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October 12, 2011 Safety Strategies for Maximizing Business Opportunities

October 12, 2011 Safety Strategies for Maximizing Business Opportunities. Paul Schilinski Regional Director VA Dept of Labor & Industry. Virginia Department of Labor & Industry. “Making Virginia a better place to work”. Photo Courtesy of Micron Corp. What We Do. Compliance. Labor Law

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October 12, 2011 Safety Strategies for Maximizing Business Opportunities

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  1. October 12, 2011Safety Strategies for Maximizing Business Opportunities Paul Schilinski Regional Director VA Dept of Labor & Industry

  2. Virginia Department of Labor & Industry “Making Virginia a better place to work” Photo Courtesy of Micron Corp.

  3. What We Do Compliance Labor Law Child Labor Voluntary Programs/ Consultation Boiler & Pressure Vessel Safety Registered Apprenticeship

  4. How can DOLI HelpMaximize Business Opportunities? • Capital – Money • Workforce – Skilled and Stable • A desirable product or service

  5. 5-Yr Average 14.7 Workers Die Each Day in US 4,551 workers died in 2009 5,214 - 2008 5,657 - 2007 5,703 - 2006 5,702 - 2005 5,764 - 2004 In VA this year 23 – Non Transportation 2009 VA Work-Related fatalities - 119

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  7. Accident Costs Direct Costs (medical and compensation costs) are only a small portion of the bill. Indirect Costs (production loss, overtime costs, paperwork time lost, training and replacement). May be 3-5X the direct costs. Uninsurables

  8. What is the cost of an accident • Go to www.osha.gov • On the left go to “Small Business” • Look for the “Safety Pays Program” • Fill in injury type, profit margin and number of cases • EMRs

  9. Small Business

  10. Safety Pays Program

  11. What We Do • Compliance – VOSH • We are a State Plan • We enforce OSHA or State Safety and Health Regs 3 yr Average – 2,586 and 764

  12. VOSH Will Inspect or Investigate When: • A fatality or catastrophe is reported • A formal complaint is received (741 last year) • A referral about a life threatening condition is received • When an inspector drives by and observes conditions that are unsafe – Emphasis • Your company appears on – General scheduled inspections list

  13. VOSH INSPECTION PROCEDURES • Inspector opens by presenting credentials, business card and advising the reason for the inspection • Know your SIC/NAICS Code • Will ask about training and programs Such as HAZCOM, Confined Space LOTO, Bloodborne Pathogens • Will ask to see Injury and Illness records REMEMBER, If it isn’t documented it didn’t get done

  14. “Survey Says” May 23 - OSHA Launches Nationwide Survey To Support Future Rulemakings, to design better rules and compliance assistance programs and will be used to estimate the costs and benefits of implementing safety and health programs Will be sent to up to 19,000 randomly selected, private sector employers nationwide, spanning a wide range of sizes and industry types, Completion is voluntary Questions – Do you have a safety and health management program in place, perform annual inspections, who manages safety at the worksite, and what types of hazards they encounter The data collection will be completed by August. (BNA – May 26, 2011)

  15. You Do Have a Written Injury and Illness Prevention Program, Don’t You? Prerule Stage: Would require an Injury and Illness Prevention Program. Involves planning, implementing, evaluating, and improving processes and activities that protect employee safety and health. OSHA data shows that employers who have implemented similar effective processes have substantially reduced injuries and illnesses Currently there are voluntary Safety and Health Program Management Guidelines that were published in 1989. New rules would build on the voluntary guidelines as well as best practices learned from VPP Participants and other international initiatives such as American National Standards Institute/AIHA Z10 (Spring 2011)

  16. Training is Documented April 22, 2010 – Federal Register Proposed rule that would make violations of PPE or training requirements separate violations for each person not trained

  17. You do have a HAZCOM Program, Don’t You? • Chemical manufacturers and importers must • evaluate the hazards of the chemicals they produce or import, • prepare labels and material safety data sheets to convey the hazards and associated protective measures to users of the chemicals. • Employers must • have a hazard communication program, including labels on containers, material safety data sheets (MSDS), and training for employees.

