Ch.

2
Development of the Safety and
Health Function

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 Content
• Introduction

• Workers’ Compensation

• Recordkeeping
– Incidence Rates

– Record Keeping Forms

• OSHA’s Form 300

• OSHA’s Form 300A

• OSHA’s Form 301

• Accident Cause Analysis

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 Introduction ddd

• Safety and health function has both line and staff

characteristics:
– The physical accomplishment of workplace safety and health is a line
function
• Workers work practices are directed by their line supervisors. For example, the
maintenance of equipment is the direct responsibility of the line maintenance
operators and their supervisors
– Staff function: The S&H manager acts as a facilitator in assisting,
motivating and advising line function in achieving worker safety and
health

• The goal is to eliminate unreasonable hazards, not all

hazards.

• Regulations have substantially strengthened the position of

the safety and health managers in the management
hierarchy.
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 Introduction
• The approval of top management has to be documented
in a written safety and health policy statement.

• The written policy becomes the authority to line

personnel that the top management does have safety
and health goals and wants these goals met.

• Having management commitment and approval, safety

and health manager has to:
– Make workers aware of hazards
– Regular training for hazard recognition and correction
– Statistic and accident records are needed to know how well the
company and its department are doing in achieving their safety and
health goals
– Assisting operating personnel in achieving compliance with standards.
Operating personnel are individuals who are responsible for the day-to-day operations of a business or organization.
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5
 Workers’ Compensation
• Who should be responsible when a worker is injured?”
(Employer or Employee ?)
– Workers should be compensated for their on-the-job injuries in a fair
and prompt manner (Employer responsibility).
– Workmen’s compensation law (1909)  workers’ compensation law
(1959)

• It is the duty of the safety and health manager to

implement the workers’ compensation system.

• Employers use insurance to cover compensation claims.

– The insurance premium is determined based on plant safety
experience.
– The insurance premium can be adjusted up or down based upon 3-
years average of the actual accident experience.
An insurance premium is the amount of money an individual or organization pays to an insurance company to purchase
insurance coverage

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Sample Statutory Compensation

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 Workers’ Compensation

• Workers’ compensation legislation

– Ostensible purpose: protecting the workers by providing statutory
compensation levels to be paid by the employer
– Ulterior purpose: the immunity from additional liability that the worker’s
compensation system grants to the employer, except in case in which
gross negligence can be proved.

• Worker’s comp can provide coverage when:

o An employee is injured at work and in need of medical attention.
o An injured employee needs time to recover and cannot afford to miss wages.
o An occupational injury kills or disables an employee.
o An employee waives benefits and decides to sue the employer for negligence

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 Workers’ Compensation
• A good insurance company will make
– regular inspections and provide technical advice to their clients
(through training films, research centers, and so on).

• Typical workers’ compensation premiums

– were 4-5% of the payroll.
– recently are 20-30% of the payroll.

• To reduce these costs:

– Managed care programs: close supervision to get worker back
on the job as soon as is practical.
– Reduction of false claims: detect malingering workers or
workers blaming their employers for off the job injuries or
illnesses (workers’ compensation fraud).
– Prevention of Injury/illnesses : mandatory inspection and
establishment of safety improvement programs.
– Privatization of the state (government) system (Skip)
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Figure 2.1 Trends in workers deaths and death rates,1933-1992.(Source: National
Safety Council, Accident Facts,1993 Edition. Chicago: NSC; used with permission.)

In 2006, the total number of workplace fatalities was 4988 for a workforce of
approximately 146 million workers. The fatality rate per 100,000 workers was
3.4.

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Workers’ Compensation in KSA

• The occupational hazards system is mandatory for all workers in the

Saudi labor market, and the participation rate is 2% of the wage paid
by the employer fully
• The injury is considered an occupational injury in any of the
following cases:
– Accident sustained by the worker during work.
– Accident sustained by the worker on his way from his residence to his place of
work and vice versa, or while on route from his place of work to the place where
he eats his meals or perform his prayers and vice versa.
– Accident sustained by the worker during his movements in order to perform the
tasks entrusted to him by the employer.
– Any disease sustained by the worker found to be caused by work.
– Any disease sustained by the worker specified in the table of occupational
diseases.

