5. 1.Workers’ compensation premiums 2. Some medical expenses Direct - Insured Costs Indirect - Uninsured, hidden Costs - Out of pocket “ Just the tip of the iceberg” 1. Time lost from work by injured employee. 2. Lost time by fellow employees. 3. Loss of efficiency due to break-up of crew. 4. Lost time by supervisor. 5. Training costs for new/replacement workers. 6. Damage to tools and equipment. 7. Time damaged equipment is out of service. 8. Loss of production for remainder of the day. 9. Damage from accident: fire, water, chemical, explosives, etc. 10. Failure to fill orders/meet deadlines. 11. Overhead costs while work was disrupted. 12. Other miscellaneous costs (over 100 other items may impact the employer). 13. Others? ____________________________________________ What do accidents cost your company? Unknown Costs - 1. Human Tragedy 2. Morale 3. Reputation Oregon average to close a claim = $10,000 Oregon estimated average = $18,000 Average direct and indirect accident costs No lost time injury: $7,000 Lost time injury: $28,000 Fatality: $910,000 Using National Safety Council average costs for 1998, includes both direct and indirect costs, excludes property damage. Direct to Indirect Accident Cost Ratios Direct cost of claim Ratio of indirect to direct costs $0-2,999 4.5 $3,000 - 4,999 1.6 $5,000 - 9,999 1.2 $10,000 or more 1.1 Studies show that the ratio of indirect to direct costs can vary widely, from a high of 20:1 to a low of 1:1. Source: Business Roundtable, 1982. Unseen costs can sink the ship!

6. Event or Exposure CLAIMS AVERAGE Leading to Injury (Partial list) CLOSED COST($) Non-classifiable 1,012 11,036 Struck against stationary object 586 8,437 Struck against moving object 170 10,601 Struck by, other 593 13,943 Struck by falling object 919 13,961 Struck by flying object 291 10,202 Contact with electrical current 27 24,847 Caught in equipment or objects 1,216 14,544 Fall to lower level, all other 436 20,173 Fall down stair or step 297 9,682 Fall from floor, dock, ground level 123 15,006 Fall from ladder 399 17,772 Fall from roof 77 27,544 Fall from scaffold 60 17,612 Fall from non-moving vehicle 338 16,173 Fall to floor, walkway 1,861 11,040 Jump to lower level 183 11,993 Bodily reaction, other 2,547 9,917 Loss of balance 861 9,968 Overexertion, all other 1,267 12,490 Lifting objects 2,981 10,310 Pulling, pushing objects 1,171 11,803 Holding, carrying, wielding objects 1,284 11,939 Repetitive motion 2,510 11,777 Exposure to noise 133 10,461 Highway Collisions 539 16,426 Struck by Vehicle 183 18,092 Explosion 23 12,792 Assault or Violent Act by person 257 10,685 Notes: Table reflects estimated medical, timeloss, and partial permanent disability cost data for disabling claim closure activity. Costs exclude partial total disability and fatal indemnity, vocational assistance, medical-only claim costs, settlements, timeloss paid prior to claim denial and prior to settlement where claim was never closed, and compensation modified on appeal. Source: Research and Analysis Section, Information Management Division, Department of Consumer and Business Services 2001 Average Cost For Disabling Claims By Event or Exposure Total Claims = 25,305 Average Cost = $11,678

8. Proactive Vs. Reactive Approach to Safety & Health Management Reactive Approach - Goal: Reduce injury costs Proactive Approach - Goal: Prevent future injuries What programs are emphasized? What programs are emphasized? In organizations, clients for the services provided by staff people are called line managers. Line managers have to labor under the advice of staff groups, whether they like it or not. But any staff function, by definition, has no direct authority over anything but its own time, its own internal staff, and the nature of the service it offers. Peter Block, Flawless Consulting What's proactive? What's reactive? _________________________________________ _________________________________________ _________________________________________ _________________________________________ _________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________

