general safety1.pdf
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Safety & Health Add Value toYour Business:
Reduce injury/illness costs by 20% to40%
“We can’t make a quality product with an unsafeprocess.”
Safety & Health Add Value toYour Workplace:
Fewer Injuries Rated as better places to work More satisfied, more productive
employees
“It makes sense to run an effective safety and healthprogram because your people deserve it, your customersdemand it, and your business practices and future will notbe there without it.”
Safety & Health Add Value toYour Life:
Every injury prevented is a person keptwhole
Every life saved is a family preserved in tact Promotes healthy workers whose job
become a vehicle for making a life-not just aliving“I want to see and hear my grandchildren, and because ofthe safety program at Curtis Lumber, I’m going to be ableto.”
Why Worry about Safety?
Why do you need to be concernedabout safety?
Hurt
DOL
EPA
$$$$
Losttime
WC Pain!
Loss
Why Worry: Common Reasons
1. Getting hurt isn’t fun!!!
Not All Pain is GainNobody likes getting hurt
Healthy employees are moreproductive employees
$19 Billion
$25.6 Billion
$11.3 Billion
$60.2 Billion
$5 Billion
Wage andProductivity LossMedical Expenses
Administrative Costs
Associated Injuries &Injury ReportingOther Costs
TOTAL COST OF LOST TIME INJURIESAND OCCUPATIONAL DEATHS
Total Costs USA = $121,000,000,000
Source: National Safety Council, 1996
Cost of Accidents: Total Costof Injuries
Direct costs
Indirect costs
Cost range Up to $4 indirect for every $1 direct
© 2003 Texas Mutual Insurance Co.
Hidden Cost of Accidents
Indirect Costs:
4 or more timesdirect cost
Not typicallycovered byinsurance
Deducted fromcompany profitmargin
$1
$4 or more
To pay for an accident with atotal cost of $500 A soft drink bottler would have to bottle and sell over
61,000 cans of soda A food packer would have to can and sell over 235,000
cans of corn A bakery would have to bake and sell over 235,000
donuts A contractor would have to pour and finish 3,000 square
feet of concrete A ready-mix company would have to deliver 20
truckloads of concrete A paving contractor must lay 900 feet of two-lane
asphalt road
True Cost of Accidents
Accident Description An ironworker was directing the placement of a rebar
bundle unloaded from a flatbed in the laydown yard. Whilebacking up, the worker tripped in a small hole as thebundle was being lowered to the ground. The workertwisted his ankle and badly bruised his foot.
The crane operator was able to lift the load quickly off hisfoot while a few other workers in the area came to assisthim. The crane operator and 3 other workers stoppedactivity to help carry the injured worker to the foreman’struck for transport to the clinic.
The injury required an initial visit to the clinic for x-raysand treatment, and 2 follow-up visits prior to the workerbeing released with no work restrictions. He lost 2 days ofwork.
Direct (Insured) Accident Costs Medical Treatment $250 No Lost-Time Benefits $0
Temporary Income Benefits-TIBs
Indirect (Hidden) Accident Costs
Description Cost
Injury occurred at 8:00 am; ironworker did not return towork that day but was paid for the rest of his shift.7 hours @ $18/hour =
$126
Crane operator and 3 workers assisted and carriedinjured worker to the truck.4 x ½ hour @ $18/hour =
$36
Foreman drove worker to clinic, stayed with him duringtreatment, and drove back to the jobsite.3 hours @ $20/hour =
$60
45 other workers stopped activity during accident.¼ hour @ $18/hour = $202
Indirect (Hidden) Accident Costs
Description Cost
Injured worker returned to work 2 days later but workedat about 60% efficiency for the next 2 weeks.0.4 x 80 hours @ $18/hour =
$576
Inexperienced ironworker replaced the injured worker atabout 75% efficiency.0.25 x 16 hours @ $18/hour =
$72
Safety director came from another project to conduct theaccident investigation, interviewing all workers involvedin or witnessing the accident.4 hours @ $75/hour =
$300
Administration of the claim by support staff.4 hours @ $10/hour = $40
Indirect (Hidden) AccidentCosts
Total Hours Spent For Accident 68 Hours
Total Indirect Costs $1,412
About 5.5 times the DIRECT COSTS!
More cost of accidents
Company Premium ExperienceModifier
FinalPremium
Projected5+ years
X $100,000 1.0 $100,000 $500,000
Y $100,000 0.8 $80,000 $400,000
Z $100,000 2.0 $200,000 $1,000,000
Why Worry: Common Reasons
1. Getting hurt isn’t fun!!!2. Cost of Accidents
3. Legal Issues and Liability
Legal Issues and Liability
As a result of safety violations: You can be named in a lawsuit Criminal charges may be filed against you You can be cited by an enforcement
agency You can be fined by an enforcement
agency Your workplace can be shut down by an
enforcement agency
Legal Issues and Liability
Because of personal liability, and you can benamed as a defendant in a lawsuit
Legal Issues and Liability
You can havecriminal chargesfiled against you. Negligent
supervisors andemployers havebeen charged withmanslaughter
Legal Issues and Liability
You can be cited by an enforcementagency Your State Department of Labor (DOL)
EPA/MDE
Federal/State OSHA has authority to getinvolved
Legal Issues and Liability
You can be fined by an enforcementagency Federal/State OSHA will issue citations
first There is current legislation to increase
penalties
EPA will levy fines… These get real expensive
Legal Issues and Liability
Cease and desist orders: if theviolations are serious enough, agenciessuch as DOL, OSHA, and the EPA can(and will) shut down the job site untilthe problems are corrected.
Accident Causes
Unsafe Conditions Easiest to correct (and very cost effective) Easiest to prevent
Safety audits Safety inspections Maintenance schedules for equipment Encouraging employee reporting Good housekeeping
Accident Causes
Unsafe Acts
Most difficult to address
Changing behavior isn’t easy
Best prevented by developing a “safetyculture”
Establishing Accountability:Performance Evaluations
Employees should be evaluated on theirsafety performance
Doing a job correctly includes doing it safely
Company job description revisions mayinclude generic job descriptions with:
“Must follow all general and safety policies andprocedures as established by the department,college/division, and university.”
Establishing Accountability
Charge back systems Safety goals
Accident costs Equipment damage Lost time
Accident rates First aid #s Workers comp #s
Loss ratios (including automobile rates)
Safety Activities Safety meetings, inspections, using PPE
Defining Accountability
Written Work Rules (Safety & HealthProgram)
Effectively Communicated (TrainingProgram)
Progressively Enforced
Hurt at Work You've carefully thought out all the angles. You've done it a thousand times. It comes naturally to you. You know what you're doing, its what
you've been trained to do your whole life. Nothing could possibly go wrong, right ?