This special Themed Collection of The Economic and Labour Relations Review examines the ‘Economics of Occupational Health and Safety’ (OHS). The economics of OHS looks at how economic structures and incentives, including labour markets and production processes, influence the health and wellbeing of workers and the communities where they live. It is a large and diverse subject that has been viewed from multiple different lenses. This thematic issue can only touch on some of these but will remind readers how economic incentives and industrial competitive pressures affect OHS. This editorial will take the form of an article which explores some of these intersections and places them in a wider context. To do this, the economics of OHS will not only be examined in terms of economic welfare and microeconomics at the industry and workplace level, but also from an historical perspective, as well as the intersection of these levels, thus providing a useful framework to shape research and discussion.

The regulation of road transport supply chains has recently become a subject of international concern. A significant body of research shows that ensuring minimum rates of pay for truck drivers is important, not only to workers’ health and safety but also to achieving improved road safety outcomes and other policy objectives related to the viability of the road transport industry. For this study, we used an empirical analysis to quantitatively demonstrate the impact of South Korea’s Safe Rates System on factors of the work environment and driver behaviours that affect road safety. Specifically, we looked at the impact of the system on market structure, truck drivers’ monthly net income, average working time, time spent on maintenance, and the frequency of overloading, speeding, and drowsiness while driving. Our results suggest that increased rates of pay for owner truck drivers resulting from the implementation of the Safe Rates System led to a reduction in the average number of contracting steps between client companies who ship goods and the truck drivers who transport them, improvement in the level of market transparency, increased monthly income, decrease in total time worked, decrease in the frequency of overloading, speeding, and drowsiness while driving, and increase in time spent on vehicle maintenance. The level of compliance with the system by clients and transport companies also had an overall positive impact on the industry structure. By empirically demonstrating the system’s impact, our results provide statistical evidence useful to the debate on reintroduction of the Safe Rates System in Korea.

The need to maintain transport during a pandemic places transport workers at higher risk of infection and can have other effects on health and well-being. The aim of this study was to understand the current state of research on the impact of respiratory diseases on transport workers and to identify any existing evidence-based recommendations that can help mitigate the risks associated with these diseases in the transport industry. A scoping review was undertaken as per PRISMA guidelines. A search was conducted in English-language databases for peer-reviewed research articles. We reviewed research articles published over 20 years (2002–2022). We found 12540 articles, of which 39 deemed relevant, were analysed. The review highlighted the high risk of transport workers’ exposure to respiratory diseases during pandemics, exacerbated by structural inequalities including the significant number holding precarious/non-standard jobs. Increased financial strains led to poorer mental health outcomes and risks of detrimental behaviours for health. Economic measures implemented by governments were found to be insufficient in addressing these issues. The review found that transport is a significant transmission point for pandemics of respiratory diseases, and it suggests some remedies to best meet these challenges.

Outlining the economic significance of the role of global supply chains (GSCs) in the organisation of the global economy, this paper initially presents some indications of health and safety outcomes in low- and middle-income counties (LMICs) where GSCs source much of the production destined for use in advanced economies. It goes on to discuss the operational dynamics of these chains and the corporate priorities that they reflect, which, it argues, do little to improve the poor work health and safety (WHS) outcomes in LMICs. It then examines evidence for the effectiveness of various private and public regulatory strategies that are claimed to bring about improved health and safety practices and outcomes among GSC suppliers in these countries. The paper critically evaluates this evidence and argues that, while there may be some examples of effective strategies and regulatory practices in particular contexts, their overall influence remains limited. It identifies and discusses the principal reasons for these limitations and concludes that the global regulation of conditions of labour – including WHS – at the end of GSCs falls well short of universal best practice and is, more generally, insufficient to counter the economic forces working against the maintenance of adequate standards of worker protection.

In recent decades, there has been a global growth of the use of contract labour in the mining industry, primarily driven by cost/flexibility considerations. At the same time, contracting has been associated with poorer occupational health and safety (OHS) outcomes across a range of industries. Drawing on published research, theses, and government reports, this paper critically reviews the available evidence on the OHS effects of contract labour in mining and the likely implications of further growth in this trend. This evidence confirms that the use of contract labour is associated with worse OHS outcomes, and that the Ten Pathways and Pressure, Disorganisation, and Regulatory failure (PDR) models are both valuable in explaining this. The latter point is confirmed by a more detailed examination of four serious mine incidents in NSW and Queensland. The paper identifies some gaps and areas for further research as well as the actions that mining companies, regulators, and unions could take to improve contractor safety. Notwithstanding the latter, the paper argues that the most effective way of improving contractor safety in mines is reducing the use of contractors overall and concentrating their activities in areas such as major shutdowns/repairs, where contractors have specialised expertise to undertake non-routine tasks. Despite oft-repeated phrases such as zero-harm and management systems, the corporate shift to using contractors is primarily driven by cost-cutting and highlights how OHS is compromised by such priorities.

