RMs: Getting The Most From OSHA

Risk managers say that some businesses that could get freegovernment help to create a less dangerous workplace are ignoringthe opportunity because of their largely misplaced fears thatofficials who arrive to provide know-how will end up penalizingthem for safety deficiencies.

But those who have taken advantage of the personalconsultations, free workplace safety seminars and conferencesprovided by the Occupational Safety & Health Administration sayit has been well worth the effort, providing operational andeconomic benefits.

“I am aware of certain risk managers' trepidation in regards togiving any governmental agency a call, whether it's OSHA or theEnvironmental Protection Agency,” said Lance Ewing, president ofthe Risk and Insurance Management Society Inc. in New York.

“My philosophy has always been that if I'm deficient somewhere,I need your help,” said Mr. Ewing, who is also executive director,risk management, for Park Place Entertainment in Las Vegas, Nev. Atthe same time, he added, “I don't want you coming in as Hector theInspector and dropping a fine on my desk and saying, 'Fix ityourself.'”

Mr. Ewing said his experiences with OSHA in Nevada over the lastfive years have been positive. “They will point out deficiencies,but they also will offer and help us come up with solutions.”

Like any governmental entity, he said, the experience depends onthe official the company is dealing with.

Mr. Ewing said organizations that don't want to involve OSHAdirectly have other alternatives, such as hiring a consultant. Asmall business can also get help from area colleges or universitiesthat offer safety and loss prevention programs as majors, hesaid.

For example, Indiana University of Pennsylvania, which offers aconsultation program, will do a safety-driven assessment free ofcharge, he said.

Mr. Ewing advised that when OSHA shows up on a companys doorstepuninvited, the business can deny entry unless there is a warrant,but this action merely irritates the agent. “If you do thatconsistently,” he advised, “what occurs is the agent then is awareof your tactic, pulls the warrant out of [his or her] back pocketand says, 'We're here. Here's the warrant.'”

Organizations that think they're inviting OSHA in to get “downtheir backs” looking for problems “haven't cultivated thatrelationship in a positive way,” he added.

OSHA spokesperson Frank Meilinger in Washington, D.C. said thatOSHA agents make 27,000 workplace visits per year. He said manyemployers “want to reach out to OSHA, and they do, but they want todo that without fear of being penalized or being cited.”

Those who want to be recognized get involved with the agency'sVoluntary Protection Program, which recognizes organizations withexemplary safety records, he said.

Organizations that “want to be anonymous from an enforcementangle” more often take part in the consultation program, hesaid.

He added that risk managers can–and should–contact OSHA for helpwithout fear. A benefit of working with OSHA, he said, is a costreduction on penalties, which are determined by the employer'ssize.

“We're there to help them,” Mr. Meilinger said. However, in therare situations where someone points out conditions that are lifethreatening or incredibly serious to OSHA, “then that might lead tosomething,” he said, referring to possible penalties.

Robert Cartwright Jr., regional safety-health manager withBridgestone Firestone in Exton, Pa., and a member of the RIMSExternal Affairs Committee, estimated that as many as 40 percent ofthe risk managers he has spoken to are hesitant to invite OSHA ontotheir premises, even if it means not taking advantage of some ofthe programs offered.

He added, however, that these risk managers may be missing outon opportunities to better their organizations.

“Risk managers who don't know what OSHA is about are fightingthat monster under the bedand it's not a monster under the bed,” hesaid. “But if you take the time to look under the bed, you're notafraid of something that can help you.”

His company has used OSHA guidelines for compliance so that whenOSHA does conduct an inspection, he said, “we have been able tominimize our fines or minimize citations or the alleged violationsbrought up by disgruntled employees because of the fact that we'vegot the safety program in place.”

He said understanding OSHA can bring many advantages, includinga reduction of insurance rates.

If you do not bring OSHA in, he added, “OSHA will say you cannotclaim ignorance because these statutes are out there.” The best wayto get involved with OSHA, he said, is through conventions andseminars.

Wayne Salen, chairman of RIMS' External Affairs Committee anddirector of risk management at Home Quality Management, aneldercare facility operator in Palm Beach Gardens, Fla., said hetries to stay “hands-on” with that aspect of his company'sbusiness.

