November 1, 2011

Hazard Recognition and Control: Improving Safety’s Bottom Line

By Deborah Potter, PhD, CMC and Carl Potter, CSP

The power generation industry is a highly competitive one in which players continue to change and the race for profits is a tough one with the challenge of heavy environmental regulations. One of the most overlooked areas for cost savings is safety. Notwithstanding the moral and legal responsibilities that power plant management has for creating a workplace where everyone can work without injury, reducing and eliminating workplace injuries and illnesses is good for business.

The Cost of U.S. Occupational Injuries

According to the 2010 Liberty Mutual Workplace Safety Index, the direct cost of the most disabling workplace injuries in 2008 was $53.4 billion in U.S. workers’ compensation costs, or over $1 billion per week. The top causes of the most disabling injuries are overexertion, falls on the same level, and bodily reaction (such as bending). Each of these injuries is a common occurrence at power plants. A root cause of these and other injuries is often the failure to recognize and control a hazard. Some hazards, such as combustible dust, are the top concerns of the U.S. Occupational Safety and Health Administration (OSHA) and power generation management; other hazards may not get the same level of attention. Nevertheless, OSHA holds plant managers responsible for controlling all recognized hazards. Why is this important to the bottom line?

The National Safety Council estimated the cost of each workplace death at $1.3 million, a disabling injury at $53,000, and a medically consulted (OSHA recordable) injury at $36,000. These costs include wage and productivity loss, medical expenses, and administrative costs. In 2009, the power generation industry experienced four fatalities, more than 2,300 total recordable injury/illness cases, and 1,200 days away from work, restricted duty, or work transfers related to injury or illness. It’s easy to see that safety affects the bottom line.

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