# Presentation: 016412

## OSHA’s VOLUNTARY PROTECTION PROGRAMSA Path for Achieving Safety and Health Excellence

**Federal Agency**
**VPP Workshop**

**Cathy Oliver**
**Director**
**Office of Partnerships and Recognition**
**Occupational Safety and Health Administration**

## What is VPP?

- A process for achieving safety and health excellence
- Joint Cooperation:
-     Labor ~ Management ~ Government
- Official recognition of excellence

**Notes:**
  VPP Adopted by OSHA - July 2, 1982
1970: Occupational Safety and Health Act passed
1974: OSHA created and begins inspections
  VPP -- A process for achieving safety and health excellence
  Systems Approach
Simple Compliance Alone Can’t Do It
Rulemaking Very Long Process
Management Systems Most Effective
 Above & Beyond Compliance - OSHA standards required by law are de-minimus, or the very least a company must do.  However, OSHA observed that companies with successful safety and health management systems were going above and beyond basic compliance. 
 VPP Premise:  Labor-Management-Government Cooperation 
 Cooperative Partnership Effort, Voluntary, Government, Labor, & Management
 VPP is Official Recognition of Excellence in Worker Safety and Health 
There are several qualities that are consistent with all VPP Participants.  The number one quality is a desire for EXCELLENCE -- Regardless of what they do -- Excellence is key. Their organizations are committed to excellence. 
AND THIS EXCELLENCE IS EMBEDDED IN THEIR CULTURE:  Although OSHA offers incentives such as removal from the programmed inspection list, that is not the reason most people tell us they take on the VPP challenge.
Its in their culture of excellence.  They want to be and expect to be the best at what they do.
Getting recognition from an independent body of subject matter experts validates their business model, gives them something to be truly proud of, and recognizes all the hard work they do.

## VPP – Basic Tenets

- Effective Safety and Health Management Systems
- Performance-based Criteria
- Self-Sufficient
- Effects Culture Change
- Continuous Improvement

**Notes:**
With very few exceptions, OSHA is more interested in it effectiveness rather than how it is accomplished.

We don’t care what hazard analysis tool you use, we just care that you have a good system for finding and controlling hazards.

Simply put if you have a hazard we expect you to eliminate, mitigate or control regardless if a standard exists or not.

The VPP system is very comprehensive, but a key difference between a good S&H system and an excellent one is the degree of confidence you can demonstrate in that your systems work, your hazards identified and controlled.
 Sometimes this means some extra documentation, sometimes not.  The key is it would satisfy a critical reviewer?  It’s not good enough to think it is ok, you have to be certain its ok.

If VPP was easy, everyone would do it.  It takes a lot of work to achieve VPP Star. 

However, I can tell you it is a wonderful thing to be given the chance to tell a worksite after a week long evaluation that they will be recommended for VPP Star. 

And your not just happy because you have seen all of their hard work rewarded, but because you know, few people will be injured or killed because they met the high standards of the VPP.

## NOT THE FLAVOR OF THE MONTH

**Notes:**
25 year history
High Retention Rate
Complements High Performance Initiative
	- ISO
	- Corporate Citizenship
	- Sustainability

## VPP Benefits

- Employees
- Safe and Healthful Work Environment
- Improved Morale
- Employers
- Lower Costs (Insurance & Workers’ Comp)
- Higher Profitability
- OSHA
- Role Models
- Safety and Health “Ambassadors”

**Notes:**
VPP reviewers don’t look for a single correct way to meet VPP requirements. They want to see a system that works for them.  Some successful safety and health management systems involve substantial written documentation, and others do not.  Small businesses, in particular, often are able to implement excellent safety and health processes with relatively little documentation.

