proactive risk management ensures survival during an osha inspection

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Proactive Risk Management Ensures Survival

During an OSHA InspectionPresented by:

Stephany Rockwell, Risk Manager, JBS USADonna Lynch, CSP, Antea Group

April 29, 2014


• Stephany Rockwell, JBS USA, Risk Manager

Stephany is a licensed attorney with over 20 years of risk management experience at several Fortune 500 companies.

Session Presenters


• Donna Lynch, CSP, Antea Group - ConsultantDonna is an industrial engineer and Certified Safety Professional with over 17 years of experience in loss prevention, risk management and environmental, health & safety. She has worked for privately held manufacturing firms, an insurance company, a large privately held insurance broker, and currently a global EHS consulting firm. Currently she assists global clients with the management and implementation of their EHS programs.

Session Presenters


• Understand the OSHA Inspection Process and Your Rights as an Employer

• Identify actions to take and things to avoid during an OSHA inspection to minimize liability.

• Proactive Risk Management to mitigate your risk before, during and after an OSHA inspection.

Learning Objectives from the Presentation


Agenda

• Housekeeping, safety, introductions• Overview of OSHA, inspection triggers and why

manage the risk• Inspection process, current trends• Employer’s rights, managing the process• Proactive measures to minimize citations and fines• Multi-employer worksites• Questions


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Almost everything…

OSHA Overview, What’s Changing?


Fully Funded OSHA Budget

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• Aggressive enforcement and regulatory focus• More inspectors• Higher penalties and publicity• More employers placed in the Severe Violators

Enforcement Program (SVEP)• The 2014 goal is to conduct 31,400 safety

inspections, 2,200 fewer safety inspections than 2013.

• OSHA is going to focus more on the quality of inspections rather than quantity.

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Enforcement


What Triggers an Inspection?

• Imminent danger • Fatality or catastrophe• Complaint or referral • Programmed inspection

o 13 National Emphasis Program o 140 Local/Regional Emphasis Programs

• Follow-up


OSHA Inspection Process

• Opening conferenceo Document review

• Walk around/inspection• Closing conference

o Abatement periodo Informal conference


Opening Conference

• Type of inspection (present the complaint) • Identify purpose and scope of the inspection • Take photographs• Request 300 logs and safety program • Present warrant (if requested)


The “Walk Around”• Identify and document the hazards • Review records and programs• Take photos, video, instrument readings• Interview employees • Establish employee exposure • Establish employer knowledge of condition


Things to Know• The inspection process is a legal matter and is subject to

legal review and enforcement by the courts • The employees interviewed are potential witnesses • The photos and measurements taken are evidence that the

hazards exist • The questions asked of management are to determine

employer knowledge of the condition • OSHA must prove that the hazards exist, employees are

exposed and the employer knew or could have known of the hazardous conditions


Closing Conference

• Review of inspection findings • Abatement options • Citation/penalty • Posting • Informal conference- 15 working days • Failure to correct- follow up inspections


Most Cited Standards1. Fall Protection (8,241 violations for Fiscal 2013)2. Hazard Communication (6,156)3. Scaffolding (5,423)4. Respiratory Protection (3,879)5. Electrical, Wiring Methods (3,452)6. Powered Industrial Trucks (3,340)7. Ladders (3,311)8. Lockout/Tagout (3,254)9. Electrical, General Requirements (2,745)10. Machine Guarding (2,701)

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The Proof is in the Penalties• Big Lots Stores Inc., $169,000 in fines for exit access,

crushing, struck-by hazards at West Babylon, NY, store• Trade Fair Supermarkets in Queens, NY, for laceration,

eye, exit hazards; $128,000 in fines• Duane Reade Inc., $71,500 in fines for exit access and

fire safety hazards at 598 Broadway store in lower Manhattan• Three New York contractors face over $465,000 in fines

for electrocution and other hazards at Long Island work site• Hawaii resort cited with 14 safety and health violations

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Key Factors Impacting Severity of Penalties

• Knowledge of OSHA standards• Inspection of the worksite by a competent person • Communication of the importance of safety to all supervisors

and employees• Development of written safety rules and procedures• Adequate training• Progressive discipline for violation of safety rules • Safety record and accident history• History of previous OSHA violations


OSHA – IT IS A RISK - MANAGE IT!

Our job as Risk Managers is to prepare for, manage and mitigate incidents which may affect our business, operations, customers and brand.


HOW DO WE MANAGE IT?

DEVELOP AN OSHA RESPONSE PLANManaging this process efficiently will manage adverse situations effectivelyRegularly train and exercise OSHA response teams

Develops and maintain capabilitiesValidates plans and processesPrevents the situation from becoming a crisisCreates alignment within your organization and response


OSHA RESPONSE PLAN DEVELOPMENTIDENTIFY

What are the issues inherent in your industry? What are the current hot buttons for OSHA in your region and industry? What has been a focus in prior OSHA inspections and citations? How have we responded to these areas?

INSPECTION PROTOCOL Organize information and records Appoint a primary OSHA contact and a backup Designate a meeting room Establish appropriate behavioral and interaction requirements

POST INSPECTION MEETING Analyze the inspection, results and evidence within 24-48 hours after inspection with safety,

senior management, corporate counsel and public relations.


RESPONSE PLAN DEVELOPMENT

UTILIZE YOUR RESOURCES Broker Property EngineersOutside Counsel (invest some time in finding the right

attorney) Carrier Partners (consult with your broker first) SafetyConsultant Peers


RESPONSE PLAN DEVELOPMENT

RESPONSE PROTOCOLCorrect any issues that can be immediately addressedRefute any issues you feel are not relevantEngage outside counsel to assist in the evaluation of the citation and

preparation of your responseUse Outside counsel to negotiate and attend any meetings or hearings

with OSHADon’t immediately accept a settlementEnsure you prepare AND EXECUTE a plan to address the concerns in the

citation


RESPONSE PLAN DEVELOPMENT DE-BRIEF

Ensure the same or similar issue is addressed at all your other locations Discuss the process and response – what went well, what can be improved? Implement suggestions Schedule next mock inspection to test and re-enforce appropriate inspection and

response protocol

FOLLOW-UP Train, train, train Train management, safety, engineering and employees to ensure the issues does

not occur again Conduct periodic OSHA Inspection Response drills

CONDUCT MOCK OSHA INSPECTIONS


OSHA RISK MANGEMENT

PLAN TRAIN EXECUTE DEBRIEF ADJUST / IMPROVE TRAIN


My Safety Management Program is Awesome . . . I Will Never have a

Problem.

A Final Consideration


Multi-Employer Citation Policy

• Controlling Employer - General supervisory authority over a worksite, including the power to correct safety and health violations itself or require others to correct.

• Creating Employer - Company that causes a hazardous condition that violates OSHA regulations.

• Exposing Employer - The one who exposes their own employees to a hazard. This exposure may result from placing their employees in a workplace where other employers have created a hazard or one where they create a hazard.

• Correcting Employer – The one that is engaged in a common undertaking at the same workplace as the exposing employer and is responsible for correcting a hazard.


Questions, Final Comments and Contact Information

[email protected]

[email protected]

proactive risk management ensures survival during an osha inspection

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