Presentation on theme: "Proactive Risk Management Ensures Survival During an OSHA Inspection"— Presentation transcript:
1 Proactive Risk Management Ensures Survival During an OSHA Inspection Presented by:Stephany Rockwell, Risk Manager, JBS USADonna Lynch, CSP, Antea GroupApril 29, 2014
2 Session Presenters• Stephany Rockwell, JBS USA, Risk Manager Stephany is a licensed attorney with over 20 years of risk management experience at several Fortune 500 companies.
3 Session Presenters• Donna Lynch, CSP, Antea Group - Consultant Donna is an industrial engineer and Certified Safety Professional with over 17 years of experience in loss prevention, risk management and environmental, health & safety. She has worked for privately held manufacturing firms, an insurance company, a large privately held insurance broker, and currently a global EHS consulting firm. Currently she assists global clients with the management and implementation of their EHS programs.
4 Learning Objectives from the Presentation Understand the OSHA Inspection Process and Your Rights as an EmployerIdentify actions to take and things to avoid during an OSHA inspection to minimize liability.Proactive Risk Management to mitigate your risk before, during and after an OSHA inspection.Participant’s Workbook
5 Agenda Housekeeping, safety, introductions Overview of OSHA, inspection triggers and why manage the riskInspection process, current trendsEmployer’s rights, managing the processProactive measures to minimize citations and finesMulti-employer worksitesQuestions
6 OSHA Overview, What’s Changing? New DirectionNew LegislationAggressive enforcement and regulatory focusMajor new directives not requiring rulemakingDirect final rulemakingFar-reaching penalty directivesLess cooperationAlmost everything…
7 Fully Funded OSHA Budget Here are the highlights:$207.8 million will be earmarked for federal enforcement activities. This amount is similar to the FY 2013 final spending levels because OSHA shifted its funds towards enforcement from other programs during sequestration.$143.9 million will be used for compliance assistance, including federal assistance, state consultation grants, and training grants.$100 million will be available for grants to states that operate their own occupational safety and health agencies.$34.3 million will be used for safety and health statistics.$20 million will be available for safety and health standards.$24.3 million will go towards technical support.$17 million will fund whistleblower protection programs.
8 Enforcement Aggressive enforcement and regulatory focus More inspectorsHigher penalties and publicityMore employers placed in the Severe Violators Enforcement Program (SVEP)The 2014 goal is to conduct 31,400 safety inspections, 2,200 fewer safety inspections than 2013.OSHA is going to focus more on the quality of inspections rather than quantity.OSHA enforcement has reached levels never seen before by every measure
9 What Triggers an Inspection? Imminent dangerFatality or catastropheComplaint or referralProgrammed inspection13 National Emphasis Program140 Local/Regional Emphasis ProgramsFollow-up
11 Opening Conference Type of inspection (present the complaint) Identify purpose and scope of the inspectionTake photographsRequest 300 logs and safety programPresent warrant (if requested)
12 The “Walk Around” Identify and document the hazards Review records and programsTake photos, video, instrument readingsInterview employeesEstablish employee exposureEstablish employer knowledge of condition
13 Things to KnowThe inspection process is a legal matter and is subject to legal review and enforcement by the courtsThe employees interviewed are potential witnessesThe photos and measurements taken are evidence that the hazards existThe questions asked of management are to determine employer knowledge of the conditionOSHA must prove that the hazards exist, employees are exposed and the employer knew or could have known of the hazardous conditions
14 Closing Conference Review of inspection findings Abatement options Citation/penaltyPostingInformal conference- 15 working daysFailure to correct- follow up inspections
15 Most Cited StandardsFall Protection (8,241 violations for Fiscal 2013)Hazard Communication (6,156)Scaffolding (5,423)Respiratory Protection (3,879)Electrical, Wiring Methods (3,452)Powered Industrial Trucks (3,340)Ladders (3,311)Lockout/Tagout (3,254)Electrical, General Requirements (2,745)Machine Guarding (2,701)The Top 10 list of most frequently cited standards and number of violations resulting from inspections of worksites by federal OSHA for Fiscal 2013 (Oct. 1, 2012 to Sept. 30, 2013).
