Safety and Health Pays

2. Safety and Health Pays FACTS • Nearly 50 workers are injured every minute of the 40-hour work week • Almost 17 of these workers die each day • Injuries cost society $127.7 billion in 1997 - National Safety Council • Nearly one-third of all serious occupational injuries and illnesses stem from overexertion or repetitive motion. • They cost our economy as much as $20 billion in direct costs and billions more in indirect costs • Only about 30 percent of businesses have established safety and health programs.

3. Safety and Health Pays What return on investment can good Safety & Health management provide? • Improved employee morale • Decreased lost time • Fewer workplace injuries and illnesses • Lower insurance costs • Safety culture adoption

4. Safety and Health Pays What return on investment can a bad Safety & Health management provide? • Lost productive time • Time and cost to investigate • Cost of medical treatment • Cost of hiring and training replacements • Legal costs • Cost to replacement/repair of equipment

5. Safety and Health Pays What return on investment can a bad Safety & Health management provide? • Adverse effect on company image • Increased workers’ compensation rates • Loss of good reliable employees • Decrease in morale and productivity • Increased absenteeism

6. Safety and Health Pays Estimated Cost Calculation of Occupational Deaths, Injuries and Illnesses Annual Number of: Deaths x $910,000 = ________ Lost Work Day Cases x $28,000 = ________ Reportable Cases w/o Lost Work Days x $7,000 = ________ Total = ________

7. Safety and Health Pays Reducing the Costs of Accidents • $4 to $6 return for every dollar invested in safety and health

8. Safety and Health Pays Direct and Indirect Cost of Accidents • Direct Cost of Accidents • Medical, Indemnity (payments to employee) • Indirect Cost of Accidents • Down Time • Training replacement • Replace/repair damaged property • Time to investigate • Legal Fees

9. Safety and Health Pays Accident Costs and Impact on Sales • Average cost of 1 injury with days away from work is $1,500 to $2,000 • Profit Margin of 2% (.02) • Average indirect cost 4 times direct $2000 X 4 = $8,000 $8000 + $2000 = $10,000 $10,000 divided by .02 = $500,000

10. Safety and Health Pays Accident Costs and Impact on Sales • Average cost of 1 injury with days away from work is $1,500 to $2,000 • Profit Margin of 5% (.05) • Average indirect cost 4 times direct $2000 X 4 = $8,000 $8000 + $2000 = $10,000 $10,000 divided by .05 = $200,000

11. Safety and Health Pays Accident Costs and Impact on Sales Type Injury Ave Dir $ Ave Indirect $ Total $ Sales Needed 3% 5% ------------------------------------------------------------------------------------------------------------ Amputation $21,718 $23,890 $45,608 $1,520,260 $912,156 Burn $3,846 $6,154 $10,000 $333,320 $199,992 Carpal T $8,305 $9,966 $18,271 $609,033 $365,420 Laceration $1,101 $4,955 $6,056 $201,850 $121,110

12. Safety and Health Pays SHARP • Decrease in ergonomic injuries • Drop in employee absenteeism • Employees feel their work areas are clean, comfortable, and safe • Company feels that they have become the employer of choice • It is noticeable by visitors (people external to the company) • Decrease in worker comp claims (employees chose to work) • Decrease in employee turn over • Safety culture develops

13. Safety and Health Pays VPP • VPP - 500 workplaces, representing 180 industries, save $110 million each year because their injury rates are 50 percent below the average for their industries • The longest running VPP site, a manufacturer with 600 employees, has sustained lost-workday case rates 73% below average for 15 years — preventing 600 injuries and saving an average of more than $1 million per year in direct and indirect costs.

14. Hazard I.D.