OSHA’s Business Case for Employee Health and Safety

We talk a lot about employee safety, particularly within the confines of forklifts. But OSHA has compiled plenty of information that demonstrates it is more profitable in the long-run for companies to invest in health, wellness and safety programs for their employees. Just like forklift operator safety training, investing in other aspects of your employee’s job safety and overall health, your company reaps the rewards of less sick time, improved performance and productivity, and yes, profits. Following is OSHA’s business case:

Employers that invest in workplace safety and health can expect to reduce fatalities, injuries, and illnesses. This will result in cost savings in a variety of areas, such as lowering workers’ compensation costs and medical expenses, avoiding OSHA penalties, and reducing costs to train replacement employees and conduct accident investigations. In addition, employers often find that changes made to improve workplace safety and health can result in significant improvements to their organization’s productivity and financial performance.

The following resources provide background on the economic benefits of workplace safety and health and how safety managers and others may demonstrate the value of safety and health to management.

Management Views on Investment in Workplace Safety and Health
  • Y.H. Huang, T.B. Leamon, et al. “Corporate Financial Decision-Makers’ Perceptions of Workplace Safety.” Accident Analysis and Prevention, Vol. 39, No. 4, pp. 767-775 (2007). This study reviewed how senior financial executives perceived workplace safety issues. The executives believed that money spent improving workplace safety would have significant returns. The perceived top benefits of effective workplace safety and health programs were increased productivity, reduced cost, retention, and increased satisfaction among employees.
Return on Investment in Workplace Safety and Health
  • Building a Safety Culture: Improving Safety and Health Management in the Construction Industry. Dodge Data and Analytics, CPWR, and United Rentals, (2016). Includes a section on the impact of safety practices and programs on business factors, such as budget, schedule, return on investment, and injury rates.
  • Business of Safety Committee. American Society of Safety Engineers (ASSE). This committee gathers data, prepares documents, and is a source of professional information on ASSE’s efforts to show that investment in safety, health, and the environment is a sound business strategy. This page includes links to a variety of resources on the return on safety investment.
  • The ROI of EHS: Practical Strategies to Demonstrate the Business Value of Environmental, Health, and Safety Functions (PDF). Business and Labor Reports, (2006). Reviews strategies to help EHS professionals demonstrate the value of their programs to executive management.
  • White Paper on Return on Safety Investment. American Society of Safety Engineers (ASSE), (June 2002). Concludes that there is a direct, positive correlation between investment in safety, health, and the environment and its subsequent return on investment.
  • Return on Investment. American Society of Safety Engineers (ASSE). Provides information on the return on investment in workplace safety and health.
  • Demonstrating the Business Value of Industrial Hygiene (PDF). American Industrial Hygiene Association (AIHA), (May 2008). Provides guidance on how industrial hygienists can show that they provide organizations with competitive business advantages.
  • Construction Solutions Return on Investment Calculator. CPWR – The Center for Construction Research and Training. Helps evaluate the financial impact of new equipment, materials, or work practices introduced to improve safety.
  • Safety Grant Best Practices. Ohio Bureau of Workers’ Compensation Safety Grants Intervention Program. Case studies on the effectiveness of investment in safety equipment, including reduced incident rates and return on investment information.
  • Anthony Veltri, Mark Pagell, Michael Behm, and Ajay Das. “A Data-Based Evaluation of the Relationship Between Occupational Safety and Operating Performance” (PDF) Journal of SH&E Research Vol.4, No. 1 (Spring 2007). Results of study of 19 manufacturing firms supports theory that good safety performance is related to good operating performance.
  • R. Fabius, RD Thayer, DL Konicki, et al, “The link between workforce health and safety and the health of the bottom line: tracking market performance of companies that nurture a “culture of health.” Journal of Occupational and Environmental Medicine, Vol. 55, No. 9 (2013), pp. 993-1000. Companies that build a culture of health by focusing on the well-being and safety of their workforce may yield greater value for their investors. See Abstract and Press Release.
Tools for Calculating Economic Benefits of Workplace Safety and Health
    • $afety Pays. OSHA. Interactive software that assists employers in assessing the impact of occupational injuries and illnesses on their profitability. It uses a company’s profit margin, the average costs of an injury or illness, and an indirect cost multiplier to project the amount of sales a company would need to generate to cover those costs.
    • Safety Pays in Mining. National Institute for Occupational Safety and Health (NIOSH). Estimates the total costs of workplace injuries to a company in the mining industry and the impact of profitability.