  18. VOSH CITATIONSThe gravity based penalty (GBP)

  19. News – OSHA Changes to Administrative Penalty Policy • Recent changes increase proposed fines for serious penalties by 300-400% • Reason - “to exert credible deterrence” • Changes to Adjustment Factors • Penalty Calculation Changes

  20. History Reduction/Increase Previously 0 or 10% reduction if no citations in past 3 years Period will be increased to 5 years If an Employer has been inspected in previous 5 and no SWR or FTA citations have been issued, ER gets a 10% reduction If an Employer has been inspected in previous 5 and SWR or FTA citations have been issued, ER gets a 10% increase in penalty If an Employer has not been inspected in previous 5 and receives serious cites but not high gravity there will be neither a decrease or increase

  21. Size Reduction Currently 0, 20, 40 or 60% (State) Federal will be between 10 and 40% for 250 or fewer employees

  22. Good Faith Reduction Currently 0, 15, or 25% (State) Feds will permit Good Faith where an Employer has made an effort to implement a Safety and Health program Employers MUST have S&H program in place to get any Good Faith reduction Not allowed for high gravity Serious, FTA, Willful or Repeat For Federal, current 10% reduction for Employers with a Strategic Partnership will be eliminated

  23. Penalty Calculation Changes Currently reductions are added and then applied to the Gravity Based Penalty For example $3,000 GBP with a 60% reduction for size, 25% reduction for good faith and a 10% reduction for no history would have a reduction of 95% or a proposed penalty of $3,000 X .05 = $150 Under the new calculation policy, reductions are taken serially Using the same situation as above, the calculation would be $3,000 X .40 = $1200 X .75 = $900 X .90 = $810

  24. Clow Valve Company, subsidiary of McWane, Inc., Produces gray iron, ductile iron, and brass castings 2000 - Incident rates were above the national average for its industry. Total Recordable Incident Rate (TRIR) was 40.29 while the national average for gray and ductile iron foundries was 21.70. 2001 - Clow Valve's management team contacted Iowa's OSHA On-site Consultation Service and requested that they perform an on-site visit.

  25. Clow Valve 2002 - McWane's proposes to partner with OSHA to improve its worker safety program. 2003 – Richard Fairfax, Director of Enforcement Programs responds telling McWane to pound sand 2009:Iowa OSHA's VPP team returned to conduct a VPP onsite audit. The facility achieved VPP Star status

  26. Work with On-site Consultation and participation in the Iowa VPP resulted in improved workplace safety and health performance AND Incident rates below the industry’s national average Turnover rates fell from 89% in 2000 to 13% as of Dec 31, 2010. Open communication between management and hourly employees An advocate of cooperative programs and mentors other facilities Employees are frequent speakers at conferences including the Iowa Governor’s Safety Conference in 2009 and a VPPPA Conference in 2010. Clow Valve has become an employer of choice in the local community in part because of its commitment to workplace S&H

  27. What We Do – Voluntary Programs • Consultation • FREE • No Citations/Penalties • Consultants work with you • Directed at Small ERs 3 year average – 494 Private Sector Surveys/Yr

  28. What We Do – Voluntary Programs Consultation – Safety and Health Achievement Recognition Program Supports small, high hazard employers to work with employees to develop, implement, and continuously improve S&H programs 31 active participants

  29. What Do These Organizations Have in Common?

  30. All Have VPP Sites in VA • VPP worksites average a lost workday incidence rate at least 50 percent below their industry • Participants are removed from programmed inspection lists. • Committed to exceeding requirements of OSHA standards • Created in 1982 • Recognize worksites that show excellence in occupational safety and health

  31. www.osha.gov • What is frequently cited in your industry • Links to establishment histories • Letters of Interpretation

  32. October 5-7, 2011 Renaissance Portsmouth Hotel Portsmouth, VA

  33. Summary DOLI can help you be in compliance. By being in compliance and maintaining a safe workplace, you can avoid costly injuries and property damage incidents as well as negative publicity, regulatory penalties and increased insurance costs. Maintaining a safe workplace promotes consideration of your Company when others are seeking service providers and partners. A well managed and safety conscious company attracts talented employees.

