Assess the potential costs and implications for the organisation and the individual as a result of an accident in the workplace.

Read the scenario very carefully (Relates to P11, M5 and D3)
A forklift truck ran over a Henry, a 56 year old machine operator, who works for Mechanical Lloyd as an agency temp on an eight (8) hour shift session. From the medical report, the worker suffered a crushed foot and would be out of work for eight (8) months.
The material (some work-in-progress) being carried on the forklift truck was dislodged and damaged when the driver swerved to try to avoid colliding with the machine operator. The worker received compensation for his injuries, some of which was met under the engineering companys insurance policy. The Health and Safety Executive prosecuted the company following an investigation into the accident.

(D3) Assess the potential costs and implications for the organisation and the individual as a result of an accident in the workplace.

SITUATION
Following from the incident (refer to the scenario 2), which led to the injury of Henry, the following costs were incurred with reference to the following events:
(1). The accident
Immediate first aid: 40 per hour
Making the area of incident secure and safe: 2000
Taking the injured person to hospital: 40 per hour in the ambulance or by car
Immediate cost of down-time because worker has been taken to hospital, plus cost of any other work stopped in the area: 1000-2000, depending on location (use average cost)
(2). The investigation
Staff time for investigation and report: A five-man investigative team (consisting of two managers (rated 8), two factory supervisors (rated 4) and a trade union representative (rated 1.8). Wage for investigation is at 8.50/hr over a shift over 4 days
Meetings to discuss accident: 600
Time spent with HSE Inspector: cost 58.50/hr for 240 minutes
Independent H&S Consultants fees: 1000
(3). Business Recovery
Assessing work schedules: 200
Recovering work/lost production: 4000 over a two day/3 shift pattern period
Cleaning and disposal of clinical waste: 50
Product reworking caused by material falling from forklift truck: 200
Hiring forklift truck to cover for the one out of action during investigation: 65/hr for six weeks
(4). Operational Cost
Salary of machine operative who is off work for 8 months: rate at 6.90/hr
Replacement staff: 1.54 times the rate of the injured worker over the six month period of absence (twice the operative rate would be paid for the next two months)
Lost work time: 800
Overtime cost: 500
(5). Business Liability (Sanctions and Penalties)
Compensation excess: 2000
Solicitors fees and legal costs: 5000
Staff time dealing with legal issues: 45.95/hr over the course of six months (assume working on Henrys accident would take 20% of the working day by two members of the legal/personnel team rated at 5.4)
Fines and costs due to criminal proceedings: 15,000
Annual increase in insurance premiums: 58% of nominal premium at 5,000

Using the data provided, predict the overall cost of the accident. Present your costing in a suitable manner and reflect the effects of such accident on the organisation and the individual.
*(Print off the breakdown of the cost and attach it to the assignment brief)

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