## Safety and Health Management System(SHMS)

## Management commitment and employee involvement 
Worksite analysis 
Hazard prevention & control 
Training

- Worksite analysis
- Hazard prevention & control
- Training

- VPP Elements

**Notes:**
VPP is about effective system to protect workers.  There are 4 elements in VPP:  

Management Commitment:  Responsibility, Accountability, Communication, Planning, Resources
Employee Involvement:  Meaningful” Involvement, Employee Rights, Assurance of Collective Bargaining Agents, Access to Records
Worksite Analysis:  Self Inspections, Comprehensive Surveys, Routine Hazard Analysis, Accident Investigations, Trend Analysis, Annual Evaluation
Hazard Prevention and Control:  Written Program, Engineering, Administrative, PPE, Emergency Preparedness, Professional Expertise, Medical Programs
Training:  Hazard Recognition, Rights & Responsibilities, Including VPP, S & H Programs

## Management Commitment

- Commitment
- Planning
- Written Program
- Authority and Resources
- Line Accountability
- Contract Worker Coverage

## Employee Involvement

- “Meaningful” Involvement
- Employee Rights
- Union Assurances
- Access to Records

## Worksite Analysis

- Self-Inspection
- Comprehensive Surveys
- Hazard Analysis
- Accident Investigations
- Trend Analysis
- Annual Evaluation

## Hazard Prevention & Control

- Written Program
- Engineering, Administrative, PPE Controls
- Emergency Preparedness
- Professional Expertise
- Occupational Health Care Programs

## Safety and Health Training

- Hazard Recognition
- Rights and Responsibilities
- Safety and Health Management Systems

## VPP Process

## VPP Process

- Application to Regional VPP Manager
- No Fees Associated with Program
- Program Criteria
- Injury  & Illness Rates Below BLS Avg.
- S&H Programs In Place 1 Year
- Union buy-in
- Annual and Self Evaluation
- Onsite Evaluation
- Re-approval Process

## VPP Onsite Evaluation

- Not Compliance Oriented
- Comprehensive SHMS Review
- Documentation Reviews
- OSHA-300 Records Check
- Employee Interviews
- Recommendation for Participation

## VPP Recognition

- Star
- Highest level of recognition
- All VPP requirements met
- System operating at least one year
- Rates are below the National Average
- Merit
- Demonstration

**Notes:**
Merit
Elements and Sub-elements in place
Systems May Not All Be at Star quality
Rates May Be Above the National Average
Limited to one 3-year term

Star Demonstration
Must meet Star Requirements
Alternative Safety and Health Methods

Current Demos
Short-term Construction
Mobile Workforce
Resident Contractors at Non-VPP sites

## How Much Does VPP Cost?

- Depends Upon Starting Point
- No standard method of costing S&H
- No Set Cost
- Varies by Complexity
- Necessary Documentation for Confidence
-  Several VPP Sites have anecdotally reported that after start-up up costs, it is  small (less than 1% of gross operating expenses typically)
- USA/NASA $1 = $6 pay back

## Growth of VPPFederal Only

*As of 1/31/07*

- Source: OSHA, Office of Partnership & Recognition

## Over 270 different industries participate

Size Independent
Smallest Site: 3 Employees
Largest Site: 18,000 Employees + 1,059 Contract Employees
52% have < 200 Employees 

28% Union

- Size Independent
- Smallest Site: 3 Employees
- Largest Site: 18,000 Employees + 1,059 Contract Employees
- 52% have < 200 Employees
- 28% Union

- VPP Participants

**Notes:**
Over 270 distinct industrial classifications are represented and the number is growing.
Top 15 Industries:  Chemical, Lumber, Paper, Electric, Transp. Equipment, Food, Electronic, Engineering, Textile, Rubber, Industrial Machine, Petroleum, General Building Contractors, Fabricated Metal, Trucking and Warehousing

Size Independent:

-  Smallest Site 3 Employees  (Allegheny Energy Services)
-  Largest Site  18,000 Employees + 1, 059 Contract Employees (19,059 Total Northrop Grumman Newport News Shipyard)  
-  52% Have < 200 Employees (Federal)
54% Fed & State
Unionized VPP sites - 24% (Fed)
Biggest in Physical Size = Yellowstone Park is 3,472 square miles

