2nd International Safety Culture Summit - Halifax, Nova Scotia

1. Welcome Short Line Safety Institute Short Line & Regional Railroad Association 2nd International Safety Culture Summit Halifax, Nova Scotia

2. The Team Michael Long Senior Safety and Operations Manager Short Line Safety Institute mtlong@shortlinesafety.org Jo Strang VP, Safety & Regulatory Policy American Short Line & Regional Railroad Association jstrang@aslrra.org

3. The Role of Industry Associations in Promoting a Positive Safety Culture What Is the Cost of a Poor Safety Culture? What Do Rail Regulatory Agencies think of the Importance of Safety Culture? How Far have we come as an Industry? The Short Line Safety Institute. How we assess Safety Culture?

5. How Much Does a Fatality Cost? • OSHA estimated a value of $ 9.2 million for each life lost in the workplace. Multiplying this value by the 4,821 workplace deaths reported by the Bureau of Labor Statistics for 2014, OSHA estimates the annual cost of known workplace fatalities to be over $44 billion. • This estimated does not include the cost of non-fatal injuries, or of occupational illnesses like cancer and lung disease. These illnesses generally occur many years or even decades after workers are exposed and are therefore seldom recorded in government statistics or employer surveillance activities. • https://www.osha.gov/oshstats/index.html

6. Railroad Worker On Duty Fatalities

7. How Much Do Injuries Cost • Railroad conductor was seriously injured when a short line railroad failed to provide adequate training to new employees. The engineer shoved train into a stationary cut of cars causing the conductor to sustain severe injuries to his leg. $6,000,000.00 • Conductor for a short line railroad sustained serious leg fractures on industry property caused by iron ore pellets that industry claimed were open and obvious. The railroad and the industry jointly agreed to settle before jury selection.$1,500,000.00

8. How Much Do Injuries Cost • A 27 year old railroad conductor was thrown from a railroad car when a remote control device malfunctioned causing the locomotive to go into full service brake application, suffering neck injury and a closed head injury. The battery in the remote control device had previously been reported for falling out. $2,331,000.00 • Railroad conductor sustained severe leg injuries due to a radio rule violation during switching operations. Incomplete radio instructions resulted in an unexpected movement of railroad cars. $2,250,000.00

9. Safety Culture Influence on MMA at Lac-Magentic, 2013 • Employee not following Air Brake Train Handling rule, securing train with insufficient handbrakes on a steep grade. • 47 Fatalities • Transportation Safety Board of Canada Investigation • “…MMA's operations were indicative of a weak safety culture—one that contributed to the continuation of unsafe conditions and unsafe practices, and significantly compromised the company's ability to manage risk.”

10. Safety Culture Influence on DC Metro Smoke Incident, 2015 • Robert Sumwalt, NTSB Board Member • “…Metro’s long history of deficiencies — including poor maintenance, a loose safety culture, a blindness to potential hazards and a chronic failure to learn from previous disasters — all contributed to last year’s deadly smoke crisis in a Yellow Line tunnel… • “Quite simply, they have not been willing to learn from prior events,” Sumwalt said

11. Safety Culture Influence on Metro-North 2013 • FRA identified three overarching safety concerns that affect all facets of Metro-North: • An overemphasis of on-time performance; • An ineffective Safety Department and poor safety culture; and • An ineffective training program. • Federal Railroad Administration, Report to Congress: March 2014

12. Safety Culture Influence on Metrolink at Chatsworth, 2008 • Employee not following safety rule (personal electronic device) • 25 Fatalities 2014 Metrolink Statement on Safety Culture • There is a new culture of safety at the company. • It's been something that's been incorporated into every aspect of our operations," he said. • It should have been in place before the collision, we should have been more cognizant.

