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ICC Compliance Center Blog » plant audits

What is the Cost of Doing Business Safely?

by ICC Compliance Center on April 17, 2013 at 9:53 am · in Ken's Blog

According to OSHA the Most Frequently Cited Standards


The following were the top 10 most frequently cited standards in fiscal year 2012 (October 1, 2011 through September 30, 2012):

  1. Fall protection, construction (29 CFR 1926.501) [related OSHA Safety and Health Topics page]
  2. Hazard communication standard, general industry (29 CFR 1910.1200) [related OSHA Safety and Health Topics page]
  3. Scaffolding, general requirements, construction (29 CFR 1926.451) [related OSHA Safety and Health Topics page]
  4. Respiratory protection, general industry (29 CFR 1910.134) [related OSHA Safety and Health Topics page]
  5. Control of hazardous energy (lockout/tagout), general industry (29 CFR 1910.147) [related OSHA Safety and Health Topics page]
  6. Powered industrial trucks, general industry (29 CFR 1910.178) [related OSHA Safety and Health Topics page]
  7. Electrical, wiring methods, components and equipment, general industry (29 CFR 1910.305) [related OSHA Safety and Health Topics page]
  8. Ladders, construction (29 CFR 1926.1053) [related OSHA Safety and Health Topics page]
  9. Machines, general requirements, general industry (29 CFR 1910.212) [related OSHA Safety and Health Topics page]
  10. Electrical systems design, general requirements, general industry (29 CFR 1910.303) [related OSHA Safety and Health Topics page]

The following are the standards for which OSHA assessed the highest penalties in fiscal year 2012 (October 1, 2011 through September 30, 2012):

  1. Fall protection, construction (29 CFR 1926.501) [related OSHA Safety and Health Topics page]
  2. Scaffolding, general requirements, construction (29 CFR 1926.451) [related OSHA Safety and Health Topics page]
  3. Control of hazardous energy (lockout/tagout), general industry (29 CFR 1910.147) [related OSHA Safety and Health Topics page]
  4. Machines, general requirements, general industry (29 CFR 1910.212) [related OSHA Safety and Health Topics page]
  5. Powered industrial trucks, general industry (29 CFR 1910.178) [related OSHA Safety and Health Topics page]
  6. Ladders, construction (29 CFR 1926.1053) [related OSHA Safety and Health Topics page]
  7. Electrical, wiring methods, components and equipment, general industry (29 CFR 1910.305) [related OSHA Safety and Health Topics page]
  8. Process safety management of highly hazardous chemicals (29 CFR 1910.119) [related OSHA Safety and Health Topics page]
  9. Hazard communication standard, general industry (29 CFR 1910.1200) [related OSHA Safety and Health Topics page]
  10. Electrical systems design, general requirements, general industry (29 CFR 1910.303) [related OSHA Safety and Health Topics page]

Learn about ICC’s Plant Audits »

These violations can lead into major fines. The size of your company does not matter to OSHA. These facts and figures are on the OSHA.gov website.
Top Enforcement Cases Based on Total Issued Penalty

Company Issuance Date Total Penalty
BP Products North America 10/29/09 $81,340,000
BP Products North America 9/21/05 $21,364,500
IMC Fertilizer/Angus Chemical 10/31/91 $11,550,000
Imperial Sugar 7/25/08 $8,777,500
O&G 8/3/10 $8,347,000
Samsung Guam, Inc. 9/21/95 $8,155,000
Dayton Tire 4/18/94 $7,490,000
Keystone Construction Maint. 8/3/10 $6,623,000
Phillip 66/Fish Engineering 4/19/00 $6,395,200
Hercules, Inc. 4/8/93 $6,328,000
Arcadian 1/27/93 $5,085,000
E. Smalls Painting 6/3/94 $5,008,550
Eraser Paper 9/17/91 $5,008,550
Decoster Egg Farms 7/12/96 $3,555,500
ARCO Chemical 1/3/99 $3,481,300
McCrory Stores 11/7/91 $3,188,000
IBO 5/11/98 $3,133,100
BP North America, Inc. 3/8/10 $3,042,000
Shell Oil Chemical Co. 11/22/94 $3,017,000
Union Carbide 9/12/91 $2,809,500

So, do I have your attention now? I should, if not maybe you should rethink your safety program. Most safety programs are reactive, rather than proactive. Similar to the gun control debate going on currently in the U.S.A., law makers and others scream for more laws after an incident, rather than looking at we already have in place. It’s the old get rid of the perceived threat, rather than what caused it in the first place. It’s like taking the slingshot from the child, which you probably gave them, after they broke the window. What you should have done is given them the ground rules and taught them the safe way to use the slingshot in the first place.

