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October 12, 2011

Safety Strategies for Maximizing

Business Opportunities

Paul SchilinskiRegional Director

VA Dept of Labor & Industry

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Virginia Department of Labor & Industry

“Making Virginia a better place to work”

Photo Courtesy of Micron Corp.

Labor LawChild Labor

Registered Apprenticeship

Boiler & PressureVessel Safety

VoluntaryPrograms/Consultation

Compliance

What We Do

How can DOLI HelpMaximize Business

Opportunities?• Capital – Money• Workforce – Skilled and Stable• A desirable product or service

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4,551 workers died in 20095,214 - 20085,657 - 20075,703 - 20065,702 - 20055,764 - 2004

5-Yr Average 14.7 Workers Die Each Day in US

In VA this year 23 – Non Transportation 2009 VA Work-Related fatalities - 119

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Accident Costs

Direct Costs (medical and compensation costs) are only a small portion of the bill.

Indirect Costs (production loss, overtime costs, paperwork time lost, training and replacement).

May be 3-5X the direct costs. Uninsurables

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What is the cost of an accident

• Go to www.osha.gov• On the left go to “Small Business”• Look for the “Safety Pays Program”• Fill in injury type, profit margin and

number of cases

• EMRs

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Small Business

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Safety PaysProgram

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What We Do

• Compliance – VOSH• We are a State Plan• We enforce OSHA or StateSafety and Health Regs

3 yr Average – 2,586 and 764

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VOSH Will Inspect or Investigate When:

• A fatality or catastrophe is reported

• A formal complaint is

received (741 last year)

• A referral about a life threatening condition is received

• When an inspector drives by and observes conditions that are unsafe – Emphasis

• Your company appears on – General scheduled inspections list

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VOSH INSPECTION PROCEDURES

• Inspector opens by presenting credentials, business card and advising the reason for the inspection

• Know your SIC/NAICS Code

• Will ask about training and programs

Such as HAZCOM, Confined Space

LOTO, Bloodborne Pathogens

• Will ask to see Injury and Illness records

REMEMBER, If it isn’t documented it didn’t get done

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“Survey Says” May 23 - OSHA Launches Nationwide Survey To Support Future Rulemakings, to design better rules and compliance assistance programs and will be used to estimate the costs and benefits of implementing safety and health programs

Will be sent to up to 19,000 randomly selected, private sector employers nationwide, spanning a wide range of sizes and industry types,

Completion is voluntary

Questions – Do you have a safety and health management program in place, perform annual inspections, who manages safety at the worksite, and what types of hazards they encounter

The data collection will be completed by August. (BNA – May 26, 2011)

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Prerule Stage: Would require an Injury and Illness Prevention Program.

Involves planning, implementing, evaluating, and improving processes and activities that protect employee safety and health.

OSHA data shows that employers who have implemented similar effective processes have substantially reduced injuries and illnesses

Currently there are voluntary Safety and Health Program Management Guidelines that were published in 1989.

New rules would build on the voluntary guidelines as well as best practices learned from VPP Participants and other international initiatives such as American National Standards Institute/AIHA Z10 (Spring 2011)

You Do Have a Written Injury and Illness Prevention Program, Don’t You?

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Training is Documented

April 22, 2010 – Federal Register

Proposed rule that would make violations of PPE or training requirements separate violations for each person not trained

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You do have a HAZCOM Program, Don’t You?

• Chemical manufacturers and importers must– evaluate the hazards of the

chemicals they produce or import,– prepare labels and material

safety data sheets to convey the hazards and associated protective measures to users of the chemicals.

• Employers must– have a hazard communication

program, including labels on containers, material safety data sheets (MSDS), and training for employees.

