Case Study #3: Welding Supplies Distributor
The client is a large wood and metal working operation involved in trailer construction industry.
Runaway workers' compensation costs which had grown to over $3 million. Workers' compensation increases were being caused by excessive employee workers' compensation claims genuine and possibly fraudulent. Work force comprised mainly of semi-skilled workers involved in shop work in seven plants at one major site.
Various unsuccessful attempts were made to introduce safety programs, which relied on traditional safety strategies. Program was basically activity driven and totally ineffective in controlling employee accidents. Profit margins were being seriously eroded by workers' compensation premiums. Exaggerated workers' compensation claims were a seriously increasing problem.
The solution consisted of the recommendation for an effective loss prevention and management program, which, analyzed problems and set goals/accountabilities. The system evaluated results and total management involvement.
Clear progress reports and situation analysis allowed for smooth management and safety committee acceptance.
Losses and injuries were reduced by over 50% in the first year based upon benchmarks from prior years actual performance. These losses translated directly into higher profits because of the loss sensitive risk-financing program.