Proactive Risk Management Ensures Survival During an OSHA Inspection

1. Proactive Risk Management Ensures Survival During an OSHA Inspection Presented by: Stephany Rockwell, Risk Manager, JBS USA Donna Lynch, CSP, Antea Group April 29, 2014

2. Session Presenters • • Stephany Rockwell, JBS USA, Risk Manager • Stephany is a licensed attorney with over 20 years of risk management experience at several Fortune 500 companies.

3. Session Presenters • • Donna Lynch, CSP, Antea Group - Consultant • Donna is an industrial engineer and Certified Safety Professional with over 17 years of experience in loss prevention, risk management and environmental, health & safety. She has worked for privately held manufacturing firms, an insurance company, a large privately held insurance broker, and currently a global EHS consulting firm. Currently she assists global clients with the management and implementation of their EHS programs.

4. Learning Objectives from the Presentation • Understand the OSHA Inspection Process and Your Rights as an Employer • Identify actions to take and things to avoid during an OSHA inspection to minimize liability. • Proactive Risk Management to mitigate your risk before, during and after an OSHA inspection.

5. Agenda • Housekeeping, safety, introductions • Overview of OSHA, inspection triggers and why manage the risk • Inspection process, current trends • Employer’s rights, managing the process • Proactive measures to minimize citations and fines • Multi-employer worksites • Questions

6. OSHA Overview, What’s Changing? Almost everything…

7. Fully Funded OSHA Budget

8. Enforcement • Aggressive enforcement and regulatory focus • More inspectors • Higher penalties and publicity • More employers placed in the Severe Violators Enforcement Program (SVEP) • The 2014 goal is to conduct 31,400 safety inspections, 2,200 fewer safety inspections than 2013. • OSHA is going to focus more on the quality of inspections rather than quantity.

9. What Triggers an Inspection? • Imminent danger • Fatality or catastrophe • Complaint or referral • Programmed inspection • 13 National Emphasis Program • 140 Local/Regional Emphasis Programs • Follow-up

10. OSHA Inspection Process • Opening conference • Document review • Walk around/inspection • Closing conference • Abatement period • Informal conference

11. Opening Conference • Type of inspection (present the complaint) • Identify purpose and scope of the inspection • Take photographs • Request 300 logs and safety program • Present warrant (if requested)

12. The “Walk Around” • Identify and document the hazards • Review records and programs • Take photos, video, instrument readings • Interview employees • Establish employee exposure • Establish employer knowledge of condition

13. Things to Know • The inspection process is a legal matter and is subject to legal review and enforcement by the courts • The employees interviewed are potential witnesses • The photos and measurements taken are evidence that the hazards exist • The questions asked of management are to determine employer knowledge of the condition • OSHA must prove that the hazards exist, employees are exposed and the employer knew or could have known of the hazardous conditions

14. Closing Conference • Review of inspection findings • Abatement options • Citation/penalty • Posting • Informal conference- 15 working days • Failure to correct- follow up inspections

15. Most Cited Standards • Fall Protection (8,241 violations for Fiscal 2013) • Hazard Communication (6,156) • Scaffolding (5,423) • Respiratory Protection (3,879) • Electrical, Wiring Methods (3,452) • Powered Industrial Trucks (3,340) • Ladders (3,311) • Lockout/Tagout (3,254) • Electrical, General Requirements (2,745) • Machine Guarding (2,701)

16. TheProof is in the Penalties • Big Lots Stores Inc., $169,000 in fines for exit access, crushing, struck-by hazards at West Babylon, NY, store • Trade Fair Supermarkets in Queens, NY, for laceration, eye, exit hazards; $128,000 in fines • Duane Reade Inc., $71,500 in fines for exit access and fire safety hazards at 598 Broadway store in lower Manhattan • Three New York contractors face over $465,000 in fines for electrocution and other hazards at Long Island work site • Hawaii resort cited with 14 safety and health violations

17. Key Factors Impacting Severity of Penalties • Knowledge of OSHA standards • Inspection of the worksite by a competent person • Communication of the importance of safety to all supervisors and employees • Development of written safety rules and procedures • Adequate training • Progressive discipline for violation of safety rules • Safety record and accident history • History of previous OSHA violations

19. OSHA – IT IS A RISK - MANAGE IT! Our job as Risk Managers is to prepare for, manage and mitigate incidents which may affect our business, operations, customers and brand.

20. HOW DO WE MANAGE IT? • DEVELOP AN OSHA RESPONSE PLAN • Managing this process efficiently will manage adverse situations effectively • Regularly train and exercise OSHA response teams • Develops and maintain capabilities • Validates plans and processes • Prevents the situation from becoming a crisis • Creates alignment within your organization and response

21. OSHA RESPONSE PLAN DEVELOPMENT • IDENTIFY • What are the issues inherent in your industry? • What are the current hot buttons for OSHA in your region and industry? • What has been a focus in prior OSHA inspections and citations? • How have we responded to these areas? • INSPECTION PROTOCOL • Organize information and records • Appoint a primary OSHA contact and a backup • Designate a meeting room • Establish appropriate behavioral and interaction requirements • POST INSPECTION MEETING • Analyze the inspection, results and evidence within 24-48 hours after inspection with safety, senior management, corporate counsel and public relations.

22. RESPONSE PLAN DEVELOPMENT • UTILIZE YOUR RESOURCES • Broker • Property Engineers • Outside Counsel (invest some time in finding the right attorney) • Carrier Partners (consult with your broker first) • Safety • Consultant • Peers

23. RESPONSE PLAN DEVELOPMENT • RESPONSE PROTOCOL • Correct any issues that can be immediately addressed • Refute any issues you feel are not relevant • Engage outside counsel to assist in the evaluation of the citation and preparation of your response • Use Outside counsel to negotiate and attend any meetings or hearings with OSHA • Don’t immediately accept a settlement • Ensure you prepare AND EXECUTE a plan to address the concerns in the citation

24. RESPONSE PLAN DEVELOPMENT • DE-BRIEF • Ensure the same or similar issue is addressed at all your other locations • Discuss the process and response – what went well, what can be improved? • Implement suggestions • Schedule next mock inspection to test and re-enforce appropriate inspection and response protocol FOLLOW-UP • Train, train, train • Train management, safety, engineering and employees to ensure the issues does not occur again • Conduct periodic OSHA Inspection Response drills CONDUCT MOCK OSHA INSPECTIONS

25. OSHA RISK MANGEMENT • PLAN • TRAIN • EXECUTE • DEBRIEF • ADJUST / IMPROVE • TRAIN

27. My Safety Management Program is Awesome . . . I Will Never have a Problem. A Final Consideration

28. Multi-Employer Citation Policy • Controlling Employer - General supervisory authority over a worksite, including the power to correct safety and health violations itself or require others to correct. • Creating Employer - Company that causes a hazardous condition that violates OSHA regulations. • Exposing Employer - The one who exposes their own employees to a hazard. This exposure may result from placing their employees in a workplace where other employers have created a hazard or one where they create a hazard. • Correcting Employer – The one that is engaged in a common undertaking at the same workplace as the exposing employer and is responsible for correcting a hazard.

29. Questions, Final Comments and Contact Information Donna.lynch@anteagroup.com720-810-4708Stephany.rockwell@jbssa.com970-506-7462