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.

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5 Tips to Help Reduce Heat-Related Illnesses in Your Materials Handling Operation

The hot summer months are upon us. With increased heat and humidity workers become more susceptible to heat-related illnesses. Workers who are not accustomed to working in the heat can quickly become ill and experience heat stroke, which can lead to serious illness and even death. Since your forklift operators will frequently work outside and on equipment that utilizes internal combustion engine, part of your forklift operator training, should be awareness of heat illness.

There are a few things to keep in mind about heat-related illness and what you can do to help prevent it in your workers.

  1. Train your employees about the dangers of heat-related illnesses. OSHA has excellent training information and materials to help you relate this information to all of your employees who work in the heat.  Part of that training should be to recognize the symptoms of heat-related illnesses and to act upon them immediately. Never brush it off and continue working. The symptoms exist for a reason!
  2. Understand that all employees are not equally able to resist the heat. Employees should be able to assess their own conditioning and how well they handle heat. Employees who are taking certain prescription medications or have certain chronic illnesses, such as diabetes, need to pay special attention to how they feel while working. Employees who are new to outdoor jobs are often most susceptible to heat-related illnesses. Try to ease them into the normal workload gradually, until you’re confident they are acclimated.
  3. Provide additional water stations during the hotter months, at more convenient locations, and encourage employees to drink water every 15 minutes or so, based on temperature. Never wait until you are thirsty to start re-hydrating.
  4. Provide for more frequent breaks. In the long run employees will be more productive in the heat if they are getting proper rest to allow their bodies to cool down while also keeping themselves better hydrated during these breaks.
  5. Proper ventilation and air movement inside your warehouse or material handling facility is very important in keeping the temperature at safe levels and your workers cool. Ceiling fans, screen doors for warehouse dock doors, and roof vents are great ways to keep your facility comfortable and more productive.

OSHA has provided a wealth of information to help you provide a safe atmosphere to deal with the summer heat. While OSHA does not have a standard pertaining to preventing heat illnesses, it is up to us to be sure we have done everything that we can to help our employees stay safe and avoid heat-related illnesses.

Well-trained and equipped employees are more productive employees. Keeping them safe from the heat during the summer months ensures better productivity for tomorrow and years beyond. But it is ultimately up to us as the employers to be sure our employees are prepared to understand and act accordingly to ensure their own safety.


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.


CLARK Celebrating Forklift Safety Day

The day is here and companies all around the country are taking time today to bring awareness to the dangers presented by forklifts. We’ve been promoting what you can do to celebrate Forklift Safety Day, and today, our flagship line, CLARK Material Handling is having a celebration at their Lexington, KY headquarters. Below is a summary of the festivities.

Lexington, KY (June 3, 2016) – CLARK Material Handling Company, underscoring its commitment to the safe use of forklifts and importance of operator training, is hosting a community-wide forklift safety awareness event at its Lexington campus on Tuesday, June 14, 2016, in support of the third annual National Forklift Safety Day. The program will run from 11:30AM to 1:30PM and is open to the public. CLARK is located at 700 Enterprise Drive in Lexington, KY at the intersection of New Circle Road and Old Frankfort Pike.

A full schedule of events planned to endorse and promote National Forklift Safety Day include:

  • An open house including plant tours at 11:30AM and 12:30PM
  • Special Flag Raising Ceremony at 12:00 noon, in honor of Flag Day
  • “Lift Truck Rodeo” competition and safety demonstrations
  • A display of aftermarket safety products
  • The premiere of the new CLARK video, “Forklift Safety: Pre-Shift Inspection”
  • Local media coverage including a live radio remote by 98.1 FM ‘The Bull’, WBUL
  • Free lunch – prepared by Smokin’ Jax Grill
  • Door prizes

In addition to the activities in Lexington, CLARK executives will participate in the Industrial Truck Association (ITA) National Forklift Safety Day events taking place June 14 in Washington, D.C.

