Assurance Safety Corporation 117 W. Fulton St., Palo Alto, California 94301 Phone: (650) 887-9415 Fax: (650) 887-9416 Assurancecorp.com November 18, 2013 Ms. Maria Teresa Torres, Human Resources Salinger Imports, Inc. 6581 Pressburg St. New Orleans, Louisiana 70075 Dear Ms. Torres, Assurance Safety Corporation appreciates the opportunity to respond to the Salinger’s Request of Proposal. We would like to thank Mr. Holder, Warehouse Supervisor and your senior managers/supervisor, for their valuable information which aided us to prepare for the study of the problematic situations occurring. Working with Salinger’s has resulted in a complete acknowledging of what is required and expected from Assurance. Our proposal expresses a recommended Assurance Safety program designed to minimize all work related accidence. It will provide all of what your required capabilities, from the different equipment which will assist workers both to unload and load packages to surveillance system to document injury occurrence. Our qualified workers will be onsite to coordinate seminars for your supervisors to ensure proper workplace procedures and safety methods continued after our departure. Thank you for the opportunity to present this proposal. We will do everything in our ability to ensure the success of the new safety program to alleviate all injury related incidence. Sincerely, Pedro Flores Account Manager pflores@assurance.com Enclosure: Proposal University of Texas - El Paso Salinger Request of Proposal “Safety Program” Christian Martinez Carina Castillo Leon Armstrong Pedro Flores Workplace Writing Professor Singh 18 November 2013 2 Table of Contents Cover Letter Title Page .................................................................................. 2 Executive Summary ................................................................. 4 Introduction .............................................................................. 6 Issue .......................................................................................... 8 Relevant Information ............................................................. 11 Available Options ................................................................... 15 Recommendation and Justification ........................................ 19 Works Cited ........................................................................... 21 Budget Cost ............................................................................. 22 3 EXECUTIVE SUMMARY Assurance Safety Corporation is gladly going to provide your management with the proposal of several options that will reduce the number of injuries at Salinger Imports, which will eventually increase the productivity. The safety equipment and procedures proposed for Salinger Imports were prudently and wisely selected and designed by our proficient management team directed by Pedro Flores, our Account Manager. The construction and planning of our program will respond to your previous requirements regarding a safety program. Our established options were determined from statistics and by reviewing and investigating the equipment and procedures that Salinger Imports warehouse has been utilizing. Concerning this and several violations occurring at Salinger Imports, we created certain recommendations for the safety program. We spotted that no employee has been properly trained to use most of the equipment. Due to this, we are recommending in-job sessions or classes that will instruct the employees on how to perform all their responsibilities and obligations in a safely matter. Another valuable and influential part of the safety program is the “Safety Protocols and Policies” handbooks that will contain new policies, instructions, and accentuate on safety at the workplace. After our investigations we came aware that some claims are falsified. In order to reduce the number of fake injuries we will utilize industry level security cameras and a company private server that will store 4 all the data for top management to analyze and keep track of their employee’s activities during their work hours. The three stages of the program will effectively decrease the total number of injuries in the warehouse, as well as prevent new ones from occurring. We are conscious that accidents are still going to arise, however, the company sessions will help get the individual involved, and receive the proper attention. The closed-circuit surveillance system will provide information on how and what exactly caused the employee accident and certainly reduce the number of fake insurance claims. All information gathered obviously facilitated our creation of the safety program, but on the other hand, it is going to increase the productivity for Salinger Imports. The expected savings are realistic projections based on the investigations. INTRODUCTION The most common occurring injury at Salinger imports is back injuries. Since 2009-2010, 956 injuries have occurred. Costing Salinger Imports 3.5 million dollars. Not including the open claims, which is 8.2 million dollars. This has significantly lowered the productivity and progress of Salinger Imports. This report will explain the options you home available in order to help the company stop losing money on worker’s compensation, and reduce the number of injuries on the job. We will show in full detail a Safety Program that will prevent warehouse employee back injury. We also will provide a training program so you can show to your employee’s. We will also recommend what kind of warehouse equipment to use and buy, especially the ones that focus on heavy box lifting. In saying so we will also recommend a tracking mechanism that would show the time spent on each equipment. We will also put you into contact with international suppliers that may also help in warehouse operations. Finally we will provide a budget for all of the changes, recommendations, and operations that would partake in reducing the employee injuries. We will also answer the following questions in the report. How much will the company save in doing all these changes and implementing 6 all the recommendations? How soon can all the programs and changes take place? When will the company see the success of all the changes if made? And how can the company prevent further injuries from happing again? All of these questions will have a answer though out the presentations. 