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VOSH CITATIONS

The gravity based penalty (GBP) HIGHSEVERITY

MEDIUMSEVERITY

LOWSEVERITY

GREATERPROBABILITY

$7000 $4900 $3500

LESSERPROBABILITY

$3500 $2800 $2100

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News – OSHA Changes to Administrative Penalty Policy

• Recent changes increase proposed fines for serious penalties by 300-400%

• Reason - “to exert credible deterrence”

• Changes to Adjustment Factors

• Penalty Calculation Changes

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History Reduction/Increase

• Previously 0 or 10% reduction if no citations in past 3 years

• Period will be increased to 5 years• If an Employer has been inspected in previous 5 and

no SWR or FTA citations have been issued, ER gets a 10% reduction

• If an Employer has been inspected in previous 5 and SWR or FTA citations have been issued, ER gets a 10% increase in penalty

• If an Employer has not been inspected in previous 5 and receives serious cites but not high gravity there will be neither a decrease or increase

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Size Reduction

• Currently 0, 20, 40 or 60% (State)

• Federal will be between 10 and 40% for 250 or fewer employees

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Good Faith Reduction

• Currently 0, 15, or 25% (State)

• Feds will permit Good Faith where an Employer has made an effort to implement a Safety and Health program

• Employers MUST have S&H program in place to get any Good Faith reduction

• Not allowed for high gravity Serious, FTA, Willful or Repeat

• For Federal, current 10% reduction for Employers with a Strategic Partnership will be eliminated

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Penalty Calculation Changes• Currently reductions are added and then applied to the Gravity

Based Penalty

• For example– $3,000 GBP with a 60% reduction for size, 25% reduction for

good faith and a 10% reduction for no history would have a reduction of 95% or a proposed penalty of

– $3,000 X .05 = $150

• Under the new calculation policy, reductions are taken serially– Using the same situation as above, the calculation would be– $3,000 X .40 = $1200 X .75 = $900 X .90 = $810

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Clow Valve Company, subsidiary of McWane, Inc.,

Produces gray iron, ductile iron, and brass castings

2000 - Incident rates were above the national average for its industry. Total Recordable Incident Rate (TRIR) was 40.29 while the national average for gray and ductile iron foundries was 21.70.

2001 - Clow Valve's management team contacted Iowa's OSHA On-site ConsultationService and requested that they perform an on-site visit.

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Clow Valve

2002 - McWane's proposes to partner with OSHA to improve its worker safety program.

2003 – Richard Fairfax, Director of Enforcement Programs responds telling McWane to pound sand

2009: Iowa OSHA's VPP team returned to conduct a VPP onsite audit. The facility achieved VPP Star status

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Work with On-site Consultation and participation in the Iowa VPP resulted in improved workplace safety and health performance AND

Incident rates below the industry’s national average

Turnover rates fell from 89% in 2000 to 13% as of Dec 31, 2010.

Open communication between management and hourly employees An advocate of cooperative programs and mentors other facilities

Employees are frequent speakers at conferences including the Iowa Governor’s Safety Conference in 2009 and a VPPPA Conference in 2010.

Clow Valve has become an employer of choice in the local community in part because of its commitment to workplace S&H

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What We Do – Voluntary Programs

• Consultation • FREE

• No Citations/Penalties

• Consultants work with you

• Directed at Small ERs 3 year average – 494 Private Sector Surveys/Yr

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What We Do – Voluntary Programs

• Consultation – Safety and Health Achievement Recognition Program

• Supports small, high hazard employers to work with employees to develop, implement, and continuously improve S&H programs

• 31 active participants

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What Do These Organizations Have in Common?

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All Have VPP Sites in VA

Created in 1982

Recognize worksites that show excellence in occupational safety and health

VPP worksites average a lost workday incidence rate at least 50 percent below their industry

Participants are removed from programmed inspection lists.

Committed to exceeding requirements of OSHA standards

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www.osha.gov

• What is frequently cited in your industry

• Links to establishment histories

• Letters of Interpretation

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October 5-7, 2011

Renaissance Portsmouth Hotel

Portsmouth, VA

SummaryDOLI can help you be in compliance. By being in compliance and maintaining a safe workplace, you can avoid costly injuries and property damage incidents as well as negative publicity, regulatory penalties and increased insurance costs.

Maintaining a safe workplace promotes consideration of your Company when others are seeking service providers and partners. A well managed and safety conscious company attracts talented employees.

