30 th ICOH Congress. March 18 23, Gabriel Martínez Secretary General Inter American Conference for Social Security (CISS)
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1 30 th ICOH Congress Cancún, n, MéxicoM March 18 23, 2012 Gabriel Martínez Secretary General Inter American Conference for Social Security (CISS)
2 Social protection is needed Employers do not always internalize the costs of damage to the worker. Employers cannot always coordinate to solve collective problems. The State guarantees the use of health services and other benefits and must mandate the contributions of the productive sector. Long term risks are very difficult to measure. Private insurance markets leave out important groups, specific risks, long term risks and collective risks.
3 Relation between risk and safety $ Marginal cost of safety v Marginal value of safety 0 S* No risk Nivel de Seguridad Level of safety
4 Value of statistical life (VSL) Country and year of research Japan (1991) South Korea (1993) Canada (1989) India (1996/97) Taiwan (1997) Australia (1997) Hong Kong (1998) Switzerland (2001) United Kingdom (2000) VSL (USD 2000) $9.7 million $0.8 million $ million $ million $ million $ million $1.7 million $ million $19.9 million
5 Trends: coverage has increased significantly 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, ,476 3,557,004 Jul-96 Nov-96 Mar-97 Jul-97 Argentina 416,721 4,399,378 Trabajadores Nov-97 Mar-98 Jul-98 Nov-98 Mar-99 Jul-99 Nov-99 Mar-00 Jul-00 Nov-00 Mar-01 Jul-01 Nov-01 Mar-02 Jul-02 Empleadores Nov-02 Mar-03 Jul-03 Nov-03 Mar-04 Jul-04 Nov-04 Mar-05 Jul-05 15,000, Nov-05 Mar-06 Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08 Jul , , , , , , , ,000 0 Mexico 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 80,384 2,722, ,000 Chile Trabajadores Empleadores ,000 80,000 70,000 60,000 50,000 40,000 13,000,000 11,000,000 9,000,000 7,000,000 5,000,000 3,000,000 11,845, , , , , , ,000 1,000, ,000-1,000, ,000 Trabajadores Empleadores
6 Rates of accidents have decreased in a significant way Argentina The number of cases has been stationary. Large decrease in deaths Con in itinere Sin in itinere Índice de incidencia en accidentes de trabajo: Cantidad de siniestros en el lugar de trabajo con al menos 1 día caído / trabajadores expuestos * 1, Índice de Fallecidos : Cantidad de fallecidos/trabajadores expuestos * 1 000,000 ( , sin casos en tránsito) Fuente: Bettiol, 2007.
7 Chile The rate of accidents has fallen considerably Tasa de Accidentabilidad Percent of workers in an accident 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
8 Mexico More safety on the job and in general. Fewer cases of disability due to work accidents, but they are more costly. Pressure to control expenditures in job related insurance creates pressure on general disability programs. TASA Work DE RIESGOS accidents DE TRABAJO per 1000 POR 1000 TRABAJADORES workers Rate TASA of DE permanent INCAPACIDADES disability PERMANENTES due POR 1000 to work causes RIESGOS per DE 1000 TRABAJO workers
9 Mexico Yet, general disability rates have also fallen 3.6 Rate TASA of DE general INVALIDEZ disability GENERAL per 1000 POR 1000 TRABAJADORES workers
10 Work related illness Argentina Chile ENFERMEDADES EN EL TRABAJO POR CADA 10,000 TRABAJADORES ENFERMEDADES EN EL TRABAJO POR CADA 10,000 TRABAJADORES % 14.00% 12.00% 10.00% % 6.00% % 2.00% % Mexico ENFERMEDADES EN EL TRABAJO POR CADA 10,000 TRABAJADORES 7% 6% 5% 4% 3% 2% 1% 0%
11 Issues with statistics Indicators are difficult to interpret because they involve behavioral responses associated to financial incentives and labor contracts, as well as technological and health issues: part of the gains do not come from improved health and safety, but from changes in adjudication policies and financial controls.
12 Why are we observing lower rates of accidents and illnesses in the workplace? Trade liberalization allows technology transfer of cleaner and safer technologies. Higher benefits motivate prevention. A more educated labor force: higher value of human capital increase the value of health and safety
13 Automobile market in North America Higher income countries export low quality durable goods. that generate more pollution and personal risk; on the other hand there is a positive effect on the average quality of the capital stock in the receiving countries; both sides can win, but results are not warranted. Vehicles exported from the US to Mexico Total number 2,454,639 Year traded (year, share) Vintage (year, share) Effect of the deregulation of trade on the composition of vehicles in the USA and Mexico Local polluters Nitrogen Oxide (parts per million) USA Traded vehicles Mexico Hydrocarbons (parts per million) Carbon monoxide (percent) Global polluters Miles per gallon Weight of vehicle (pounds) Cylinders Engine (liters) Fuente: Davis & Kahn, 2008.
14 Forces promoting improved health and safety can remain valid. They can be strengthened through improved social insurance and standards (including labor inspection). Protectionism is a threat to the modernization of machinery and technology in general, but the export of equipment that transfers pollution and undue risk across borders must be controlled.
15 Challenges of the institutional framework Insurance: increase coverage. Legislation: modernize laws and regulations and the procedure to standardize. Mediation: achieve effective procedures of adjudication and solution of controversies.
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