7 ISSUE This issue of employees suffering injuries in their workplaces, mostly, back injuries, and being allowed benefits like paid medical expenses and lost wages can be an extremely important concept for any company. It is important to protect and take care of the company employees, as well as it is to take care of the inventory and the company assets. Unfortunately, we are all aware that these types of injuries are common in the material handling industry, regardless of some of the safety procedures followed by the employees in the warehouse. These injuries can lead to lost productivity, higher insurance bills, and sometimes government fines. An accident in the workplace, such as in a warehouse as is the case, may lead to lost productivity. The injured employee can be laid off of work for a significant amount of time, meaning the company would have one employee less, reducing its productivity. As it is the case of Salinger Imports, preliminary reports from the Human Resource Department indicated 956 injuries in the year 2009-2010 with a total cost of $3.5 million, and there is a cost of $8.2 million for open claims. In a case of any accident, 8 the company would also have to pay higher insurance bills, medical expenses, and government fines. Due to the large importing of food and household products, Salinger Imports' warehouse employees have to pack wet and dry food products imported from Mexico, and Mediterranean countries. These products must be packed by the employees into mailing boxes, lifted, and placed in carts, which can cause back injuries because of the box weight. Lifting loads heavier than about 50 pounds will increase the risk of the injury. Back injuries can also develop gradually as a result of micro trauma brought about by repetitive activity over time or can be the product of a single traumatic event. In some cases, the injury may seem to have been caused by one accident, when in reality it could have also been caused by years of muscular weakening. Because of the slow and progressive commencing of the injury, sometimes the symptoms are ignored until they become more severe and serious, often resulting in disabling injury. Injuries can arise in muscle, ligament, vertebrae, and discs, either singly or in combination (OSHA 2013). According to the Department of Labor and Industries, there are seven types of injuries that make up for 95% of the injury claims for employee workplace accidents. These are; caught in/under/between, falls of elevation, fall at the same level, being struck, motor vehicle accidents, lower body pain, and upper body pain. Although these accidents are not always severe, warehouse accidents are numerous. The industry experiences about 15,000 injuries and illnesses each year, according to the U.S. Bureau of Labor Statistics. Although we are aware that warehouse injuries will not stop occurring regardless of the changes in equipment, transportation, training and safety programs, etc., we believe these current and past numbers of injuries can be significantly reduced with certain recommendations. Salinger Imports should undergo certain changes and upgrades to 9 prevent and reduce common warehouse injuries. Careful planning and a dedication to safety are top priorities for keeping warehouse workers injury-free. 10 RELEVANT INFORMATION In order to help Salinger Imports reduce the number of injury’s occurring on the job, we have reviewed and investigate what equipment Salinger Imports warehouse have been using. In our discovery we have seen that not a single employee has been properly trained with the equipment they are using. We have also discovered that some employees do not have the qualifications to work on the position they have been hired in. For an example we found that the average boxes of dry and wet food imported from Mexico and the Mediterranean counties weigh about 35 pounds. These boxes of food are moved by carrying them across the warehouse to be sorted. We found that 80 percent of the workers cannot lift or carry 35 pounds. In which resulting in straining their backs when trying to carry them across. We have also seen many workers carry the boxes with two people at a time to the sorting area. This is a major problem on many levels. First is that these boxes are made to be carried by one person. If not then the box of food has a chance to be damaged. Second two people carrying boxes across the warehouse is very dangerous for both workers because they cannot see or react quickly enough if they ran into equipment or machinery that’s all around them. The Third reason is that we have reviewed the workers contract and it is required of them to lift and carry 35 pounds and if not then they are ineligible for the job. 11 Due to all these violations we started to check the employees licenses to operate machinery and, we have discovered that all the licenses have been expired. This is a big violation with OSHA. As we checked the license we have also discovered that all the