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- 1. Governor Dayton’s Workplace Safety Initiative for State Government
- 2. Rate of injuries not declining Source: Workers’ Compensation Program Annual Report 42 % decline 1995-2003 rate unchanged The Issue
- 3. The Issue Cost of injuries increasing rapidly Source: Workers’ Compensation Program Annual Report
- 6. Case Study 1
- 7. Case Study 2
- 8. Case Study 3
- 9. What are the common factors? Safety is a clear value Safety is actively managed Responsibility and accountability from all
- 10. Governor Dayton’s Commitment • State Government will conduct its work in a manner that actively promotes the safety and health of all. • All employees will be personally responsible and accountable for workplace safety. • All employees will take steps to ensure a safe work environment and reduce losses associated with accident and injuries.
- 11. Agency Leadership Commitment • Reduce workplace injuries by 25% over 3 years. • Establish annual safety and loss control goals. • Review quarterly data to assess progress. • Communicate safety commitment. • Integrate safety and loss control into daily operations. • Provide necessary resources.
- 12. The Goal Renewed and sustained injury reduction 4.3 4.2 4.3 4.2 4.1 4.1 3.9 3.6 3.1 2.5 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 # claims per 100 employees Fiscal Year Workers’ Comp Claim Incident Rate
- 14. Next Steps for Agencies • Communicate commitment and initiative • Evaluate current safety management system • Understand how and why injuries are occurring within agency • Develop goals and objectives to address injuries and safety management deficiencies
- 15. Resources • MnSAFE Website - mn.gov/mnsafe • Agency Safety Personnel • Admin’s Risk Management Division • DOLI’s MN OSHA Consultation • MN Safety Council Questions? Todd Christenson, 651-201-3005 todd.christenson@state.mn.us
Editor's Notes
- In October 2011, Governor Dayton approved a statewide safety initiative intended to create a culture within state government that values workplace safety and to reduce the frequency of workplace injuries to employees within our agencies. We are calling this initiative MN SAFE or Safety Accountability From Everyone. Before we discuss this initiative, let’s look at some issues that clearly defined the need for the initiative.
- The first issue is the fact that the rate of injuries in state government is not declining. One metric that depicts this is the workers’ compensation claim incident rate which the Workers’ Compensation Program has been reporting for several years. This rate is the number of accepted, not denied, workers’ compensation claims with at least a dollar in benefits paid per 100 FTEs. So as you can see from our graph, in Fiscal Year 2011 the state had 4.1 claims per 100 employees. More importantly you will see that the rate has been flat or unchanged since 2003. The first question most folks ask is how are we doing compared to others. Labor and Industry also reports a work comp claim incident rate for all MN employers in their Work Comp System report. In 2009 (the latest data available) all Minnesota employer workers’ compensation claim incident rate was 4.9 claims per 100 FTEs. Of particular note however is that the statewide rate has declined an average of 4.8% annually or 18% since 2005.
- Another issue we have been tracking for several years in the Workers’ Compensation Program annual report is the cost associated with workplace injuries. The FY 11 annual report will show total benefit payments by state agencies of nearly $24 million. Even with the number of new claims being reported remaining flat, costs continue to rise. This likely is not a surprise to anyone. Just as everyone is seeing their health care costs going up, so too are state agencies when it comes to medical care for employees injured on the job. New and more expensive evaluation and treatment procedures will continue this trend. If the increases for the past four years continue uncheck we can expect total benefit payments to approach $29 million by FY 16. Looking back at our benefit costs for FY11, $22.4 million was for claims that occurred in previous fiscal years. This is because workers’ compensation claims are commonly referred to as having tails and can last for several years and possibly the rest of an employees life. It is this lifetime characteristic of claims that make it so difficult to manage them once they have been reported.
- Besides the costs and the impact on our workforces’ ability to accomplish our goals for Minnesota citizens, we have a moral responsibility to address this issue. When we look at reporting metrics, it is easy to lose track of what the numbers really mean. For example in the earlier slide we indicated the statewide work comp claim incident rate was 4.1. That means we can expect 1900 new injuries to our coworkers this fiscal year and each new fiscal year unless we start actively addressing the situation. 1900 events that could significantly disrupt or devastate the lives of our coworkers and their family.
- Fortunately these issues are manageable. Many employers recognize the importance of strong safety management and the results it provides. Let’s look at some examples.
- Alcoa See the complete Case Study on MnSAFE website: http://www.admin.state.mn.us/mnsafe/documents/safety_case_study_alcoa.pdf OSHA lost work day rate of 0.106 compared to their industry average of 1.3 (as of 11/25/2011) 81.6% of 207 locations have zero lost workdays in 2011
- DuPont See the complete Case Study on MnSAFE website: http://www.admin.state.mn.us/mnsafe/documents/safety_case_study_dupont.pdf 2009 Total Recordable Injuries and Illnesses rate .72 versus industry average of 2.3 DuPont even tracks it’s contractors injury rates and employee off-the-job injuries. DuPont begins every meeting with a safety start.
- Let’s look a little closer to home. See the complete Case Study on the MnSAFE website: http://www.admin.state.mn.us/mnsafe/documents/safety_case_study_ejajax.pdf EJ Ajax & Sons – a local metal fabrication company – this type of environment is known in the safety community as a very high hazard environment. They were able to create a culture that went 21 years without an OSHA Lost time injury.
- What do these companies have in common? They are creating cultures where safety is clearly a value of the organization and is actively managed and everyone, especially top management is personally responsible and accountable for workplace safety. I am confident that we can achieve these results as well and as a means to jump start a safety culture within state government, Governor Dayton has made a commitment to workplace safety and has directed all agencies to do the same.
- Review agency leadership commitment. First and foremost – reducing workplace injuries by 25% over the course of the next three years! We have identified the workers’ compensation claim incident rate (our second slide) as our metric to measure this goal. Additionally: (review other commitment statements) Finally: A word of caution about the incident rate reduction goal. This goal is about establishing a safety culture, not a culture where employees feel intimidated to not report workplace injuries since delaying reporting or not reporting injuries will increase the future cost of an injury.
- So with management commitment and active involvement working to create an effective safety management system and an organizational culture that values safety we will drive down the workers’ compensation claim incident rate.
- and by reducing the number of workers’ compensation claims we will be able to avoid future claim costs.