By Viboon Sithimolada, 22/02/2023;
Occupational safety and health have always been crucial for the well-being of employees and the success of companies. The COVID-19 pandemic has shown how important it is for companies to have a safety management system in place. Companies with a strong safety culture have been able to adapt to COVID-19 measures more quickly and efficiently, demonstrating the economic, social, and moral importance of occupational safety and health.
From an economic perspective, the impact of workplace accidents and illnesses can be severe for companies. According to the International Labour Organization (ILO), the global cost of work-related injuries and illnesses is estimated to be 3.9% of the world’s gross domestic product (GDP) each year. The costs can come from direct expenses such as medical costs, compensation, and legal fees, as well as indirect expenses such as lost productivity and damage to a company’s reputation. Companies that prioritize occupational safety and health can reduce these costs and improve their bottom line.
Socially, companies have a responsibility to provide a safe and healthy work environment for their employees. Workplace accidents and illnesses can have a devastating impact on workers and their families. By promoting a culture of safety and health, companies can improve employee morale and satisfaction, leading to increased productivity and better retention rates. Furthermore, companies that prioritize occupational safety and health can enhance their reputation and attract top talent.
Morally, companies have an obligation to protect the health and well-being of their employees. Every worker has the right to work in a safe and healthy environment, and it is the responsibility of companies to ensure that this right is respected. By promoting a culture of safety and health, companies can demonstrate their commitment to their employees and the wider community.
OSH is not only important for crisis situations like the COVID-19 pandemic, but also for day-to-day operations. By reducing the risk of workplace accidents and illnesses, companies can improve employee well-being, reduce absenteeism and turnover, and increase productivity. In fact, studies have shown that companies that invest in safety management systems and promote a culture of safety have a long-term growth in value over time.
Several industries and companies have demonstrated the long-term benefits of promoting a work safety culture. For example, the construction industry has historically been associated with a high risk of accidents and injuries. However, companies that prioritize occupational safety and health have been able to reduce their accident rates and improve their bottom line. Turner Construction, for example, has been recognized as one of the safest construction companies in the United States. The company has a strong safety culture and has implemented a variety of safety programs to ensure the well-being of its employees.
Another example is Alcoa, a global aluminum manufacturing company. In the 1980s, Alcoa had a poor safety record, with high rates of accidents and injuries. However, under the leadership of Paul O’Neill, the company implemented a zero-injury goal and prioritized occupational safety and health. By 2000, Alcoa had reduced its injury rate by 90% and had become one of the safest companies in the world. This focus on safety not only improved the well-being of Alcoa’s employees but also led to increased productivity and profitability.
OSH in the context of Lao PDR:
Laos is a country that is rapidly developing, and there are many factors that contribute to its progress. One of the most important of these factors is occupational safety and health (OSH). By promoting a culture of safety and well-being in the workplace, Laos can create an environment that drives economic growth and improves quality of life for all its citizens.
OSH is crucial for ensuring the health and productivity of the workforce, reducing costs, and improving overall quality of life. In Laos, as in other countries, workplace accidents and illnesses can have a significant impact on the workforce and the broader economy. According to the International Labour Organization, there were 33 work-related deaths and 1,500 non-fatal workplace injuries in Laos in 2017. However, these figures may not fully capture the extent of the problem, as many incidents go unreported.
In addition to these benefits, a culture of safety and well-being can enhance Laos’ reputation as a place to do business. Investors are more likely to invest in countries with a strong commitment to OSH, as they know that their investments will be protected and that they will be working with a responsible and ethical partner.
Promoting a culture of safety and well-being in the workplace requires a concerted effort from workers, employers, and the government. Employers must ensure that they are providing a safe and healthy work environment, and workers must take steps to protect themselves and their colleagues. The government can play a key role in creating an environment that supports OSH by enacting laws and regulations that promote safety and well-being.
Workplace safety in Laos is regulated by the Ministry of Labor and Social Welfare, which oversees the enforcement of OSH laws and regulations. However, there are challenges to implementing effective OSH policies, including limited resources and a lack of awareness and training among workers and employers.