equipment being used is either out of date equipment or needs repairs. In saying so we have researched and picked out the best replacement equipment for the jobs. As we researched how back injuries occur we have hired a professional weight lifter to help us analyze what workers are doing wrong. What we found that the workers that lift boxes out of sorting area to the trucks are lifting improperly. The weight of those boxes being lifted is 100 to 200 pounds. Our professional weight lifter Mr.Kennway has explained to us the proper way of lifting heavy boxes. Mr.Kennway has also told us that anything being lifted or carried that is over 100 pounds requires one to wear a weight lift belt. In saying so we have seen zero employees wear or have on a weight lift belt. Mr.Kennway has also explained to us that over time a person will develop back injuries if they do not follow procedure. As we can see this has been going on. Mr.Kennway has advised the purchase of weight lift belts, and the production of a training video on how to lift boxes properly as well as how to put on the weight lift belt. In saying so we have developed a safety program to prevent back injuries, due to the fact that is the most occurring injury with Salinger Imports. More detailed 12 information about the safety program will be further in the report, and this will be our core option to lower down back injuries. Rest assured we have researched this topic greatly and made sure it is OSHA approved. Furthermore in our investigation we have noticed an alarming number of fake injuries on the job. In which these workers have calmed workers compensation. We found that out of 956 injuries’ reported in 2009 to 2010; we found that at least 176 injuries were faked. We were only able to find this information out due to the video surveillance cameras your company has. We also hired a professional team of video surveillance to review the footage. The professional team called Cat’s Eye told us they could have found out more faked injury’s but due to the lack of surveillance cameras we were only able to find the amount we said. We also found that many workers did lie to workers compensation but due to your Company not having the workers license up to date and the out of date equipment those cases have been closed due to the fact it will be Salinger Imports fault, and your company would lose more if pursued the cases of the fraud. In saying so the Team Cat’s Eye have informed us what security cameras to buy, how many to buy, and where to install them. They have also offered their free service to teach your security team how to catch and review the tapes carefully. They have also given us their wholes sale Company in which we will be able to get a 20% discount off the Surveillance cameras. We also know that the use of surveillance cameras will lower down moral, and intrude on privacy issues. But we plan to counteract this by putting down on their contracts that surveillance 13 cameras will watch them. We will also assure that the use of cameras is to protect the employees and the company. Next we will discus the available options. 14 AVAILABLE OPTIONS. Injuries at the workplace create a lot of financial problems with the company as well as physical, emotional, and financial hardships to the individual involved. In order to reduce injuries in the workplace, a program must be created in order to deal when things go wrong and dictate a set of protocols for the employees to follow. Insuring the individual involved receives the right attention. Such program must be based on a set of key elements in order for the program to work properly. Elements such as “…management leadership, worker participation, hazard identification, hazard prevention and control, education and training, and program evaluation and improvement.” (OSHA, 2012) These set key elements will ensure a reduction of injuries and prevent future ones from happening. The program we can create for your use will incorporate 3 major parts. STAGE ONE: The first part on the program is to drafting a new company “Safety Protocols and Policies” handbook that will incorporate new policies and emphasize on safety at the work place. Some key aspects of the new handbook will include a set of instructions on how to deal with lifting heavy items like incoming shipment boxes and disposing of chemicals in a proper manner. The handbook will be issued to all the employees and staff members and the reading of the handbook will be required to everyone. In order to create this handbook, we will have to meet with the assigned safety coordinator and you to discuss the content. Some key aspects that will be incorporated in the new handbook are as follow: 15 Letting the employees know that safety is a serious important concern in the workplace. Scheduled emergency test dates to ensure alarms are working properly. Clear safety policies and parameters for workers to follow. Periodical inspection of the employee’s workstations for potential hazards. STAGE 2: The following step after creating a new handbook will be to have an in-job sessions or classes that instruct the employees on how to performed their duties in a safely manner. This session will have to be taken at least twice a year for employees and will have to be a requirement for new employees. The content of this session will be on identifying safety hazards, potential locations where someone could get hurt, like a gate where the inventory arrives and others. We understand that time is money, and for that we will make most of the time allocated for the session to cover the necessary information and return the workers back to their positions. Some key points on the session