Ausgrid Axes Safety Inspectors: Report Reveals It's Cheaper to Pay Disability Payouts Than Prevent Injuries
Ausgrid Axes Safety Inspectors: Cheaper to Pay Payouts

In a move that has sparked outrage and raised serious ethical questions, Australian power distributor Ausgrid has slashed its team of safety inspectors following a cold, hard financial calculation.

A damning internal report, obtained by The Guardian, concluded that it is ultimately cheaper for the state-owned company to pay out compensation for workers suffering permanent disabling injuries than it is to maintain a robust team dedicated to preventing those accidents from happening in the first place.

The Chilling Calculation

The report's findings present a stark choice between preventative safety and financial liability. The analysis weighed the significant annual cost of employing a large team of safety experts against the projected, and far lower, financial cost of lifetime injury payouts.

This corporate calculus has resulted in a direct action: the number of dedicated safety personnel has been drastically reduced across Ausgrid's operations.

A Culture of Cost-Cutting Over Care?

This decision has been met with fierce condemnation from unions and workplace safety advocates. They argue it represents a fundamental betrayal of the company's duty of care to its employees, who work in a high-risk environment with high-voltage electricity.

Critics are labelling the move as a dangerous prioritisation of the balance sheet over human well-being, potentially creating a culture where preventable accidents are seen as a mere line item rather than a human tragedy.

Implications for Workers and Public Trust

The ramifications extend beyond the immediate risk to Ausgrid's workforce. It sets a disturbing precedent for other corporations and undermines public trust in essential service providers.

The decision suggests that for Ausgrid, the safety of its employees has been quantified and deemed an acceptable financial risk—a notion that is both legally precarious and morally bankrupt.