Safety Is Everybody's Business. Safety & Health Add Value…. Business Workplace Life To Your…

Safety Is Everybody's Safety Is Everybody's BusinessBusiness

Safety & Health Add Value….

Business Workplace Life

To Your….To Your….

Safety & Health Add Value to Your Business:

Reduce injury/illness costs by 20% to 40%

“We can’t make a quality product with an unsafe process.”Ken Lindgren, DACO, Incorporated

Safety & Health Add Value to Your Workplace:

Fewer Injuries Rated as better places to work More satisfied, more productive

employees

“It makes sense to run an effective safety and health program because your people deserve it, your customers demand it, and your business practices and future will not be there without it.”Dan Fergus, Genesee Stampings

Safety & Health Add Value to Your Life:

Every injury prevented is a person kept whole

Every life saved is a family preserved in tact

Promotes healthy workers whose job become a vehicle for making a life-not just a living“I want to see and hear my grandchildren, and because of the safety program at Curtis Lumber, I’m going to be able to.”John Meier, Curtis Lumber

Why Worry about Safety? Why Worry about Safety?

Why do you need to be concerned about safety?

Hurt

DOL

EPA

$$$$

Lost time

WC

Pain!

Loss

Why Worry: Common Why Worry: Common ReasonsReasons

1. Getting hurt isn’t fun!!!

Not All Pain is GainNobody likes getting hurt

Healthy employees are moreproductive employees


1. Getting hurt isn’t fun!!!2. Cost of Accidents

$19 Billion

$25.6 Billion

$11.3 Billion

$60.2 Billion

$5 Billion

Wage andProductivity Loss

Medical Expenses

Administrative Costs

Associated Injuries &Injury Reporting

Other Costs

TOTAL COST OF LOST TIME INJURIESAND OCCUPATIONAL DEATHSTotal Costs USA = $121,000,000,000

Source: National Safety Council, 1996

Cost of Accidents: Total Cost of Injuries

Direct costs

Indirect costs

Cost range Up to $4 indirect for every $1 direct

© 2003 Texas Mutual Insurance Co.

Hidden Cost of Accidents

Titanic$1

$4 or more

Hidden Cost of Accidents

Indirect Costs:Indirect Costs: 4 or more times

direct cost Not typically

covered by insurance

Deducted from company profit margin

Titanic

$1

$4 or more

To pay for an accident with a total 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. While backing up, the worker tripped in a small hole as the bundle was being lowered to the ground. The worker twisted his ankle and badly bruised his foot.

The crane operator was able to lift the load quickly off his foot while a few other workers in the area came to assist him. The crane operator and 3 other workers stopped activity to help carry the injured worker to the foreman’s truck for transport to the clinic.

The injury required an initial visit to the clinic for x-rays and treatment, and 2 follow-up visits prior to the worker being released with no work restrictions. He lost 2 days of work.

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 to work that day but was paid for the rest of his shift.7 hours @ $18/hour =

$126

Crane operator and 3 workers assisted and carried injured worker to the truck.4 x ½ hour @ $18/hour =

$36

Foreman drove worker to clinic, stayed with him during treatment, and drove back to the jobsite.3 hours @ $20/hour =

$60

45 other workers stopped activity during accident.¼ hour @ $18/hour = $202


Description Cost

Injured worker returned to work 2 days later but worked at about 60% efficiency for the next 2 weeks.0.4 x 80 hours @ $18/hour =

$576

Inexperienced ironworker replaced the injured worker at about 75% efficiency.0.25 x 16 hours @ $18/hour =

$72

Safety director came from another project to conduct the accident investigation, interviewing all workers involved in or witnessing the accident.4 hours @ $75/hour =

$300

Administration of the claim by support staff.4 hours @ $10/hour = $40


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

Final Premium

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


1. Getting hurt isn’t fun!!!2. Cost of Accidents

3. Legal Issues and Liability

Legal Issues and LiabilityLegal 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


Because of personal liability, and you can be named as a defendant in a lawsuit


You can have criminal charges filed against you. Negligent

supervisors and employers have been charged with manslaughter


You can be cited by an enforcement agency Your State Department of Labor

(DOL)

EPA/MDE

Federal/State OSHA has authority to get involved


You can be fined by an enforcement agency Federal/State OSHA will issue

citations first There is current legislation to increase

penalties EPA will levy fines…

These get real expensive


Cease and desist orders: if the violations are serious enough, agencies such as DOL, OSHA, and the EPA can (and will) shut down the job site until the problems are corrected.

So how do you protect So how do you protect yourself?yourself?

????????

Understanding Accident Understanding Accident CausesCauses

Accidents are caused by: Unsafe conditions Unsafe acts

Accident CausesAccident 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 CausesAccident Causes

Unsafe Acts Most difficult to address

Changing behavior isn’t easy

Best prevented by developing a “safety culture”

Safety CulturesSafety Cultures

Establish accountability for safety

Define safety responsibilities

Establishing Accountability: Establishing Accountability: Performance EvaluationsPerformance Evaluations

Employees should be evaluated on their safety performance Doing a job correctly includes doing it safely

Company job description revisions may include generic job descriptions with: “Must follow all general and safety policies

and procedures as established by the department, college/division, and university.”

Establishing AccountabilityEstablishing 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 & Health Program)

Effectively Communicated (Training Program)

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 ?

Think Again!

No beavers were actually injured during the generation of this PowerPoint presentation!

Thank you

You are the most important safety device in your

company.

Drive Safely!

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