  34. Questions?

  35. Important web addresses OSHA – www.osha.gov - read standards and interpretations, keep up on current topics, download forms and publications, review inspection histories Virginia Town Hall – www.townhall.state.va.us - keep up with pending legislation, learn what your elected officials are doing DOLI –www.doli.virginia.gov - view Virginia unique standards, enroll in a training class, schedule a consultation, learn about apprenticeship (411 apprentice able trades in VA), help young people plan their future at KnowHowVirginia.org 37

  36. Contact Information Virginia Department of Labor and Industry Powers Taylor Building 13 South Thirteenth Street Richmond, Virginia 23219-4101 804-371-2327  703-392-0900 ext 100 www.doli.virginia.gov 38

  37. Residential Fall Protection

  38. Residential Fall Protection "Falls are the number one cause of death in construction," - OSHA Asst Sec Michaels, BLS estimates an average of 40 workers are killed each year as a result of falls from residential roofs. One-third of those deaths represent Latino workers, who comprise more than one-third of all construction employees.

  39. Residential Fall Protection Change Dec 8,1995 -Interim Fall Protection Compliance Guidelines for Residential Construction, Standard 03-00-001 published. Jun 18,1999 - 14 page long Plain Language Rewrite issued Covered 4 types of activity and allowed varying alternative measures Are you confused yet?

  40. Residential Fall Protection Change Required fall protection plan but not written and not site specific Did not need to prove infeasibility Applied to discrete parts of structures Final use did not necessarily have to be residential – hotel or bank Determination was based on methods and materials used i.e. wood

  41. Residential Fall Protection Change Dec 16, 2010 – OSHA rescinded previous directive allowing alternative fall protection Now, all residential construction employers must comply with 29 CFR 1926.501(b)(13) Where residential builders can demonstrate that traditional fall protection is not feasible, 29 CFR 1926.501(b)(13) still allows for alternative means of providing protection..

  42. Residential Fall Protection Change If ER can demonstrate infeasibility or greater hazard a fall protection plan can be used Plan must eliminate or reduce fall possibility Must be written and site specific The plan can be developed for repetitive use for specific style/model home if it fully addresses all issues related to fall protection at that site.

  43. Residential Construction Applicability Two elements must be satisfied Structure end use must be a home/dwelling AND Must be built using traditional wood frame construction materials and methods Limited use of structural steel such as an I beam to support the structure is allowed OSHA rejected the term “lite” construction Metal studs and brick/masonry exteriors can still be residential construction

  44. Residential Fall Protection Change • Construction and roofing companies have until June 16 to comply with the new directive. • To view the directive, visit http://www.osha.gov/doc/residential_fall_protection.html.

  45. DART Rates • Days Away, Restricted or Transferred • (N/EH) X 200,000 • N is number of DART cases • EH is total number of hours worked by all employees during the calendar year • 200,000 is the base number of hours that would be worked for 100 full time employees 47

  46. DAFWII Rates • Days Away From Work Injury/Illness Case Rate • (N/EH) X 200,000 • N is number of Cases involving Days Away • EH is total number of hours worked by all employees during the calendar year • 200,000 is the base number of hours that would be worked for 100 full time employees • Temporary transfer or restricted activity is not included 48

  47. New for 2011 49 • Cranes and Derricks Final Rule (Federal Identical) - 4/1/11 • Severe Violators Enforcement Program (Federal Identical) - 4/1/11 • Tree Trimming Operations (Virginia Unique) – 4/17/11 • Residential Construction (Federal Identical) – 7/1/11

  48. Cranes and DerricksCFR 1926.1400-1442 • Virginia is “Federal Identical” • Effective 4/1/11 • Requires more comprehensive inspection of ground conditions • Requires more comprehensive assessment of hazards within work zone such as overhead high voltage lines, other work, location of personnel, etc. • Requires more comprehensive inspection of cranes and hoisting equipment • Contains enhanced training requirements • Requires certification of crane operators 50

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