## Who’s Who in VPP

**General Electric**
**Dell**
**International Paper**
**Conoco Philips**
**Frito-Lay**
**Exxon-Mobil**
**Motorola**
**Georgia Pacific**
**Nabisco**
**Solutia**

**Pfizer**
**Tyco**
**3M**
**Lockheed Martin**
**IBM Corporation**
**Dow Chemical**
**Schering-Plough**
**Texaco**
**United Space Alliance**

**Notes:**
Here are some examples of VPP participants.

Many of these companies have been in the programs for numerous years.  For example:

Exxon-Mobil – 22 years
Dow Chemical – 20 years
GE Plastics (Selkirk, NY) – 19 years

47 Fortune 500 are in VPP.

## Federal Agencies in VPP

- 118 Total VPP sites across 7 Agencies
- NASA (7 sites)
- DOL  (4 sites)
- DOD (7 sites; Army 1, Navy 4, NSA 2)
- HHS (1 site)
- Interior (3 sites)
- Treasury (1 site)
- USPS (95 sites)

**Notes:**
NS is National Security Agency

## VPP: Special Government Employees 

- Assists OSHA’s onsite evaluation teams with industry employees; also Federal employees
- Invites qualified volunteers from VPP sites to participate if approved by  OSHA and funded by companies/agencies
- Gives industry and government opportunity to work together to share views and best practices
- Currently, there are more than 700 active SGEs
- In FY06, used 353 SGEs
- There are 67 “SGEs” from Federal Agencies

**Notes:**
As part of a VPP onsite evaluation team, an SGE contributes to the typically week-long assessment of a VPP applicant’s or participant’s safety and health management system. The team duties include but are not limited to reviewing the written safety and health management system and supporting documents; conducting a site walkthrough to observe working conditions and to verify that: (1) hazards have been appropriately controlled, and (2) a comprehensive safety and health management system has been successfully implemented; and conducting formal and informal employee interviews. 

Qualified volunteers from VPP sites are eligible to participate. These volunteers must be approved by OSHA and funded by their companies to participate. After submitting an application and completing the required training, these volunteers are sworn in as SGEs and are approved to assist as VPP onsite evaluation team members. All SGEs are initially appointed to a three-year term of service. SGEs serve at the pleasure of the Assistant Secretary for Occupational Safety and Health. Service as an SGE is contingent upon proper ethical conduct.
As VPP grows, the support of SGEs will continue to be a critical component of the programs. The SGE Program encompasses the spirit of VPP - industry, labor, and government cooperation. This cooperation embodies the idea of continuous improvement, which allows SGEs to bring a unique perspective to the team effort and take back to their sites ideas and best practices to further improve worker protections.

## New Initiatives

- VPP Corporate
- Mobile Workforce
- OSHA Challenge

**Notes:**
OSHA Challenge is a roadmap to VPP.  

## Puget Sound Naval ShipyardA VPP Success Story

**Notes:**
In 1997 Puget Sound Naval Shipyard had the highest I/I rates in the Navy.

In 1998 Puget Sound Naval Shipyard began working towards VPP status.

Approved as Star site on January 9, 2006

Statistics:
Approximately 12,000 employees
1998 TCIR for Shipyard was 18.41
2006 TCIR is 9.92, 42% below industry average for ship repair facilities.
DART is 4.92, 47% below industry average.
Based on reduction in injury rates since 2002, approximately 2200 fewer injuries have occurred over the past 3 years.

Current data for three Naval Shipyards demonstrates significant savings to the government after only one year of VPP participation.  The Navy has realized a savings of $2,005,502 in workers’ compensation costs in these three shipyards.  Workers’ compensation costs are decreasing at an even greater rate in the current year.  The Department of Defense expects to save tens of millions of dollars with this program initiative over the next several years.

