Section 1
This section contains one question. The marks for each part of the question are shown in brackets. You are advised to spend approximately half an hour on it.
1. (a) Identify the possible consequences of an accident to:
(i) the injured workers; (3)
Moral: Any health and safety accident which leads to human harm will involve a degree of pain and suffering for the individual, possibly their family and friends.
(ii) their employer. (3)
Failure to comply with health and safety laws within a country, which then cause an incident can then lead to a criminal and/or civil legal action. If found guilty this could involve considerable fines and/or compensation awards.
Economic: Accidents cost a great deal of money in direct and indirect costs
(b) Identify the direct and indirect costs to the employer of accidents at work. (8)
Direct costs are those that are directly associated with the accident. They may be insured (claims on employers and public liability insurance) or uninsured (fines, loss of reputation, share price drops etc.).
• Fines
• Compensation payouts
• Medical costs
• Sick Pay
Indirect costs again may be insured (business loss, product or process liability) or uninsured (loss of goodwill, loss of reputation, extra overtime payments, accident investigation costs, production delays).
• Delays to production following the accident
• Personnel allocated to investigating and writing up the accident report
• Recruitment and training costs for replacement workers
• Damage to equipment and materials
• Reduction in product quality following the accident
• Reduced productivity of injured workers on light duty
• Overhead cost of spare capacity maintained in order to absorb the cost of accidents • Lower motivation to work and workforce morale, increased absenteeism
• Loss of reputation
• Loss of goodwill
• Damage to the environment (e.g. from chemical incidents)
(c) Outline the actions an enforcement agency may take following an