Fred Miller MT Safety & Health Bureau March 12, 2013 MT SHB Safety & Health Bureau Profiting From Safety

Fred Miller MT Safety & Health BureauMarch 12, 2013

MT SHB Safety & Health Bureau

Profiting FromSafety

HOUSTON….WE HAVE A PROBLEM….

2

MONTANA….WE HAVE A PROBLEM…

3

4MT SHB Safety & Health Bureau

PROBLEM:

Montana's workplace injury rates are among the nation’s highest

5

Professional and technical services

Finance and insurance

Real Estate and rental and leasing

Information

Mining

Other services

Educational services

Administrative and waste services

Wholesale trade

Transportation and warehousing

Utilities

Accommodation and food services

Arts, entertainment, and recreation

Retail trade

Management of companies and enterprises

Health care and social assistance

Manufacturing

Agriculture, forestry, fishing and hunting

Construction

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

Montana United States Rate per 100 Full-time Employees


MT Injury & Illness Incident Rates


FACT:

Montana's work comp ratesare among the nation’s highest2012 Oregon Workers’ Compensation Premium Rate Ranking Summary; Dept. of Consumer and Business Services


MT = HIGH RATES2010

1)Montana

2) Alaska3) Illinois

49) Arkansas50) Indiana51) North Dakota

20121) Alaska2) Connecticut3) California

8) Montana

49) Arkansas50) Indiana51) North Dakota

SAFETY IS GOOD BUSINESS

If Montana’s workplace injury frequency rates are reduced to

national average(Source: NCCI White Paper to MT DLI, March

2008)


$145 million

MORALLY…


It’s the right thing to do.

SAFETY


Quality

Safety

Productivity

Retention

Employees

OSHA

Lower health

Lower comp

SAFETY


Safety

Bottom line

“There is a clear

connection

between safety

… and profitability.”

Edmund Kelly,

Former President & CEO(in Sept. 12, 2005 issue of Business Week)


LARGE CORPORATIONS “GET IT”

LARGE CORPORATIONS “GET IT”

We want each employee and contractor working at an XTO site to return home as safe and sound as when he or she reported to work.”

Jack Williams, President, XTO Energy


“Safety is the foundation of our business – nothing is more

important.

SOME MT COMPANIES “GET IT”

“Our premiums have gone down and that’s a fantastic story

financially.”


Cheri Decker,HR Executive Simms Fishing Products

JEFFERSON CO. “GETS IT”

Over 3 years,

Jefferson County

saved more than

$85,000

in work comp

premiums with its

safety program.


YELLOWSTONE CO. “GETS IT”

Yellowstone County

has saved over

$100,000

in the past three

years - and twice

won the Governor’s

Safety Award.


MT STATE GOVERNMENT “GETS IT”


2008 2009 2010 2011 2012

Incurred Loss 13719747.76 10912747.41 9436293.09 8094854.78 4792300.97

Premium 18293340 18792208 18041787 16660208 13298334

1000000

3000000

5000000

7000000

9000000

11000000

13000000

15000000

17000000

19000000

Montana State Government - Work Comp Claims & Premium

Since 2008, state work comp costs have decreased a total $6.4 million

SAFETY

IS THEMISSING LINK!

18

Between now Lower work comp costs



Root Causes

20

Injuries are caused by a series of

underlying events that produce

an undesired result


21

Discover the underlying cause - then

eliminate it, reduce it,

or control it.


#1: Montana workers are injured among the highest rates in the nation. (US BLS )


Root causes of high rates

#2: Compared to the national average, it takes 23 dayslonger to get an injured worker back to work. (US BLS)

#1: Montana workers are injured among the highest rates in the nation.


Root Cause Solutions

#1: Raise awareness #2: Free safety consultations#3: Free written safety plan#4: Free SafetyFestMT#5: Free monthly safety coalitions

#6: Free OSHA training 444-6401


Risk Management solutions

#1 SOLUTION: utilize safety consultations

Call 444-6401

www.montanasafety.com


OSHA standards

1910 General Industry

1926 Construction


You choose

Education?

Enforcement?


Root Cause Solutions

#2 Problem: It takes 23 days longer to get an injured worker back to work.#2 SOLUTION: RTW Education

Jason SwantDLI [email protected]

mailto:[email protected]

mailto:[email protected]


Root Causes

Risk Management solution

#2 SOLUTION: Education for returning an injured worker to job ASAP.

70 %


SAFETY IS GOOD FOR BOTTOM LINE

Premium = Payroll (x) Rate 100

Each job has its own class code and

rate

Rates are determined by NCCI All types of work (in each state) is

compiled when determining the rate


Premium = payroll (x) Rate 100

(x) E-mod

Experience modification multiplies your premium based on 3-year history of your claims


SAFETY IS GOOD FOR YOUR BOTTOM LINE


E-MOD

Multiplies your premium up, or down.

A 1.00 e-mod = average; “C” grade;

neutral

A debit >1.00 (F)

A credit < 1.00 (A)




(x) E-mod

Homework: Ask about your e-mod, what is it? Is it trending up or down?




(x) E-mod

(x) Sch. Rating

Scheduled rating (Loss Control Credit) is an extra discount that you might receive.



Scheduled Rating

DOCUMENT individual risk

characteristicsWritten safety plan

Safety Committee

Early-Return-to-Work

Tool box talks

DIFFERENCE SAFETY MAKES

Example: costs with POOR safety record

$100,000 payroll (x) 24.65 = $24,650100

E-mod (x) 1.25 = $30,813Sch. Rating (x) 1.10 =

$33,894


$9,244 above average


Example: costs with GOOD safety record

$100,000 payroll (x) 24.65 = $24,650 100E-mod (x) 0.75 = $18,487Sch. Rating (x) 0.95 = $17,563


$7,086 better than average


With POOR safety $33,894

With GOOD safety - $17,563

Difference =$16,330


REAP A 400% HARVEST


SOURCE: American Society of Safety Engineers (ASSE) 2002 White Paper.

