work for more than three days, and a further

eight needed first-aid treatment. The total losses of #940,921 were

considered by the company to be typical, and equated to #3.76m yearly,

14.2% of potential output or the equivalent of shutting down the

platform for one day a week.

The 367-bed NHS hospital employed 700 and suffered 1232 accidents

during the 13-week study. Costing #99,285 or #397,140 yearly (or 5% of

the hospital's annual running costs).

The Costs of Accidents at Work, HSE, HMSO, #8.50.