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The Past is an Indication of Our Future

Thank you for reviewing company and industry highlights. If you would like additional information on the topics discussed, please feel free to contact us.

Company and Industry Highlights

October 2002

Area of Interest: Protecting Building Environments from Airborne Chemical, Biologic, or Radiologic Attacks

In November 2001, following the discovery that letters containing Bacillus anthracis had been mailed to targeted locations in the United States, the Secretary of the U.S. Department of Health and Human Services requested site assessments of an array of public- and private-sector buildings by a team of engineers and scientists from CDC's National Institute for Occupational Safety and Health (NIOSH). In November 2001, this team assessed six buildings, including a large hospital and medical research facility, a museum, a transportation building, two large office buildings, and an office/laboratory building. In January 2002, additional building assessments were conducted at CDC campuses in Atlanta and, in April 2002, at a large, urban transportation facility. A total of 59 buildings were evaluated during this 5-month period.

The primary goal of these assessments was to determine the vulnerability of building air environments, including heating, ventilation, and air-conditioning (HVAC) systems, to a terrorist attack with chemical, biologic, and radiologic (CBR) agents and to develop cost-effective prevention and control strategies. At each facility, CDC investigators performed onsite evaluations to assess the building's vulnerability to CBR attack from internal and external sources. The investigators also reviewed security and safety plans at each facility. Facility owners received confidential reports identifying observed vulnerabilities and possible remedial options. Collectively, the field observations and prevention recommendations from the building assessments were combined with input from government and industry experts to identify general guidance that encourages building owners, facility managers, and engineers to review design, operational, and security procedures at their own facilities.

The recommendations include measures that can transform buildings into less attractive targets by increasing the difficulty of introducing a CBR agent, increasing the ability to detect terrorists before they carry out an intended release, and incorporating plans and procedures to mitigate the effects of a CBR release. These recommendations are presented in the recently completed NIOSH guidelines (1), which address physical security, airflow and filtration, maintenance, program administration, and staff training. The guidelines recommend that building owners and managers first understand their buildings' systems by conducting walk-through inspections of the HVAC, fire protection, life-safety, and other systems. Security measures should be adopted for air intakes and return-air grills, and access to building operation systems and building design information should be restricted. The guidelines also recommend that the emergency capabilities of the systems' operational controls should be assessed, filter efficiency should be evaluated closely, buildings' emergency plans should be updated, and preventive maintenance procedures should be adopted. The guidelines also caution against detrimental actions, such as permanently sealing outdoor air intakes.

The recommendations are intended for building owners, managers, and maintenance personnel responsible for public, private, and government buildings, including hospitals, laboratories, offices, retail facilities, schools, transportation facilities, and public venues. The recommendations do not address single-family or low-occupancy residences or higher-risk facilities such as industrial or military facilities, subway systems, or law-enforcement facilities.

Source: National Institute for Occupational Safety and Health

Area of Interest: OSHA Extends Comment Period for Ergonomics Guidelines

WASHINGTON — The Occupational Safety and Health Administration announced today it is extending until Oct. 30, 2002, the period for public comments on its draft ergonomics guidelines for nursing homes.

OSHA is granting a 30-day extension in response to industry and labor requests for additional time to submit written comments on the agency's first set of industry-specific ergonomic guidelines -- Guidelines for Nursing Homes, that were announced on Aug. 30 in the Federal Register. The original deadline for comments was Sept. 30.

The guidelines are intended to provide practical solutions for reducing ergonomic-related injuries and illnesses in nursing homes. They will not be used for enforcement purposes. Draft guidelines are being developed for other industries and will also be available for comment.

Interested parties must submit written comments by Oct. 30. Written comments (10 pages or fewer) can be faxed to OSHA's Docket Office at (202) 693-1648 or sent electronically to http://ecomments.osha.gov. Three copies of written comments and attachments must be submitted to the OSHA Docket Office, Docket No. GE2002-1, Room N-2625, U.S. Department of Labor, 200 Constitution Ave. NW, Washington, DC, 20210. Individuals who wish to comment but who do not have Internet access can request a printed copy of the guidelines by calling OSHA toll-free at 1-800-321-OSHA.

OSHA will hold a one-day stakeholder meeting in the Washington, DC, area on Nov. 18, 2002. The meeting location will be announced following the comment period.