The United Nations International Labour Organization (ILO) has recently incorporated driver pay into its guidelines on the promotion of safe and decent work in road transport. ILO guideline 73 states that ‘the remuneration of … CMV [commercial motor vehicle] drivers should be sustainable and take into consideration the attractiveness and sustainability of the industry’. In the spirit of this, we explore the relationship between truck drivers’ relative income and intrastate motor carrier safety performance. We utilise the United States (US) Bureau of Labor Statistics Occupational Employment and Wage data for heavy and tractor-trailer truck driver median annual incomes and the US Census Bureau’s American Community Survey estimates of median household incomes to construct county level relative income ratios for truck drivers. This information is merged with public safety data to analyse the relationship between truck drivers’ relative pay and motor carrier safety performance. We find that, all else constant, carriers located in counties where driver earnings are relatively high tend to experience fewer crashes. This provides evidence that safety performance is better when driver pay is more attractive in the truck driver labour market and, consequently, validates the ILO’s assertion under guideline 73.

Work-related stress is a major occupational health and safety (OHS) issue that has industrial relations origins. Aside from the moral and human rights imperatives to improve the corporate climate for worker psychological health (as per psychosocial safety climate, PSC), there are strong economic costs for not doing so. PSC refers to worker perceptions of the corporate safety system to protect and promote workers’ psychological health and wellbeing. It is a leading indicator of working conditions, which in turn affect workers’ health and work engagement. In this study, we estimate the attributable economic cost of low PSC due to sickness absence and turnover. Data were collected from a multinational company using survey at Time 1 (T1) and objective company data (i.e., sickness absence and turnover) after one year (T2). Using regression analysis and a matched sample of 617 responses, PSC was negatively related to future sickness absence. A binomial logistic regression with 1268 respondents (i.e., all responses at T1) showed that PSC was negatively related to future voluntary turnover. An economic analysis suggests that improving OHS via PSC could save an organisation with 5000 employees USD 0.6–2.7 million per year. Building PSC to protect and promote workers’ psychological health is a likely economic saving on organisational productivity.

The Korean ‘Safe Trucking Freight Rates System’ (‘Safe Rates System’) was an important effort to address road safety risks by regulating road transport supply chains. In effect between 2020 and 2022, the system set minimum standards for truck driver pay and placed obligations on road transport supply chain parties to comply with these standards. In this article, we explain how the system developed in response to the deregulation and restructuring of the road freight market in the late 1980s and 1990s. We also trace the influence on the system of regulatory development in Australia and debates at the International Labour Organization (ILO). In 2019, workers, employers, and government representatives at the ILO reached an agreement on the main principles of the Safe Rates regulatory model through the adoption of the Guidelines on the promotion of decent work and road safety in the transport sector. We use these principles to explain and evaluate the Korean system. We also summarise assessments of the system’s impact, arguing that the results of the few studies that exist, justify the continuation of the system. By locating Korean Safe Rates as part of a broader global trend, we respond to opponents’ claims that the system is without international precedent and make the system eligible for a global audience. In so doing, we seek to contribute to the ongoing debate about the reintroduction of Safe Rates in Korea and draw lessons from the Korean experience that may be used in other countries.

Companies and business lobby groups bemoan a lack of qualified workers, even for entry-level or low-skill jobs. At issue is a stated inability to find workers with the right ‘fit’ for the role or business. But what does fit really mean? We draw on human capital theory and labour segmentation theory to examine how perceptions of fit are shaped. We conducted ninety-three interviews with food service workers, managers, and other industry stakeholders and found that employment decisions are shaped by stereotypes, with a particular focus on ‘pretty privilege’ or aesthetic labour, as well as Indigeneity, citizenship, race, and gender. We present implications for research and practice in the food services industry.

