Quantifying the costs and benefits of occupational health and safety interventions at a Bangladesh shipbuilding company

Abstract

Background: This study is the first cost-benefit analysis (CBA) of occupational health and safety (OHS) in a low-income country. It focuses on one of the largest shipbuilding companies in Bangladesh, where globally recognised Occupational Health and Safety Advisory Services (OHSAS) 18001 certification was achieved in 2012.

Objectives: The study examines the relative costs of implementing OHS measures against qualitative and quantifiable benefits of implementation in order to determine whether OHSAS measures are economically advantageous.

Methods: Quantifying past costs and benefits and discounting future ones, this study looks at the returns of OHS measures at Western Marine Shipbuilding Company Ltd.

Results: Costs included investments in workplace and environmental safety, a new clinic that also serves the community, and personal protective equipment (PPE) and training. The results are impressive: previously high injury statistics dropped to close to zero.

Conclusions: OHS measures decrease injuries, increase efficiency, and bring income security to workers' families. Certification has proven a competitive edge for the shipyard, resulting in access to greater markets. Intangible benefits such as trust, motivation and security are deemed crucial in the CBA, and this study finds the high investments made are difficult to offset with quantifiable benefits alone.

Keywords: Bangladesh,; Cost–benefit analysis (CBA),; Economics,; Health; OHSAS certification,; Occupational health and safety (OHS),; Returns on investment (ROI),; Shipbuilding,.

Figure 1

Total injuries per month at WMShL January 2010–August 2012 (source: WMShL 2012).

Figure 2

Total monthly worker injury treatment costs at WMShL, January 2010–November 2012 (USD).