Creating a Accident Free Work Environment Why Not Set Your Goal to ZERO! Presented By: Betty Knox

Agenda The Swiss Colony Defining Zero Accidents Measuring Safety Performance Creating a Zero Accident Program

Facilities 13 Cities Monroe Madison Dickeyville Monroe Peosta Janesville DeWitt Oak Brook Davenport Savanna The Swiss Colony began business in 1926 with the direct selling and shipping of cheese by mail, and we still do. But in addition to food gifts, we have developed other catalogs that sell various items such as clothing, appliances, jewelry, furniture, and other general merchandise. We are proud of our history as the first distributor by mail of specialty food gifts. Clinton Hannibal Reno, Nevada Shanghai, China

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Is Zero Accident Possible? Many may look at Zero and think it is not possible. Setting the Goal at Zero is setting us up for failure. If we say that zero injuries is not possible, then how many injuries are acceptable each year, and what type of injuries are acceptable? Is it OK if we have only one injury during the year, but what if the result is a serious injury of an employee or life altering event?

Zero Accidents Why Not Aim For Zero! Your company goes through stretches of time when you have zero safety incidents. Safe minutes add up to safe hours, and safe hours to days, and so on and so on. From a workers standpoint, zero is the only supportable goal Any other goal leaves the subtle message that injuries will occur and that injuries are acceptable The Swiss Colony in 2009 went 85 days without an accident, ended the year with Why Not Aim For Zero!

Defining Zero Accidents Most Companies define zero accidents to mean “Zero Lost-Time Accidents” which is a worthy goal. Maintenance Department 21 Years No Lost Time Mailing Print Shop 17 Years No Lost Time Bakery Achieved 1 Millions Hours No Lost Time Defining Zero Accidents to mean “All Accidents" regardless of severity and type, is a worthier goal. 9 Departments Achieved Zero Accidents 2009 12 Departments are at Zero today!

Measuring Safety Performance Employee Perception of Safety Where is your Company now in safety performance? Measuring the Safety Management System

Problems with Statistics Under-reporting , Over-reporting Injury rates often do not reflect the potential severity of an event, merely the consequence For example, the same failing to adequately guard a machine could result in a cut finger or an amputation A low injury rate can lead to complacency We experienced this between 2005 - 2007 Injury statistics reflect outcomes not causes Injury statistics can give you a false indication of your overall safety performance.

Measuring Performance We need to be measuring the Presence of Safety rather than the absence of injury Measure the safety process within your facility How well is the safety process running? How do you identify successes and failures? Do you allow for the process to be adjusted or improved before incidents occur?

Measuring Safety Performance Measuring safety performance first requires you to define what is safety performance. Is it prevention of injury or harm? Is it defining actions plans or accomplishments to include preventing injury or harm in the workplace? Is it defining individual safety performance? Measuring performance fits within our overall safety management system and is a key factor in creating our Zero Accident Program.

Measuring Performance Initial Hazard ID/RTW Efforts First Aid Contact Log Introduced Safety Accountability Implemented Incentives OSHA Compliance Capital Expenditures Comprehensive Safety Audit This slide is one way to measure your safety performance – each time a new safety initiative was introduce our injury rate experienced a reduction Safety Awareness LOTO /Equipment Hazard Assessments Train the Trainers Accountability Training De-Centralized Safety Function Revised Fork lift Target Zero

Measuring - Audit Results Department 2004 Score% 2005 Score % 04-05 % Variance 2006 Score % 05-06 % Variance 2007 Score % 06-07 % Variance 2008 Score % 07-08 % Variance 2009 Score % 08-09 % Variance Facility 1 71% 100% 29% 97% -3% 99% 2% 1% -1% Facility 2 78% 98% 20% Facility 3 63% 37% 0% Facility 4 - Facility 5 85% 96% 11% 76% -20% 22% Facility 6 94% Facility 7 21% 95% Facility 8 68% -2% Facility 9 67% 88% 8% 92% -4% 5% Facility 10 50% 93% 43% 90% 4% Facility 11 66% 32% Facility 12 77% Facility 13 33% Total 26.9% 0.6% -2.88% 2.9% 0.2% This slide is another example of how we measure our safety performance through our comprehensive audit process

Measuring Against Industry This slide is another example of how we measure against the industry. Data Collected from Bureau of Labor Statistics NAICS Code 3119

Safety Management System (SMS) Measuring your Safety Management System SMS can be defined as a coordinated, comprehensive set of processes designed to direct and control resources to optimally manage safety. SMS takes unrelated processes and builds them into one coherent structure to achieve a higher level of safety performance, making safety management an integral part of overall risk management. SMS is based on leadership and accountability. It requires proactive hazard identification, risk management, information control, auditing and training. It also includes incident/accident investigation and analysis.

