Resources and Strategies for Keeping Pace with Safety Laws

Since the Occupational Safety and Health Administration (OSHA) first began to regulate safety practices among employers in 1971, some construction business owners have worried that training and compliance programs might impose an unnecessary financial burden on their operations.

Employers have also discovered that keeping pace with OSHA regulations can be confusing and time-consuming. These concerns are especially common among the owners of small to medium-sized businesses who believe they have the least amount of time and resources to spare for safety training. Unfortunately, smaller firms have the highest rate of accidents in the construction industry. For these companies, weighing the costs versus the benefits of safety programs is a crucial matter.

Know the Law

Although a widely held misconception exists that OSHA now promotes “voluntary compliance,” all employers are required by law to comply with the regulations found in the Occupational Safety and Health Act of 1970. For the construction industry, the most important parts of the law are contained in 29 CFR Part 1926, which deals specifically with construction and the General Duty clause, which states that apart from any specific regulations, employers must provide a safe work environment. Failure to do so can result in various penalties, ranging from fines to imprisonment. For this reason, it is imperative for companies to know and comply with the law.

All employers, for example, must provide training regarding hazards common to their work and know what kind of protective equipment their employees should wear. In addition, employers must keep records of work-related injuries and remain current with both federal and state OSHA standards.

The Costs of Non-Compliance

The costs of non-compliance are heavy, in terms of loss of resources: time, money and personnel. For example, workers at a Michigan-based company recently put plastic sheeting around some scaffolding to protect themselves from the rain. When wind grabbed the plastic, it knocked over the scaffolding and acted like a sail, resulting in the death of an employee. Sadly, almost anyone in the industry can relate. Accidents are also expensive in financial terms. Last year, for example, a Texas-based company’s failure to protect its employees from a cave-in resulted in fines totaling $117,500.

The Rewards of Compliance

Just as the costs of non-compliance are great, the rewards for compliance are as well. OSHA’s Focused Inspection Policy, for instance, recognizes the efforts of contractors who have implemented effective safety programs. Focused inspections are narrower in scope than comprehensive inspections and target only the leading construction hazards.

Companies with strong plans are also eligible for participation in the Voluntary Protection Program (VPP), which exempts companies from regular periodic inspections. These firms must still comply with OSHA standards, of course, and statistics show that they do much more than that: participants in the VPP are typically 50 percent below the industry average for recordable incidents.

Clearly, compliance pays. As John Doherty, president and CEO of Western Michigan’s Associated Builders and Contractors (ABCWM), acknowledges, “There is a cost to do things right.” He adds, however, “A company that establishes a safe workplace will have the opportunity to recoup its costs. Safe practices will reduce costs for workers’ compensation and insurance.” Doherty further notes that “as new rules come out or court decisions are made, it is essential for a company to know what to do.” Fortunately, a wide range of resources are available to employers who seek to develop an effective safety program.

OSHA Compliance Assistance

The OSHA website (www.osha.gov) offers a wealth of information in an accessible and inexpensive format. The site’s home page features links to “Laws, Regulations and Interpretations” and to “OSHA Standards 101.” Employers will also find a link to www.osha-compliance.net, a helpful guide to maintaining compliance with OSHA regulations. The site provides links to state plans and information regarding the OSHA standards that are most frequently cited by inspectors.

Another valuable resource on OSHA’s website is the “Small Business” link. Here, employers can request a free onsite consultation that can be helpful for companies with limited resources. At the company’s request, OSHA will arrange for a consultant to help the business design a solid safety program. Once the plan is in place, the company can use existing personnel to oversee it.

Approaches to Safety Training

The majority of training is still conducted in a classroom. This format can be very effective but does have drawbacks. For example, the expense to bring the trainer onsite or transport employees to a training center can be substantial. Also, employees in a classroom setting may hesitate to ask questions and fail to grasp key safety fundamentals. Worse still, some employees may miss the session, forcing the company to incur additional costs related to the consultant’s fee and airfare.

Delivery through recorded media can also be effective, but employers must be careful to choose a quality product. As ABC’s Doherty points out, “Workers want to see people who look like themselves and a jobsite that looks recent. They don’t want to see footage that was shot in the 1950s.” Another consideration is that when safety standards are updated, the recorded material may quickly become outdated.

Increasingly, employers are turning to online delivery, which can be immediately updated to keep pace with changes in the law and has numerous other advantages as well. For example, online training accommodates individual learning capabilities. Workers absorb information at a different pace. While this can be a problem in a classroom setting, the online method of delivery allows students to work at their own paces.

Many employers find, however, that interaction with an instructor is essential, and the dominant trend in the industry is toward a blended approach. In this model of delivery, online instruction may be given as a prelude to an instructor-led session or the two formats may be used to reinforce each other. Most employers have found the hybrid model to be very effective, and many view it as the wave of the future.
Whichever approach is adopted, an employer will want to select a reputable training firm that delivers a consistent and thorough message in a way that engages employees. A good training firm provides qualified trainers and effective instructional materials that motivate workers to comply with safety standards.

Elements of a Successful Safety Program

Above all, a successful program requires a “top-down” commitment to safety. If the employer’s attitude is less than enthusiastic, (e.g., “We’ve got to do the toolbox talk now”) then workers will take a similar attitude. An effective safety program requires a genuine commitment from management to engage and motivate workers.

There are other key elements to a successful training program. It’s important to tailor training to the location, equipment, soil, weather and hazards of the specific project. Also, plan ahead to determine what potential hazards exist, and make workers aware of these before work begins. During the project, owners need to monitor safety performance and make a constant effort to reinforce a culture of safety. One creative way to do this is to share savings generated by safety measures with workers. Some employers, for instance, use “safety bucks” to buy gifts for employees.

For projects involving multiple contractors, a solid safety program also requires the development of a master plan. An outstanding example of this occurred during the renovation of Lambeau Field, home of the Green Bay Packers. The City of Green Bay stipulated that the project not cause any interruption to the playing season and that the renovation be delivered on time and budget. The general contractor for the project, Turner Construction, entered into a Strategic Partnership with OSHA to oversee safety procedures during the renovation. The project was completed ahead of schedule and the Packers never missed a game at Lambeau Field.

While smaller companies have fewer resources than a giant such as Turner, ABC’s Doherty still believes that these firms could benefit from retaining a safety consultant. The experience of Michigan’s Birchwood Construction supports his view. After numerous citations and fines, the company contacted MIOSHA (the Michigan branch of OSHA), which helped the builder put together a safety plan. Within three years, the company expanded from 70 to 130 employees and was named “Builder of the Year” by a regional homebuilders’ association.

Safety Pays

In an extremely hazardous field such as construction, employers clearly have a moral responsibility to provide safety training for their workers. Owners of construction companies may find this to be a daunting task, however, given the range of current regulations. In addition, owners, especially those of smaller firms, may fear that compliance with OSHA regulations will cut into their profit margins or even drive them into bankruptcy. Fortunately, a wide range of assistance is available to help employers remain in compliance with safety standards. Employers who are willing to avail themselves of these resources will be amply rewarded, as the experience of numerous firms has shown. Regardless of its size, a safer operation will usually be more profitable. In the construction industry, a contractor with a good safety record will tend to win more bids and thus generate more revenues. Creating a culture of safety will also reduce expenses for workers’ compensation, insurance, legal fees and fines. Viewed from this perspective, a commitment to safety is an investment that will pay dividends rather than a burden that will reduce profits.

Construction Business Owner, November 2007