MMDA - ATA
Proposal for an Industry Based
Safety Program
v2
Executive Summary
• Every year, approximately 600 people are injured in our industry. In addition to the very real and potentially tragic human cost to our workers, there are direct and indirect costs to our industry that are estimated to exceed $30 million annually. • The Manitoba Motor Dealers Association (MMDA) and Automotive Trades Association of Manitoba (ATA) are proposing to
establish an industry-based safety program to provide relevantsafety and health services targetedto the needs of our work environment. An industry based program would make it easierfor employers and workers to engage in positive safety and health practices to ensure employees are safeand workplaces are productive.
• The proposed program would offer training and safety program support customized to our industry, access to information and resources, and enable companies with effective safety programs to become certified and eligible for discounts on WCB premiums.
• The program would be industry-led. Overseen by the MMDA Board of Directors, it would be guided by a Safety Council with representatives from ATA and MMDA members, shops that are not members of either association, workers and
representatives from Safe Work Manitoba and MPI.
• The program would be funded through a levy on the garage/service station and autobody/paint rate codes. Each employer in these rate codes would pay a levy over and above their WCB premium. This is currently estimated at 8%. Once a company achieves safety certification, it would be eligible for a discount that is currently estimated at 10%, providing a net savings.
• A solid safety program not only keeps workers safe, it further reduces the costs to the business with improved productivity and opportunities for further reductions in WCB premiums. Reducing from the average to the lowest rate in the industry provides an opportunity for savings on WCB premiums of between 31-46%.
• Details regarding the cost-benefit of the program as well as background on who is getting injured in our industry, results of the safety needs assessment survey, and what other associations have achieved are included in this information package. • Industry support is needed for this program to proceed. Please confirm your support by signing the letter attached with this
information package. Questions may be directed to
– Geoff Sine, MMDA Executive Director, at (204) 985-4200, or [email protected]
Contents
•
Introduction and Background
4
•
Industry Profile and Trends
5
– Industry composition, trends
7
– WCB Injury Data and Assessment Rates
10
•
Industry Needs Analysis (Survey Results)
17
•
Experience of Other Safety Associations
23
•
Proposed Safety Association
32
– Programs and Services
33
– Benefits of Program
35
– How program will be funded
37
– Cost – Benefit Analysis
38
Introduction & Background
•
Every year, approximately 600 people are injured in our industry. These injuries have direct costs
(*wage loss, medical costs, voc rehab, long term earning replacement) of approximately $3
million per year, in addition to the human cost to those hurt and productivity costs to businesses.
•
Indirect costs (overtime, downtime, damage to equipment, etc.) estimated at $4-$11 for every $1
direct cost)
(source - SK Motor Safety Assoc.)•
Our industry currently pays $6.2 million in premiums.
–
At $4, results in additional indirect costs of $24.8 million to our industry
•
The Manitoba Motor Dealers Association (MMDA) and Automotive Trades Association of Manitoba
(ATA) are proposing to establish an industry-based safety program.
– To provide
relevant
safety and health services
targeted
to the needs of our work
environment
– To make it
easier
for employers and workers to engage in positive safety and health
practices
– To ensure employees are
safe
and workplaces are
productive
•
MMDA has worked with a fee for service provider (One Life) to develop customized services for
the industry, offered at a discount to MMDA members.
The Automotive and Auto Body Repair
Industry
WCB Rate Codes
60402 Garage, Service Stations
•
Category includes
– Automotive garages and service
stations
– New and used car and small truck
dealerships
•
751 businesses registered with the
WCB pay approximately $4.5 million in
premiums
60404 Body Repairs and Paint
•
Category includes
– Repair or replacement of damaged
body components of autos, vans,
trucks or buses, including painting.
– Includes auto conversion/customizing,
body shops that sell used vehicles
•
195 businesses registered with the
WCB pay approximately $1.7 million in
premiums
Possible additional rate codes for future consideration:
• Taxi
Towing
• Retail Gas & Car Wash
Auction & Appraisal
• Power & Rec Equipment
Light Equipment Sales, NEC
Industry Composition
• Approximately 70% of businesses are small, with less than
$250,000 in payroll.
– Challenging to have in-house knowledge and skills to support a
safe workplace
– “Crippling” when a key employee is injured.