we will create for you will be: Proper use of forklifts and heavy lifting tools. Identification of common hazards at your company. Housekeeping to ensure dry surfaces, avoiding workers from slipping. Feedback from employees for any safety concerns. From the first session, we will gather information from previous injuries and any concerns your workers have and incorporate them into the next sessions that will 16 continue. We will meet with you if you have any concerns regarding the content and any feedback from your workers will be given to you and your safety coordinator to ensure everyone in top management is up to date. The session, together with the new company handbook will portray the point that: “Safety is an important factor in the workplace and encourage employees to get involved in performing their duties in a safely manner and reach out to the safety coordinator whenever there is a concern.” Using these two elements on the program will reduce the number of injuries and will help keep a record whenever they do happen, which leads us to our final part of the program, documenting incidents. STAGE 3: We understand that there might be some claims that are falsified and others that are true, in order to reduce both number we will implement a closet-circuit camera system that will record continuously from opening and closing hours. We will utilize industry level security cameras and a company private server that will store all the data for top management to analyze and keep track of workflow. We will investigate which will be the locations that will yield us a better view and use employee feedback for the locations of every security camera implemented. Some locations can be: Inventory loading docks. Pallet storage racks. Usual forklift and pallet jack aisle ways. Chemical storage rooms 17 These 3 phases on the program will decrease the total number of injuries and prevent new ones from happening. If they do occur, the company session will help get the individual involved receive the proper attention in a quick manner. The closed- circuit surveillance system will provide info on how and what caused such injury and reduce the number of fake insurance claims, employee theft and any other issues that might occur at the workplace, recorded in a secure company server for future analysis. 18 RECOMMENDATIONS AND JUSTIFICATION As we have said we have researched and consulted professionals about the type of equipment you need. We will start out with the Warehouse equipment needed. Starting with the works themselves and then mechanical devices, and last but not least the machines themselves. We will be issuing any one who has to step into the warehouse to wear and have a construction helmet on them. We recommend ABS worker helmet. The reason is that we have seen at least 30 injuries are due to material falling on employees heads, and workers hitting there head on the machines by accident. This will greatly reduce head injuries and the helmet is durable, and comes at a great price of 1.93 each for 600 helmets. This is the best deal we have found, and consulted professional Construction worker Mr. Atlas and he recommends this one to us. We have consulted with Mr.Kennway our professional weightlifter on which weight lifting belts to buy. He suggested the Harbinger 4 Pro Nylon Lifting Belt. He suggested this because it is an entry level weight lifting belt that is durable and affordable for 13.50 each belt. We recommend 100 of them. Also once again the reason for the weight lifting belt is for the prevention of long time back injuries. This will also significantly reduced back injuries by 95 percent. We then have consulted with Cat’s Eye Team. A professional surveillance team that has recommend what security cameras to buy, and gave us a great deal on them. Cat’s Eye has recommend the 700 TVL Professional security DVR System with monitor. They are 4 for 699.99, and they recommend 24 of them. They used to be 1599.99 but with the discount they are 699.99. We recommend the security cameras because of the 19 fake injuries reported. These professional security cameras will greatly prevent any worker or employee to take advantage of you company again. We have also consulted with a represented of Toyota forklift. A team of them have agreed to help us what to buy and they recommend the 8 Series Large Capacity for carrying the larger boxes, and the 7 Series Electric to care small to medium boxes. As well as an Electric Pallet Truck. We recommend being 6 of the 8 Series, 10 of the 7 Series and 20 of the Electric Pallet Truck. They offered a deal for all the equipment for 500,000$. A great deal considerer to replace all of the old and unfix able equipment. We recommend their new equipment so your company can be up to date with safe equipment and all OSHA approved. 20 WORKS CITED (n.d.). Retrieved November 2013, from Alibaba: http://www.alibaba.com/showroom/worker-helmet.html (2013). Retrieved November 2013, from Toyota Industrial Equipment: http://www.toyotaforklift.com/ Occupational Safety & Health Administration. (n.d.). Retrieved November 2013, from United States Department of Labor: https://www.osha.gov/dsg/topics/safetyhealth/ Store. (n.d.). Retrieved November 2013, from Body Building: http://www.bodybuilding.com/store/belts.html Store. (2013). Retrieved November 2013, from Lorex: http://www.lorextechnology.com/Security-system-with-monitor/Professionalsecurity-dvr-system-with-outdoor-dome-cameras/1746.p 21 BUDGET COST Equipment cost: 118,508 Program cost: 300,000 Consulted cost: 500,000 Total cost: 918,508 After the first year of installation of the program Salinger Imports will see a 40% decease in in back injuries. 22