The High Cost of Noncompliance

OSHA inspection violations can be costly, but seven hot spots cause most of the fines.

April 2002 - OSHA announces fines of $87,750 against a major precast manufacturer located in the southern United States.

June 2002 - OSHA levies fines of $44,100 against a southeastern U.S.-based company for alleged safety and health violations.

These are just two instances in which an OSHA inspection resulted in fines for the targeted company. In 2001, OSHA performed more than 1,300 inspections at concrete producing/manufacturing facilities in the United States. In December alone, there were 39 inspections - more than one a day - with 26 (67 percent) of these resulting in fines. That equates to 132 violations totaling almost $125,000 in proposed penalties for the targeted firms.

In this age of narrowing profit margins and increased emphasis on the bottom line, it's understandable that safety and health concerns sometimes get lost in the shuffle. Turnover in the workforce is another contributing factor; it's tough to maintain a safety-conscious employee base when your average employee's term with the company is less than a year. Still, as the figures show, no company can afford to ignore safety and compliance issues. Such behavior will inevitably end up costing the firm money as a result of accidents, OSHA enforcement, increased insurance premiums, etc.

This being the case, what should your company do to create a hazard-free workplace? Obviously, there is no universal answer to this question, no solution that will fit every precast concrete company reading these words. But valuable insight can be gained by looking at OSHA's enforcement history where precast concrete companies (SIC 3272) are concerned and concentrating on those areas which are common sources of violations. Let's look at some data taken from the Bureau of Labor Statistics from October 2000 through September 2001 (the most recent data available). Note that the "rankings" are determined by the dollar amounts of penalties assessed, rather than the number of citations issued.

For instance, nearly one-sixth of the total "penalty dollars" assessed were for violations of the OSHA's Code of Federal Regulations §1910.147 (Control of Hazardous Energy). This regulation, better known as Lockout/Tagout, concerns the prevention of accidental powering-up or energizing of equipment being serviced or repaired, or that has been designated unsafe to operate. The name comes from the locks or tags used to prevent access to the energy source of the machine undergoing maintenance. OSHA takes this area very seriously, as the consequences of noncompliance can easily be fatal.

To comply with this standard, companies must have a written Lockout-Tagout program, must have the appropriate tools (i.e., locks and/or tags), and must train all employees to one of three levels dictated by the standard. All training must be documented with signatures of the employees trained, the trainer, notes about the level of instruction provided and the date of the training. Such documentation should be kept in two places: in the employee's personnel file and in the company's general training and orientation logs.

Given our industry's reliance on overhead/gantry cranes and similar machinery, it should come as no surprise that OSHA's crane and gantry standard (CFR §1910.179) gets quite a bit of attention as well. What is surprising is the number of violations of this regulation OSHA inspectors have assessed. With 34 citations totaling nearly $43,000, this is the second-most penalized standard. In fact, steel mills (SIC 3312) represented the only industry penalized more than precast concrete manufacturers.

While it can be argued that this standard is overly nitpicky (and that argument has some merit), two facts remain: The stipulations were put in place based on the American National Standards Institute (ANSI) procedures, so there is some basis supporting them; and, like it or not, you're expected to comply with it.

Your first action should be to get a copy of the regulation and verify every measurement and operating parameter of your equipment to ensure it checks out. Implement a maintenance schedule and log all significant inspections, noting the date, inspector, what was checked and findings. "Significant inspections" means your routine maintenance checks, as opposed to the pre-operations checks that must be performed prior to each shift or period the machinery is in use. Note that the standard mandates different minimum inspection periods for various portions or aspects of the equipment. Refer to section (j) of the standard for a complete breakdown of inspection intervals.

Finally, the standard requires that only "authorized employees" be allowed to operate the equipment. While no guidelines are given for what constitutes an authorized employee, it's suggested that you have a skilled operator train the employees who will be using or working around your overhead/gantry crane(s) - and, as always, document that training.

Although it may appear that at least one regulation exists to cover each aspect of occupational activity, there are actually still quite a few "holes" in the OSHA blanket. That's where CFR §5(a)(1), the so-called General Duty Clause, comes in. This is OSHA's wild card. It states, in part, that employers are required to provide "a place of employment … free from recognized hazards that are causing or are likely to cause death or serious physical harm." This rule (No. 3 on the precast violations list) is cited by inspectors anytime they deem a health hazard exists but for which there is no corresponding OSHA standard. Thus it is nearly impossible to provide advice on how to comply with the General Duty Clause other than to emphasize best safety practices from upper management on down.

No. 4 on the hot list is one of those things where we all know better, but do it anyway. The standard is CFR §1910.23 (Guarding Floor & Wall Openings & Holes). This regulation governs a variety of features: stairwells and ladders (and their openings/landing points); hatchways, trapdoors and manholes; open-sided walkways; windows; and toeboards - just to mention a few. Similar to CFR §1910.179 (Overhead and Gantry Cranes), the best way to avoid a fine in this area is to grab a copy of the standard and evaluate your facility inch by inch according to the regulation. Unfortunately, this is an area that is something of a "sleeping giant" - you can go for years without giving it a second thought, but when an accident occurs, hefty penalties can be assessed for "deliberate indifference."

The fifth-most cited OSHA standard is CFR §1910.95 (Occupational Noise Exposure). Generally speaking, if your operation produces noise at or above the "action level" defined by the standard, you must implement a hearing conservation program complete with a written program, training for all affected employees and appropriate protective gear. Determining whether or not your operation meets the "action level" can be difficult. The best solution is to arrange for testing from an industrial hygienist. Note that many state OSHA programs or departments of labor provide such services at little or no cost. And if it turns out you must implement a hearing conservation program, consider employing a third-party firm to handle the chore for you. Such organizations have physicians on staff to provide the audiograms required, provide mobile testing vans, etc., all of which can save you a great many headaches.

Violation category No. 6 is another familiar face: Machines - General Requirements (CFR §1910.212). Just because this standard isn't at the top of the list don't let it lull you into a false sense of security. Enforcement of this standard is the No. 1 priority for OSHA inspectors nationwide. Your responsibilities in complying with the rule are relatively simple. One, ensure that all your machines (mixers, presses, sifters, belts, etc.) are properly guarded and that these guards are used without fail - 100 percent of the time. Remember that OSHA's position is that all machines can be guarded. In addition, make certain that personnel are trained to use the equipment they are assigned to and that your machines receive periodic service inspections (which, of course, you should document).

The seventh and final area is CFR §1910.146 (Permit-Required Confined Spaces). It is very rare that a month goes by without at least a fatality or two related to this standard. The standard includes a flow chart (Appendix A to the standard) to be used to determine if your facility has an area that qualifies as a "permit-required confined space" (PRCS). Most precast manufacturers do indeed have one or more. Do your organization and your workers a favor: Evaluate your workplace with a critical eye and, if necessary, implement a PRCS program. This will entail crafting a written program, training your employees and establishing a permit system (similar to the locks and tags in the Lockout-Tagout standard) to administer access to dangerous areas.

While these seven standards are only a small fraction of all OSHA regulations, they represent nearly 60 percent of the total dollar amount of fines assessed against precast concrete manufacturers. While the potential for heavy fines should be a serious consideration for your business, it’s important to keep in mind the more important reason: the continued safety and welfare of your employees. Compliance with these standards costs relatively little – especially when compared to the consequences of death or serious injury to one of your workers.

Keep it safe.

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