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Safety Lines
True costs of a workplace accident
By Gary Robertson, Training Officer
The most recent occupational injury and illness figures show there were
an estimated 104,100 recordable workplace injury and illness cases in
Minnesota in 2005 (Bureau of Labor Statistics annual Survey of
Occupational Injuries and Illnesses, available online at www.doli.state.
mn.us/xls/blssumtables05.xls). When someone becomes ill or injured on
the job, the employer is responsible for the employee's medical costs, if
necessary, but unknown costs – in even the most minor of incidents – add
to the true cost of a workplace accident.
The welfare of the injured person is the utmost concern. The physical ... hidden costs could
pain associated with the injury, maybe an operation or operations, affect the bottom line
hospitalization, rehabilitation and, perhaps, having to change of any company when
vocations are all real possibilities. During the initial few weeks,
friends and family members step forward to pick up the slack, a workplace accident
shoveling snow, mowing grass, making meals and more, but then injures or sickens an
what? employee.
The family, especially if there are children, may have to make some
unwanted adjustments. What will mom or dad be like when they get
home? What changes and sacrifices may have to be made by everyone
in the family? Answers to these questions may be far reaching and can
affect lifestyles, education plans and more, well into the future.
Pressing financial decisions may need to be made if money problems
arise.
These costs and concerns are very real problems that may affect a
family that has experienced a work-related injury. Circumstances vary,
but injury-related costs are fairly consistent, on-going, visible and scary.
443 Lafayette Road N. • St. Paul, MN 55155 • (651) 284-5050 • 1-800-342-5354 • www.doli.state.mn.us/mnosha.html
and may not be exposed for some time. It is important that employers recognize and understand both the
direct or obvious costs, as well as the hidden costs of a workplace injury.
Workers' compensation costs in Minnesota were $1.6 billion in 2005, according to the Minnesota
Workplace Safety Report. The average cost of an insured claim in 2003 was more than $7,000 when
benefits (indemnity, medical and vocational rehabilitation) plus other costs, such as claim adjustment and
litigation, are included.
Paying attention to the dollar amounts of hidden costs is more difficult, but can be a helpful way to underscore
the importance of having effective workplace safety and health programs. A comprehensive program, such as
A Workplace Accident and Injury Reduction (AWAIR) program, helps keep employers in compliance with
MNOSHA standards and rules, and helps make a workplace free of hazards. Such programs help eliminate
the astronomical dollar amounts of the hidden costs following a workplace accident.
The list below is of some indirect or hidden costs; the list may be much longer. These hidden costs could
affect the bottom line of any company when a workplace accident injures or sickens an employee. Again,
these are costs that are not so easy to see, but may show up at any time, depending on the situation.
Indirect costs
• lost productivity • hiring costs • training costs
• equipment damage and down time • clean-up time • re-work
• production delays • rental costs • legal fees
• good will, reputation in the community • unhappy customers • increased insurance costs
• OSHA penalties • spoiled product, materials • other
In January, The Travelers Companies, Inc. (formerly St. Paul Travelers Companies, Inc.) participated in
a MNOSHA Construction Breakfast seminar, providing the following example to illustrate the hidden
cost of lost productivity and the amount of additional sales a company would be required to generate to
pay for this lost productivity caused by a minor foot injury that requires some medical attention.
Some rebar was being unloaded from a flatbed at a construction worksite. A worker directing this
operation tripped and got his foot caught under the load. He was taken to a hospital for immediate care.
The cost of the medical care was $250.
Direct costs, combined with the hidden costs – to the employee (and his or her family), the employer and
the state – are the real or “true costs” of workplace injuries and illnesses. When analyzed, these costs
explain and justify efforts to have effective safety programs. Mandatory safety programs, such as the
AWAIR program, safety training required by insurance companies and employer safety programs, all
have an effective role in reducing injuries to employees, helping avoid having to incur the true costs of a
workplace accident.
More information, including registration options, is online at Mark Monson, The Travelers Companies, Inc., speaks about
residential fall protection at the MNOSHA Construction
www.doli.state.mn.us/brkfst.html.
Breakfast, March 20, in St. Paul, Minn.
• the employer must have the knowledge and experience to complete the
project, and must be committed to its implementation;
• the employer must be able to match the grant money awarded and all
estimated project costs must be covered; and
• the project must be supported by all public entities involved and comply with federal, state and local
regulations where applicable.
More information about Minnesota OSHA Workplace Safety Consultation and the Safety Grant Program
is available online at www.doli.state.mn.us/wsc.html or by calling (651) 284-5060.
Fact sheet
Minnesota OSHA's most frequently cited standards
2006
Links to the standards listed above are available online, as well as similar lists that are construction
specific and general-industry specific, at www.doli.state.mn.us/oshainfo.html, under "Citations."
A recently added federal OSHA Web page, Making a positive difference: OSHA saves lives,
features instances where compliance officer action or safety equipment prevented employee
death or serious injury. The events occurred in different parts of the country and involve hazards
such as trench cave-in, falls and structural collapse.
• With help from a building inspector, a compliance officer removed three workers from
inside and on top of a partially framed structure. The walls and the roof were not braced.
A few minutes later, the structure collapsed (see photos above).
• Within two months of each other, two ironworkers fell off steel beams at the Lambeau
Field renovation project in Green Bay, Wis. Both were saved and were able to return to
work the same day due to their personal fall-arrest equipment. The general contractor on
site has a partnership agreement with federal OSHA, requiring 100 percent use of fall
protection above six feet.
Additional OSHA success stories can be found on the OSHA 35-year milestones page. Featured
achievements, listed chronologically, include landmark regulations such as bloodborne pathogens
and process safety management, state-plan creation and cooperative programs. This page can be
viewed at www.osha.gov/as/opa/osha35yearmilestones.html.
Editor’s note: This is the first installment of an occasional series of more advanced topics about recording occupational injuries
and illnesses using the OSHA Form 300. This information is directed to people who are new to OSHA recordkeeping activities,
who want to review their recordkeeping practices or who want to improve their recordkeeping skills. The previous series about
recordkeeping, covering basic information about filling in the OSHA log and creating an annual summary, is available at www.
doli.state.mn.us/recordkeeping.html.
To reduce the amount of decision-making necessary, OSHA requires that all instances of certain injuries
and illnesses be treated as privacy concern cases and the employer must not enter the employee’s name
on the OSHA log. All instances of the following injuries and
illnesses must be handled as privacy concern cases:
In some specific situations, coworkers who are allowed to access the log may be able to deduce the
identity of the injured or ill worker in a privacy concern case. The recordkeeping requirements permit
employers to mask or withhold information that could be used to identify an employee in a privacy
concern case. For example, if only one woman works at a location or in a certain department, the
employer may leave out the gender and department information.
Next installment:
Records access and information disclosure
Mankato Area Public Schools, Mankato, Minn. On a blustery day in January – Jan.
30 – LG Constructors, a subsidiary
of CH2M HILL, was awarded for
its efforts in St. Paul, Minn. It was
the first MNSTAR recipient for
new construction at a power
generating plant.
Companies are urged to start the certification process early to avoid any major push when the July 1
deadline draws near. Currently, there are 12 other states that have certification or licensing requirements.