13. How Much do U.S. Regulations Cost? $$ 2.0 - $$ 2.1 * trillion annually • Economic: $1,448 b • Environmental: $330 b • Occ. Safety/Heath & Homeland Security: $92 b • Tax Compliance: $159 b • Estimated Administrative Cost to RRs = $ 1.5 b / year. Between 3,500 – 4,000 Final Rules / Year • 2013 – 3,659 Rules, over 80,000 pages • 2014 – 3,541 Rules, over 78,000 pages • 2015 - 3,378 Rules, over 81,000 pages • 2016 – 3,852 Rules, over 97,000 pages • Total – 14,430 Rules, over 336,000 pages In perspective, the 2016 Federal Budget is about 4.1 trillion dollars. * Crains Business, National Association of Manufactures, and Forbes 659 expected to have impact on small businesses Does not count individual State Regulations

14. "We must, indeed, all hang together, or most assuredly we shall all hang separately."-In the Continental Congress just before signing the Declaration of Independence, 1776.

15. Short line Safety Institute • Funded annually via a grant from Congress • Short Line & Regional Railroads that transport Crude Oil / Hazardous Materials • Created after Lac Megantic • 2013 – Vision Developed with Assistance from FRA & ASLRRA • 2014 - Developed Assessment Protocols • 2015 - Pilot phase of Assessments • 2016 / 2017 - Implementation • 2017 – (PHMSA) Hazmat Transportation Safety Training Institute • Many Shortline Railroads do not have the knowledge or resources to conduct their own safety culture assessment.

16. How Much Does it Cost the Railroad? Nothing….Funded via a grant from Congress Time and resource commitment from the railroad for: • Meetings, survey participation, interviews with the senior leaders, mangers, and employees, field observations and other reviews • Prefer one or two employees (non-managerial) to accompany SLSI personnel • Willingness to initiate and sustain changes necessary to improve safety culture

17. Safety Culture Definition The Short Line Safety Institute has adopted the U.S. Department of Transportation Safety Council’s definition of Safety Culture.

18. Safety Culture / Empowerment Safety Culture The shared values, actions, and behaviors that demonstrate a commitment to safety over competing goals and demands Empowerment Empowerment is ensuring that employees have skills, knowledge, resources and authority to make safe choices within an acceptable range of options.

19. Short Line Safety Institute Our Vision: The short line and regional railroad industry performs at an increasingly high level of safety Our Mission: To enhance the safety culture and safety performance of short line and regional railroads through meaningful and productive partnerships

20. Ten core elements of a strong safety culture:(Please reference the handouts provided)

21. The concept of “Normalization of  Deviance”  “Normalization of Deviance” Definition: “The gradual process through which unacceptable practice or standards become acceptable. As the deviant behavior is repeated without corrective action, it becomes the social norm for the organization, and over time, could lead to catastrophic results.” Or A person will live up to, or down to, The level of expectation being set.

22. What Institute Assessors are Trained to Observe:

23. Safety = Culture + Compliance Compliance Doing The Thing Right (5 % of the time supervised) and Culture Doing The Right Thing (95% of the time unsupervised) Thursday, November 30, 2017

24. Safety Culture Assessments

25. Steps in a Safety Culture Assessment • Pre-visit engagement • Readiness screening • Introductory meetings • Survey administration • Safety Culture Assessment • Kick-off/Close-out engagement meetings • Safety documents inventory • Individual interviews at each level and across crafts • Field observations of work practices • Real-time analysis and report-writing on-site • Strengths & Opportunities for Improvement (not Recommendations!) • Post-visit engagement & educational resources • Anonymous and confidential process throughout each stage • Only aggregate and non-identifiable information for survey and report

26. Safety Culture Assessment Timeline About 3 weeks in advance FIELD

27. Assessment Methodology • The Institute has developed a comprehensive safety culture assessment program that includes: • On-line, confidential surveys of all employees on a railroad; • Extensive interview templates to interview senior management, middle management, and rank and file employees; • Field observations protocols; • Document inventory checklist; • Evaluation process of these assessment tools; • Follow-up processes.

28. Lessons Learned • Engagement & commitment is key • Senior Leadership present a key meetings • Employees invited to key meetings, receive Assessment findings • Data quality • Communicate about participation: survey, interviews, observations • Trusted labor employee escort for observations by Assessor team • Standardized scripts & protocols for consistency across Assessors • Sampling training & templates • Ongoing improvement of instruments through implementation

29. Questions ?? Is this a job briefing at your railroad?