Indigenous-owned businesses in Australia are strong employers of Indigenous people, maintaining rates of Indigenous employment that are not seen across the breadth of the Australian economy. Despite an increasing focus from governments and private organisations to improve rates of Indigenous employment, there is limited evidence to suggest that substantial improvements are being made. Despite acknowledgement from government of the crucial role played by Indigenous employers in creating Indigenous employment, there has been little focus on what may be learned from the Indigenous business sector in informing public and private Indigenous workplace and recruitment policies. Given the significantly strong levels of Indigenous employment in Indigenous-owned businesses, it is important to interrogate the extent to which this employment differs from that in non-Indigenous businesses and the potential explanations for such divergence. Using data from Supply Nation (2,291 Indigenous-owned businesses) and a survey of 680 non-Indigenous businesses, this paper finds that Indigenous businesses employ Indigenous people at a rate 12 times higher than non-Indigenous businesses. Regression analyses and Oaxaca–Blinder decompositions reveal that these divergent employment outcomes cannot be explained by the broad characteristics of the two sectors (such as industry, location, or profit status). These findings help confirm that the unique workplace practices of Indigenous businesses may explain their strong Indigenous employment and, therefore, provide the template for all Australian businesses to be better employers of Indigenous people.

India is being projected internationally as a country of good growth and good governance, which in turn, it is asserted, should lead to prosperity for its people, especially in terms of proper employment, income, and overall standard of living. Drawing on certain dimensions of decent work proposed by International Labour Organization to measure the quality of employment in India, this article explores how far the notions of good/high growth and good governance discourse are corroborated by the evidence of good quality employment in India. The study is based on the nationally representative unit/individual-level data published by the Government of India during the three periods 2009–10, 2018–19, and 2022–23. The main findings of analysis are: (a) the overall quality of employment in India is poor and stagnant or deteriorating, and (b) the macro-level (sub-national state-level) aspects, such as the overall volume of economic activities, the extent of quality governance, the flexibility of business regulatory environment and better labour law-related compliance, have had a significant negative influence on the quality of employment. Thus, this paper suggests that the very policy environment and the pattern of economic growth have put a drag on the quality of employment in India. Given this, we suggest a variety of countervailing policy options and emphasise the role of civil society and politics.

This study aims to examine the impact of the Hukou system, a labour mobility-restricting institution, on the decision to engage in non-agricultural self-employment in China, reflecting the dynamic process of labour transition from contractual work to self-employment within the country’s evolving labour market. By using the China Family Panel Studies (CFPS) dataset, the results show that urban migrants, who own rural Hukou but migrate to large cities, are more likely to turn to self-employment than local citizens conditional on individual characteristics. Taking advantage of the 2014 Hukou reform, we provide supporting evidence that Hukou discrimination is a key factor in explaining the higher self-employment rate among representative urban migrants. Further heterogeneous analysis suggests that low-income migrants experience greater constraints imposed by the Hukou system, while high-income level migrants are more likely to turn to self-employment voluntarily.

This study explores labour market segmentation within the Turkish construction industry, in a developing country context characterised by refugee influxes and heightened earthquake risks. We apply statistical and regression analyses using 2002–2020 Household Labour Force Survey data to explore segmentation with a specific focus on payment, job type and social security enrolment. The findings reveal a segmented labour market where the progress in regular, permanent and registered employment in the 2000s failed to encompass most construction workers. Lower wages, and temporary and unregistered work are more common among the youngest and oldest workers, those with poor education and qualification levels, immigrants, and those employed by micro enterprises. The construction industry lags behind both manufacturing and services in terms of registered and permanent employment rates and average wages. The prevalence of workers in elementary jobs with little education highlights the ongoing challenge of ensuring a highly skilled workforce, while reconstruction activities in earthquake-prone zones and the demand for urban transformation in Türkiye are increasing. We argue that improvements in working conditions constitute an urgent restructuring component in the sector for elevating the status of construction jobs, addressing the shortage of skilled labour and ensuring a high-quality building stock that upholds the right to a secure life in Türkiye.

Spain increased its minimum wage (MW) by 22% in 2019. Given the intense debate in the economic literature on the impact of MW increases on the labour market, we conduct an impact assessment of this policy. The synthetic control method will be used to replicate the Spanish labour market by means of a pool of European countries that, in the absence of other reliable measures, simulates the evolution of Spanish employment. This will allow us to identify the causal effect from the increase in the MW. After applying the technique, the increase in the MW is found to have no effect on employment. The results have been subjected to robustness tests such as leave one out or segmentation by gender or age.