Journal Articles

Michael Behm, Anthony Veltri, and Ilene Kleinsorge. “The Cost of Safety: Cost analysis model helps build business case for safety.” Professional Safety (April 2004). Presents a cost analysis model that can help safety, health, and environmental professionals measure, analyze, and communicate safety strategies in business terms.

“Proceedings From the Economic Evaluation of Health and Safety Interventions at the Company Level Conference.” Journal of Safety Research Vol. 36, No. 3(2005), pages 207-308. These articles describe several tools currently used by companies to evaluate the economic impact of safety and health interventions.

Susan Jervis and Terry R. Collins. “Measuring Safety’s Return on Investment.” Professional Safety (September 2001). To address the challenge of maintaining effective safety programs in the face of cutbacks, the authors discuss a decision tool to help safety managers determine which program elements offer the best return on investment.

Impact of OSHA Inspections
  • D. Levine, M. Toffel, and M. Johnson, “Randomized Government Safety Inspections Reduce Worker Injuries with No Detectable Job Loss.” Science, Vol. 336, No. 6083, pp. 907-911 (May 18, 2012). A 2012 study concluded that inspections conducted by California’s Division of Occupational Safety and Health (Cal/OSHA) reduce injuries with no job loss. The study showed a 9.4% drop in injury claims and a 26% average savings on workers’ compensation costs in the four years after a Cal/OSHA inspection compared to a similar set of uninspected workplaces. On average, inspected firms saved an estimated $355,000 in injury claims and compensation paid for lost work over that period. There was no evidence that these improvements came at the expense of employment, sales, credit rating, or firm survival. See Abstract and Press Release.
  • A.M. Haviland, R.M. Burns, W.B. Gray, T. Ruder, J. Mendeloff, “A new estimate of the impact of OSHA inspections on manufacturing injury rates, 1998-2005,” American Journal of Industrial Medicine, (May 7, 2012). Found that OSHA inspections with penalties of Pennsylvania manufacturing facilities reduced injuries by an average of 19-24% annually in the two years following the inspection. These effects were not found in workplaces with fewer than 20 or more than 250 employees or for inspections without penalties. See Abstract.
  • M. Foley, Z.J. Fan, E. Rauser, B. Silverstein, “The impact of regulatory enforcement and consultation visits on workers’ compensation incidence rates and costs, 1999-2008.” American Journal of Industrial Medicine, (June 19, 2012). Reviewed changes in workers’ compensation claims rates and costs for Washington state employers having either an inspection, with or without a citation, or an On-site Consultation Program visit. The study concluded that enforcement activities were associated with a significant drop in claims incidence rates and costs and that similar results may also be attributable to Consultation visits. See Abstract.
Making the Business Case for Process Safety Management
  • Business Case for Process Safety. American Institute of Chemical Engineers, Center for Chemical Process Safety (CCPS). CCPS developed a brochure and presentation to help companies demonstrate the business case for process safety management.
Relationship Between Injury Rates and Survival of Small Businesses
  • Theresa Holizki, Larry Nelson, and Rose McDonald. “Injury Rates as an Indicator of Business Success.” Industrial Health Vol. 44(2006), pages 166-168. Study of new small businesses that registered with the Workers’ Compensation Board of British Columbia. A statistical correlation was found between workplace safety and health and the survival of a small business. Businesses that failed within one to two years of start-up had an average injury rate of 9.71 while businesses that survived more than five years had an average injury rate of 3.89 in their first year of business.
Other Resources

Learn more about Apex Material Handling and our Forklift Operator Safety Training programs in Chicago and West Chicago. Contact us to inquire further or schedule your training at 888-530-1832.