“It is vitally important to emphasize the safe use of forklifts and proper operator training,” stated Dennis Lawrence, President and CEO of CLARK. “Forklift safety is not just a one day per year focus. At CLARK, forklift safety is our top priority every day. We are proud to join with the ITA and our fellow forklift manufacturers to raise awareness about the safe use of forklifts and the continual need for operator training.”

In further support of forklift safety, CLARK is offering customer discounts on select safety products purchased during June, 2016. Additionally, CLARK is conducting a lift truck operator instructor training certification course for a number of area companies.

National Forklift Safety Day, sponsored by the Industrial Truck Association, serves as a focal point for manufacturers to highlight the safe use of forklifts and the importance of operator training. This day provides an opportunity for the industry to educate customers, policymakers and the administration on forklift operating safety practices.

Apex Material Handling is your source for quality new forklifts, forklift service, parts, rentals and forklift operator training. Contact us 888-530-1832 to inquire about any of our products or services.

 


Celebrating Forklift Safety Day

Forklift Safety Day Logo

The Industrial Truck Association has announced it’s second annual Forklift Safety Day, to be held Tuesday, June 14.

While most of you won’t be able to attend, 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 14th 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. Download our “Forklift Operator Questionnaire” to help you vet new operators about their actual experience and history with forklifts.
  3. 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.
  4. Download and post our free forklift safety posters that you can find on our Training Page.
  5. 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.
  6. 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.
  7. 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…)
  8. 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.
  9. 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.
  10. 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.
  11. 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.


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!


Five Things Your Forklift Might Tell You, if it Could Talk

Talking ForkliftEach day, your forklift bears the brunt of your material handling operation. It works hard for you day after day, rarely complaining about the workload or its surroundings. Occasionally it tells you something is wrong, by breaking down. But waiting for a breakdown is expensive. Repairs are more costly once a breakdown occurs and breakdowns can create dangerous situations at your facility. Have you ever wondered what a forklift might tell you, if it could talk? We did, and came up with the following:

  1. “I’m not getting inspected frequently enough.”  Although OSHA requires pre-shift inspections, few companies require them. Pre-shift inspections ensure that if I get sick, you catch it quickly, before it becomes a dangerous and costly situation. You can find forms to help my operators inspect me on Apex Material Handling’s forklift safety training page.
  2. “I think my operators need more training.” They jerk me from forward to reverse, to forward again, putting a strain on my transmission. They don’t slow down at intersections or use my safety features as frequently as they should. My horn is rarely used, I don’t have any strobe lights and I’m afraid I might end up in an accident. I don’t want to get hurt and I sure don’t want to hurt anyone else. I think we need some additional operator training.
  3.  “My co-workers need more attention.” You put all of us on the same service cycles. The other guys work harder, lift more weight, more frequently and need to be seen by Apex’s forklift service pros more often. Give them a call.
  4. “My feet hurt.” These tires are old, they have chunks missing, they’re worn and at the end of the day, I can’t wait to stop and give them a break. Worn and damaged tires use more fuel, make my operator more fatigued and create a dangerous work environment. When’s the last time you inspected my tires carefully?
  5. “I’m shocked at how my electric friends are being treated.” I run on gas, but my electric friends are always complaining about their batteries, that the water levels aren’t inspected enough and they get hot all too often. They also complain about how they get charged at weird times and it doesn’t feel good. Maybe you should talk to their operators about how they use their electric forklifts. I’m told batteries are really expensive and making them last as long as possible is best for everyone.

Have you ever wondered what else your forklifts might tell you, if they could talk? Our team of service professionals can share their experience with you to determine the best plan to keep all your forklifts operating at peak efficiency and productivity. Happy and healthy forklifts are more productive and safer for those on them, and around them. Contact us to speak to a service professional today. Next time you talk to your forklift, you’ll get nothing but “thank you’s” and compliments.