10. Before pointing the finger of blame, make sure management all obligations to the employee have been fulfilled. When is a supervisor justified in disciplining? _______________________________________________________________ _______________________________________________________________ Accountabilities Managers and employees are responsible and accountable for key behaviors and performance. Supervisors and managers are accountable to the law and obligated to employees to fulfill their responsibilities. Employees are accountable to the employer and obligated to coworkers to fulfill their responsibilities. Employer Employee Why does the employer have more accountabilities than the employee? Is that fair? _____________________________________________________ _____________________________________________________ How are employees held accountable in your workplace? _____________________________________________________ _____________________________________________________ Provide resources for a safety and healthful workplace Provide effective safety education and training Provide adequate supervision Provide positive and negative consequences Comply with company safety policies, rules Report injuries immediately Report hazards as soon as possible Comply with state and federal OSHA law What’s with that? Hint: Look at employer accountabilities

11. Group exercise: Discuss ways your employer uses (or could use) to increase involvement in the safety committee and other activities. ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Choose one of the above ideas and discuss those methods and procedures that help ensure its success. ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 3. Employee Involvement

13. 4. Hazard Identification & Control What is a "hazard?" ( Complete the sentence below.) An U C and it’s P ! that could cause an I to an E . P I (Extra Credit) or or Hazard analysis is smart business! What are the advantages of conducting hazard analysis vs. accident investigation? _______________________________________________________________ _______________________________________________________________ _______________________________________________________________

16. What control measures might work to correct these hazardous conditions and unsafe behaviors? Engineering controls ______________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ Management controls _____________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ PPE _____________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

17. What are the odds that a serious injury will occur? 5. Incident/Accident Investigation Ponder this: Which one of the incidents will result in my injury or death? How does your perception of a particular hazard change with daily exposure to that hazard? __________________________________________________________________ What is an “accident?” _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ Why do we “investigate” accidents? _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ H.W. Heinrich's Pyramid (1931) Lost Work Day Case 730 First Aid Only 1 39 OSHA Recordable 292 Workers' Comp Proctor & Gamble's Port Ivory Study (1984)

19. Weed out the causes of injuries and illnesses Fails to inspect No recognition plan Inadequate training plan No accountability policy No inspection policy No discipline procedures Outdated Procedures No orientation process Unguarded machine Horseplay Fails to train To much work Defective PPE Fails to report injury Inadequate training Create a hazard Fails to enforce Untrained worker Broken tools Ignore a hazard Lack of time Inadequate labeling procedures No recognition Cuts Burns Strains Chemical spill Conditions Behaviors Surface Causes of the Accident Root Causes of the Accident Direct Causes of Injury/Illness

25. SAFETY AND HEALTH MANAGEMENT PROGRAM EVALUATION (Choose one) 5=Fully Met 3=Mostly Met 1=Partially Met 0=Not Present ELEMENT 1 - MANAGEMENT COMMITMENT ____ 1. A written policy that sets a high priority for safety and health exists. ____ 2. A written safety and health goal and supporting objectives exist. ____ 3. The workplace safety and health policy is supported by management. ____ 4. Safety and health goals and objectives are supported by management. ____ 5. Management supports safety and health rules. ____ 6. Managers personally follow safety and health rules. ____ 7. Managers personally intervene in the safety behavior of others. ____ 8. Managers set a visible example of safety and health leadership. ____ 9. Managers participate in the safety and health training of employees. ELEMENT 2 - ACCOUNTABILITY ____ 10. Management insists on compliance as demonstrated by effective enforcement of safety and health policies and rules. ____ 11. Safety and health program tasks are each specifically assigned to a person or position for performance or coordination. ____ 12. Each assignment of safety and health responsibility is clearly communicated. ____ 13. Individuals with assigned safety and health responsibilities have the necessary knowledge, skills, and timely information to perform their duties. ____ 14. Individuals with assigned safety and health responsibilities have the authority to perform their duties. ____ 15. Individuals with assigned safety and health responsibilities have the resources to perform their duties. ____ 16. An accountability mechanism is included with each assignment of safety and health responsibility. ____ 17. Individuals are recognized and rewarded for meeting safety and health responsibilities. ____ 18. Individuals are disciplined for not meeting safety and health responsibilities. ____ 19. Supervisors know whether employees are meeting their safety and health responsibilities.