Advertisements

OSHA Announces Top Ten Citations for 2016

Every October, the Department of Labor’s Occupational Safety and Health Administration releases a preliminary list of the 10 most frequently cited safety and health violations for the fiscal year, compiled from nearly 32,000 inspections of workplaces by federal OSHA staff.

One remarkable thing about the list is that it rarely changes. Year after year, OSHA inspectors see thousands of the same on-the-job hazards, any one of which could result in a fatality or severe injury.

More than 4,500 workers are killed on the job every year, and approximately 3 million are injured, despite the fact that by law, employers are responsible for providing safe and healthful workplaces for their workers. If all employers simply corrected the top 10 hazards, we are confident the number of deaths, amputations and hospitalizations would drastically decline.

Consider this list a starting point for workplace safety:

  1. Fall protection
  2. Hazard communication
  3. Scaffolds
  4. Respiratory protection
  5. Lockout/tagout
  6. Powered industrial trucks
  7. Ladders
  8. Machine guarding
  9. Electrical wiring
  10. Electrical, general requirements

It’s no coincidence that falls are among the leading causes of worker deaths, particularly in construction, and OSHA’s top 10 list features lack of fall protection as well as ladder and scaffold safety issues. We know how to protect workers from falls, and have an ongoing campaign to inform employers and workers about these measures.

OSHA says far too many workers are killed or gruesomely injured when machinery starts up suddenly while being repaired, or hands and fingers are exposed to moving parts. Lockout/tagout and machine guarding (including lift trucks) violations are often the culprit here. Proper lockout/tagout procedures ensure that machines are powered off and can’t be turned on while someone is working on them. And installing guards to keep hands, feet and other appendages away from moving machinery prevents amputations and worse.

The high number of fatalities associated with forklifts, and high number of violations for powered industrial truck safety, tell us that many workers are not being properly trained to safely drive these kinds of potentially hazardous equipment.

Rounding out the top 10 list are violations related to electrical safety, an area where the dangers are well-known.

Their list of top violations is far from comprehensive. OSHA regulations cover a wide range of hazards, all of which imperil worker health and safety. They urge employers to go beyond the minimal requirements to create a culture of safety at work, which has been shown to reduce costs, raise productivity and improve morale. To help them, OSHA has released new recommendations for creating a safety and health program at their workplaces.

OSHA has many additional resources, including a wealth of information on their website and their free and confidential On-site Consultation Program. But tackling the most common hazards is a good place to start saving workers’ lives and limbs.


OSHA Announces it’s Top Ten Citations for 2015

osha logoThe Occupational Safety and Health Administration (OSHA) announced the preliminary Top 10 most frequently cited workplace safety violations for fiscal year 2015. Patrick Kapust, deputy director of OSHA’s Directorate of Enforcement Programs, presented the Top 10 on the Expo floor as part of the 2015 NSC Congress & Expo, the world’s largest gathering of safety professionals.

“In injury prevention, we go where the data tell us to go,” said National Safety Council President and CEO Deborah A.P. Hersman. “The OSHA Top 10 list is a roadmap that identifies the hazards you want to avoid on the journey to safety excellence.”

The Top 10 for FY 2015* are:

  1. Fall Protection (1926.501) – 6,721
  2. Hazard Communication (1910.1200) – 5,192
  3. Scaffolding (1926.451) – 4,295
  4. Respiratory Protection (1910.134) – 3,305
  5. Lockout/Tagout (1910.147) – 3,002
  6. Powered Industrial Trucks (1910.178) – 2,760
  7. Ladders (1926.1053) – 2,489
  8. Electrical – Wiring Methods (1910.305) – 2,404
  9. Machine Guarding (1910.212) – 2,295
  10. Electrical – General Requirements (1910.303) – 1,973

As you can see, forklifts and lift equipment is high on OSHA’s lists of citations. One way to avoid citations pertaining to your forklift fleet is to ensure you’re following OSHA’s regulations regarding powered industrial trucks (lift trucks), that your fleet is being properly and regularly maintained and that your forklift operators have received adequate training, and that the training is up-to-date.

If you’re unsure of your fleet’s condition or your operator’s training status, contact us at 888-530-1832 and we will help you ensure you do not end up on OSHA’s list of citations!


