What Costs Do Workplace Accidents and Occupational Diseases Entail in Industry?

According to the National Institute for Safety and Health at Work, 653 510 workplace accidents were recorded in Spain in 2022, with the industrial sector being the second most affected, behind only construction. In the same year, 22 589 occupational diseases were reported. The particular characteristics of industrial work mean that their incidence is also higher than in other fields. 

Workplace accidents and occupational diseases entail significant costs for both the healthcare system and the company itself, whose workers are forced to stop their activity. We explain the main incidents of this type in industry.

The difference between workplace accidents and occupational diseases  

Social Security includes workplace accidents and occupational diseases within the scope of occupational contingencies, that is, those that occur while carrying out work or while travelling to work. The main difference compared with common contingencies is that these refer to incidents occurring during a professional's personal life. 

Workplace accidents

The International Labour Organization provides a classification by type of workplace accident. It also highlights the characteristics an incident must have to be considered as such:

• Its nature. It varies, and its scope and possible consequences cannot be predicted. 
• Its origin. It is sudden and unforeseen.
• Its pathogenesis. The time at which the injury occurred can be identified. 
• The injury is the result of trauma. 

As we have seen, industry is a sector particularly affected by this type of incident. According to the Annual Report on Workplace Accidents in Spain 2022, the incidence of workplace accidents in the industrial sector increased compared with the previous year. 

Occupational diseases

For their part, occupational diseases are conditions suffered by a person as a result of the work they perform as an employee. Royal Decree Law 1299/2006 contains the list of these conditions and establishes the automatic granting of benefits to people affected by them. The ILO also provides a list of occupational diseases that serves as a legal reference. 

According to the Occupational Disease Statistics published by Social Security, the number of sick leaves due to these conditions grew in the first eight months of this year, reaching 6.172, 12,5% more than in the previous year. The highest incidence occurred in the food industry, with 702 sick leaves. Cases linked to the manufacture of metal products have also increased within the industrial sector.

Costs of workplace accidents and occupational diseases in the industrial sector

Occupational contingencies are one of the main causes of economic losses for companies in the industrial sector. This is true both for direct reasons, related to the organisation's own accounting, and indirect reasons, associated with worker dissatisfaction or damage to the company's image. 

1. Direct costs  

These are costs that have a direct and evident financial impact on results. These are the main direct costs of workplace accidents and occupational diseases:

• Medical expenses. The costs of caring for the affected person are usually borne by the company. Depending on the severity of the illness or injuries, they may involve significant expenditure.
• Compensation. It is common for the company to be considered responsible for the contingency and have to compensate the worker.
• Legal services. Accidents and occupational diseases entail significant legal expenses for companies. 
• Hours lost by workers who suffer the workplace accident or occupational disease, as well as by their colleagues. 
• Costs due to machinery downtime and product loss in the case of workplace accidents.
• Penalties. Public bodies will investigate the causes of the occupational contingency and, if the company is found responsible, administrative proceedings will begin that may result in substantial fines. 

2. Indirect costs 

These are costs that the company cannot estimate precisely, but that affect the company's environment and have a negative impact on the development of its activity. They are not shown directly in the accounts, but they harm results.

• Staff demotivation. The team's reaction to an incident involving a colleague creates concern and unease and affects overall productivity. It can also lead to labour disputes in which the company itself becomes the focus of conflict. 
• Difficulty finding a replacement for the affected professional. In a sector such as industry, where worker safety is a key aspect, companies where accidents or occupational diseases occur gain a negative reputation among skilled workers, making it harder to hire replacements. 
• Commercial losses. Many public and private tenders include clauses related to workplace safety. Accidents and occupational diseases cause companies to lose important industrial contracts. 
• Reduced productivity. Analysing and resolving the issues that caused the incident brings industrial activity to a halt. The decline in productivity is also linked to professionals' emotional state.  

Taking appropriate preventive measures is key to avoiding workplace accidents and illnesses in industry. At Shoes For Crews, we know the importance of providing workers in the sector with the appropriate PPE to reduce the incidence of these incidents, including professional footwear. Browse our catalogue to choose the models that best suit your team's needs. And if you would like more information, get in touch with us!