“I know what [OSHA] can do and what they cant do, but probably alot of my peers don't,” he said. Mr. Salen added that risk managerswith a background in underwriting, accounting or finance may nothave a “hands-on, operational involvement with an inspector showingup, either with a subpoena or a complaint.”

He added that OSHA inspectors “have to have a reason for beingthere” and are generally “there to be helpful.” State and federalOSHA offices have a consultative arm available in every office,though not as many organizations take advantage of theopportunities as should, he said.

“The shying away is an individual thing, as much as a culturalresult, too, of the company,” he said. Some companies don't want aclose or formalized relationship with OSHA, while others are “veryopen and hands-on with it, recognizing the limitations OSHA has, sowhy operate out of fear?”

He said he subscribes to the latter approach and that arecommendation from OSHA can sometimes help risk managers withbudget constraints get the funding they need for a program orproject.

Mr. Salen said his company is not involved in OSHA's VPP programbecause the program is more suited to “heavy industry,” such aschemical, manufacturing and construction.

He said the skilled nursing industry is already heavilyregulated. “We get more inspections–local, state and federal– thaneven a nuclear reactor does,” he said. “We're even more regulatedthan hospitals.”

Ellen Vinck, vice president, risk management with United StatesMarine Repair Inc. in San Diego, the largest non-nuclear shipyardin the United States, said her company has gone “from a verycantankerous to a very engaging relationship with OSHA.”

Ms. Vinck said the company has three offices in California aswell as offices in Hawaii, Texas, Florida and Virginia.

About 10-15 years ago, she explained, “we would be very anxiousand concerned when a visit from OSHA was either planned orunexpected.”

OSHA was looked at as an enforcer and “too willing to writecitations even when employees had willfully violated safetyregulations,” she said.

She explained that about 10 years ago the company began anaggressive safety program and voluntarily approached OSHA as aresource.

“They believed our intent was true in nature and workeddiligently to be less enforcement regimented and more in the lineof offering advice, interpretation of regulations, and supportivein our efforts,” she said.

The tandem approach has proved “beneficial for both of us,” shenoted. Recordable injuries and lost-time accidents have dropped“dramatically.”

As well as encouraging visits from OSHA, she said, “we have, infact, opened our shipyards to them for use as training facilitiesfor new OSHA inspectors.”

This year, she continued, the Port of San Diego Ship RepairAssociation entered into a partnership agreement with OSHA(Federal) that includes “executive commitment on our part.”

The agreement includes employee involvement, periodic safety andhealth inspections and audits, training and education, employmentof a safety and health official within the company, and record-keeping analysis.

It also calls for confined space entry programs, respiratoryprotection programs, rescue programs, safety and health programanalysis, and cooperation with OSHA.

In consideration for this, she noted, OSHA agreed to conductfocused verification inspections in lieu of programmed inspections.They train their inspectors in the intent of the partnershipagreement and endeavor to support the company in reasonablerequested training, she said.

“Risk managers who don't find a way to engage OSHA are justmaking their jobs harder,” Ms. Vinck observed. “OSHA can be aresource agency if the relationship is built that way, or they cancertainly revert to an enforcer if need be.”

RIMS Mr. Ewing advised that an effective way for organizationsto achieve excellence is through OSHA's VPP program. “You'reconsidered the gold medal winners in safety if you reach the VPPprogram. If you're striving for excellence within your program, youhave to make OSHA a partner. There is no way around it,” hesaid.

Speaking in his capacity as an executive of RIMS, he said theassociation has been cultivating a relationship with OSHA for abouteight years.

He said RIMS testified in Washington, D.C. in several areas inregards to OSHA standards on behalf of risk managers. “It has beenpositive to show that the risk managers have a voice in Washingtonrelative to OSHA,” he said.

OSHA said its consultation services are designed for small andmedium-size businesses of 250 employees at a single site or 500corporate-wide.

Key OSHA services are designed to help organizations recognizehazards in the workplace, find options for solving a safety orhealth problem, develop or maintain an effective safety and healthprogram, offer training for employees at their work site, andreceive recognition from OSHA.

More information about OSHA's programs can be found on the Website at www.osha.gov.

Reproduced from National Underwriter Property &Casualty/Risk & Benefits Management Edition, August 18, 2003.Copyright 2003 by The National Underwriter Company in the serialpublication. All rights reserved.Copyright in this article as anindependent work may be held by the author.