Implementing an effective strategy for managing mill safety and workers’ compensation can reduce costs

Is Your Mill Doing a Good Job In Safety and Workers’ Compensation?

There are literally dozens of programs and processes that companies can utilize to reduce safety and WC costs, but most of them fall into eight general categories. The four pre-incident strategies are effec-tive screening/hiring, the safety program itself, supervisory involvement, and EAP/wellness programs. The four post-incident strategies are incident management, physician selection and communication, case management, and return to work programs.

Companies that perform all eight of these functions well and in a coordinated fashion can benefit from major direct cost reductions associated with safety and WC, as well as indirect cost reductions related to productivity, absenteeism and turnover.

In Part I of this article, we look at the four pre-incident strategies. In Part II we will look at the four post-incident strategies.

Pre-Incident Strategies. Without effective screening and hiring practices, you can end up hiring large numbers of employees who are physically incapable of performing the essential functions of the job. Admittedly, the passage of the Americans With Disabilities Act (ADA) in 1992 placed some restrictions on employers in terms of what questions they can ask applicants, what screening techniques they can use, and when these questions and screening techniques can occur during the hiring process. However, it is important to remember that the ADA does not prevent employers from screening applicants to determine how well they can or cannot perform essential functions of jobs. It simply regulates what kind of screening can be done and when it can be done. Effective screening is still one of the best ways to prevent injuries and accidents from occurring by screening out applicants who may, because of certain physical or mental disabilities, tend to cause certain accidents and sustain certain injuries in the workplace.

“We utilize pre-employment evaluations,” states John Hayden, director of Health and Safety for International Paper Co., Memphis, Tenn. “We select employees with aptitudes to work in industrial environments and who have the basic skills to understand complex procedures and execute them on the floor.”

“We engage in pre-employment physical testing,” adds Jim Bergeron, director of Safety, Health and Loss Prevention for Consolidated Papers Inc., Wisconsin Rapids, Wis. “This is part of the physical exam and assesses the physical capabilities of applicants to perform the jobs.”

“The hiring process at this mill is a joint venture between hourly and salaried people,” adds Tom Churbock, workplace safety coordinator for Apple-ton Papers Inc., Roaring Springs, Pa. “Our hiring committee conducts team interviews, and one of the elements of the interviewing process is a lengthy discussion of safety. This is particularly useful, because the employees themselves are the ones who really know the safety aspects and requirements of the jobs, so they can discuss these intelligently with applicants.”

The Safety Program. A comprehensive safety program is the next step in managing safety and WC costs. Inter-national Paper’s safety program begins with top management support and a solid infrastructure of safety and health initiatives. The program is so successful that the company is a member of the Occupational Safety & Health Administration’s (OSHA’s) prestigious Voluntary Protection Program (VPP), which provides a framework for continuous health and safety performance. “We are, in fact, the largest national participant in OSHA’s VPP,” reports Hayden. “We have 37 sites covered by the program.” Research conducted by the company shows that, on average, these 37 sites have 20% fewer injuries than the comp-any’s non-VPP sites. To continue to build on the success of its safety initiatives, International Paper encourages its sites to share success stories and strategies with each other.

While management commitment and strong infrastructure were the basis for International Paper’s successful safety program, the driving force in recent years has been employee involvement. “Our employees now design and drive our safety program,” emphasizes Hayden. “We have given them the authority and the responsibility to administer these programs.”

The company’s next initiative is to identify where the most frequent and serious hazards exist, dissect these jobs into their component parts, and then design the hazards out of the jobs.

Mead Corporation is another company committed to safety. “We launched our ‘Safety Excellence’ initiative in 1996,” reports Neal Leonhard, corporate manager-Safety and Workers’ Compensation, Miamisburg, Ohio. This initiative is based on a “change leadership model” with an objective to create a workplace free of occupational injuries and illnesses.