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Workers’ Compensation in KSA

• Reporting injuries

– The injured person, or his representative, must notify the employer

within seven days after the injury’s occurrence, deterioration or
complication takes place or the disease is discovered. The employer, or
his representative, must notify GOSI Field Office of the employment
injury for which first-aid is insufficient, within three days after he is
informed of the injury or takes note of its occurrence.

– https://bit.ly/3k2sbi3

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Workers’ Compensation in KSA

• The employer is not required to pay financial compensation if any of

the following is proven:

– That the worker intentionally injured himself.

https://www.youtube.com/watch?v=7Ac7LzckbW0

– That the injury occurred due to the intentional misconduct by worker.

• Example: repeated violations of rules and policies.

– That the worker refuses to present himself to a doctor or refuses to accept the
treatment of the doctor assigned to treat him by the employer without a legitimate
reason.

Source: https://bit.ly/3nok5m7
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Workers’ Compensation in KSA

1. Medical care:
– GOSI provides a comprehensive medical care to treat those who
sustained occupational injuries. It is done without time limits so long that
the medical treatment is needed.
– The medical care includes diagnoses, treatments, medicine, medical
supplies and prosthetics.
2. Cash compensations
a) Daily allowances
-Temporary disability:
100% of the daily wage of the injured for a period of 60 days; then 75% for the
duration of his treatment.
If the treatment period reaches one year, or if it is medically determined that
the worker will not recover, the contract shall be terminated, and the injury shall
be compensated.
https://gosi.gov.sa/GOSIOnline/Occupational_Hazards_Branch&locale=en_US
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Workers’ Compensation in KSA

2. Cash compensations
b) Benefit for total permanent disability (Saudi)
 Monthly benefit of 100% of the average wage during the last three
months
 If the injured worker need the Assistant of Others, he also receives
allowance at a rate of 50% of the value of benefit – MAX of S.R. 3,500
 Example: An injured Saudi contributor whose percentage of disability is
100%. What is he entitled to if the average of his wage is S.R. 5,000?
 He is entitled to a monthly benefit and is calculated as follows:
5,000 × 100% = S.R. 5,000 per month.
 If he needs the assistance of others, he is granted 50% of the
benefit: 5,000 × 50% = S.R. 2,500.
 The total benefit: 5,000 + 2,500 = S.R. 7,500.

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Workers’ Compensation in KSA
2. Cash compensations
c) Benefit of permanent partial disability (Saudi)
 Injured with partial disability by 50% to 99% of total disability
receives benefit equaling the percentage of his disability from the
total disability. The injured will be entitled to the allowance of
Assistance of Others if the medical board decides his eligibility
 Example: An injured Saudi contributor whose percentage of
disability is 60%. What is he entitled to if his average wage is
S.R. 5,000.
 Monthly benefit : 5,000 × 60% = S.R. 3,000 per month.
 If he needs the assistance of others, he is granted 50% of the
benefit: 3,000 × 50% = S.R. 1,500.
 Total of benefit: 3,000 +1,500 = S.R. 4,500 per month.
 If he dies due to a work injury, or the receiver of a total or partial
permanent disability dies, the family members are paid a
monthly benefit (minimum of 1750). 16
Workers’ Compensation in KSA

2. Cash compensations
d) Lump sum compensation for permanent disability.
 If the percentage of disability is less that 50%, the injured (Saudi or non-
Saudi) is entitled to a lump sum compensation
1. If the age of the injured contributor did not exceed forty (40), he
receives a lump sum compensation equaling 60 times the monthly
benefit (value of total disability benefit × disability percentage × 60
times).
2. If the age of the contributor is over forty, the compensation is
reduced by the number of monthly benefit equaling to the number
of years exceeding forty, provided that the compensation does not
become less than 36 times its value.
 The lump sum compensation in paragraphs (1 & 2) must not
exceed the amount of S.R. 165,000.