26. ELEMENT 3 - EMPLOYEE INVOLVEMENT ____ 20. There is a process designed to involve employees in safety and health issues. ____ 21. Employees are aware of the safety and health involvement process at the workplace. ____ 22. Employees believe the process that involves them in safety and health issues is effective. ____ 23. The workplace safety and health policy is effectively communicated to employees. ____ 24. The workplace safety and health policy is supported by employees. ____ 25. Safety and health goals and supporting objectives are effectively communicated to employees. ____ 26. Safety and health goals and objectives are supported by employees. ____ 27. Employees use the hazard reporting system. ____ 28. Injury/Illness data analyses are reported to employees. ____ 29. Hazard control procedures are communicated to potentially affected employees. ____ 30. Employees are aware of how to obtain competent emergency medical care. ELEMENT 4 – HAZARD IDENTIFICATION AND CONTROL ____ 31. A comprehensive baseline hazard survey has been conducted within the past five years. ____ 32. Effective job hazard analysis (JHA) is performed, as needed. ____ 33. Effective safety and health inspections are performed regularly. ____ 34. Effective surveillance of established hazard controls is conducted. ____ 35. An effective hazard reporting system exists. ____ 36. Change analysis is performed whenever a change in facilities, equipment, materials, or processes occurs. ____ 37. Expert hazard analysis is performed, as needed. ____ 38. Hazards are eliminated or controlled promptly. ____ 39. Hazard control procedures demonstrate a preference for engineering methods. ____ 40. Effective engineering controls are in place, as needed. ____ 41. Effective administrative controls are in place, as needed. ____ 42. Safety and health rules are written.

27. ____ 43. Safe work practices are written. ____ 44. Personal protective equipment is effectively used as needed. ____ 45. Effective preventive and corrective maintenance is performed. ____ 46. Emergency equipment is well maintained. ____ 47. Engineered hazard controls are well maintained. ____ 48. Housekeeping is properly maintained. ____ 49. The organization is prepared for emergency situations. ____ 50. The organization has an effective plan for providing competent emergency medical care to employees and others present on the site. ____ 51. An early-return-to-work program is in place at the facility. ELEMENT 5 – INCIDENT / ACCIDENT INVESTIGATION ____ 52. Incidents/Accidents are investigated for root causes. ____ 53. Investigations are conducted to improve systems. ____ 54. Investigators are trained in procedures. ____ 55. Serious accidents/fatality investigations are conducted by teams. ____ 56. Analysis involves all interested parties. ____ 57. Disciplinary actions are not automatic tied to incidents/accidents. ELEMENT 6 - TRAINING ____ 58. An organized safety an health training program exists. ____ 59. Employees receive safety and health training. ____ 60. Employee training covers hazards of the workplace. ____ 61. Employee safety and health training covers all OSHA-required subjects. ____ 62. Employee training covers the facility safety system. ____ 63. Appropriate safety and health training is provided to every employee. ____ 64. New employee orientation includes applicable safety and health information.

28. ____ 65. Workplace safety and health policy is understood by employees. ____ 66. Safety and health goals and objectives are understood by employees. ____ 67. Employees periodically practice implementation of emergency plans. ____ 68. Employees are trained in the use of emergency equipment. ____ 69. Supervisors receive safety and health training. ____ 70. Supervisors receive all training required by OSHA standards. ____ 71. Supervisors are effectively trained on all applicable hazards. ____ 72. Supervisors are trained on all site-specific preventive measures and controls relevant to their needs and supervisory responsibilities. ____ 73. Supervisor training covers the supervisory aspects of their safety and health responsibilities. ____ 74. Safety and health training is provided to managers, as appropriate. ____ 75. Managers are aware of all relevant safety and health training mandated by OSHA. ____ 76. Managers understand the organization's safety and health system. ____ 77. Relevant safety and health aspects are integrated into all management training. ____ 78. Relevant safety and health aspects are integrated into all management training. ELEMENT 7 - PLAN EVALUATION ____ 79. Workplace injury/illness data are effectively analyzed. ____ 80. Safety and health training is regularly evaluated. ____ 81. Post-training knowledge and skills for safety and health are tested or evaluated. ____ 82. Hazard incidence data are effectively analyzed. ____ 83. Hazard controls are monitored to assure continued effectiveness. ____ 84. A review of in-place OSHA-mandated programs is conducted at least annually. ____ 85. A review of the overall safety and health management system is conducted at least annually.

31. Additional Information

41. Introduction to the seven elements of effective Safety and Health Management OR-OSHA 100 0201-02 Presented by The Public Education Section Oregon Occupational Safety and Health Division (OR-OSHA)

43. In Compliance with the Americans with Disabilities Act (ADA), this publication is available in alternative formats by calling the OR-OSHA Public Relations Manager at (503) 378-3272 (V/TTY).