Mar 19, 2012

Who bears the most of the cost of a workplace accident? Employer ! Community!! Workers!!!

In a blog (safetyatworkblog.com), it is reported that 95% of the cost of a workplace accident is borne by the workers and community, whereas the employers incurs the balance. If this is true, then, employers are making profit at the cost of the society even during accidents. Though, it is not clear, how this data is arrived at, however, it is true that a business minded person passes on all his costs to his customers and he may add a percentage of the total costs (including those incurred due to incidents/accidents) as his profit. Can we draw from this, by stating that the higher the input costs, higher the profit. May be the breakeven period will be more, but afterwards, profits will be more. I am not an economist, but with my thought process, I am putting this analysis.