16 The Proof is in the Penalties Big Lots Stores Inc., $169,000 in fines for exit access, crushing, struck-by hazards at West Babylon, NY, storeTrade Fair Supermarkets in Queens, NY, for laceration, eye, exit hazards; $128,000 in finesDuane Reade Inc., $71,500 in fines for exit access and fire safety hazards at 598 Broadway store in lower ManhattanThree New York contractors face over $465,000 in fines for electrocution and other hazards at Long Island work siteHawaii resort cited with 14 safety and health violations
17 Key Factors Impacting Severity of Penalties Knowledge of OSHA standardsInspection of the worksite by a competent personCommunication of the importance of safety to all supervisors and employeesDevelopment of written safety rules and proceduresAdequate trainingProgressive discipline for violation of safety rulesSafety record and accident historyHistory of previous OSHA violations
19 OSHA – IT IS A RISK - MANAGE IT! Our job as Risk Managers is to prepare for, manage and mitigate incidents which may affect our business, operations, customers and brand.
20 HOW DO WE MANAGE IT? DEVELOP AN OSHA RESPONSE PLAN Managing this process efficiently will manage adverse situations effectivelyRegularly train and exercise OSHA response teamsDevelops and maintain capabilitiesValidates plans and processesPrevents the situation from becoming a crisisCreates alignment within your organization and response
21 OSHA RESPONSE PLAN DEVELOPMENT IDENTIFYWhat are the issues inherent in your industry?What are the current hot buttons for OSHA in your region and industry?What has been a focus in prior OSHA inspections and citations?How have we responded to these areas?INSPECTION PROTOCOLOrganize information and recordsAppoint a primary OSHA contact and a backupDesignate a meeting roomEstablish appropriate behavioral and interaction requirementsPOST INSPECTION MEETINGAnalyze the inspection, results and evidence within hours after inspection with safety, senior management, corporate counsel and public relations.
22 RESPONSE PLAN DEVELOPMENT UTILIZE YOUR RESOURCESBrokerProperty EngineersOutside Counsel (invest some time in finding the right attorney)Carrier Partners (consult with your broker first)SafetyConsultantPeers
23 RESPONSE PLAN DEVELOPMENT RESPONSE PROTOCOLCorrect any issues that can be immediately addressedRefute any issues you feel are not relevantEngage outside counsel to assist in the evaluation of the citation and preparation of your responseUse Outside counsel to negotiate and attend any meetings or hearings with OSHADon’t immediately accept a settlementEnsure you prepare AND EXECUTE a plan to address the concerns in the citation
24 RESPONSE PLAN DEVELOPMENT DE-BRIEFEnsure the same or similar issue is addressed at all your other locationsDiscuss the process and response – what went well, what can be improved?Implement suggestionsSchedule next mock inspection to test and re-enforce appropriate inspection and response protocolFOLLOW-UPTrain, train, trainTrain management, safety, engineering and employees to ensure the issues does not occur againConduct periodic OSHA Inspection Response drillsCONDUCT MOCK OSHA INSPECTIONS
27 A Final ConsiderationMy Safety Management Program is Awesome I Will Never have a Problem.
28 Multi-Employer Citation Policy Controlling Employer - General supervisory authority over a worksite, including the power to correct safety and health violations itself or require others to correct.Creating Employer - Company that causes a hazardous condition that violates OSHA regulations.Exposing Employer - The one who exposes their own employees to a hazard. This exposure may result from placing their employees in a workplace where other employers have created a hazard or one where they create a hazard.Correcting Employer – The one that is engaged in a common undertaking at the same workplace as the exposing employer and is responsible for correcting a hazard.
29 Questions, Final Comments and Contact Information