Employee Concerns Regarding VPP

1. Employee Concerns Regarding VPP

2. History of Safety at Franklin 1996 � Safety Training Institute classes for all salaried employees 1997 � Employee Safety Council (hourly reps from each dept) 1998 - Implemented hourly driven BBS program 1999 - Safety Coordinators negotiated 2000 � Safety Accountability Policy signed by Mill Mgt and Union Mgt 2000 - New organizational safety structure (Mill S&H Committee), Wed AM walk-arounds begin 2001 - VPP Steering Committee formed, application submitted 2002 - STAR training for supervisors 2002 - Franklin mill awarded VPP Star Certification 2003 � VPP Star Site celebration/flag raising 2005 - 1st VPP recertification 2007 - Corporate intervention, high injuries, BBS observer training for all hourly employees, salaried begin behavior based safety audits 2008 - Safety expectations again defined (Feb), new EHS Dept formed (June)

4. 06 avg total reported = 16.2 07 avg total reported = 12.9 Jan 08 = 8 Safety Expectations memo issued 2/15 Mar � July YTD 08 = 8 No decrease in reported injuries since 2/1506 avg total reported = 16.2 07 avg total reported = 12.9 Jan 08 = 8 Safety Expectations memo issued 2/15 Mar � July YTD 08 = 8 No decrease in reported injuries since 2/15

5. Union Concerns/OSHA VPP Visit Union invited Milford Stern (OSHA VPP Coordinator) to mill in June 08 to discuss concerns Progress against each item to be described

6. Union Concerns/OSHA VPP Visit Management should focus on positives Weekly articles in REEL NEWS of Dangerous Occurrence Reports (DOR) success stories Summer Safety Campaign (red tickets) awarded for �catching people doing things right� Reporting out in MM on examples of above, and correcting unsafe behaviors

7. Union Concerns/OSHA VPP Visit No specific safety and health expectations in supervisor evaluations Defined safety and health expectations for supervisors Presented to first meeting of salaried employees on July 23rd, second meeting scheduled in 2 weeks

8. Safety Expectations for Management Includes first line supervisors, area managers and business unit managers. Office staffIncludes first line supervisors, area managers and business unit managers.

9. To Achieve Safety Excellence, We Believe� Management is responsible for and will be held accountable for providing leadership and effectively managing safety The second fundamental of health & safety is that safety is the responsibility of the line organization. In a traditional organization, the responsibility for health and safety is assigned to a safety specialist. Typical responsibilities of the safety specialist include developing programs, conducting inspections, conducting training, and investigating accidents. Line managers often view the safety specialist in an adversarial role, rather than a supportive role. In this type of organization, involvement by line managers in the process is often minimal. Without authority to hold line managers accountable, a safety specialist can only be minimally effective. At International Paper, the function of the safety specialist is to provide technical support, training, and consultation to assist line managers in establishing effective safety processes. Line managers have responsibility for implementation and day-to-day maintenance of the safety process. The second fundamental of health & safety is that safety is the responsibility of the line organization. In a traditional organization, the responsibility for health and safety is assigned to a safety specialist. Typical responsibilities of the safety specialist include developing programs, conducting inspections, conducting training, and investigating accidents. Line managers often view the safety specialist in an adversarial role, rather than a supportive role. In this type of organization, involvement by line managers in the process is often minimal. Without authority to hold line managers accountable, a safety specialist can only be minimally effective. At International Paper, the function of the safety specialist is to provide technical support, training, and consultation to assist line managers in establishing effective safety processes. Line managers have responsibility for implementation and day-to-day maintenance of the safety process.

10. Importance of Your Actions If you ignore an unsafe behavior: Observed employee could get hurt Other employees doing same task could get hurt Employees assume you condone the behavior Demonstrates your lack of concern for safety Sets a poor example

12. Management Safety Expectations Applies to First Line Supervisors, Area Managers and Business Unit Managers Complete 3 good quality behavior-based safety audits per week: Observe behaviors, and not basic PPE exceptions (address separately) Be prepared to discuss at-risk behaviors at Morning Production Meeting and in Dept. meetings Review your safety audits with your management weekly Management should take action on unsafe behaviors needing attention, and items needing follow-up Review 30 days of First Line supervisor and Area Manager safety audits with mill manager during 13 pt report-out of all OSHA recordable incident investigations for hourly employees in that crew and process area Lead meaningful safety meetings and engage employees Housekeeping audits - follow department guidelines (don�t include in behavior observations)

13. Union Concerns/OSHA VPP Visit Need activity based objectives/metrics other than just TIR for supervisor CSA�s Currently developing systems for tracking injury investigation follow-ups, can use for DOR tracking, safety audit tracking, behavior based audit tracking and follow-ups, etc Once systems are in place, then can develop metrics to track salaried supervisor�s safety performance

14. Union Concerns/OSHA VPP Visit Budget access and spending Budgets are prepared and items identified in August each year Expenditures against budget will be tracked monthly Approval mechanisms are in place to assure budgets are met Mill spending limitations affect everyone�s budget Preparations are underway for 09 budget planning (will involve safety coordinators, VPP, Mill Safety, etc)

15. Union Concerns/OSHA VPP Visit Safety Expectations Letter in Feb 2008 Reminding everyone what we already knew Safety Accountability Policy signed by mgt and union in 2000 Labor contract language p. 54 states: �All employees shall comply with the Company�s safety rules and practices� �All injuries, no matter how slight, must be promptly reported for first aid treatment, and to the foreman� �Careless workers are a menace to themselves and to their fellow workers. They cannot be retained by this Company� All employees (hourly and salaried) are responsible for working safely Safety expectations are not going away Management will intervene if safety policies are not followed Renewed focus on systems to assure personal accountability for safety Reminding and reinforcing what we already knew Collaborative effort between management and union Letter (safety expectations) not going away Renewed focus on systems to assure accountability Action taken as a result of this letter?Reminding and reinforcing what we already knew

16. Union Concerns/OSHA VPP Visit Capture the effort to get into VPP, transfer the pride! (Leave a legacy for future employees.) Good idea � we will consider documenting this in a training program Effort it took to become a VPP Star site What it means to IP today Getting external recognition SGE�s from Franklin auditing other sites with OSHA, bringing back best practices Larry � VPP Mentor of the Year (Region III OSHA)

17. Future Plans Continue setting expectations for safety Develop metrics in addition to TIR for holding people accountable for safety Fully implement tracking systems for incident investigation follow-ups, DOR�s, safety follow-ups, etc Focus on Key Element Survey recommendations Review and implement Design Safety Review for New Equipment procedure Assign responsibilities for different aspects of mill safety (Ex: Larry S to be responsible for meter calibrations) Continue to communicate Safety successes (REEL NEWS) Revitalize the hourly Behavior Based Safety Program (BBS) Review the Safety Structure in the mill (Safety and Health Committee, Role of Safety Coordinators, Role of Lead Team, etc)