Health and safety penalty hike : is this an effective deterrent?

Abstract

This study investigates the potential impacts of recently implemented penalty hikes for violations of Occupational Safety and Health on the safety performance of the construction industry. A literature review was conducted to identify key theories relating to deterrence and accidents. This study then examined accident rates as a safety performance proxy across different jurisdictions using a one-way between groups ANOVA statistical test and found that Hong Kong’s injury and fatality rates are statistically different (P<0.01) to other jurisdictions with different penalty cap models. Using an online distributed questionnaire survey designed to extract quantitative and qualitative data from construction professionals, the study found that a combination of high severity of punishment and significance of reward has the highest compliance level (mean compliance score) among all other combinations of the two variables varied at two levels (high, low). Linear and stepwise regression analyses were also run to identify factors that influence compliance. The study found that knowledge of punishment and likelihood of reward have a relationship with compliance level under a high severity, high significance condition and low severity, low significance condition. Finally, the study used thematic analysis to identify recurring themes within the responses on open-ended questions regarding the safety performance of Hong Kong and the existing penalty regime, finding that factors such as increased enforcement and penalty sufficiency are relevant to the discussion on deterrence effect, safety compliance and safety performance.