Forklift Safety “Best Practices”

OSHA requires that you perform a forklift inspection before the forklift is placed in service. Forklift trucks must not be placed in service if the examination shows any condition adversely affecting the safety of the vehicle. Such examination shall be made at least daily. When industrial trucks are used around the clock, they shall be examined after each shift. When defects are found, employees need to report such conditions to their supervisor immediately. Defects must be corrected prior to returning the forklift into service.

Safe Operating Practices

  • Do not operate a forklift unless you have received thorough forklift operator training.
  • Use seatbelts if they are available. If not installed, retrofit old sit-down type forklifts with an operator restraint system if possible.
  • Report to your supervisor any damage or problems that occur to a forklift during your shift.
  • Do not jump from an overturning, sit-down type forklift. Stay with the truck, holding on firmly and leaning in the opposite direction of the overturn.
  • Exit from a stand-up type forklift with rear-entry access by stepping backward if a lateral tipover occurs.
  • Operators should avoid turning, if possible, and should use extreme caution on grades, ramps, or inclines. Normally the operator should travel straight up and down Do not attempt to turn around on grades or ramps. Keep loads elevated and upslope, not pointed downslope.
  • On grades, tilt the load back and raise it only as far as needed to clear the road surface.
  • Do not raise or lower the forks while the forklift is moving.
  • Do not handle loads that are heavier than the weight capacity of the forklift
  • Operate the forklift at a speed that will permit it to be stopped safely.
  • Slow down and sound the horn at cross aisles and other locations where vision is obstructed. Make every effort to alert workers when a forklift is nearby. Use horns, audible backup alarms, and flashing lights to warn workers and other forklift operators in the area. Flashing lights are especially important in areas where the ambient noise level is high.
  • Look toward the travel path and keep a clear view of it.
  • Do not allow passengers to ride on forklift trucks unless a seat is provided.
  • When dismounting from a forklift, set the parking brake, lower the forks or lifting carriage, and neutralize the controls.
  • Do not use a forklift to elevate workers who are standing on the forks.
  • Elevate a worker on a platform only when the vehicle is directly below the work area
  • Whenever a truck is used to elevate personnel, ensure that operators use only an approved lifting cage and adhere to general safety practices for elevating personnel with a forklift. Also, secure the platform to the lifting carriage or forks.
  • Use a restraining means such as rails, chains, or a body belt with a lanyard or deceleration device for the worker(s) on the platform.
  • Provide means for personnel on the platform to shut off power to the truck whenever the truck is equipped with vertical only or vertical and horizontal controls for lifting personnel.
  • Do not drive to another location with the work platform elevated.
  • Brakes, steering mechanisms, control mechanisms, warning devices, lights, governors, lift overload devices, guards and safety devices, lift and tilt mechanisms, articulating axle stops, and frame members shall be carefully and regularly inspected and maintained in a safe condition.

Additional Safety Practices

  • When work is being performed from an elevated platform, a restraining means such as rails, chains, etc., shall be in place, or a body belt with lanyard or deceleration device shall be worn by the person(s) on the platform.
  • Operators should follow operator’s manuals, which are supplied by all equipment manufacturers and describe the safe operation and maintenance of forklifts.
  • Operators should be trained to handle asymmetrical loads when their work includes this activity.
  • Separate forklift traffic and other workers where possible.
  • Limit some aisles to workers on foot only or forklifts only.
  • Restrict the use of forklifts near time clocks, break rooms, cafeterias, and main exits, particularly when the flow of workers on foot is at a peak (such as at the end of a shift or during breaks).
  • Install physical barriers where practical to ensure that workstations are isolated from aisles traveled by forklifts. Do not store bins, racks, or other materials at corners, intersections, or other locations that obstruct the view of forklift operators.
  • Evaluate intersections and other blind corners to determine whether overhead dome mirrors could improve the visibility of forklift operators or workers on foot. The person who conducts the inspections should have the authority to implement prompt corrective measures.
  • Enforce safe driving practices such as obeying speed limits, stopping at stop signs, and slowing down and blowing the horn at intersections.
  • Repair and maintain cracks, crumbling edges, and other defects on loading docks, aisles, and other operating surfaces.