Back to safety programs and how they really should work. Safety programs should be interactive with the employees and management. Employees should have the ability to influence safety and how affects them and the company. One way of that is a safety committee that has an impact on safety and maintaining a safe work environment. Do you encourage employees to be safe out of work? Employees are twice as likely to be injured at home as they are at the workplace. Do you “preach safety” or do you “live safety”? Safety must be not only for the employees, but for management and especially senior management. The safest companies follow a safety process rather than a safety program. Safety process has everyone being their own “safety manager” and responsible for their own safety, rather than a safety program where the safety manager directs the others in safety. Everyone, including office staff and sales should be involved in maintaining a safe working environment.

Office and sales people are just as likely to get hurt in a slip, trip and fall as the employee in the warehouse or out in the field. Employees in the office or sales can have ergonomic issues or strains from lifting improperly. As you can see there is more to safety than meets the eye.

Another integral part of safety is the reporting of near misses or incidents. Do you encourage employees to report near misses or dangerous situations? Can they do so without reprisal? Near misses should be examined as a way to eliminate hazards or hazardous predicaments that may turn into an incident or accident. Most accidents, but not all, are preventable. When investigating accidents, you should not try to determine fault, but what happened so any further similar situations can be prevented.

This article started as what the frequently cited standards and some of the heavier fines levied by OSHA. But what about other costs associated with safety? If your company is a 10% profit margin company, then an accident or incident of say $1000 is like a loss of $10,000 in sales. The immediate cost of an accident or incident may be visible, but what about the hidden costs?

Hidden costs of accidents include; time spent by management, HR and supervisors investigating and filling out paperwork on the accident, damage to equipment, damage to product, overtime to employees and additional stress to employees filling in for the injured employee, time loss by employees discussing what occurred instead of working, morale issues and even the hiring of a temporary or new employee to replace the injured employee, or even the retraining of an employee to fill in can cause a loss of production. The time that equipment is down for repairs and the associated costs of those repairs to damaged equipment or product. Hidden costs can run three to ten times the amount of the direct costs and it all comes out of the bottom line.

The one part we didn’t truly examine above is the morale of the employees at an “unsafe” workplace and what type of employee you are able to recruit to work there. That is something to consider when you are “doing what it takes to get the job done.” Employees whose morale drops are more likely to call in sick, get injured and leave the company. When you look at all the factors included in this article, fines become just one small part of the equations. The fines that can be levied are steep, but lawsuits and lawyers cost a lot more than just money. They can affect your reputation in the industry and in your community.

What is the real safety message your company is sending to the employees?

OSHA’s Targeted Inspections

by Karrie Monette-Ishmael on February 15, 2013 at 8:00 am · in Karrie's Blog

In a recent press release, OSHA announced their directive for worksite inspections in 2013.

The inspection targeting program began in 2008 in response to a Government Accountability Office audit report recommending that OSHA develop a targeted inspection program for federal worksites.

OSHA‘s notice (view the PDF) outlines that they plan to work from primary and secondary inspection lists.

The primary inspection list includes: 100% of the establishments reporting 100 or more lost time cases (LTCs), 50% of the establishments reporting 50 to 99 LTCs, and 10% of the establishments reporting 20 to 49 LTCs. Time permitting; OSHA will use their secondary list which includes smaller numbers of lost time cases and other reported incidents.

Once the list is prepared, it is distributed to the local OSHA Regions for implementation.

What’s the best way to stop lost time for workers? Educate them. Train them. Make sure they understand what they are doing and how to handle the chemical or the possible hazard(s) of the machine or environment they are working with/in.

