Bonus and accidents: is there a link?

"An analysis of the number of industrial injuries shows that the mining sector is particularly affected, since mining is one of the most dangerous industrial activities in Canada. This has led to numerous inquiries, and supports the need for an in-depth study aiming at the identification of factors responsible for these accidents. One possible factor often pointed at is the small crews incentives and this paper presents a scientific approach applied to check a potential link between bonus and accidents at two mining companies located in northwestern Quebec.The data required to do so were the accidents, the salaries and the number of hours worked at each mining site by the hourly paid personnel for the period from June 1979 to January 1982. The analysis of the results derived from the initial information shows different behaviours of the frequency rate vs the bonus rate at these mines. The number of days lost per accident is independent of the bonus rate at both mine sites, as shown by Khisquare tests on contingency tables.IntroductionA wide variety of opinions has been pinpointed by a survey of the literature related to individual or small crew incentives and industrial accidents in sectors of activity where it applies. In addition, various formulae of mining contracts take place in the industry on one part, and statistics from this sector indicate a high accident frequency rate on the other part. These fact s have lead to this scientific investigation which does isolate the direct impact of the bonus on workers' accidents. This study was undertaken with the full support of the Quebec Metal Mining Association.The conclusions of this preliminary phase of the researchproject are presented for two mining complexes in northwestern Quebec. The procedure is somewhat similar to the approach of the Belmoral Commission, with the underlying assumption that bonus has a direct impact on accidents."