138 32 15 8 2 514 92 55 78 12 -100 200 300 400 500 600 <$250K $250K to <$500 K $500K to ,$1 Million $1 Million <$5 Million >= $5 Million
Number of Businesses by Payroll Size
Regulatory Environment
• The
Workplace Safety and Health Act
– Regulations undergo revisions on a regular basis
– Fines for offences under the WSH Act have increased
• Increased from $150,000 to $300,000 for first offence and $250,000
to $500,000 for a second offence.
– Shops report more frequent inspections of automotive and auto
body repair businesses
•
The Workers Compensation Act
– Compliance fines have increased from $1,500 to $5,000 for
workers and $7,500 to $50,000 for employers.
Labour Market Trends
• Shortage of skilled workers
– Retention is a key concern
– High turnover increases need for standard safety training
• High numbers of vulnerable employees in the industry:
– Young workers
– Older workers
– New workers
WCB Injury Data – Body Repairs and Paint
• Injury rates have not significantly improved in the last five years.
• No change in time loss; Down modestly in all injuries
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2009 2010 2011 2012 2013 3.00 3.20 3.50 3.00 3.00 6.80 6.80 6.90 6.50 6.20 Inj ury Rate pe r 10 0 E m pl oy ee s
Injury Rates
-60404 Body Repairs & Paint
WCB Injury Data – Garage, Service Station
Injury rates in Garage / Service Station businesses in Manitoba have shown
improvement
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2009 2010 2011 2012 2013 8.30 7.30 7.80 6.90 5.90 Inj ury Rate pe r 10 0 F T EInjury Rates
60402 - Garage, Service Station
Comparison to Overall Average
2 2.2 2.4 2.6 2.8 3 3.2 3.4 3.6 3.8 42009
2010
2011
2012
2013
T
ime
L
o
ss
In
ju
ri
es
p
er
100
W
o
rker
s
Body Repair & Paint
Garage, Service Station
All Industies
Comparison to Overall Average
0
0.5
1
1.5
2
2.5
3
3.5
4
2009
2010
2011
2012
2013
Day
s
P
a
id
per
FTE
W
ork
e
r
Body Repairs & Paint
Garage, Service Station
Average All Industries
Who is getting injured?
Occupations
% of Total
Injuries
Automotive service technicians, truck mechanics and mechanical
repairers
40%
Automotive mechanical installers and servicers
15%
Motor vehicle body repairers
13%
Specialized cleaners
6%
Other trades helpers and labourers
3.3%
Heavy duty equipment mechanics
2.4%
Retail salespersons and sales clerks
1.5%
Painters and coaters
1.3%
How are People Injured?
41% Overexertion
37% Contact with Objects
16% Slips, Trips, & Falls
WCB Assessments
$2.45 $2.46 $2.34 $2.41 $2.70 $2.58 $1.27 $1.29 $1.21 $1.21 $1.19 $1.14 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2009 2010 2011 2012 2013 2014 A s s es s m en t pe r $1 00 P ay rol lOverall Assessment Rate per $100 Payroll
60402 and 60404
Body Repair Garage, Service Station
•
Average rate for Body Repair is up 5%.
Needs Analysis Results
• Survey respondents represented 19% (+) of payroll
•
32 of 80 respondents did not provide payroll information
– 60402 Garage, Service Station
15%
– 60404 Body Repairs and Paint
23%
• Two focus groups
– 6 participants Garage, Service Station
– 4 participants Body Repairs and Paint
Needs Analysis Results Cont’d
Overall
Garage
Body Repairs
Employee safety and health training
33.3%
30.3%
30.8%
Resources to develop and support
safety programs
33.3%
24.2%
38.5%
Internal knowledge of injury and
illness prevention methods
28.1%
30.3%
23.1%
Effective, up to date policies and
procedures
28.1%
21.2%
38.5%
Survey respondents expressed dissatisfaction with the following aspects of
safety and health in their workplaces:
Needs Analysis Results Cont’d
Most survey respondents (63.2%) do not access safety and health
services from
external sources.
Reasons for not doing so include:
• Services available too generic; not relevant for Automotive and Body
Repair industry.
• Perception that safety consultants lack specific industry expertise
• Cost
• Not aware of what services are available from external providers.
