| Introduction
Why is HIV/AIDS a workplace issue?
HIV/AIDS is having an adverse impact on many enterprises and workers households. In countries and communities where HIV/AIDS is most concentrated, enterprises have experienced increased production costs, reduced profits and greater operational difficulties.
Whether a company operates in a low-prevalence or high prevalence country or region, HIV/AIDS affects all managers, workers representatives and employees. Increasingly businesses are searching for reasonable, low-cost and time efficient ways to manage the impact of HIV/AIDS.
Consider the following on in China [1] :
- There are an estimated 700,000 people living with HIV/AIDS in China
- Of the 700,000 cases, 51.6% were infected through sexual behavior
- The estimated 50,000 new HIV cases in 2007
- Among the 50,000 estimated new infections in 2007, 44.7% were from sexual transmission
- By the end of October 2007 the majority of HIV infections were in the 20 to 39 age group, accounting for 70% of the total
- Since 1998, China's 31 provinces, autonomous regions and municipalities have all reported HIV cases
Why an HIV/AIDS workplace program?
HIV is a business issue .
The majority of new cases in China are among people in their productive years. It is important to take steps to deal with this new threat before it becomes a crisis |
Direct economic impact of HIV/AIDS on business
- There is extensive evidence that HIV/AIDS will be a cost burden for companies
- For many businesses, the impact of HIV/AIDS is already severely constraining their ability to be competitive
- HIV/AIDS in the workplace can result in decreased productivity due to:
- Increased absenteeism
- Declining morale
- Loss of technical skills and experiential knowledge
- Increase staff turnover
- Increasing recruitment, training and retraining costs
Examples:
Gold Fields , the second largest mining company South Africa reported that:
- In 2001 HIV/AIDS cost the company US$4 for each ounce of gold it produced
- The company is expanding its prevention program to reduce the financial impact to US$2 per ounce
- The biggest impact of AIDS, according to its CEO, is on the mine's production and medical costs
BLC, a mining and metal company in Botswana with 42,000 employees, a country with one of the highest HIV+ prevalence in the world, reports:
- AIDS related deaths dropped from 46 in 2002 before starting its workplace program to less than 6 in 2005 and 2006 respectively
- AIDS related medical discharges were reduced from 100 in 2002 to less than 10 in 2005 and 2006 respectively
Tata Tea Ltd . in India. In 1990 a survey of 880 plantation workers and community members in surrounding community showed:
- High risk sexual behavior
- High rates of STIs
- According to a study the company would have had an escalation in HIV prevalence in the workforce up to 3% in 5yrs without intervention and incur the following losses:
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· 45% of lost productivity |
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· 30% medical |
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· 15% death benefits |
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· 10% training |
Economic impact of HIV/AIDS on individuals and households
Employee productivity is influenced by attitudes and situations outside the work environment. HIV/AIDS is a costly disease for households and creates much stress that affects work performance and quality:
- Family income tends to fall 40-60 per cent
- Spending patterns tend to shift from consumption and saving to medical care
- Prolonged absences from work due to HIV-related illness for infected workers and care takers
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Workplace prevention has proven highly effective at shielding companies from financial and social burdens of AIDS. The core focus of these programs is to change employee behaviors that potentially lead to HIV infection and reduce AIDS related discrimination
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