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Workers’ Compensation in KSA

2. Cash compensations
d) Lump sum compensation for permanent disability.
 Example: An injured aging 39 year whose percentage of disability is
48% and his average wage during the three months preceding the
month in which the injury occurred is S.R. 2,000.
 The compensation is calculated as follows: 2,000 × 48% × 60 = S.R. 57,600.

 Assuming that the injured is 54-year-old, the compensation will drop 14

time, becoming (60 - 14 = 46).
 Thus, the value of compensation is: 2,000 × 48% × 46 = S.R. 44,160.

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Workers’ Compensation in KSA

2. Cash compensations
e) Lump sum compensation paid to a non-Saudi contributor
 In the event that the non-Saudi contributor sustains a work injury, he will
be compensated with a lump sum instead of a benefit
 Permanent total disability (100%), the injured is entitled to a lump sum
compensation of 84 months of the benefit value, which he was
supposed to receive it up to a maximum of S.R. 330,000.
 Partial disability with a percentage of 50% to 99%, the injured is entitled
to a lump sum compensation equivalent to 60 months from the value of
the assumed benefit up to a maximum of S.R. 165,000.
 Death of the worker, his family members receive a lump sum
compensation equivalent to 84 months. It is calculated on the basis of
the benefit, which he was supposed to receive up to a maximum of S.R.
330,000

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 Recordkeeping
Offical recorder list ‫التامينات االجتماعية‬
• Traditional Indexes
– Familiar statistical measures are frequency and severity, which were defined by
the old Z16.1 system.
– Frequency = the # of cases/standard quantity of work hours
– Severity = lost workdays/standard quantity of work hours

• Incidence Rates
– Total injury-illness incidence rate includes all injuries or illnesses that require
medical treatment, plus fatalities.

• Medical treatment does not include

– simple first aid (one-time treatment without further medical care),
– preventive medicine (ex, tetanus shots), or
– medical diagnostic procedures with negative results.

• Regardless of the medical treatment, if an injury involves loss of

consciousness, restriction of work or motion, or transfer to another job,
the injury is required to be recorded.
– Sample types of medical treatment (see Appendix B in the text)
– Sample types of first aid treatment (see Appendix C in the text) 20
 RecordKeeping
• Lost work-days include
– days Away from work,
– days of Restricted work activity, and
– days of Transfer to another job.

• Typical Incidence rates are:

Death is ether ill or injury

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 Recordkeeping
• OSHA relied on the LWDI for a long time, as a criterion for selecting
high hazard industries for priority inspection
– LWDI considers injuries only, not illness
– LWDI considers lost-time injuries only, not all injuries.
– LWDI do not include fatalities

• The Days-Away, Restricted, or Transferred Rate (DART) replace the

LWDI (in 2008), as a criterion for inspection priority.
– Because OSHA recognize the importance of including illness statistics as well as
injury statistics in setting priorities for inspections.

• In counting the number of lost workdays, the date of the injury or

start of illness should not be counted, even though the employee
may leave work for most of that day.
– Thus, if the employee returns to his regular job and is able to perform all regular
duties full time on the day after the injury or illness, no lost workdays are counted.

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 Recordkeeping
• 1904.7(b)(3)(iv)
• How do I count weekends, holidays, or other days the
employee would not have worked anyway?
– You must count the number of calendar days the employee was unable
to work as a result of the injury or illness, regardless of whether or not
the employee was scheduled to work on those day(s). Weekend days,
holidays, vacation days or other days off are included in the total number
of days recorded if the employee would not have been able to work on
those days because of a work-related injury or illness.

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Figure 2.6 OSHA 300 Log for Case Study 2.1.

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• CASE STUDY

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• CASE STUDY

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ANALYSIS

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Figure 2.6 OSHA 300 Log for Case Study 2.1.

