Small to Medium Sized Shipyard Challenges & Opportunities

2. Small to Medium Sized Shipyard Challenges & Opportunities Teresa Preston OSHA Small Business Forum September 14, 2007

3. Outline • What is a “small” shipyard? • What is a “medium” shipyard? • Management Commitment • Employee Involvement • Worksite Analysis • Training • Hazard Prevention & Control

4. What is a “small” Shipyard? • Single Owner (often family-owned) • < 500 employees • Usually fills a niche market (i.e. barges, tugs, rig support vessels, etc.) • Locations often have been industrial for over 50 years (Environmental history)

5. Steiner Shipyard, Inc.

6. What is a ‘medium” Shipyard? • Usually Private owner (single, family, private equity firm) • 500-1500 employees • Mixed market, commercial/government • Locations have often been industrialized for many years • Often “large” local” employer, but small by shipyard standards

7. Atlantic Marine Alabama

8. Management Commitment Single Owner/private firm Advantages/Opportunities • Flat Management system • Private/family-owned • Owner/President often is also EHS/HR • EHS reports to the top • Immediate response • Excellent employee access • Personal bias/fears • Training/expertise/focus lacking • Can make decisions quickly

9. ORA Kick-Off President McAlear and V.P. Williams attended every ORA training session unless they were on travel

10. Employee Involvement Traits Advantages/Opportunities • Many long-term employees • Family atmosphere • Management Access • “We’ve always…” • Comfortable approaching management • They “look out” for each other • Easy to arrange feedback • President/VP kick-off training sessions

11. Employee Recognition – Timely, Appropriate Employee recognized for Good Samaritan acts for a contractor who had a heart attack in his truck.

12. Worksite Analysis Traits Advantages/Opportunities • Old sites, up to 100+ years • Small EHS staff, if any • Environmental “sins” of the past • Need to remove “blinders” • MUST guard against putting production first-SAFE PRODUCTION a MUST • Budget constraints

13. Employees need to be trained to recognize hazards in their work areas

14. Training Traits Advantages/Opportunities • Specialized work and workforce • High turnover • Staff/budget constraints • Maritime EHS pre-packaged training unavailable • Many specialized reqts • Hard to schedule to ensure compliance • Outsource training - $$$$

15. Using Outside Resources for Emergencies requires coordinating training and drills

16. Hazard Abatement & Prevention Traits Advantages/Opportunities • Tools/equipment that require retrofit guarding • Specialized worksites • Small EHS staff • Tools/equipment that require retrofit guarding • Regulators don’t know the differences • Must outsource services such as IH, Emergency Response, etc.

17. Working on a large semi-submersible rig

18. Challenges • Regulated like the big dogs • Lack of understanding of processes and specialized regulations by the regulators • Lack of understanding of reasoning behind regulations by business owners • Resources available to small businesses often untapped

19. Overcoming obstacles • Trade Organizations pool knowledge, open doors to regulators, keep track of changing regulations, advocate for us • Local EHS Organizations (GCMSA, VSRA, etc.) • OSHA Outreach tools • OSHA Alliances, EPA Sector Strategies • VPP & SHARP Mentors

20. Investing in Culture Change • ORA program • Leadership Training • Teambuilding • Follow-up and follow-through • Safety & Hazard Control Committee • RCCA’s (Root Cause, Corrective Action Meetings) • Focus Sessions • Employee Trainers

21. Questions?

23. OSHA’s Small Business Forum, Washington DC, September 14, 2007 September 14, 2007 James R. Thornton Director, Environmental, Health and Safety Northrop Grumman Corporation

24. Even a Bear Can Do It…..

25. ANCHOR CHAIN

26. ANCHOR CHAIN

27. ANCHOR LIFT AND WEAPONS ELEVATOR

28. BOW LIFT

29. BUSH PROPELLOR

30. CARRIER CONSTRUCTION

31. CARRIER CONSTRUCTION

32. CARRIER CONSTRUCTION

33. CARRIER CONSTRUCTION

34. CARRIER CONSTRUCTION

35. CATAPULT WORK

36. WELDING AND FLOATING DRYDOCK

37. GRINDING

38. HULL PAINTING AND ZENITH PROPELLER

39. MIG WELDERS

40. PAINTING AND X36 RIGGERS

41. PIPEFITTERS

42. PROPELLER INSTALL AND SHAFT SUPPORT

43. PROPELLER AND SHAFT

44. RIGGER WINCH AND RUDDER INSTALL

45. TEXAS CONSTRUCTION

46. TIG WELDER

47. USS RONALD REAGAN, PEARL HARBOR, 6/28/06

48. USS LOS ANGELES, 12/7/06

49. Why Have H&S Program? • It is it required by law • It’s good for the business - worker’s comp costs - productivity, quality, etc, but….. • It’s good for the employees - morale (they care about me) - families like it • It is the right thing to do

50. Why Go For H&S Culture Change (VPP)? • Reduces Injury Rates and Costs • Stimulates Culture Change (if it is needed) • Improves Visibility of H&S Program • Improves Relationship with Union(s) • Enhances Relationship with OSHA