Samuel Steel Safety Group September 13th, 2012

1. Samuel Steel Safety Group September 13th, 2012 Samuel Safety Systems

2. Agenda • SSSG 2012 Report Card • Safety Group Program Audits • Progress Report Number Two • Problems, Concerns • MoL 4 Step Pilot Program • MOL Blitz • WSIB Update • Statistical Comparisons Samuel Safety Systems

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4. Progress Report Current Status • Standard Set • Communicated to Everyone • Train Affected Employees • Evaluate Program (past & present) • Acknowledge Success Samuel Safety Systems

5. Evaluate • There are many different ways to evaluate: • Analysis of observations/inspections/plant or job-site audits • Survey of employees – interviews or questionnaire • Statistical review & analysis - i.e. WSIB information • Review and analysis by JHSC • Management review and analysis • Third party assessment and analysis Samuel Safety Systems

6. Acknowledge Success • Again, there are many ways: • Performance evaluations • Letter / memo from the President • H&S Awards • Safety BBQ • New Letter • Bulletin Board Display Samuel Safety Systems

7. MoL Pilot Program #1 • From the 2010 Dean Report high priority recommendations • Mandatory safety awareness training for all employees in Ontario http://www.labour.gov.on.ca/english/hs/prevention/whsa_pilot.php Samuel Safety Systems

8. MoL 4 Step Pilot Program Samuel Safety Systems

9. Safety Awareness 4 Steps • Employee Workbook • Step 1, Get on Board • Step 2, Get in the Know • Step 3, Get Involved • Step 4, Get More Help • Samuel Presentation Samuel Safety Systems

10. 2012 MOL Inspections The Ministry of Labour blitz for the industrial sector with focus on: October – November Guarding MSD (musculoskeletal disorders) Workplace Violence Samuel Safety Systems

11. WSIB Facts at a Glance • Approximately 4 million workers are covered • 200,000 claims each yr, which is 5% of covered workers • With 87% of claims, a decision comes within 2 weeks — over half within 24 hours • Reversed a 14 yr trend, benefit costs are now dropping because: • Fewer lost time claims entering the system • More workers are returning to work: 91% of injured workers are returning to work within 1 year of injury with no wage loss • Fewer workers are suffering permanent impairments as a result of their injuries Samuel Safety Systems

12. WSIB Facts at a GlanceContinued • 2011 - First operating surplus in 10 years • Unfunded liability is $14.2 billion (end of 2011) • Funding ratio (percentage of assets to all future liabilities) is 52.2% (end of 2011) Samuel Safety Systems

13. WSIB NEER Update • There have been a lot of changes to NEER for this year that will have a significant impact on your 2012 NEER rebate/surcharge performance. • This will be the first time your company will see the impact of the four year NEER window Samuel Safety Systems

14. NEER Update • If you look at your June NEER statements, in most cases you will see an ever decreasing Expected Cost Factor (WSIB definition-a percentage based on past performance of comparable firms in the rate group (set by WSIB) and applied to our premium to derive the Expected costs) Samuel Safety Systems

15. NEER Update • For our accounts/rate groups we have seen a nearly 30% drop since 2008! This means you will fall into a surcharge position much more easily-there is a much smaller window • Also the WSIB is setting NEER costs very high, a 4 week LT ankle accident showing costs of $4900 will have NEER charges of $52000! (10-11 x what you see on your ACS) Samuel Safety Systems

16. NEER Update • An 8 week LT back accident showing charges of $5100 will have NEER charges of $169000 (33x what you see on the ACS) Samuel Safety Systems

17. Second Injury Enhancement Fund • It is almost impossible to reduce claims costs through the Second Injury Enhancement Fund (SIEF) • To gain any degree of cost relief now, it is necessary to prove • (a) the worker had a prior medical condition • (b) the injuries incurred with the accident were impacted and exasperated by the prior medical condition or prior injury • (c) the recovery period was prolonged by the prior condition • (d) WSIB policy supports SIEF and • (e) a precedent has been established in similar circumstances • Truly, SIEF is only attained through the appeal system now Samuel Safety Systems

18. Arthur’s Funding Review • In 2013, WSIB will start implementing the recommendations of the Arthur’s Funding Review. • It is expected that this will result in increased premiums for most rate groups • Questions? Samuel Safety Systems

19. Statistical Comparisons • How do you rank amongst your peers? • Comparing / sharing statistics may tell you • Problem with comparing health and safety statistics between companies is the different formulas used • All hours vs. only plant hours • Definitions of lost time (1 day , 3 day, 5 day) • Definition of medical aid (stitches, cast, etc) TO TO TO Samuel Safety Systems

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21. Next Meeting Date • November 15, 2012 • Year End Reports are Due Samuel Safety Systems

22. Bed Testers Samuel Safety Systems

23. Progress Samuel Safety Systems

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