Occupational Health & Safety Administration of US Department of Labor stated:
Only about 30 percent of businesses have established safety and health programs. About half of the 95 million workers who would be covered under an OSHA safety and health program standard don't have that protection today. Establishing a safety and health program to prevent occupational injuries and illnesses is not only the right thing to do, it's the profitable thing to do. Studies have shown a $4 to $6 return for every dollar invested in safety and health.
Source: https://www.osha.gov/SLTC/etools/safetyhealth/helpfulstatistics.html
So I was curious about how much we (Transwest Mongolia - TM) earn when invest 1 Mongolian Tugrik (Mongolian currency - MNT)?
Data:
Rolling 12 months, we had 1 injury that lost 28 days. Economic cost was: 26,452 tugrik x 28 (days) x 12 (hours a day) = 8,887,872 MNT
Transwest (the company) actual cost for OHSE including PPE & Safety cost at Departments was 163.395.077 MNT in rolling 12 months.
Due to Australian average cost in 2008 -2009 for work related incidents was 69.650 – 200.400AU$ depending on injury or disease. (69.650+200.400)/2=135.025AU$ per work related incident which means 195.338.605 MNT is lost per incident. In Australia, Lost Time Injury frequency is 3.1 in rolling 12 months at Mining industry, so 195.338.605 MNT * 3.1 = 605.549.675 MNT in rolling 12 months (annual average cost of incidents).
PS: 605.549.675 MNT is combined cost of Employee, Employer and Community (claimed compensation).
Conclusion:
Annual average cost of incidents is divided by Safety actual cost = Return benefits of 1 MNT
605.549.675/(163.395.077 + 8.887.872)=3.51
It means every 1 MNT we invest for Safety; it saves 3.51 MNT costs of potential incidents in Transwest.
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Ganjiguur Bukhbat
TheSafetyPoster.com