Forklifts can be very dangerous if not treated with the respect they deserve and if proper training is not provided. Making sure your forklift fleet is being safely operated and pedestrians are trained ensures improved safety for all, and improved productivity and profits for your company!


Save Time, Space and Money with Push-Back Racking Systems by Apex Storage Products

Apex Push-Back4 with rmarkPush-back combines the density of drive-in rack with the selectivity of single selective pallet rack using a series of mobile carts that ride on rails within each row. A loaded pallet is placed on the upper cart within the system. As the next pallet is loaded, the forklift gently pushes the first pallet load back, exposing the 2nd cart. The process continues until all carts are used (typically 3-4 deep), with the last pallet resting on the rails. As each pallet is extracted the subsequent pallet flows to the aisle face for selection, allowing for highly productive pallet retrieval.

Push-back is a last-in/first out (LIFO) storage solution and not appropriate for items with expiration dates. Additional vertical clearance is needed per level to accommodate stacked carts which may limit the number of vertical positions available.

Advantages | Considerations:

  • High density system
  • Requires limited number of aisles
  • Ideal for high-volume, low-SKU applications
  • LIFO stock rotation – drive-in
  • FIFO stock rotation – drive-through
  • Systems can be underutilized as SKUs increase (honeycombing)

Learn more about push-back pallet systems, how they work and why they might benefit your material handling operation. For more information or a quote, contact us or give us a call at 877-8703-4374.


Five Steps to Prevent Workplace Violence

Violence in the workplace often erupts without warning, and can have tragic results. Taking steps to prevent these situations can improve safety in your workplace, improve employee satisfaction and lead to increased productivity. Conversely, ignoring potential hazards can result in employee injury, even death — and legal action at considerable costs to the company.

OSHA has outlined five steps you can take to identify and prevent these violent encounters before they happen. While they are not directly related to materials handling operations, we feel these guidelines can apply to a wide variety of organizations, including your company.

Management Commitment and Employee Participation

As with any initiative, without the commitment of management and leadership, the rank-and-file of the organization will likely ignore any efforts to improve safety with regards to violence. Company leadership must be involved on a regular basis and visibly endorse the effort. This can be achieved by establishing a safety and health committee, and having leadership rotate in and out of meetings conducted by the committee.

Management must articulate a policy and establish goals for the company. Once a plan has been developed, leadership should allocate sufficient resources to accomplish the goals and uphold program performance expectations. Providing resources could entail meetings with health professionals to help identify potential hazards, creating visible signage and using other communication methods to keep workers involved in and aware of the program.

Worksite Analysis and Hazard Identification

There are probably facets of your operation that are prone to producing higher anxiety or tension among your employees. These could be actual physical conditions such as heat, cold, and hazardous areas as well as departments that demand high productivity, or even interaction with the public. Taking stock of these areas and identifying factors that are the least or most likely to create a stressful atmosphere are key to prevention.  Two steps you can take to identify and prevent violence include:

  • Conducting job hazard analysis – Management can conduct surveys of their departments to assess the potential risk of violence among employees. This not only includes internal assessments, but assessments of destinations to which your employees may travel, including specific neighborhoods, time of day, etc. Sites that expose your employees to violent behavior are often outside the walls of your facility.
  • Conduct employee surveys – Employees will often tell you if their jobs create stressful situations for them and if they feel endangered by some of their job tasks. Conduction of reviews on a regular basis will help you identify these areas and create a plan to reduce danger.

Hazard Prevention and Control

Once management has established and articulated its commitment, and evaluations have taken place, a plan to reduce potential hazards must be implemented.  This step includes:

  • Identification and evaluation of control options for workplace hazards
  • Selection of effective and feasible controls to eliminate or reduce hazards
  • Implementation of these controls
  • Follow up to confirm these controls are being used and maintained
  • Evaluate effectiveness and improve, expand or update these controls as needed

Safety and Health Training

As with any program you want to succeed, employees must be trained in order to follow the steps outlined by the company to identify and report these risks and follow up as needed.