Safety Management System Our Safety Management System key elements: Leadership & Accountability Policies and Objectives Organization and Resources Hazard Risk / Control Management Design and Pre-Planning Implementation and Monitoring Assessment and Continuous Improvement Measuring Performance

Safety Management System Flow Chart Safety System Flow Chart Information link Control Link Policy Policy Development Organizing Organizational Development Auditing Planning and Implementing Developing Techniques Planning, Measuring, Reviewing, Monitoring Measuring Performance Reviewing Performance Feedback Loop to Improve Performance

Measuring Safety Performance Just like finance, production or sales, you need to measure your safety performance to find out if you are being successful. You need to know: where you are; where you want to be; what is the difference - and why Active monitoring, before things go wrong, involves regular inspection and checking to ensure that your standards are being implemented and management controls are working Reactive monitoring, after things go wrong, involves learning from your mistakes, whether they have resulted in injuries and illness property damage or near misses

Prior to Implementation we Asked Where are we now relative to our overall safety? Where are we now in controlling hazards and risks? How do we compare, Are we getting better or worse? Is an effective safety management system in place across all parts of the organization (deployment)? Is our culture supportive of safety, particularly in the face of competing demands? Are we succeeding in eliminating or reducing hazards? Are we ready for Zero Accident Program? YES!

Creating Zero Accident Program

Some of the Challenges Changing the Perception of Safety Making a impact on our Seasonal Temporary Workforce (~5500) Impacting our Diverse Workgroup Additional Resources in Safety

Preparing for Zero Accident Plan Gap Analysis Safety Management System. Implement Corrective Action Plan for identified gaps Assigned Responsibilities and Timelines Employee Survey Results Safety Awareness Survey Human Resources Employee Survey Employee Interviews Statistical Data Accident Trends Near Miss Reports Comprehensive Audit Results BLS Statistics Setting and Reviewing Goals Communicate the Zero Accident Goal. Everyone must be on the same page and understand that this really is not an unreachable goal.

Employee Perception Survey

Auditing the Elements

Setting Goals

Preparing for Zero Accident Plan Safety Action Plans. Developed and Implemented Site Specific Safety Action Plans to define safety initiatives. Safety Accountability Program Revised current program Identified Gap in Training Identified Target Group for Additional training Commitment Comprehensive Safety Audit Revised current audit format Developed and Implemented Training Safety Training Revised training format Train the Trainer Certification Communicate the Zero Accident Goal. Everyone must be on the same page and understand that this really is not an unreachable goal.

Accountability / Incident Rate Review

Safety Accountability

Preparing for Zero Accident Plan Establishing Safety Committees Executive Safety Team Corporate Safety Action Committee Departmental Safety Committee (21) Safety Committee Roles and Responsibilities Training Accident Investigation Accident Investigation Training Revised Return to Work Program Developed Accident Summary for treating Physicians Near Miss Reporting and Trending Document Control Program Developed a New Policy / Procedure Guideline Implemented a new review process Formed a Policy Review Committee Master File Intranet Based

Key Components Elements To Achieving Zero Accidents Hazard Identification Accident Analysis Management Commitment Accountability Training Awareness Employee Involvement Elements To Achieving Zero Accidents

Identified the Elements Management Commitment Management of our company shows, in words and actions, their commitment to our safety and health program. Accountability Responsibilities and authority are assigned. All employees (including management) are held accountable Facility Safety Action Plans define the roles, responsibility and accountability to each element. Hazard Identification and Control Monthly Hazard Assessment Audits Pre – Job Planning and Equipment Approval Process Incident/Accident Analysis Procedures and policies are in place for reviewing all workplace near miss incidents, accidents, injuries and illnesses.

