Costs and Benefits of Preventing Workplace Accidents : Going from a Mechanical to a Manual Handling System

This paper provides a cost-benefit analysis of the passage from a mechanical to a manual handling system that took place at the beginning of the 1990s at a warehouse of the Société des Alcools du Québec in Montreal. In particular, this change was aimed at reducing workplace accidents among packers. After evaluating the costs of the program, we present a rigorous econometric analysis to assess how many accidents have been prevented by the change so as to compute the direct and indirects costs avoided as a result of such accident reduction. We show that the demechanization of the handling system has indeed been profitable for the firm.
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