Source: Occupational Safety and Health Administration

State: Washington

Area of Interest: Declining financial markets and rising claim costs force 40.5 percent boost in workers’ comp rates in 2003

TUMWATER — The Department of Labor and Industries today proposed increasing industrial insurance premiums by 40.5 percent in 2003. It is the agency’s first general rate increase in eight years.

If adopted, the proposal will bring in an additional $371 million next year. L&I Director Gary Moore said the money is needed to bring rates more in line with the benefits, and to keep the contingency reserve at an acceptable level.

The increased premiums will offset rising medical costs, a recent upsurge in claims frequency and court-ordered increases in worker benefits. In addition to those costs, L&I’s earnings on investment this past year has fallen $380 million below what had been expected.

The proposed rate increase reverses a recent trend. In past years, earnings have done so well that L&I intentionally reduced rates and paid out dividends to draw down the contingency reserve. In 1999, and 2000, the agency sent dividend checks to employers totaling $400 million. In all, over an eight-year period, employers and workers received benefits of $1.8 billion in the form of dividends, deferred rates and actual rate reductions.

“Keeping rates low and drawing down the excess contingency reserve was a good strategy as long as we were making money in the financial markets,” said Moore. “We can’t do that anymore.”

Because of recent losses in the financial markets and continued low rates in 2002, the contingency reserve is expected to fall below $300 million by the end of this year.

Historically, Washington’s workers’ comp rates have ranked among the lowest in the nation. Over the last three years, only 12 states had rates lower than Washington’s, according to surveys done by Oregon’s industrial insurance system. Even with this increase, Washington’s rates will rank somewhere in the middle third of all states. As a percentage of payroll, industrial insurance premiums in Washington rank far below the national average.

While Washington’s rates have remained low, its benefits rank in the top 25 percent. In recent years, those benefits have been enhanced by two state Supreme Court decisions that increased the amount of money L&I pays out in time-loss benefits. Annual cost-of-living increases, mandated by state law, also drove up costs.

Labor and Industries manages Washington’s workers’ compensation system. It provides coverage for about 163,000 employers and more than 1.9 million workers. Another 400,000 workers, representing 30 percent of the state’s workforce, are employed by companies that are self-insured.

Washington’s workers’ compensation system is divided into three funds. The Accident Fund is the largest and pays partial wage (time-loss) benefits when a worker is injured on the job and can’t work. The Medical Aid Fund pays for the treatment of job-related injuries and illnesses, and for vocational rehabilitation. The Supplemental Pension Fund is the source of cost-of-living increases for workers receiving long-term disability payments.

The average rate for the Accident Fund, which employers pay into, will go from just under 20 cents an hour to 25.8 cents an hour. The rate for the Medical Aid Fund, which is supported by contributions from employers and workers, will go from about 10 cents an hour to 19.3 cents. The rate for the Supplemental Pension Fund will actually decrease by 5 percent.

The increases will be passed on to both employers and employees. About $124 million of the $371 million will be borne by workers. Employers will pay about $247 million. Based on the average rate of 51.9 cents an hour, employers will pay 38.8 cents and employees will contribute 13.1 cents.

Since 1994, rates either have not changed or have gone down. In 1994, the Medical Aid Fund rate was just over 18 cents an hour. The rate was reduced to its present level of 10 cents an hour in 1998 to draw down the excess contingency reserve.

The economic forces affecting Washington’s workers’ compensation fund are being felt elsewhere, too. California has raised workers’ comp rates three times since January 2001. The rate increases totaled over 30 percent and it’s likely the state will raise them again in January 2003. Even with those higher rates, private insurers in California aren’t making money on workers’ comp and are getting out of the business. In the past year, nine insurers have stopped writing coverage.

The higher rates also are being driven by an increase in claims frequency and the length of time a worker stays on disability. Though it’s not certain why that is happening, a downturn in the economy and higher unemployment seems to have resulted in more and longer time-loss claims

Premium Rates for 2003 can be found at http://www.lni.wa.gov/news/2002/rates03.pdf

Source: State of Washington

Area of Interest: FMCSA Requires Truckers to Meet New Set Of Standards for Inspecting, Tying Down Cargo

The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) today announced a requirement that all interstate commercial motor vehicles (CMV) comply with a new single set of performance standards. Meeting these standards will help to ensure that all CMV loads are properly secured and to reduce the number of accidents caused by cargo shifting or falling from trucks.