SOW SAFETY

WORKPLACE SAFETY IS NOT JUST A GOOD IDEA –

Montana Safety Culture Act MCA 39-71-1501Employers:

1) Develop safety programs2) Implement safety programs


it’s state law

1) DECIDE

2) DEVELOP

3) IMPLEMENT

4) MONITOR

5)

NEGOTIATE


5 Steps

to Reduced Comp Costs

5 STEPS TO LOWER

COMP

“People pay attention to

what their boss pays attention to.”

– Shawn

Galloway 41

1) Decide “You get the level of safety you demonstrate you want.” – DuPont


5 STEPS

42

1) DECIDE

It all starts with a decision

either CEO, Board or Owners.


“The buck stops here.”

President Harry Truman1945–1953

5 STEPS

Call 444-6401For free Safety

help43

2) DEVELOP

Download a written

Safety Policy.


5 STEPS

44

3) IMPLEMENT

Put your plan into practice –

make it part of your DNA.


5 STEPS

45

4) MONITOR your critical

numbers


Loss Ratio

E-mod

Scheduled rating

INSURANCE = RISK TRANSFER

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Transfers your risk to the insurance company in exchange for premium.

5) NEGOTIATE


5 Steps

5 STEPS

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If risk goes down, pricing should

follow.


Less risk = less cost

5 STEPS

48

Join a Retrospective rated group plan


Costs

Claims

Return

5 STEPS

49

Join a Retrospective rated group plan


Montana State Fund Small Business Group

Liberty Northwest MT Chamber Choices

Liberty Northwest Contractors Group

SAFETY IS A CRITICAL COMPONENT

FOR A STRONG BOTTOM LINE.



Safety is job # 1

Quality is job # 2

Production is job # 3

Allied Steel, Lewistown

Make Safety Job #1!

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1) Written safety plan?


Homework:

2) Scheduled rating?

3) E –mod

4) Retro group?

5) Who’s in charge?

DISCLAIMERS

1. This class discounts.

2. Retro groups have restrictions.

3. You may not join more than one group.

4. You might not have an e-mod.

5. After a safety consultation, you are expected to make improvements.


HELP IS AVAILABLE! MT DLI Safety & Health Bureau 444-

6401

www.montanasafety.com

BILLINGS - Jennifer Rose, Joe Wolf

BUTTE - Vidya Bala, Chris Lockmer, Tiffany Ott,

Kristine Witt

HELENA - Edward Dawes, Judy Murphy,

Dave DeFer

GREAT FALLS – Fred Miller, Marissa Morgan


http://www.montanasafety.com/

HELP IS AVAILABLE! Your workers’ comp insurance

company Loss Control Department. Montana State Fund Liberty Northwest Hartford Travelers

Your local insurance agent Payne-West HUB


Safety Management OSHA 30-hour OSHA 10-hour HAZWOPER 40-hour

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Coming soon….


SafetyFestMT.com

57

Professional and technical services

Finance and insurance

Real Estate and rental and leasing

Information

Mining

Other services

Educational services

Administrative and waste services

Wholesale trade

Transportation and warehousing

Utilities

Accommodation and food services

Arts, entertainment, and recreation

Retail trade

Management of companies and enterprises

Health care and social assistance

Manufacturing

Agriculture, forestry, fishing and hunting

Construction

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

Montana United States Rate per 100 Full-time Employees


MT Injury & Illness Incident Rates

SAFETY IS GOOD BUSINESS

If Montana’s workplace injury frequency rates are reduced to

national average(Source: NCCI White Paper to MT DLI, March

2008)


SUMMARY Safety: fulfills your moral responsibility.

Safety: protects most valuable resource.

Safety: helps employees be more engaged.

Safety: improves the bottom line.


NEXT TO LAST WORD

“It’s the right thing to do.”

Cheri Decker, Simms Fishing60


PEOPLE COME FIRST


“For a quarter of a century, Montana’s people…have come first with me.

That is as it always has been. That is the way it always will be.”

Sen. Mike Mansfield

Aug. 24, 1967

http://www.google.com/url?sa=i&rct=j&q=mike+mansfield&source=images&cd=&cad=rja&docid=GMInxaszD5OapM&tbnid=l3rbC7kcnwZraM:&ved=0CAUQjRw&url=http://content.lib.umt.edu/cdm/landingpage/collection/mansfieldspeeches&ei=dYg_UevJGoOVqgGfzICwAg&bvm=bv.43287494,d.aWM&psig=AFQjCNG5evA1uXB8XcL2JxFTSTjkXM_fww&ust=1363204562718911

PEOPLE COME FIRST


“For a quarter of a century, Montana’s people…have come first with me.

That is as it always has been. That is the way it always will be.”

Sen. Mike Mansfield

Aug. 24, 1967

http://www.google.com/url?sa=i&rct=j&q=mike+mansfield&source=images&cd=&cad=rja&docid=GMInxaszD5OapM&tbnid=l3rbC7kcnwZraM:&ved=0CAUQjRw&url=http://content.lib.umt.edu/cdm/landingpage/collection/mansfieldspeeches&ei=dYg_UevJGoOVqgGfzICwAg&bvm=bv.43287494,d.aWM&psig=AFQjCNG5evA1uXB8XcL2JxFTSTjkXM_fww&ust=1363204562718911

Documents

Fred Miller MT Safety & Health Bureau March 12, 2013 MT SHB Safety & Health Bureau Profiting From Safety