Answer to Question #203687 in Electrical Engineering for Benny

Question

During loading operations an untrained employee has driven the company forklift truck over the end of the loading bay. The untrained employee did not ask permission to drive the forklift; no manager was available at the time; the keys were in the forklift and he thought he was competent enough to complete the loading of the truck himself. He thinks the forklift may have skidded on something on the loading bay floor.

The employee has suffered a broken leg, the forklift is a write-off, and the HSE Inspector who was on site within an hour of the accident, said they are likely to prosecute the company under HASAW 1974, section 2, breach of duty to employees and lack of training.

From the information given calculate the approximate cost of the accident to the employer. Consider all aspects of the accident: include items such as fines, court costs, equipment replacement costs, loss of production and possible compensation claims.

Answer 1

The problem is that if one of these employees is hurt, the expenditures might be substantial. Training a replacement may take up to three weeks, plus there's equipment downtime, scheduling disruptions, and other expenditures that aren't immediately apparent.

Costs incurred directly

Facility managers throughout the world are worried about the safety of their staff and consumers. The direct expenses of accidents and illnesses are very obvious: those covered by workers' compensation and/or disability insurance. But did you know that the indirect expenses of an injury — those that aren't directly connected to the ailment but come as a consequence of it — may be considerably higher? Indirect costs might be difficult to calculate since there is no such thing as a "typical" accident. According to the American Society of Safety Engineers (ASSE), the indirect to direct cost ratio may range from 1:1 to 20:1.

Indirect Expenses

These indirect expenses include, of course, the wounded employee's missed time. According to the Bureau of Labor Statistics, each nonfatal occupational accident or illness resulted in 13 days absent from work for construction employees in 2015. Other workers who had to take time off to treat the wounded individual have also lost time.

The indirect expenses continue to rise: supervisors and forepersons must examine the accident's cause. It may be necessary to repair damaged equipment, tools, and other items or clean up a spill. You may need to train a new employee to replace the wounded one or arrange for someone else to complete the task. There may also be legal expenses and time spent by management dealing with authorities and lawyers.

Risk Reduction

Employers often use administrative controls, engineering controls, and, lastly, personal protective equipment (PPE) to limit the risk of harm. However, in other circumstances, significantly lowering accident rates may need a culture shift inside the firm.

The business witnessed a 20% drop in hand lacerations in only two months. “Obviously, the major advantage was the decrease in injuries,” Laura explains. “However, workers have a different mindset. They can see that we are working to improve and secure their environment. It's the cultural shift we've been hoping for.”

Given the significant — and sometimes hidden — costs of accidents, companies are increasingly turning to personal protective equipment (PPE) and other safety items to prevent or mitigate injuries. Various studies have indicated that $1.00 spent in injury prevention returns between $2.00 and $6.00, according to the National Safety Council's Injury Facts 2014 Edition.

Keeping Your Employees Safe

You may provide PPE and other safety supplies to your staff. Back supports, body belts, hydraulic hand trucks, and anti-skid tape can help reduce sprains and strains, which account for the majority of injuries in five key industry sectors — construction, manufacturing, retail, educational and health services, and leisure and hospitality (according to the Liberty Mutual Workplace Safety Index). Protective gloves, safety glasses, protective gear, and protective face shields may help prevent cuts, lacerations, and punctures, which are common injuries in those industries. Additionally, traffic safety devices such as barrier lights, safety and security mirrors, and clear and well-placed signs may help avoid various injuries.

It's the correct thing to do for your staff to be safe. It's also good business sense for your company's bottom line.