This final rule sets new cargo securement standards based on the North American Cargo Securement Standard Model Regulations. It reflects the results of a multi-year, comprehensive research program to evaluate current U.S. and Canadian cargo securement regulations; the motor carrier industry's best practices; and recommendations presented during a series of public meetings involving U.S. and Canadian industry experts, federal, state and provincial enforcement officials, and other interested parties.

Canada and Mexico also are considering adopting provisions of the North American model regulations. This would enable the three neighboring countries to have compatible cargo securement regulations for heavy trucks.

The final rule clarifies how to determine the working load limit of cargo securement systems and the way carriers should use these tiedown devices to secure cargo so it does not leak, spill, blow, or fall from a CMV.

The rule establishes new performance standards that apply to cargo securement systems used in transporting general freight and loads that require specialized or unique methods. It also establishes commodity-specific securement standards for the transportation of logs, dressed lumber, metal coils, paper rolls, intermodal containers; cars, light trucks and vans; heavy vehicles, equipment and machinery; flattened or crushed cars; roll-on/roll-off containers; and large boulders. In the process of developing these standards, participants in the public meetings identified these commodities as being the most difficult to secure.

The final rule is effective Dec. 26, 2002 and can be viewed by searching for docket number FMCSA-97-2289 at http://dms.dot.gov/. It gives motor carriers until Jan. 1, 2004, to comply with the new requirements. Training materials for motor carriers and enforcement officials are being developed and will be available from the FMCSA before the compliance deadline for the final rule.

Source: Department of Transportation

State: Oregon

Area of Interest: Program Directive for Indoor Air Quality Complaints

This directive establishes a policy for handling complaints and employer requests for assistance regarding problems with IAQ in any building, and provides guidelines to be used when evaluating IAQ concerns. It applies whenever OR-OSHA staff evaluate workplace hazards relating to IAQ in office buildings. Environmental sampling of biological agents will not be
conducted by OR-OSHA without the review of management and coordination with the Occupational Health Laboratory. This document establishes such a process, provides examples of Serious and Other-Than- Serious (OTS) hazards, and provides guidelines on appropriate responses to workplace IAQ complaints. The reader is referred to OAR 437-001- 0015 for definitions applicable to violation classification and serious physical harm.

The number of inquiries to state and federal agencies requesting information and assistance on health and comfort concerns related to IAQ has increased dramatically over the last few years. For example, the National Institute for Occupational Safety & Health (NIOSH) has conducted more than 600 IAQ investigations in office (non-industrial) buildings under the Health Hazard Evaluation Program since 1991.

However, given OR-OSHA’s desire to focus its’ limited resources on the most hazardous industries and occupations, it is critically important to evaluate whether or not there are reasonable grounds to believe that a Serious hazard may exist.

Good indoor air quality is an important component of a healthy and comfortable indoor environment. The definition of good indoor air quality includes:

• Introduction and distribution of adequate ventilation air,
• Control of airborne contaminants, and
• Maintenance of acceptable temperature and relative humidity.

Although control of airborne contaminants is the focus of this directive, ventilation, temperature, and humidity are also important. Their importance in productivity, comfort, and a sense of health and well-being should not be underestimated. It is also important to remember that factors
such as noise, lighting, ergonomic stressors (work station and task design), and job-related psychological stressors can – individually and in combination – contribute to IAQ-related complaints. The greatest challenge posed by IAQ investigations is that the reported symptoms and health complaints are generally diverse and usually not suggestive of any particular medical diagnosis or readily associated with a causative agent. A typical spectrum of symptoms includes headaches, unusual fatigue, itching or burning eyes, skin irritation, nasal congestion, dry or irritated throats, and other respiratory irritations. Typically, the workplace environment is
implicated because workers report that their symptoms lessen or cease once they leave the workplace. In such cases, however, it is often difficult to prove causation and/or substantiate a violation.

However, in some instances specific illnesses can be associated with identifiable exposures in the indoor environment and employers may be subject to an OR-OSHA citation. Examples of such illnesses include Legionnaires disease, histoplasmosis, carbon monoxide poisoning, and
certain allergic reactions associated with exposure to molds.

Source: State of Oregon

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