A safety excellence task force composed of each division’s vice president of operations and safety and health managers has created a series of safety excellence tools, including Management System Guidelines for Safety Excellence. The management system consists of nine key elements including: management commitment and leadership; roles, responsibility and accountability; employee participation; communication; behavioral skills; hazard recognition and control; incident investigation and analysis; education and training; and performance measurement. “Each element has defined objectives, activities and indicators associated with them,” adds Leonhard.

All of the other companies interviewed for this story also had excellent safety initiatives. Interestingly, many of them revolve around a concept called “behavior-based safety,” which focuses on identifying and modifying employee behaviors to help prevent accidents from occurring. “Employees can become so familiar with their jobs that they become second-nature,” explains Michael Sullivan, director of Corporate Communi-cations for Potlatch Corp., Spokane, Wash. “This is not good for safety. With behavior-based safety, employers create cultural change by making everyone safety-conscious in ways that they never have been before. In other words, the employees themselves are responsible for safety.” One of the tools of behavior-based safety is an observation process, in which employees observe each other on a regular basis and offer comments and suggestions on how to work more safely.

Role of the Supervisor. First-line supervisors have always played important roles in the safety of their employees. Part of this responsibility relates directly to safety, such as job safety training, departmental safety audits, etc. “The role of the first line supervisor is becoming even more important in safety as companies downsize and reduce the number of safety professionals they have on staff,” observes Franklin Ikard, Human Resources manager for Pope & Talbot, Inc. Halsey, Ore.

Another part, though, has to do with getting along well with employees and creating a cooperative, stress-reduced work environment. Research, for example, shows that WC claims tend to be more frequent among employees who work for supervisors where personal conflict is higher than among employees who report getting along well with their super-visors. In fact, when some companies find that WC claims are high in certain departments, the first thing they do is investigate supervisory-employee relationships! Only later do they investigate specific safety problems.

“We regard our first-line supervisors as key to our safety success,” notes Potlatch’s Sullivan. “Their communica-tion skills, attitudes and image with employees have a lot to do with safety performance. As a result, we work with supervisors to help them become better communicators.”

EAPs and Wellness Programs. Once thought to be “gravy train” benefits for employers to offer to employees, EAPs (employee assistance programs) and wellness programs have proven over the years to be effective cost management strategies.

EAPs. EAPs provide opportunities for employees with problems to receive treatment and/or counseling. Most EAPs cover substance abuse (drugs and alcohol), as well as treatment for problems related to personal finance, family conflicts, legal issues, stress, etc. “We are firm believers in the value of EAPs,” emphasizes Appleton Papers’ Churbock. “We schedule formal meetings for employees with an EAP representative in attendance to discuss how the program works and the benefits that it offers. We also remind employees of the program via paycheck stuffers.”

Recently, Appleton Papers created a joint management-labor-employee EAP committee, which created a contemp-orary substance abuse policy that emphasizes education and rehabilitation, rather than termination.

“Our EAP helps employees with any significant off-the-job problems that they might have,” reports Pope & Talbot’s Ikard. “We have very few drug and alcohol problems here, so employees tend to utilize the program for other needs. We also bring in an EAP consultant once a year to remind employees about the program and make them aware of the services that are available.”

Wellness Programs. There are essentially two types of wellness programs. One relates to health education (eg: wellness fairs). The other relates to fitness (stretching and/or exercise) programs. Appleton Papers offers a comprehensive program with a number of features. “We provide blood screening and flu shots for employees each year,” reports Churbock. “We also have a ‘quality of life’ program which makes employees aware of various health and wellness services in the community.” The company has also negotiated with local health clubs and YMCAs so employees can exercise. “We have a point system for exercise,” he adds. “When employees exercise, we offer points, which they keep track of themselves on the honor system. They can cash these points in for sweat-pants, sweatshirts, sneakers, and so on.”

“We offer a voluntary blood screening program as well as a vaccination program for employees and their famil-ies,” adds Potlatch’s Sullivan. “We also provide ongoing fitness education and fitness programs.”

In next month’s issue, we will cover the four post-incident strategies to reduce safety and WC costs: incident management, physician selection and communication, case management, and return to work programs.

Mr. Atkinson has been a professional business writer since 1976, and resides in Carterville, IL.