Altec

The Cost of SafetyThe Cost of Safety

Robert D. Hunter

General Counsel

Altec, Inc.

Operator Set up of Unit Failure to Cover

Conductor Failure to Wear PPE

Mechanic Conductive Hose Winch Cover

Is only the Manufacturer Responsible?

OwnerImproper Training of Operator and MechanicImproper Supervision of Operator and Mechanic

Owner Improper Training of

Operator and Mechanic

Improper Supervision of Operator and Mechanic

The Manufacturer The Mechanic (i.e., The Owner) The Supervisor (i.e., The Owner)

So Who Paid the Plaintiff?

Accidents on Boom-Supported Lifts(Center to Protect Workers Rights, 2007)

Let’s Look at the Decade of the 1990s

Deregulation of Utilities led to more outsourcing to Contractors

Cable TV and Internet Booming, leading to stringing cable as fast as possible

Many new Contractors to meet these demands

Many of those new Contractors lacked resources to provide Training and Supervision

Looking at the ‘90s

“Many [Electrical Utilities] are getting by with fewer workers and are largely abandoning apprentice training . . . As a consequence, fewer linemen often perform more work.

“With experienced journeymen scarce, younger and less experienced hands have been pressed to take on more responsibility.”

Engineering News Record, February 23, 2004

Looking at the ‘90s

“Crews are working longer hours, while promotions to foreman sometimes are made prematurely. One result, some say, is more deadly accidents.”

Engineering News Record, February 23, 2004

Looking at the ‘90s

“Contractor personnel “are getting killed at twice the rate of those working for utilities,” says David Wallis, director of the U.S. Occupational Safety and Health Administration’s office of engineering safety. Contractor linemen forget to use personal protective equipment, such as insulated gloves, more often than utility linemen, he says.”

Engineering News Record, February 23, 2004

Accidents per 100 Workers

19901991

19921993

19941995

19961997

19981999

2000

Telephone

Electric Utility

Cable

Contractors0

2

4

6

8

10

12

14

Injuries per 100 Workers

Telephone Electric Utility Cable Contractors

NIOSH Study (1998)Worker Deaths by Electrocution

At least one of the following contributed to every electrocution studied:

Established work practices not implemented or followed

Adequate PPE not provided or worn Lockout/Tagout procedures not implemented or

followed Non-Compliance with Regulations Inadequate Training

Safety Depends On The

RIGHT People

Using the

RIGHT Equipment

In the

RIGHT way

Safety Depends On The

RIGHT People

Using the

RIGHT Equipment

In the

RIGHT way

But This Costs $$$$!!!

Lost Worker, either temporarily or permanently

Benefits to Injured worker Medical Disability Workers Comp

Equipment Down-time

Lack of Safety Costs Employers

Costs of Litigation, whether or not sued, in time, inconvenience, and money

OSHA Fines

Lack of Safety Costs Employers

$140,000 in penalties assessed “for allowing employees to come too close to energized parts without requiring them to wear ‘sleeves’ insulated to protect their upper arms and shoulders. The unprotected workers’ proximity to overhead power lines brought metal parts of the aerial lift in contact with live wiring which caused the accident.”

OSHA Press ReleaseFebruary 6, 2001

Costs of Litigation, whether or not sued, in time, inconvenience, and money

OSHA Fines Criminal Prosecution

Lack of Safety Costs Employers

Following aerial lift electrical accident, agreed to $105,000 fine

Two more accidents followed, resulting in $423,500 fine

And . . .

Case Study

Increased Cost of Equipment Losses Incurred by Manufacturers Increased Insurance Premiums to

Manufacturers

Lack of Safety Costs Employers

Risk (Units in the Field)

133 338 652 1065145122143124409154937251

906111050

1317215434

1777420582

2351526450

29749

33573

38010

43608

49831

56807

65490

71155

76537

81962

88235

95571

104962

113804

117205

0

20000

40000

60000

80000

100000

120000

140000

19

76

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

Derricks

Aerials

Placers

Total

Reportable Incidents

Liability Insurance Rate

20042005

20062007

20082009

2010

Loss of Available Components

Lack of Safety Costs Employers

Decreased Flexibility of Design Products once designed for the worker who

followed the rules now must be designed for the worker who does not follow the rules

Decreased Availability of Equipment

Lack of Safety Costs Customers

1977 Manufacturers of Aerial Devices and Digger Derricks

Aerial Lift of CT Altec Industries Amador Aerials Andres N. Bertotto Asplundh Bronto Skylift USA Calavar Corporation Firestone Tire General Cable Apparatus Glazer Enterprises Halline Holan Hunt-Pierce McCabe Powers

Mobile Aerial Towers Pitman ReachAll RO Products Skyrider Skyworker Stahl Strato Tower TECO Telelect TG Industries Time Manufacturing Utility Body Co. Waldon

1977 Manufacturers of Aerial Devices and Digger Derricks (2002)

Aerial Lift of CT Altec Industries Amador Aerials Andres N. Bertotto Asplundh Bronto Skylift USA Calavar Corporation Firestone Tire General Cable Apparatus Glazer Enterprises Halline Holan Hunt-Pierce McCabe Powers

Mobile Aerial Towers Pitman ReachAll RO Products Skyrider Skyworker Stahl Strato Tower TECO Telelect TG Industries Time Manufacturing Utility Body Co. Waldon

Charles Espenlaub

“A seat belt is like a parachute; if you need it and don’t have it, you will probably never need it again.”

The Greatest Cost of All

Helping Crews work

Safer and Smarter