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 Recordkeeping

• Index (Incident Rate)

No. of Case X Standard Factor (200,000)
= --------------------------------------------------------------------------------------------------------
No. of Worker X Total hours worked by an employee during the period covered

– Total Hours (2,000) = 40 hours X 50 weeks (8 hrs./week)

– Without the Standard Factor ( 200,000 ), the incident rate would be very small.
– Fatality case(s) excluded in No. of Case

• Standard Factor ( 200,000 ) :

– 100 Workers X Total Hours
– The Standard Factor is used to make the total injury-illness incidence rate represents
the number of cases expected by a 100 employee firm in a full year.
– The 200,000 figure in the formula represents the number of hours 100 employees
working 40 hours per week, 50 weeks per year would work

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 Calculation of Incidence Rates
5 X 200,000 (Total Recordable Cases)
• TRC = ----------------------- = 2 (H, I, J)
250 X 2000

2 X 200,000 (Lost Work-Day cases Incidence rate)

• LWDI = ----------------------- = 0.8 ((H, I) & M(1))
250 X 2000

3 X 200,000 (Days Away, Restricted, or Transfer cases rate)

• DART = ----------------------- = 1.2 (H, I)
250 X 2000
2 X 200,000 (Days Away From Work Injury and Illness case rate)
• DAFWII = ----------------------- = 0.8 (H)
250 X 2000

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 Calculation of Incidence Rates

3 X 200,000
• Injury Incident Rate = ----------------------- = 1.2
250 X 2000
2 X 200,000
• Illness Incident Rate = ----------------------- = 0.8
250 X 2000
1 X 200,000
• Fatality Incident Rate = ----------------------- = 0.4
250 X 2000
(14 + 21+1) X 200,000
• No.-of-Lost-Workdays Rate = ------------------------------ = 14.4
250 X 2000
1 X 200,000
• Specific –Hazard Incident Rate = ----------------------- = 0.4
(Eye injuries) 250 X 2000

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 Accident Cause Analysis

• One of the important task of the safety and health manager is

– to do a thorough analysis of the potential causes of injuries and illnesses that
have already occurred in the plant.

• Even accidents or incidents that may not actually have caused

injuries or illnesses, but which could have, should be studied to
prevent their recurrence.
Near miss, incident

• Any occurrence of an unplanned, unwanted event should be

considered in the prevention of future illnesses and injuries.
Near miss, incident, recordable and not-recordable
• Accident cause analysis and subsequent dissemination of this
information to personnel who will be exposed to the hazards in the
future is believed to (if the causes is unavoidable)
– be the single most effective way of training workers to avoid injury and
illness. 32
 Accident Cause Analysis
Benchmarking, standards, or previous data
• Accident analysis may lead to:
– A design change in a product or process.
– Change in work procedures to prevent future occurrences or at least to minimize
the adverse effects of these occurrences.

• Even when nothing can be changed to prevent a future occurrence,

at least workers can be informed of:
– what happened,
– what caused the accident,
– under what conditions the accident might occur again, and
– how to protect themselves in such an event.

• Informing workers of the facts and causes of accidents that have

already happened to their coworkers is a very effective method of
training workers to avoid injury and illness.

•
Reactive, not proactive (leading indicaters used in proactive)
Disadvantages of accident cause analysis:
– It is “after the fact” (It is too late to prevent any losses)
– Assigning blame / allocating legal liability
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Figure 2.4 OSHA Form 300A: Summary of Work-Related Injuries and Illnesses.

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Figure 2.5 OSHA Form 301: Injury and Illness Report.

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• https://www.bls.gov/iif/oshsum.htm
• https://data.gov.sa/

• For HW1 (submit by email before class on 21/09/2021)

– https://data.gov.sa/Data/ar/dataset/injuries_distribution_-
_gosi_statistics_for_2017_-_q1_
– https://data.gov.sa/Data/ar/dataset/injuries_distribution_-
_gosi_statistics_for_2017_-_q2_
– https://data.gov.sa/Data/ar/dataset/injuries_distribution_-
_gosi_statistics_for_2017_-_q3_
– https://data.gov.sa/Data/ar/dataset/injuries_distribution_-
_gosi_statistics_for_2017_-_q4
• Download injury data from the above links.
• Work with total values (last raw)
• Only table 5 (Injuries distribution by the injury cause )
• Assume total number of workers  1000000
• Assume each injury cause includes 100000 workers.

• Calculate incident rates for each injury cause for each quarter of
2017.
• Present your calculations in a graph. 36
• Write your comment on the results