Identified the Elements Communication and Awareness Promote Safety Initiatives Open Line of Communication Safety Training There is a comprehensive training program all employees Employee Involvement Employees are encouraged to, and actively participate in the development and implementation of our safety programs Program Evaluation Facility Program Audits, facility will conduct Quarterly Audit Annual Comprehensive Safety Audit.

Introduction of Target Zero Corporate Annual Communication Meeting President / CEO Announced New Program July 2009 Zero Candy Bars Distributed for Kick-Off Corporate Mission Statement Signed by all Executives and Displayed in every Facilities Target Zero Communication Plan Colony Contact Internal News Letter Mass E-Mail from the President CEO Banners, Flyers, Safety Talks 2010 Target Zero Calendar Target Zero Accident Program Incentive Plan Corporate Target Zero Incentive Target Zero Group Incentive Safety Day Incentive

Target Zero Implementation Plan Phase 1: Management Commitment Facility Management Commitment Plan to Target Zero Each facility to develop a Commitment plan Target Zero Facility Commitment Implementation Plan Each facility to develop a plan on how they will implement the plan Accountability Roles and Responsibilities defined for all employees & posted Safety Disciplinary Policy Revised and Communicated All Managers are required to attend General Safety Accountability Training. Departmental Safety Action Plans to include Accountability

Target Zero Implementation Plan Phase 2: Hazard Identification and Control Hazard Recognition Training Pre-Job Planning Process Equipment Approval Process Safety Department Monthly Site Visits Strain Index Studies for all High Risk Areas Risk Assessments' – update all JSA and JHA Hazard Reporting Safety Observation Program Idea Generator Near Miss Reporting Safety Department E-Mail System

Target Zero Implementation Plan Phase 2: Accident Investigation and Reporting Accident Investigation Root Analysis Training Mock Drill Training Early Reporting Requirements Disciplinary Action for Failure to Report Accident Prevention Accident Prevention Awareness Training Stretch and Flex Program Wellness Program Health Risk Assessments'

Target Zero Implementation Plan Phase 3: Communication and Awareness Safety Bulletin Board Employee Annual Safety Meeting Weekly Safety Communication Talk Monthly Safety Review Update on Safety Day 12 Monthly Required Safety Talk Safety Training Target Zero – Zero Accident Program Training New Safety Orientation to include Zero Accident Program Safety Compliance Training Safety Training Site Specific Train the Trainers Certification Re-alignment of Training Frequency

Target Zero Implementation Plan Phase 4: Employee Involvement Employee Participation Employee Annual Compliance Training Employee Monthly Safety Activities Employee Involvement in Safety Day Activities Safety Committee Program Evaluation Annual Safety Comprehensive Audit Review Target Zero Impact Review Department Safety Action Plan

Promoting Target Zero

ASK How You Can Win One Of These Prizes! Safety Day Awareness Incentive Target Zero Group Incentive Corporate Safety Incentive Grand Prize 1 Year 6 Months 9 Months 1 Month 3 Month I-month 5 2-months 5 3-months 10 4-months 5 5-months 5 6-months 20 7-months 5 8-months 5 9-months 25 10-months 5 11-months 5 I Year 50 Earn Booster Discount Certificates For Each Month the Corporation is accident free. No pay out when an accident occurs for that month. The clock starts over at five booster discount certificates . 3rd Wednesday of each Month, Turn in your monthly quiz for a chance to hit the target for one of these prizes. Hit the bulls-eye and receive 25 additional booster discount certificates. To be eligible for the departmental random drawing your assigned Target Group Must Have: 100% Employee Participation in Monthly Quizzes Zero Accidents for Each Milestone Period. Accident Prevention! Our Intention is...

Benefits of a Zero Accident Plan Assigns Authority and Accountability Ensures Compliance with all safety rules Establishes two-way Communication Provides for Periodic safety inspections Requires Investigation of Accidents & Injuries Corrects hazards when observed or discovered Specifies general & job-specific safety training Maintains Inspection & Training Records Demonstrates Commitment

It's all about expectations! “Thank-you” The only goal that represents the intended results of an effective safety program is Zero Accidents. It makes sense from a moral, economic, and safety standpoint. It says accidents are unacceptable and preventable. Make it your company's goals It's all about expectations!