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Calculating the Return on Prevention
for Companies
29/11/2017
Costs and Benefits of Investments in
Occupational Safety and Health in Pakistan's Textile and
Garment Sector
Romina Kochius, Project Manager, Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) Pakistan
Muhammad Mujahid, EHS Officer, Saeed Ahmed Awan Centre for the
Improvement of Working Conditions and Environment, Pakistan
Implemented by
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The GIZ Project on Labour Standards in the
Textile Industry in Pakistan
With ca. 15 million workers, the textile and garment industry
provides employment to almost 40% of the nation’s
workforce. It is the backbone of Pakistan‘s economy.
The industry covers the complete textile value chain and
produces for the local market as much as for export,
covering almost all international markets.
The BMZ funded GIZ project focusses on carving out
incentives for improved compliance with labour standards,
using the momentum created by Pakistan’s GSP+ status.
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The GIZ Project on Labour Standards in the
Textile Industry in Pakistan
The project’s main partner is the Labour and Human
Resource Department of the country’s biggest province, the
Punjab.
Target of the cooperation is the integration of prevention,
rehabilitation and compensation to increase the efficiency
and effectiveness of labour inspections.
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The GIZ Project on Labour Standards in the
Textile Industry in Pakistan
The cooperation with the Labour and Human Resource
Department is supported by social dialogue, involving
business associations, trade unions and other stakeholders.
Moreover, the project cooperates with selected companies to
improve both labour standards and productivity, specifically
in their interplay, using a dialogue-based change
management tool.
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Why Calculating the Return on Prevention for
Companies?
A reduced number of accidents and diseases benefit the
worker’s physical integrity and quality of life as well as the
public health system.
But is there a return on preventing accidents at the
workplace and occupational diseases for the entrepreneur?
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The Partners
• Saeed Ahmed Awan Centre for the Improvement of
Working Conditions & Environment, Labour and Human
Resource Department, Government of the Punjab,
• HomeNet Pakistan,
• Bavarian Employers‘ Association (Bfz)/ESPIRE,
• German Statutory Accident Insurance Institution for the
Energy, Textile, Electrical and Media Products Sector
(BG ETEM),
• German Statutory Accident Insurance (DGUV)
• Deutsche Gesellschaft fur Internationale Zusammenarbeit
(GIZ) GmbH
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Background of the Study
The study is based on the international study “Calculating
the International Return on Prevention for Companies: Costs
and Benefits of Investments in Occupational Safety and
Health” which was carried out in 19 countries in various
sectors.
To be more convincing for local entrepreneurs, we wanted to
source local data.
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Approach
• The companies were selected on a basic criteria: They
need to have basic OSH knowledge;
• 51 companies were selected from the formal economies;
• Additionally, 7 units from informal sector were included in
the study.
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Structural Data
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Methodology
• The methodology is taken from the international study
calculating the Return on Prevention;
• The indicator “Return on Prevention” focuses in a
quantitative sense on the ratio between:
• The costs of prevention and
• The monetary benefits of prevention
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Methodology
• Companies were asked standardised questions to:
• Qualitatively rate the effects of occupational safety and
health and
• Quantitatively provide monetary values of occupational
safety and health costs per employee.
• The questionnaire contains 8 questions:
• 5 qualitative and
• 3 quantitative questions.
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Results
According to the companies interviewed, spending on occu-
pational safety and health is an investment that “pays off”.
The Return on Prevention is
assessed to be 2.5.
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Relative Importance of Occupational Safety
and Health within the Company
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Impact of Occupational Safety and Health
within the following Areas of the Companies
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Current Occupational Safety and Health
Measures within the Company
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YES, IT PAYS OFF!
1. It protects employees against workplace accidents and
illnesses.
2. It ensures the employees’ social protection.
3. It can directly benefit the entrepreneur’ profit, both in
formal and informal economies.
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As a federal enterprise, GIZ supports the German Government in achieving its objectives in the field of international cooperation for sustainable development.
Published byDeutsche Gesellschaft fürInternationale Zusammenarbeit (GIZ) GmbH
Registered offices, Bonn and Eschborn, Germany
Labour Standards in the Textile Industry of Pakistan
GIZ Textile Cluster Office, Cavalry Ground, Street Nr. 2, House Nr. 65T +92 302 8563 391E [email protected] www.giz.de
Responsible
Romina Kochius
Authors
Muhammad Mujahid, Steffen Bitterling,
Romina Kochius
In cooperation with
Implemented by