– Have to seek them out yourself; industry does not appear to be a target
market for safety services
Needs Analysis Results Cont’d
Top priorities for Services that could be offered by a Safety Association:
• Information (60% ranked high)
– More important for garages(63%) than body shops (46%)
– Including templates for manuals
• Policies and Procedures (52% ranked high)
– Including Standard Operating Procedures (SOP) resource bank
• Technical, regulatory and standards updates (52% ranked high)
Key Issues and Concerns
•
Overall, 40% of Automotive and Auto Body Repair businesses do not have documented
safety programs
(
Body Repair and Paint – 54%, Garage, Service Station – 33%)
– Attention to safety is still very „reactionary‟ in the industry ie. after an incident or inspection
– Cost and effort to develop and implement safety programs is a barrier
– Expectations regarding safety program and procedure requirements unclear
– Difficult to keep policies and procedures up to date as information and regulations change
frequently.
– Lack of safety resources and training relevant for the industry
•
Inspections becoming more frequent; driving need to strengthen safety programs and
practices
•
Low employee compliance with and „buy-in‟ to safety programs and procedures. (46%)
– Particularly with long term employees
– Employees striving to be more efficient may cut corners (flat rate)
– Inconsistent standards across industry make it difficult to preach „safety‟ to employees.
– Employers struggle with balancing enforcement (ie. writing-up or sending employees home)
with productivity and employee satisfaction.
•
Online training is extremely important for rural businesses and production staff.
•
Some concern that safety association may result in increased reporting requirements and
„red tape‟
•
Construction Safety Association of Manitoba
•
Manitoba Heavy Construction Safety Program (WorkSafely)
•
Agricultural Manufacturers Safety Association (AMC)
•
Saskatchewan Motor Safety Association
Construction Safety Association of Manitoba
•
CSAM established in 1990 to serve building construction industry
–
Governed by WCA Board of Directors and CSAM Advisory Committee
–
20 Staff, including COR coordinator, Training Coordinator, 6 Safety Advisors
–
Provide training, education, information and resource materials to support safety in the construction
industry
• Prepaid safety consultants advise on all aspects of safety programs and safety management • Quarterly meetings with safety related information a nd presentations
• Safety Program certifcation (COR) for large and small employers (SECOR)
• CSO (Construction Safety Officer Designation) – National standard – Have trained 144 safety professionals in the last 3 years, 350 total.
• Safety program training and customization
• General training, including over 30 on-line courses, offered in Winnipeg, Brandon, rural Manitoba • Annual Safety Conferences – Winnipeg, Westman
• Web-site, downloadable resources - safety promotional materials, safe job procedures, updates on legislative / regulatory changes
•
65% of construction workers are in COR certified companies
•
Time loss injuries down 50% since 2000.
• Achieved during period of significant growth in industry activity (and therefore increased risk) – Payroll increased 39% from 2009 - 2014
Manitoba Heavy Construction Safety
Program (WorkSafely)
• WORKSAFELY is a series of programs offered and supported by MHCA to enhance construction safety practices across Manitoba
– Governed by MHCA Board of Directors
– WORKSAFELY has team of 11; draws on association resources
• Director, Training Coordinator, 3 COR Program / Training Advisors, 5 Safety Advisors
– Programs and services include training, COR certification; increasing conversion/access to electronic tools
– Annual Expos (North in Thompson, South in Winnipeg)
» Education courses for all levels of employees
– Safety Talks (topic specific fact sheets) – CSO, COR Programs
– 26 courses
– Time loss injuries down 40% since 2000, during a time of high industry activity and increased employment (Payroll increased 25% 2009 – 2014).
– The culture of safety has significantly changed within the industry from strong resistance and very poor safety records to a widely recognized moral, legal and ethical responsibility to protect their most important resource, their workers – Over 300 COR certified companies, and growing.
• Some leading companies that had very poor records are now leading in safety.
• There is significant „peer pressure‟ from within the industry to be come COR certified.
• Industry is putting pressure on government to reduce thresholds requiring safety certification to qualify for contracts. Strong interest in the industry as a whole to be seen as safe.
Construction COR Certification Pilot
Project (2007 to 2009)
•
COR Certification Incentive Pilot Project was evaluated in 2010
– 181 new firms became COR certified. (240 of 7746 firms)
•
Benefits realized by COR firms during the pilot period 2007 to 2009
– Health and safety becomes a culture in COR workplaces
• Workers must wear personal protective equipment, follow safety rules, and take
responsibility for their own and other worker‟s health
• Safety is „the only way‟ in COR firms.