This training could include meetings with mental health experts to help identify signs of stress in colleagues that could lead to violence. It also can include training on how to avoid violence outside your facility by taking common-sense actions (such as parking under a street lamp), what to do if an employee feels threatened and even self-defense training. Other training topics can include:

  • The company’s workplace policy on violence prevention
  • Documentation and reporting
  • Location, operation and coverage of safety devices such as alarms
  • Ways to identify and deal with hostile situations
  • A standard response plan for violent situations

Recordkeeping and Program Evaluation

Recordkeeping includes reporting procedures, what gets reported and to whom, and how these records are kept. Keeping track of both “close calls” and actual events helps you identify patterns, areas of particular concern and even certain job functions that might be creating undue stress on employees. It can help you identify areas outside your facility that present a danger to your employees, such as areas of town they serve.

OSHA Log of Work-Related Injuries and Illnesses (OSHA Form 300) can help you organize information not only for reporting to your proper internal sources but also for reporting to OSHA if necessary. As of January 2015, all employers must report:

  • All work-related fatalities within 8 hours
  • All work-related inpatient hospitalizations, all amputations and all losses of an eye within 24 hours

Injuries sustained as a result of assault must be entered on the log if they meet OSHA’s recording criteria (CFR Part 1904, revised 2014).

Keeping track helps you improve your program, improve employee safety and ensure your employees are operating in a safe and productive work environment.

We hope this summary is helpful to you in establishing your own workplace violence prevention plan. To learn more about what you can do, download the complete “Guidelines for Preventing Workplace Violence) by OSHA, HERE. While it was prepared for healthcare and social service workers, the overall content of this guide can assist any company, big or small, in achieving a safer work environment for all.


What You Can Do for Forklift Safety Day

The Industrial Truck Association has announced it’s second annual Forklift Safety Day, to be held June Tuesday, June 14. There are things you can do to take advantage of this day to help create awareness about the dangers that forklifts present and how to minimize the potential for accidents that can result in injury or death, damage to your facility, equipment and financial losses. We’ve compiled a short list of things you can do on June 9th to improve safety on and around your forklifts.

  1. Make sure all your forklift operators have been trained and that their refresher training is up to date, if applicable or necessary.
  2. Take time to teach your forklift operators the importance of daily inspections of their forklifts. Daily inspections reduce the risk of equipment failure and catch small problems before they blossom into giant ones. You can find daily forklift inspection sheets on our Training Page for both IC and electric units.
  3. Download and post our free forklift safety posters that you can find on our Training Page.
  4. Take some time to gather any staff that operates around forklifts, but not on them, to refresh them about the dangers of this equipment and how to be sure to use safe procedures when they are in an area of your facility where forklifts are being operated.
  5. Make sure all your forklift’s maintenance is up to date. If you have a Planned Maintenance Agreement, this would be a good time to review it with your service provider to ensure all standard checkpoints as well as unique equipment attachments are being inspected and maintained properly.
  6. Review any unique “site specific” features your facility may have and be sure your operators are aware of proper handling of equipment while on or around these features (ramps, areas where floors can be slick, floor substrates that vary etc…)
  7. Make sure that training is part of your company’s orientation for anyone that will or MIGHT operate a forklift. Remember, employees that have not been properly trained aren’t even allowed to sit on and start a forklift, much less move it out of the way of anything.
  8. Make sure you forklifts have proper safety equipment and that it’s operating properly. Lights, horns, back-up alarms, seat belts, fire extinguishers etc… Check out our Blue Safety Light for pedestrian safety enhancement.
  9. Make sure you have lock-out kits to ensure that forklifts that do not pass an inspection are locked out immediately until repairs are made.
  10. Review all your forklifts for possible replacement. Old forklifts, or those that are getting “up there” in hours, might be potential threats. Review safety records and maintenance logs for your equipment. You might find this could be a good time to replace some or even all of your forklifts.-

Our goal is to help you operate safe, efficient and productive forklift equipment. To discuss forklift safety, operator training –or to get a quote on new equipment, please Contact Us or give us a call at 888-530-1832.