Each day an average of 16 workers are killed doing nothing more than simply trying to provide for their families. Achieving worker safety and complying with government requirements can seem costly, but in the long term, compliance proves to be a successful investment.
The current structure of laws and requirements can place a heavy burden on employers. Conducting hazard analyses, creating and implementing programs and policies, scheduling employee training and continuing workplace inspections are important first steps in complying with the plethora of laws and requirements.
So why is compliance important?
Lost productivity: The loss of a skilled worker can impact productions levels, thus placing a heavier workload on the balance of the employees. The U.S. Bureau of Labor Statistics reports that in 2006, there were 4.4 workplace injuries for every 100 employees. Furthermore, productivity can be impacted lowered employee morale when they witness or hear of a tragic event and fear a similar event happening to them.
There's also the time employees lose to their usual tasks, when they are required to take part in the accident investigation or repairing/replacing equipment.
Increased costs of doing business: Non-compliance can lead to increased operating costs, increased insurance costs, lawsuits and in some cases, non-compliance can result in the business closing.
Government agencies have been known to shut the doors on a facility for extended periods of time to conduct investigations for very serious events. Based on the type of event and actual loss, it's a good bet that all insurance premiums may rise. As if these costs were not high enough, all it takes is one event to either raise your rates or run the possibility of having your insurance carrier decide to end their relationship with you.
Fines can be staggering: The fines and penalties that can be imposed by, not only OSHA, but the Environmental Protection Agency and Department of Transportation can be staggering. Current fine structures for non-compliance range from $250 to $75,000. And these fines can by multiplied by the number of violations, and even by the number of days the problem has been present. Total fines can reach into the millions, forcing a non-compliant entity out of business. Repeated violations result in much higher fines.
Criminal charges may be imposed: There have been instances of management being held liable for criminal charges due to negligence.
Many may remember the unfortunate crash involving ValuJet in Florida.
By not following established protocols and procedures, one supervisor and two workers illegally shipped oxygen generators on board a passenger aircraft resulting in the loss of 100 lives. The supervisor and workers are currently in prison on a multitude of charges to include conspiracy, manslaughter and were also fined by a government agency for improper handling of the oxygen generators.
Bad publicity: Whether it is the tragic Union Carbide Bhopal accident that killed thousands or the recent large number of construction-related fatalities in the Las Vegas area, the fallout from negative press can cause consumers to avoid companies with soiled reputations.
Violations are a matter of public record and your entire company's enforcement history is open to the world on the federal OSHA site. Many companies will check this site to see if a company they are considering utilizing is playing by the rules.
Bad press for your competitors can also turn attention your way. This is the case in southern Nevada right now. OSHA officials are examining each contractor that has had injuries or fatalities in Las Vegas. This can mean that many Nevada companies may experience a visit from their local OSHA office. And those companies that do not have their procedures in place; have not conducted the required employee training; or haven't shown due diligence in identifying and abating hazards will be subject to enforcement actions.
Inability to provide goods to your customers: Another reason for compliance would be the loss of ability to provide goods for your customers. A good example would be the shipping of hazardous materials by a small package carrier such as UPS, FedEx or DHL. In some cases, if you experience more than two mistakes in how you prepare these shipments, your small package shipper may refuse to handle your products anymore. And if your business relies on this type of shipping to provide product to your customer base, it's not hard to imagine that the company would quickly have to close its doors.
In order to attain and maintain compliance, companies need to stay on top of their safety programs and make sure that they are current. By current, I mean that any changes in the regulations, process, equipment, materials and training needs have been addressed. By monitoring your safety programs, conducting scheduled and non-scheduled inspections and providing all required trainings, companies are in a much better position to ensure that they are meeting the requirements.
And these requirements go well beyond OSHA. Companies, based on their business and exposures, need to also stay abreast of changes in EPA and
DOT requirements as well.
A great beginning would be to check the "Big 3" - OSHA, EPA and DOT Web sites for updates. There are also many free e-newsletters that offer tips, compliance updates and some even provide links to free training materials. Their websites are www.osha.gov, www.eps.gov, and www.dot.gov. Another resource would be local professional organizations, such as the American Society of Safety Engineers. A solid network is probably one of the best tools available to businesses.
Personally, I don't feel that the fear of fines, the possibility of lawsuits or even the bad press should be the sole determining factor in meeting governmental mandates. Compliance is necessary to protect our most valuable asset our employees and it's the moral thing to do.
Scott Alquist is the manager for Truckee Meadows Community College's Industrial Safety Center. Contact him at 857-4958 or salquist@tmcc.edu.