• Union reps and employers agreed that COR employers care more about and participate
more in safety.
– COR firms had lower injury rates, reduced time loss injury costs, and shorter claim
duration than non-COR firms.
– COR firm assessment rates were 10-16% lower than non-COR firms during the pilot
incentive period.
– COR firms received a net benefit from the incentive of between $0.10 and $0.16 per
$100 payroll.
Agricultural Manufacturers of Canada Safety
(AMC Safety)
•
Training, consulting, audits and certification, resources
•
Three employees – executive director, safety advisor, safety trainer
•
Manitoba Safety Committee – Quarterly meetings, venue for employers to
share, help improve safety
•
Claim durations well below the provincial average for all industries
•
Moved from 200% risk category to 120% risk category in 2011
Risk Category
Rate Range
Average Rate
200%
$1.80 - $9.00
$3.00
120%
$1.08 - $5.40
$1.80
• Time loss injuries down 7
0
% since 2000
AMC Safety Performance
(source SAFE Work MB)
0 2 4 6 8 10 12 2007 2008 2009 2010 2011 2012 2013
Injury Rates AMC vs Metal Works
Ag Equipment Mfg Comparison Mfg
Comparison group includes • Metal Working Parts • Vehicle Manufacturing • Misc Light Manufacturing • Manufacturing Auto Parts
Performance of Industries with Safety
Associations
0
5
10
15
20
25
T
im
e
Loss
I
nj
ury
Rate
/1
0
0
w
ork
e
rs
Agricultural Implement
Manufacturing
Building Construction
Heavy Construction
All Industries
Net Change
70%
50%
40%
43%
Saskatchewan Motor Safety Association
•
Not For Profit Organization, Funded through agreement with WCB
– Board of Directors, incl. representative of WorkSafe SK, SGI, Govt. of SK
•
Serves two major rate codes
– Automotive, Implement Sales and Service
• 15 rate sub-codes, including
– Implement wholesales, farm implement dealers
– Distributors of bulk oil, fertilizer, chemical, cement powder
– Trailer, motorized sports equipment sales and service
– Commercial parking lots
– Auto rental
– Automotive Service Shops, Towing
• 15 rate sub-codes, including autobody/paint, service stations/garages, variety of
mechanical repair shops, towing
• Time loss injuries down 19% since 2009
Saskatchewan Motor Safety Association
•
Programs and Services
– Training
•
Competent Safety Leader Designation
•
Safety Fundamentals for Managers and Supervisors
•
Claims management
•
Safety Management System workshop
•
Occupational Health Committee Training
•
E-learning Courses (WHMIS, Investigation, Inspection, Back Care, Heat Stress, Ladder Safety)
•
Safety Videos
•
Webinars (MSA Safety Orientation, Ergonomics for Ag Dealers, Fall Protection, etc.)
– Consulting
•
Ergonomic Assessments
•
Safety Perception Surveys
•
Safety management development and implementation
•
Worksite inspection, inspection checklists
•
Hazard analysis and controls
•
Development of Emergency Response Plans/programs
•
Development and implementation of Return to Work programs
– Certificate of Recognition (COR)
Proposed Safety Association
•
Mandate
– To improve workplace safety in the garage/service station and autobody repair/paint industry
•
Governance
– Program proposed as under the umbrella of the MMDA corporate structure
• Guided by a safety committee with representatives from MMDA, ATA, Independent Shops,
Worker Representatives, SafeWork Manitoba, MPI
•
Services
– Training
• Safety awareness and orientation
• Hazard-specific training
• Supervisory training
– Safety Program Consulting
• Design (develop policies and procedures)
• Implementation (team training on safety procedures)
• Review / evaluation of existing program (safety audit)
– Safety Certification
• Based on WCB standards for safety certification, adapted for industry
• Eligible for WCB premium discount
Prevention Incentive for Safety Certification
•
The WCB currently offers a premium discount for companies with
recognized safety certification
– Currently only available for the construction industry in Manitoba (COR
program)
•
WCB intends to expand its policy to recognize safety certification in other
industries
– Safe Work Manitoba will set minimum standards for certification
– Industry-based certification programs
•
The financial incentive will be at least as good as the incentive offered for
COR Certification, which is:
– 10% discount on WCB premium in first year
– 5% discount in subsequent years
• SAFE Work MB indicates that a 10% discount on the WCB premium a
reasonable example to use for Automotive and Body Repair Safety
Association (pending policy approval).
