The Productivity Commission has publicly released its Inquiry Report into mental health in Australia, discussing some key influences on people’s mental health and examining the effect of mental health on people’s ability to participate and prosper in the community and workplace.

The final report was handed to the Australian Government on 30 June 2020 and made public on 16 November 2020. The report highlights the importance of creating a people centered mental health system and makes 21 recommendations to achieve that outcome.

Relevant for employers, the report notes the strong links between employment and mental health and recommends measures to equip workplaces to be mentally healthy.

“There are benefits to workers, employers and the wider community from improvements to workplace mental health that lower employee absenteeism, increase productivity and reduce mental health related compensation claims,” the report states.

Of concern to AREEA and its members are the recommendations which propose additional layers of regulation, monitoring and evaluation of employers management of workplace mental health.

The Mentally Healthy Workplaces chapter of the Report covers a number of pertinent areas for employers, including:

• Factors of mentally healthy workplaces
• Workplace health and safety and workplace mental health
• Workers compensation arrangements and workplace mental health
• Employer initiatives to create mentally healthy workplaces
• The returns from investing in workplace initiatives
• Improving employer interventions

As a priority, the report recommends Australian, State and Territory Governments should amend Workplace Health and Safety arrangements in their jurisdiction to make psychological health and safety as important in the workplace as physical health and safety. It also recommends workers compensation schemes be amended to provide and fund clinical treatment and rehabilitation for all mental health related workers compensation claims for up to a period of 6 months, irrespective of liability.

The report also lists additional reforms that should be considered, including:

• Workplace Health and Safety authorities should develop Codes of practice to assist employers, particularly small businesses, meet their duty of care in identifying, eliminating and managing risks to psychological health in the workplace.
• Workers compensation schemes should be permitted to provide more flexibility in premiums for employers who implement workplace initiatives and programs that are considered highly likely to reduce the risks of workplace related psychological injury and mental illness for that specific workplace.
• Employee assistance program providers and their industry bodies, along with employers and employee representatives, should develop minimum standards for employee assistance programs and for the evaluation of these programs.
• Workplace Health and Safety agencies should monitor and collect evidence from employer-initiated interventions to create mentally healthy workplaces and improve and protect the mental health of their employees and advise employers of effective interventions that would be appropriate for their workplace.

Recommended reforms extend across workplaces, schools and universities, the justice system, community groups and services for healthcare, psychosocial support, and housing.

The report further highlights that mental ill-health affects all Australians either directly or indirectly, with almost one in five Australians experiencing mental illness in a given year.

“Many do not receive the treatment and support they need. As a result, too many people experience preventable physical and mental distress, disruptions in education and employment, relationship breakdown, stigma, and loss of life satisfaction and opportunities,” the report states.

“Reform of the mental health system would produce large benefits. These are mainly improvements in people’s quality of life — valued at up to $18 billion annually. There would be an additional annual benefit of up to $1.3 billion due to increased economic participation.

About 90% of the benefits — about $17 billion — could be achieved by adopting identified priority reforms, requiring expenditure of up to $2.4 billion and generating savings of up to $1.2 billion per year.

AREEA Advisory Board to examine report

AREEA will take the necessary time to consult with our membership on the recommendations put forward by the Productivity Commission to equip workplaces to be mentally healthy and improve mental health outcomes for employees.

Since 2017, AREEA’s Resources and Energy Mental Health Advisory Board has played a key role in tackling mental health challenges facing the industry.

The Board comprises a range of experience levels across the resources and energy industry, all with a passion for mental health.

One of many focuses for the Board is assisting employers in program development and identifying best practice mental health initiatives.

The implications and opportunities for employers from the report will be an item for discussion at the Board’s next meeting, including the recommendation that state and territory work health and safety authorities develop Codes of practice for managing mental health at work.

Resources and Energy Workforce and Leaders Mental Health Research

AREEA is coordinating an industry wide research program aimed at evaluating the impact of COVID-19 on the mental health or employees and leaders in the resources and energy industry. The research also aims to support the development of industry specific customised interventions to assist leaders and manage psychological safety and organisational performance.

The research program is being developed and conducted by the MINDSHAPE research team in collaboration with AREEA. The project objectives are to evaluate the cognitive load and decision-making abilities of leaders and develop, implement and assess the efficacy of developed interventions and evidence-based tools designed to support industry leaders.

There are three stages of the project which include a national industry survey, leaders assessment and leaders intervention trials.

AREEA members interested in learning more about the research or being involved should contact [email protected].