There is now a local firm that provides occupational safety services and solutions in Laos. SS International Sole Co., Ltd (SSI), founded in 2019, is the first licensed company in Laos, authorized by the Ministry of Labour and Social Welfare, to provide complete OSH services. The company has a vision is to become a leading company in promoting and embedding workplace safety for sustainable development of Lao industries. SSI provides a wide range of OHS-related services, including consultancy, training, risk management, workplace environment assessment, compliance support, internal/external audit support, incident investigation, policy/procedure development, safety management system and safety equipment supply. Although SSI is recently established, the company’s founder and team have extensive industry experience with relevant expertise and qualifications in OHS as well as experience as instructors and facilitators. In 2021, SSI signed a 5-year technical collaboration agreement with the Lao Government to cooperate in various areas in order to further develop and advance OHS in the country.
Investing in OSH is not only the right thing to do from a moral and social perspective, but also makes good business sense. By creating a safe and healthy work environment, companies can reduce costs, increase productivity, and enhance their reputation. As the COVID-19 pandemic has shown, companies with a strong safety culture are better able to weather crises and adapt to changing circumstances.
Here are some interesting facts about why occupational health and safety is crucial in the context of Laos:
- Laos has a high rate of workplace injuries and illnesses, particularly in the construction and manufacturing sectors. In 2018, the Lao Ministry of Labour and Social Welfare reported over 6,000 workplace accidents, with over 1,000 resulting in serious injuries or death. [Reference: World Health Organization. (2018). Laos: Occupational Health and Safety. Retrieved from https://www.who.int/occupational_health/regions/en/oehlaos/en/]
- Improving occupational health and safety in Laos can have significant economic benefits, including increased worker productivity and reduced healthcare costs. For example, one study found that investing in occupational health and safety programs in the garment industry in Laos could lead to an estimated $8.5 million in productivity gains and cost savings over five years. [Reference: Verdonk, M., Love, P., & Kenworthy, J. (2017). Investing in garment workers’ health is good for business: interventions in the ready-made garment industry in Laos. Global Health Action, 10(1), 1348694. doi: 10.1080/16549716.2017.1348694]
- The Lao government has made efforts to improve occupational health and safety, including by implementing new regulations and guidelines for workplace safety. However, enforcement and compliance can still be challenging, particularly in smaller businesses and in the informal sector. [Reference: International Labour Organization. (2019). Occupational Safety and Health in Lao PDR. Retrieved from https://www.ilo.org/wcmsp5/groups/public/—asia/—ro-bangkok/—ilo-vientiane/documents/publication/wcms_730944.pdf]
- Occupational health and safety can have broader social benefits in Laos, including improving public health and reducing the burden on the healthcare system. For example, reducing workplace exposure to hazardous chemicals and materials can help prevent environmental contamination and protect public health. [Reference: World Health Organization. (2018). Laos: Occupational Health and Safety. Retrieved from https://www.who.int/occupational_health/regions/en/oehlaos/en/]
- Occupational health and safety is a fundamental human right in Laos. The Lao government has ratified several international conventions related to occupational health and safety, including the International Labour Organization’s Occupational Safety and Health Convention, 1981 (No. 155). [Reference: International Labour Organization. (2019). Ratifications for Lao People’s Democratic Republic. Retrieved from https://www.ilo.org/dyn/normlex/en/f?p=1000:11200:0::NO::P11200_COUNTRY_ID:103278]
Sources:
- International Labour Organization. (2019). Country profile: Lao People’s Democratic Republic. https://www.ilo.org/global/about-the-ilo/how-the-ilo-works/member-states/lao-pdr/lang–en/index.htm
- Lao People’s Democratic Republic. (2017). Labour Law. https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/102550/123775/F-529748706/LAO102550%20Eng.pdf
- World Bank. (2020). Lao PDR: Overview. https://www.worldbank.org/en/country/lao/overview
- Bureau of Labor Statistics. (2020). Census of Fatal Occupational Injuries Summary, 2019. https://www.bls.gov/news.release/pdf/cfoi.pdf
- European Agency for Safety and Health at Work. (2021). Musculoskeletal disorders. https://osha.europa.eu/en/themes/musculoskeletal-disorders
- National Institute for Occupational Safety and Health. (2022). Stress at work. https://www.cdc.gov/niosh/topics/stress/
- Occupational Safety and Health Administration. (2022). Protecting temporary workers. https://www.osha.gov/temporary-workers
- World Health Organization. (2020). Mental health in the workplace. https://www.who.int/news-room/detail/23-01-2020-mental-health-in-the-workplace