ICC has recently developed a variety of workplace training programs including Lockout/Tagout. Watch for our new OSHA courses being released shortly.

ICC also offers services such as plant audits that could prepare your workplace for an inspection.

Onsite Plant Audits

by ICC Compliance Center on May 29, 2012 at 12:45 pm · in Products, Uncategorized

Is your company committed to being compliant with Occupational Health & Safety (OSHA) and Transportation regulations? When is the last time you had a plant audit? Penalties, fines and punitive litigation for breaches of Occupational Health & Safety (OSHA) and Transportation and the resulting injuries are substantial.

As an employer, you are required to manage and control the numerous risks and hazards associated with your industry. You must also be aware of the ramifications of the Acts, Codes and Regulations that govern your workplace. ICC Compliance Center provides a full Occupational Health and Safety Advisory service.

The US Department of Transportation or Transport Canada randomly inspects plants and warehouses for health and safety violations in order to ensure companies are compliant with hazardous material regulations.

Arranging to have an ICC Compliance Center audit in advance of a random inspection, can help you demonstrate your company’s commitment to being compliant with the rules and regulations. ICC audits include a walkthrough and visual inspection to review the following:

  • Packaging standards
  • Labeling of packages and containers for WHMIS, OSHA, 49 CFR, TDG Clear Language and GHS
  • Shipping documentation
  • Material safety data sheets (MSDS)
  • Health and safety issues
  • Safety signs
  • Workplace labeling
  • Risk identification
  • Security
  • GHS Implementation

Let us help before the inspector visits!

Can you afford not to be compliant?

Our competitively priced comprehensive safety audits and inspections are an optimum way of increasing safety awareness in your workplace; ensuring peace of mind that you and your organization are complying with all Occupational Health and Safety requirements. Professional Occupational Health and Safety management helps to protect businesses, workers, families and the public from the trauma of accident and tragedy.

Plant AuditsOur transportation audits review your process from beginning to end, looking at all 7 steps to compliance with the transportation regulations such as 49 CFR, TDG, IATA or IMDG. Clients receive a report specific to each area of the business, itemized with photos and pertinent regulations. The report is prioritized so all issues may be addressed as per their importance (high, medium, low). This allows employers to create a safety action plan and to budget effectively in order to address any occupational health and safety concerns.

ICC Compliance Center can help you pass your plant audit with complete success! Our regulatory specialists are ready to perform a complete audit of your plant at your convenience to ensure compliance with the different regulations such as Transportation of Dangerous Goods Regulations (TDGR), Workplace Hazardous Materials Information System (WHMIS), the Consumer Chemical Containers Regulations (CCCR), 49 CFR Hazardous Materials Regulations, and GHS.
Once the inspection is complete, the regulatory specialist will draft an extensive report including specific recommendations including any exemptions to ensure full compliance. These also include any exemptions from which you may benefit. Your account manager will then review the report in detail with you, help you understand our findings, and select the appropriate services to solve any problems. If necessary, the regulatory specialist can assist the account manager in delivering the report to a group, so all involved properly understand the results of the audit.

What are the final benefits to a plant audit?

  • You and your employees have a complete picture of your compliance situation.
  • You obtain the tools to meet your specific requirements for the various regulations and receive suggestions to streamline your shipments.
  • You can present a plan of action to any inspector who walks in unannounced.
  • You now have a partner in compliance to help you with all your hazardous materials needs.

Meet new regulatory specialist located in Houston, TX:

David FordRegulatory Specialist David is located in Houston, TX. His specialty is dangerous goods, i.e. CFR 49, TDG, IATA, and IMDG, for global petrochemical manufacturer, Huntsman, and was responsible for all modes including railroad, highway, sea, and air, with bulk and non-bulk transportation containers. His knowledge comes from training and hands-on-experience including truck driving, warehousing, and bulk transferring, writing specifications for bulk and non-bulk packages and created the instructions the container manufacturers needed for compliance regulations and safe operations in handling for the employees and product quality.

To schedule your plant audit, or to find out more information, call one of our customer relations centers today: 888-442-9628 in the US or 888-977-4834 in Canada.

Getting ready to audit your facility? Ask us about our On Site Risk Analysis Audit Forms for various industries.

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