Publication
International arbitration report
In this edition, we focused on the Shanghai International Economic and Trade Arbitration Commission’s (SHIAC) new arbitration rules, which take effect January 1, 2024.
In this article we explore four of the key issues and trends affecting organisations globally from a work health and safety perspective, both now and in the future: global WHS regulation; the rise of technology; changing workforce populations and structures; and psychosocial hazards and risks.
In examining these trends, we have been struck by the way that many issues have the potential to both positively and negatively impact health and safety outcomes. We have also been struck by the interconnectedness between many of the issues, such as the anticipated impact of the rise of technology and the ageing of population on the psychosocial health and safety of workers.
Broadly speaking, for a number of decades, Government regulation regarding health and safety at work has consistently become more (rather than less) onerous in many countries around the world.1 The physical health and safety outcomes for workers in developed countries has generally improved rather than deteriorated, i.e. the overall trend has been that workers are less rather than more likely to be seriously injured or to develop a serious illness arising from work.2 Regulation has been a key mechanism for achieving these outcomes. It will be interesting to observe whether this trend continues given the express intention to decrease regulation in the USA, including in areas concerning worker health and safety, stated by the Trump administration.
In recent years, continuously evolving technology such as artificial intelligence (AI), robotics and automation has transformed (and will continue to transform) the way that people around the world work.
There are numerous potential benefits associated with the use of such technology, such as increased costs savings, productivity and efficiency. From a work health and safety perspective, many technologies also have the potential to eliminate or reduce health and safety risks. The rise of automation in industries such as construction, manufacturing, warehousing and logistics, for example, has eliminated the need for workers to perform tasks which are dangerous, physically intensive, repetitive or which require working in harsh work environments, and has reduced exposure to risks such as people and plant interaction risks and manual handling risks.
We have also seen a rise in the use of new technologies as control measures for work health and safety risks, such as using drones to carry out health and safety inspections, virtual reality simulators to deliver training programs, and AI technology to detect risks such as people and plant interaction risks, workers affected by fatigue and workers not wearing PPE.
While there are numerous safety benefits associated with the increased use of technology, new technology also has the potential for creating new or increased health and safety risks to workers.
A key concern in this regard is the potential for increased psychosocial hazards and risks. New technology may mean there are increased psychosocial hazards and risks due to:
There are also concerns that an over reliance on technology may lead to safety risks, for example, where technology malfunctions, from workers becoming less vigilant or proactive, or where workers no longer have the skills to perform tasks of machines, making it difficult to respond to unexpected situations.
Some of the key considerations for organisations in managing work health and safety risks arising from use of technology include:
Another key trend impacting upon workplaces globally from a work health and safety perspective is the ongoing changes to workforce demographics and structures.
The ageing population, for example, is expected to be a key concern for workplaces globally in the future. Due to factors such as increased life expectancies and decreased fertility rates, the World Health Organisation is projecting that the proportion of the world’s population that is over 60 will nearly double from 12% to 22% by 2050. As a result of an increased proportion of older people, and a shrinking labour pool of younger workers, it is also expected that more people will remain in the workforce for longer, either out of choice or necessary. For example, statistics analysed in Europe over the last ten years has revealed a steady increase the expected duration of working life in the EU.
While the potential impact of an ageing population on workplaces is currently unknown, it is expected that there will be positive benefits to workers associated with this change. Studies have shown3 that working past retirement age is associated with improved longevity and better physical and mental health outcomes (although this can be employment dependant; it may not be the case where work is stressful, physically demanding or unfulfilling). It is also anticipated that workforce diversity (i.e. multiple generations in one workforce) will be beneficial for productivity and innovation (for example, see a recent article published by Forbes regarding this).
However, there are also issues that will need to be carefully managed in the context of an older workforce. For example, older workers are more likely to have additional responsibilities (such as carer’s responsibilities), chronic health issues other medical issues requiring support (e.g. menopause) and more recovery time where they are injured.
Some of the key things that will be important as the demographic shift occurs includes the following:
In addition to the ageing population, other changes to workforce arrangements are also impacting on organisations globally, such as increasingly globalised and virtual workforces and the rise of gig and platform economies. It is anticipated that issues such as workforce culture, supervision, fostering diversity and innovation and the management of psychosocial risks will be important as these changes continue to increase.
Mental health and the management of psychosocial hazards and risks is another key issue impacting upon all workplaces around the world.
According to the World Health Organisation, 15% of working age adults were estimated to have a mental health disorder in 2019, and an estimated 12 billion days are lost every year globally due to mental disorders, at a cost of USD $1 trillion per year in lost productivity.
There has been increased regulation of and guidance on the management of psychosocial risks around the world in recent years. For example:
Psychosocial hazards and risks may be a relatively new safety issue for workplaces to grapple with, particularly when compared to physical safety risks, the management of which is generally well understood and applied by organisations around the world. However, workplaces can take comfort in the fact that there is clear and consistent guidance on this issue in guidance material and legislation around the world. It is well understood globally what constitutes a psychosocial hazard in the workplace (these may be related to any aspect of the design of management of work, such as job demands, job control, workload, organisational culture, career development, job security, interpersonal relationships etc), and how psychosocial hazards should be managed (through a risk assessment and application of risk management principles). For example, see guidance published by the International Labour Organisation on psychosocial risks and stress at work.
It is also apparent that effective management of psychosocial hazards and risks will be a key part of managing a whole host of safety issues (such as the rise of technology, the ageing population) that are expected to be of concern to workplaces globally now and in the future. It is therefore critical for organisations to prioritise the application of psychosocial risk management requirements in practice so that psychosocial risks are properly understood, managed and addressed as these changes take effect.
For example, see studies from the peer-reviewed BMC Public Health Journal:
https://bmcpublichealth.biomedcentral.com/articles/10.1186/s12889-021-11423-2
https://bmcpublichealth.biomedcentral.com/counter/pdf/10.1186/s12889-024-18161-1.pdf
For example, more than half of workers are expected to have a long-term health condition by age 60, according to a global professional HR body, CIPD.
Publication
In this edition, we focused on the Shanghai International Economic and Trade Arbitration Commission’s (SHIAC) new arbitration rules, which take effect January 1, 2024.
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