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Workplace accident costs in the logistics industry and the EXW rule

Workplace accident costs in the logistics industry and the EXW rule

As Statistics Poland (GUS) data shows, in the first 6 months of 2023 alone, there were 2,608 workplace accidents in the transport and warehousing sector, 11 of which were fatal and 23 of which were serious. Inadequate protection of employees turns out to have severe financial consequences, as well as reputational damage for companies.

In 2021, road freight transport in European Union countries, measured by the volume of transport work performed, amounted to 1,921.2 billion tonne-kilometres (TKM), which was 6.5% higher than in 2020. The leader in transport work performed was Poland (379.8 billion TKM, 7.0% more than in 2020), followed by Germany in second place, and Spain thereafter.

– Unfortunately, even at such a scale of operations, a single workplace accident generates losses in the form of the cost of goods, and worse, carries the risk of suspending operations for the duration of an accident investigation by the Prosecutor’s Office or the Labor Inspectorate. Consequently, accidents can generate costs related to contractual penalties payable to contractors, but also the absence of injured persons – replacements, overtime, or time spent on post-accident proceedings. In 2021 alone, 68,888 people injured in workplace accidents translated into 2,589,706 days of sick leave, and consequently 664,322,700 PLN in benefit costs – says Karolina Garbowicz, Occupational Safety Expert at W&W Consulting.

Is the EXW rule the cause of accidents?

According to the EX Works rule, the seller is not required to load the goods onto the collecting vehicle or clear the goods for export, if such clearance applies. In this context, there is an age-old dispute over responsibility for goods between forwarding departments and logistics. The forwarding department is responsible for making its employees aware of what activities fall under their duties and what is strictly prohibited. The loader is responsible for loading, yet it is common practice to force drivers to unload.

– Such practice is the result of many factors. Different technical equipment of recipients, and in particular the lack of manual pallet trucks, the placement of goods collection points in e.g. shopping malls – lead to dangerous practices among drivers, whose primary role should be driving the vehicle and supervising the correct loading of the semi-trailer. It is very rare for drivers to be trained in the principles of operating manual pallet trucks and the rules regarding the permissible weight of a pallet per operator and means of transport. Equipping drivers with safety footwear with reinforced toe caps is also a rarity. There is also a lack of elementary knowledge regarding the assessment of risks associated with delivery, because we must be aware that the place of delivery may be unlit, or, for example, characterized by an uneven surface, which will cause the load to wobble, which can lead to its destruction, as well as injuries to employees – adds Karolina Garbowicz.

It is also worth noting that according to GUS, the most common cause of workplace accidents is precisely incorrect employee behavior (41%) and improper use of a material factor by an employee (9.7%). Therefore, a responsible approach to building a safety culture remains key for the TSL industry through, among other things, safety audits and training tailored to the threats occurring in specific processes, as well as equipping employees with the necessary personal protective equipment. But above all, adjusting the weight of the transported goods to legal requirements and defining the risks associated with unloading processes.

Source: W&W Consulting