Michael Sicking of Safety International, Inc. presentation to MCA / OSHA Partnership on November 3, 2011 regarding the true cost of accidents on the jobsite and management's commitment to communicating their safety programs.

1. Michael Sicking

2. Communication

3. OSHA states that as part of your
cooperative agreement that you
must demonstrate a clear
management commitment to the
importance of employee safety.
How well do you communicate with
your employees?

4. What methods do you employ?

5. Owners and employees
both need to know the
long term cost of an injury

6. Do your employees have any
knowledge of the financial
implications of an accident?

7. OSHA has a website
worksheet page called
“Safety Pays” on it’s main
website.
http://www.osha.gov/dcsp/smallbusiness/safetypays
/index.html

8. It is a way for you the employer to
see examples of what the long term
cost of an injury are and educate
your employees so they can see
that safety is a lot more than hard
hats & safety glasses.

9. Are your employees
aware of what are
the cost associated
with an OSHA
citation?

10. Following is a list of the most
common OSHA citations, but
it should be known that the
OSHA fines are just the
beginning of the true cost of
an accident.

11. Average fine
Hazard Communication $600
Duty to have fall protection $3,000?
Training requirements $1,700
Respiratory Protection $700
Head protection $1,700

12. Average Fine
Wiring methods,
components, and equipment $1,000
for general use.
Ladders $1,500
Eye and face $1,300
protection
Scaffold related $1,600

13. What are Direct cost?
Direct, or insured costs for accidents are
usually considered those costs covered by
workers compensation insurance and medical
costs for the accident. The company pays
insurance to cover these costs. The average
direct costs depend on the nature of the injury
or illness

14. What are Indirect cost?
•Any wages paid to injured workers for absences not covered by
workers' compensation
•The wage costs related to time lost though work stoppage
•Administrative time spent by supervisors following accidents
•Employee training and replacement costs
•Lost productivity related to new employee learning curves and
accommodation of injured employees
•Replacement costs of damaged material, machinery and property

15. Examples of common injuries in
the Masonry Industry
Crushing
Electric Shock
Physical injury from Fall
Concussion

16. CRUSHING ( Caught Between)
Direct Cost $45,272
Indirect Cost $49,799
Total Cost $95,071
Assuming a 5% profit margin you
will need this amount of
$995,984
business just to break even on
the indirect cost of the injury

17. Physical Injury from ( FALL )
Direct $58,607
Cost
Indirect
Cost $64,467
Total $123,074
Cost
Assuming a 5% profit margin
you will need this amount of
business just to break even on
the indirect cost of the injury $1,289,354

18. Shock ( Electrical)
Direct $86,448
Cost
Indirect $95,092
Cost
Total Cost $181,540
Assuming a 5% profit margin
you will need this amount of
business just to break even on
the indirect cost of the injury $1,901,856

19. Concussion ( Struck By )
Direct
$68,456
Cost
Indirect Cost
$75,301
Total
Cost
$143,757
Assuming a 5% profit
margin you will need this
amount of business just to
break even on the Indirect
cost of the injury $1,506,032

20. You should not be
afraid to share this type
of information with
your employees

21. What can you do?
As the owner or manager of a small business,
your attitude toward job safety and health will be
reflected by your employees.
Involve your employees as much as possible in
your Safety Efforts!
You must have clear safety policies and
demonstrate the willingness to utilize disciplinary
policies on a fair and consistent basis.

22. Make sure that your support is visible by
getting personally involved in the activities
that are part of your safety and health
program. For example, personally review all
inspection and accident reports and ensure
that follow-up occurs when needed.
Lead by example! . If, for instance, you
require a hard hat, safety glasses and/or
safety shoes in an area, wear them yourself
when you are in that area even if you are there
for a brief moment.

23. You should consistently embrace feedback from
managers, supervisors and employees on tactics
necessary to achieve these goals. Employee
involvement is usually accompanied by a sense of
ownership, and ownership solicits greater
commitment.
Give those with safety and health responsibility
enough people, time, training, money and authority
to get the job done.
Don't forget your safety and health program after
you make assignments; make sure the job gets done.
Recognize and reward those who do well and correct
those who don't.

24. Institute an accountability system where all
personnel will be held accountable for not
following work rules designed to promote
workplace safety and health.
At least once a year, review what you have
accomplished in meeting your objectives and
re-evaluate whether you need new objectives
or program revisions.

25. Ignoring your safety & health program is
no different than leaving your yard gate
open at night when you leave!