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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
$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
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
Indirect (Hidden) Accident Costs
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
Indirect (Hidden) Accident Costs
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
Why Worry: Common Why Worry: Common ReasonsReasons
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
Legal Issues and LiabilityLegal Issues and Liability
Because of personal liability, and you can be named as a defendant in a lawsuit
Legal Issues and LiabilityLegal Issues and Liability
You can have criminal charges filed against you. Negligent
supervisors and employers have been charged with manslaughter
Legal Issues and LiabilityLegal Issues and Liability
You can be cited by an enforcement agency Your State Department of Labor
(DOL)
EPA/MDE
Federal/State OSHA has authority to get involved
Legal Issues and LiabilityLegal Issues and Liability
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
Legal Issues and LiabilityLegal Issues and Liability
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.
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”
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 ?