What price for health and safety?

Publication: Commercial Vehicle Workshop

During a time of economic insecurity, the cost base of a business is under intense scrutiny and consequently cutting back non-essential costs is a common strategy. With this in mind, there is a concern that, as the current economic climate hits the automotive industry hard, there is a temptation to cut back on health and safety. Peter Purdom, director of automotive health and safety specialists, xCenta Solutions, discusses how neglecting this important issue could cost companies far more in the long-term.

It can’t be denied that the recession is having significant impact on the automotive sector, and as businesses are forced to reduce overheads, managers are facing some tough decisions that affect employee wellbeing and sustained business profitability. Health and safety has in the past been seen by some as a necessary evil, but stark industry statistics – and industry legislation - certainly demonstrate a need for compliance. The motor vehicle repair sector is a dangerous sector to work in, recording 8,000 accidents and 24 deaths in the last five years, which is why this is not an area that offers cost savings.

These figures clearly contribute to the HSE’s decision to increase the penalties for those that are in breach of the legislation and its regulations. The Health and Safety (Offences) Act 2008, which came into force in January 2009, raises fines to a maximum of £20,000 in lower courts or unlimited levels in high courts and broadens the range of offences to imprison an individual. The revised penalties should alone be enough to encourage business owners to comply with the law, not cut corners and avoid prosecution. Conviction for non-compliance however, can have a significant impact on the profitability and reputation of a business, affecting employee and customer confidence and making future business opportunities difficult. 

Health and safety specialists and enforcers are encouraging automotive businesses to take a proactive approach to implement and monitor health and safety by ensuring that risk assessments are up to date, potential hazards are catered for and that standards of care to customers and employees are not compromised on.

Health and safety management is carried out in a number of ways, including the use of external consultants, dedicated online systems and health and safety champions. As the recession hits, with redundancies and cost cutting commonplace, health and safety is under threat of being demoted as a priority for the business. This will be in direct conflict with an uncompromising response from the HSE. However, this compromise doesn’t need to happen - if the costs are broken down, health and safety procedures and processes can be implemented for no more than the daily cost of a broadsheet newspaper. When this is considered, the cost of accidents, loss of skilled labour – or the cost of someone’s life - falls into perspective.

Indeed, a reactive approach to health and safety, responding once the accident has happened costs a business on a number of levels from loss of skilled manpower, damage to premises or equipment, to higher premiums for insurance, which all have a negative effect on a firm’s cash flow. The knock on effect from these incidents can lead to delays, outsourced work, customer disruption and bad publicity.

Effective health and safety management will reduce both the number of accidents and their effect on a company’s bottom line, as well as improving both process and customer service. As the recession looks set to last us through 2009, health and safety can actually help a business avoid costs in the long term and ensure legislative compliance. It also has the added benefit of improving employee and customer wellbeing by demonstrating that the business values its workforce.

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