Part of my job is researching and reading articles written about safety and compliance. I have many different sources (none that I want to testify about) for OSHA, DOT, Homeland Security and more. One of the reoccurring themes everyone (except me) likes to report on, is who is getting fined and how much it is costing them. Many of OSHA fines are well over the $100,000 mark, and DOT is similar, if not more. There doesn’t seem to be a lack of companies or organizations to fine. Whether it is a Disney, a GE or some small construction company, incidents are still happening and the companies are still paying the price.
Recently, I read where a construction company got fined over $250,000 for 2 employees getting injured (no deaths). The company had previously been fined over $100,000 and warned by OSHA. People have told me that the DOT is now going after companies who ship hazardous materials improperly, fail to provide training, failure to have a security plan and other assorted compliance issues. These fines are reaching well over $100,000. Remember the fine is not the only cost of incident. The general rule is an average incident today cost the company about $25,000. That company will have to sell an additional $700,000 at 4% gross profit to make up that cost. That is a lot of additional sales for most companies and that is only if you have 1 incident. Also there is the loss of productivity, and the probable increase in worker’s comp to add to that total.
So what’s the problem? Most companies are reactive and not proactive. Look at how many organizations reach VPP or STAR status as a percent of all the companies in business. Not too many. As the economy worsens positions that are non-revenue producing are the first to go, such as training or the safety manager. Even though we know the safety and trainer indirectly add benefit to the bottom line, it is hard to quantify the amount of money they save a company.
Time is money especially in the trucking industry. I know there are truck drivers who remove their DOT placards after they leave a company to avoid having the state police stopping them for 30-60 minutes. What is the safety or transportation manager to do?
Really, I don’t have the answer. Maybe some of you would like to share your success with our readers. I only know the problem is not going away nor does it seem to be slowing down much. Each year the top fined areas of OSHA hardly change. Statistics show injuries and deaths are going down, but I not so sure that is a good indicator of what’s really happening. The reporting system (if the injuries are even reported) has changed to reflect fewer incidents (no first-aid is reported even if the employee sits out half the day). As an example, I was doing some DOT consulting at a company and an employee was cut and bleeding. The employee was put in an office until after work hours and then taken to the doctor. After a few stitches the employee can to work the next day and was told to sit around doing nothing. He did not miss a day of work and the incident was not reported on the OSHA 300 log.
Maybe we should look more closely are the amount of dollars fined instead of the number of reported incidents to get a true indicator that we are really in compliance and acting in a safe mode. Safety professionals are always working to get upper management to support the safety effort, and others say we need the support of the supervisors. Guess what people? SAFETY NEEDS EVERYONE’S SUPPORT or there will be a breakdown somewhere. Just like the production line. Everyone needs to do the job to make the system work.
The National Fireworks Safety Coucil has published some tips to help everyone avoid those common and not-so-common fireworks incidents we hear about every year. So first let me wish you all a Happy and SAFE July 4th Hoilday. And as they used to say on Hill Street Blues ( do you remember?) “Let’s be safe out there!