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Important web addressesImportant web addresses

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OSHA – www.osha.gov - read standards and interpretations, keep up on current topics, download forms and publications, review inspection histories  Virginia Town Hall – www.townhall.state.va.us - keep up with pending legislation, learn what your elected officials are doing DOLI –www.doli.virginia.gov - view Virginia unique standards, enroll in a training class, schedule a consultation, learn about apprenticeship (411 apprentice able trades in VA), help young people plan their future at KnowHowVirginia.org

Contact InformationContact Information

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Virginia Department of Labor and IndustryPowers Taylor Building

13 South Thirteenth StreetRichmond, Virginia 23219-4101

804-371-2327 

703-392-0900 ext 100

www.doli.virginia.gov

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Residential Fall Protection

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Residential Fall Protection• "Falls are the number one

cause of death in construction," - OSHA Asst Sec Michaels,

• BLS estimates an average of 40 workers are killed each year as a result of falls from residential roofs.

• One-third of those deaths represent Latino workers, who comprise more than one-third of all construction employees.

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Residential Fall Protection Change

• Dec 8,1995 -Interim Fall Protection Compliance Guidelines for Residential Construction, Standard 03-00-001 published.

• Jun 18,1999 - 14 page long Plain Language Rewrite issued

• Covered 4 types of activity and allowed varying alternative measures

• Are you confused yet?

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Residential Fall Protection Change

• Required fall protection plan but not written and not site specific

• Did not need to prove infeasibility• Applied to discrete parts of structures• Final use did not necessarily have to be

residential – hotel or bank• Determination was based on methods

and materials used i.e. wood

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Residential Fall Protection Change

• Dec 16, 2010 – OSHA rescinded previous directive allowing alternative fall protection

• Now, all residential construction employers must comply with 29 CFR 1926.501(b)(13)

• Where residential builders can demonstrate that traditional fall protection is not feasible, 29 CFR 1926.501(b)(13) still allows for alternative means of providing protection.

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Residential Fall Protection Change

• If ER can demonstrate infeasibility or greater hazard a fall protection plan can be used

• Plan must eliminate or reduce fall possibility• Must be written and site specific

• The plan can be developed for repetitive use for specific style/model home if it fully addresses all issues related to fall protection at that site

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Residential Construction Applicability

• Two elements must be satisfied• Structure end use must be a home/dwelling

AND• Must be built using traditional wood frame

construction materials and methods• Limited use of structural steel such as an I

beam to support the structure is allowed• OSHA rejected the term “lite” construction• Metal studs and brick/masonry exteriors can

still be residential construction

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Residential Fall Protection Change

• Construction and roofing companies have until June 16 to comply with the new directive.

• To view the directive, visit http://www.osha.gov/doc/residential_fall_protection.html

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DART Rates

• Days Away, Restricted or Transferred

• (N/EH) X 200,000

• N is number of DART cases

• EH is total number of hours worked by all employees during the calendar year

• 200,000 is the base number of hours that would be worked for 100 full time employees

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DAFWII Rates• Days Away From Work Injury/Illness Case Rate

• (N/EH) X 200,000

• N is number of Cases involving Days Away

• EH is total number of hours worked by all employees during the calendar year

• 200,000 is the base number of hours that would be worked for 100 full time employees

• Temporary transfer or restricted activity is not included

Cranes and Derricks Final Rule (Federal Identical) - 4/1/11

Severe Violators Enforcement Program (Federal Identical) - 4/1/11

Tree Trimming Operations (Virginia Unique) – 4/17/11

Residential Construction (Federal Identical) – 7/1/11 49

New for 2011New for 2011

Cranes and DerricksCranes and DerricksCFR 1926.1400-1442CFR 1926.1400-1442

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Virginia is “Federal Identical”Effective 4/1/11Requires more comprehensive inspection of ground conditionsRequires more comprehensive assessment of hazards within work zone such as overhead high voltage lines, other work, location of personnel, etc.Requires more comprehensive inspection of cranes and hoisting equipmentContains enhanced training requirementsRequires certification of crane operators

Tree Trimming OperationsTree Trimming OperationsVirginia Unique StandardVirginia Unique Standard

Effective 4/27/11Largely based on ANSI Z133.1-2006 with some safety

enhancementsRequires a more comprehensive safety effort to

include: examination of work practices, training, hand tools, ladders, power tools, vehicles, proximity to electrical lines, traffic control and other safety issues

Addresses non-logging, tree trimming and cutting operations on residential and commercial work sites

Was created with the full participation of the regulated industry, labor groups, other interested parties and government entities

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