The Challenge

Our client, a leading fabricator and manufacturer of customized steel products, was experiencing the most significant level of worker’s compensation losses in its 100-year history. As a direct consequence, the company was facing charges for overtime incurred to cover absent employees; productivity declines as the workforce was stretched to keep the operation running; and a steep increase in insurance costs.

Additionally, the union was asserting that the high level of worker’s compensation claims was indicative of the management’s indifference to workplace safety, causing employee relations to become difficult and morale to worsen.

The Process

Extensis and the manufacturer immediately conducted a Workplace Safety Audit and Hazard Analysis, identifying areas of potential risk, questionable processes and unsafe work habits and practices. After analyzing this data, Extensis:

• Created a detailed Safety Manual, customized for the manufacturer and distributed to every employee
  
• Implemented pre-employment physical and medical exams for all applicants
  
• Established comprehensive work rules to codify safe work practices
  
• Developed a New Hire Orientation Program, which featured a worker’s compensation communication and conducted sessions for all incoming employees
  
• Updated the Employee Handbook to reflect the revised work rules and distributed to every current and future employee
  
• Designed Safety Awareness Training for all supervisors and managers and conducted sessions throughout the Company
  
• Assisted the manufacturer with OSHA compliance
  
• Created an alternative employment (“light duty”) program
  
• Facilitated discussions between management and the union to establish joint guidelines for worker safety

The Result

Within six months, the number of new worker’s compensation claims had fallen by 30%, ultimately lowering the manufacturer’s experience modification rate. Overtime returned to normal levels and worker productivity rebounded. Overall employee morale improved, as well as relations between the union and management.

The systemic program to reduce risk exposure, implemented by Extensis, continued to drive down expense. The company significantly reduced workplace injury frequency, realizing a 3 to 1 return on investment.