Managing health and safety can be a good investment

ABOUT FEM

▪ Provides Workman’s Compensation Cover to the construction industry in terms of the COID Act
▪ Established in 1936 – 85 years in existence
▪ Operates under licence from the Department of Employment and Labour/ Compensation Fund
▪ Covers over 6000 construction companies and 300 000 construction employees

Cares about the quality of life for injured workers and their Champions health and safety, for the benefit of the construction
dependents. industry and for society.
CONSTRUCTION SPECIFIC EXPERIENCE – FEM POLICYHOLDERS
400,000 12,000

350,000
10,000

300,000

No of policies and accidents

8,000
No of employees

250,000

200,000 6,000

150,000
4,000

100,000

2,000
50,000

0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Axis Title

LivesCovered Policies Claims

CONSTRUCTION SPECIFIC EXPERIENCE – FEM POLICYHOLDERS

Accident Frequency ▪ Experience based on FEM’s book of business

8.00%
▪ Accident frequency – number of accidents as a
percentage of the number of employees covered
6.82%

7.00% ▪ There has been some improvement over the years, but
6.10%

the reduction in accidents has stagnated

▪ Given reporting delays , 2020 and 2021 numbers may
5.55%

6.00%
5.20%

still change
5.02%

4.79%

5.00%
4.16%

4.11%

3.88%

3.61%
4.00%

3.32%

2.85%

2.71%

2.71%

2.59%
2.57%

2.48%
2.48%

2.45%
2.44%
3.00%

2.38%

2.09%
2.00%

1.00%

0.00%

Source: https://roe.fem.co.za/Stats#/Accident-Stats
 CONSTRUCTION SPECIFIC EXPERIENCE – FEM POLICYHOLDERS

• 1592 reported deaths since 2000

• Average of 72 deaths a year – 6 deaths a month
• Numbers will be higher for the entire construction
industry!
101

94
88
83
79
76 77
75 74 74
72 71 70 69
68 67 67
66
64

57
52
48

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: https://roe.fem.co.za/Stats#/Accident-Stats
CONSTRUCTION SPECIFIC EXPERIENCE – FEM POLICYHOLDERS

Accidents resulting in disabilities

▪ Disabilities can result in a lumpsum payment
or in a pension depending on the assessed
908
856
disability percentage
▪ 2020 and 2021 figures affected by the
750 737 lockdown and reduction in construction
activity
623
571 585

522 524
476
443 456

382
355 358
320
285
264
238 234
198

116 120 113 123 120 109

91 97 99 102 101 93 105
86 76 87 76 75
65 70 56 59 45

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Disabilities Pensions

Source: https://roe.fem.co.za/Stats#/Accident-Stats
 CONSTRUCTION SPECIFIC EXPERIENCE - FEMPOLICYHOLDERS
▪ Average of 92 582 days lost
in a year

117,986
111,082
108,344 107,376 107,737
102,269 102,894 102,912
100,455
98,301 97,405 97,028 95,617

88,525 90,116
83,395
78,883
76,391 77,057
71,183
68,081

53,777

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: https://roe.fem.co.za/Stats#/Accident-Stats
CONSTRUCTION SPECIFIC EXPERIENCE – ANALYSIS OF 2021 ACCIDENTS

Source: https://roe.fem.co.za/Stats#/Accident-Stats
Age Gender Description of Fatal incidents
Misfire while drilling, mud covered the employee
38 Male
59 Male Wall collapsed on employee

lost control on gravel road and then the car overturned

59 Male

41 Male MVA with multiple vehicles, deceased was the passenger on their way to site

33 Male Employee fell off the moving vehicle while on way back to the office from site

32 Male Fell at height from the roof when it gave way while carrying a condenser
Driver lost control and the truck went down the embankment
44 Male
46 Male
rented room caught fire, to cause body burns injury
41 Male Knocked by car while waiting for a colleague

32 Male the car was knocked at the back then lost control to the oncoming traffic to collide
with the 8-ton tipper truck
Age Gender Description of Fatal incidents
Was working with paving team, sweeping, took a step on the road then
35 Male the Roller ran over him, died on spot
34 Male Employee was installing aerial electrical LV cable to a street light pole
when the wire when a metal wire connected to the live wire to cause
electrocution

59 Male Technician installing air-conditioning was electrocuted

34 Male Employee was found dead at the Guesthouse by colleague

Head caught between the stator and the hood to sustain the crush injury
51 Male that resulted in fatal
Male Knocked by another car on N2 offramp
43
31 Male Requested to check the bag, reported that there were disagreement and
then the deceased was stabbed
25 Male
Electrocution
34 Male
TLB reversed to the employee who was inspecting the scaffold
THE COSTS OF WORK-RELATED ACCIDENTS – DIRECT AND INDIRECT
Direct
▪ Hospital Expenses (icu, theatre etc)
▪ Medical Expenses (follow ups, physio, prosthetics etc)
▪ TTD (total temporary disability) and funeral costs
▪ Capitalised value of pension and funeral benefits

Indirect – Individual/family Indirect -Company

▪ Trauma ▪ Loss of Rebates & possible loading of rebates
▪ Income shortage - 75% of salary increasing at CPI. ▪ Making the area safe
▪ Entry level wages – only growth ▪ Penalties due to project delays
▪ No future career growth – disability ▪ Immediate staff downtime
▪ No possibility of lifestyle improvement – surviving ▪ Third party fees to assist with investigation
spouse ▪ Site clean up
▪ Little or no education for kids/cycle of poverty ▪ Repairing damage / faults
▪ Lost work time
▪ Presenteeism/ low employee moral
▪ Salary costs of replacement workers
▪ Company reputation / share price impact
▪ Loss of Profits
▪ Loss of Skills
▪ Union involvement
▪ Regulatory involvement
 REGULATORY CHANGES MAKING ACCIDENTS EVEN MORE COSTLY

• Schedule 4 of the COID Act amended in 2019 to remove the pro-rating of minimum and maximum benefits based on
the assessed level of disabilities
• COIDA amendment bill is currently in the final approval stages, and it will bring with it changes relevant to employers
and employees. Some of these are highlighted below:

✓Domestic workers will now be covered as part of COIDA

✓Focus on rehabilitation and return to work of injured employees
✓if the accident is attributable to the serious and willful misconduct of the employee,
compensation will still be payable to the employee in terms of the Act
✓Continuation of pension to dependents on the death of an injured employee who was receiving a
pension regardless of the cause of death
✓Recoveries from the Road Accident Fund will no longer occur
✓Penalties for non-compliance with COIDA
FEM Presents the ZERO IS NO ACCIDENT campaign
 ZERO IS NO ACCIDENT

The initiative will raise awareness on the root causes that plague the industry.

ZERO is FEM’s commitment to enabling full COIDA compliance in the construction industry by:

▪ Leveraging our INFLUENCE to promote commitment to health and safety

▪ EDUCATING on the pitfalls associated with workplace fatalities and the importance of committing to a sustainable workforce

▪ Engaging stakeholders and RE-INFORCING the legal obligation to COIDA compliance

▪ Rallying PUBLIC SUPPORT for an excellent and sustainable workers compensation service by ensuring high success rate in the processing of valid claims

▪ Committing to social change by uplifting communities thus CHANGING LIVES.

www.zeroisnoaccident.co.za
THANK YOU!