Connecting the Dots: OSHA, Manufacturing & Workers Comp Costs

Connecting the Dots: OSHA, Manufacturing & Workers Comp Costs

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According to the Occupational Safety & Health Administration (OSHA), it has been estimated that employers pay almost $1 billion per week for directs workers' compensation costs alone. Direct costs include workers' compensation payments, medical expenses, and costs for legal services; as opposed to indirect costs which can include training replacement employees, accident investigation, lost productivity, etc…

OSHA has put many plans in place to help employers keep their workers safe while on the job. This includes the Employer Payment for Personal Protective Equipment ruling in 2007 as well as the Enforcement Guidance for Personal Protective Equipment in General Industry directive from 2011. While both of these specifically speak toward outfitting workers with the proper protective equipment, OSHA does not stop there.

The bottom line is that OSHA is not is not in the business of killing jobs, as some tend to think given all the directives and rules they make employers follow. Rather they are in the business of preventing jobs from killing people. Or put in their words, “assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance”.

That said, when we speak about OSHA guidelines and why they are even in existence, the next logical step is to think of all the injuries and/or illnesses incurred by worker while on the job every year - and the related Workers Compensation claims.  Consider the following*:

  • There were nearly 3.1 million non-fatal work injuries and illnesses in private industries in 2010.
  • The 2010 numbers equal an injury rate of 3.5 cases per 100 full-time workers.
  • All industries either decreased or stayed the same, though manufacturing and wholesale trade had higher incident rates.

*taken from https://www.edgarsnyder.com/workers-compensation/information/workers-compensation-statistics.html

Which brings us to the last portion of connecting the dots…manufacturing. The manufacturing industry currently has some of the highest workers compensation claims in the U.S.  Why? It's simple, the manufacturing boom has once again hit the U.S. and new workers are needed to fill positions all the time.

The issue lies in the fact that many of these new manufacturing jobs rely on new technology, technology and machines that many workers were never taught to use or have used before. While trade schools are adding classes and increasing their student body all across the U.S., the deficiency for skilled labor to fill the increasing demand for manufacturing positions is outpacing them. When these new workers take on jobs in the manufacturing sector that they may not be fully trained for or experienced with, injury rates soar. Hence, the rise of workers compensation claims and managing the costs related to them.

A manufacturing boom for the U.S. is great. We say bring it on. Bear Staffing is here to find skilled labor for the manufacturing sector. However, employers must remain cognizant and comply with OSHA rules and for those that have not already, outsourcing their staffing may be the answer as workers compensation management ultimately falls to the of the staffing agency. 

And that is how the dots connect.

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