## VPP STARS Portsmouth Naval Shipyard 

- Oldest continuously operating shipyard in the US (June 1800)
- Approximately 4,300 workers
- TCIR/DART are 32% and 48% below the industry averages, respectively

**Notes:**
The Portsmouth Naval Shipyard employs approximately 4300 workers in the highly complex, industrial business of overhauling, repairing, modernizing and refueling LOS ANGELES Class nuclear powered submarines. 
One of three shipyards actively participating in VPP
Oldest continuously operating shipyard in the US (June 1800)
Star ceremony held in March 2005
TCIR/DART are 32% and 48% below the industry averages, respectively

Other Shipyards include:

Region 3 – Norfolk Naval Shipyard, Portsmouth, VA
  TCIR is 57 percent below the 2001 BLS industry average for SIC 3731 Shipbuilding and Repair
 DART case incidence rate is 37 percent below the 2001 BLS industry average  
Newport News Ship Yard (Re-approval)   - Northrop Grumman (largest VPP size wise)
o	TCIR is 7.9 (54 percent below the 2001 BLS industry averages for SIC 3731). 
o	 DART case incidence rate is 5.7 (38 percent below the 2001 BLS industry averages). 
Region 10 – Puget Sound Naval Shipyard, Bremerton, WA
o	TCIR is 9.92 (42.3 % below the 2003 BLS industry averages for SIC 3731).
o	 DART case incidence rate is 4.92 (42.8 below the 2001 BLS industry average). 

Expecting applications from 6 Naval Stations in Region IV.

## The US Mint at Philadelphia

***The US Mint at Philadelphia***
***A VPP Success Story***

**Prior to VPP:**
- One of the highest employee injury rates in the federal government
- In 2002, The Mint was cited for 81 OSHA Violations with 139 specific examples of unsafe conditions.
- Had the Mint been a private company, it would have faced $250,000 in fines for violations.
- The Director of the Mint orders a six week work stoppage to review and address safety issues.

**Notes:**
Currently the Mint’s three year Total Case Incidence Rates are 70 percent below the national average for this industry. This decrease in injury and illness statistics since 2000 is impressive:
• In 2000 there were 219 first aid cases. In 2004, there were 35. This is a decrease of 84 percent in the last 4 years.
• In 2000 there were a total of 121 OSHA recordable (TCIR) injuries in 2000. In 2004, the total was 17. This is a decrease of 88 percent.
• The severity rate or lost time injuries and illnesses (DART-Days Away, Restricted or Transferred rate) went from 86 down to 5 in 2004. This is a 94 percent reduction. 
• Over all the total injuries and illnesses at the Mint in 2000 were 340. In 2004, it was 50. An outstanding 85 percent decrease. 

## The US Mint at Philadelphia

***The US Mint at Philadelphia***
***A VPP Success Story***

**VPP: Making an Impact......**

## VPP - Workers’ Compensation

** ****Medical Costs**

**Total Savings FY 03 - 06  **
**(-) $410K or (-) 37%**

**Notes:**
At these 100 VPP sites, the Total Case Incident Rate is 68% below the industry average and they have reduced Workers’ Compensation Costs by $410,000 (or 37%).

## VPP Works...

**2005 Data**
-  TCIR Rate 50% below Industry avg.
-  DART Rate 53% below Industry avg.
-  **Fed Agency TCIR ****53% below**** Industry avg.**
** ****Fed Agency DART ****44% below**** Industry avg.**
-  Estimated 11,901 TCIR injuries avoided
-  Estimated 6,061 DART injuries avoided
-  Reduced Worker’s Compensation Costs
-  Labor, Management , and Government                                	working together
-  Increased Productivity
-  WORKERS GO HOME SAFE

**Notes:**
Overall Federal Agencies in VPP:

CY 2005 Data:

TCIR % Below Industry Avg-53% 
Dart % Below Industry Avg-44%

## What People Are Saying...

- “It has been a joint effort involving our unions, management, employees and OSHA in identifying potential hazards and health risks and developing programs that are transforming workplace safety and health into a model for other agencies and companies.”
- - **John E. Potter, **
**	****Postmaster General, U.S. Postal Service**

## VPP Help

- http://www.osha.gov
- Federal Register Notices
- Local OSHA Area Office
- VPPPA

## Contact

- Cathy Oliver
-  	 (202) 693-2213
- oliver.cathy@dol.gov