Benefits of Improving Workplace Safety
•
Healthy, safe employees – “it‟s the right thing to do”;
–
“It shouldn‟t have to hurt to work here”
–
Secure livelihood, ability to provide for family
–
More motivated to work for caring employer
–
Improved ability to attract and retain skilled workers
–
Longer career
•
Productive workplace / business
–
No lost time due to injuries – from person injured or supervisor / manager or shop in general
• In-direct costs include investigation/reporting, property damage, replacement, productivity
–
Less need for other staff to work over-time to cover for absence due to injury (lower wage costs, less
burnout)
–
Greater staff continuity – more efficient and effective
–
Better customer service
–
Reduced premiums
• Fewer injuries >> lower premium (slow decline)
• Safety certification >> premium discount (instant savings)
•
Overall reduction in injury rates for industry
–
Improved image, ability to attract employees to industry
–
Reduction in premiums at industry level – opportunity to lower overall risk category
•
Overall improved industry profitability, sustainability
–
Ability to re-invest in equipment and technology
–
Ability for business owners to attract buyers
What if my company is already safe?
•
Early opportunity to take advantage of safety certification
– Subsidized access to industry specific training and expertise
– Full safety program development required for certification typically takes
two years
– Businesses with well-developed safety programs likely can achieve
certification within 1 year
• Validate internal program
• Identify additional opportunities for improvement
• Earn 10% discount on next year premium
• Benefit from entire industry improving
– Potential to drop rate category
How Association will be funded
• WCB will apply a levy to assessment premiums paid by employers
in the industry codes that participate in the industry safety
association.
• The exact levy is to be determined – current levies range from 6 –
10.5%.
– Agricultural Manufacturers of Canada – AMC Safety
7.74%
– Manitoba Heavy Construction (WorkSafely)
8.01%
– Construction Safety Association of Manitoba
3.52%
– SAFE Hospitality
6.76%
•
Example 1:
– Autobody/Paint average premium ($2.57/$100 payroll) = $6,425 per year
– Add Safety Levy (8% = $514)
= $6,939
•
Example 2:
– Garage / Service Station average premium ($1.15/$100 payroll) = $2,875 per year
– Add Safety Levy (8% = $230)
= $3,105
Example Savings – Autobody/Paint
Employer at average rate, safety certifies, reduces premium to minimum rate
Average premium
$2.57/$100 payroll
$6,425/yr (on $250,000 payroll)
Add safety levy
8%
$6,939/yr
Apply safety certification discount
10% (e.g.)
$6,297
SAVE $128 (2% Net savings)
Reduce to minimum rate
$1.80/$100 payroll
(+ Levy – Discount)
$4,410
SAVE $2,015/yr (31% Net Savings)
At Industry Level
Total Payroll
$64,982,698
2014 Total assessment premiums
$1,671,853
With Levy (8%; $133,748)
$1,805,601
Example Savings – Garage / Service Station
Employer at average rate, reduces premium to minimum rate (on $250,000 payroll)
Average premium
$1.15/$100 payroll
$2,875/yr
Add safety levy
8%
$3,105/yr
Apply safety certification discount
10% (e.g.)
$2,818/yr
SAVE $57 (2% Net savings)
Reduce to minimum rate
$0.63/$100 payroll
(+ Levy – Discount)
$1,544
SAVE $1,331/yr (46% Net Savings)
At Industry Level
Total Payroll
$397,076,664
2014 Total assessment premiums
$4,546,607
Add Safety Levy (8%; $363,729)
$4,910,335
Next Steps
• Confirmation of industry support
– Letters / signatures from firms representing 50%+ of rate code payroll
• Approval by WCB / SAFE Work to proceed to next stage
• Development of Safety Program (funding support from WCB)
– Establish NFP
– Recruit staff
– Develop programs, services, etc.
• Approval for levy funding
• Target Program Launch - 2016
Establishing a safety association to specifically serve our industry
needs your support
