Incentives for Prevention

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Incentives for Prevention in small and
medium sized Entreprises
Hong Kong Convention Centre Wednesday, March 19,
2003
Ms. Maureen Shaw, President CEO Industrial
Accident Prevention Association
(IAPA) 1-800-406-IAPA (4727) www.iapa.ca
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Vision
"A World where risks are controlled because
everyone believes suffering and loss are morally,
socially and economically unacceptable."
Values

• Care and respect for people
• Trust and integrity
• Continuous Improvement and Innovation
• Openness to ideas
• Leading by example
• Recognition
• Life/work balance

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Industrial Accident Prevention Association
Formed 85 years ago by industrial leaders with
the Canadian Manufacturers Association, we have
evolved as a non-governmental not-for-profit
corporation to 225 professional staff with the
following integrated menu of offerings

• Consulting Services (High Impact Solutions,
  Integrated Management System and Occupational
  Health)
• Technical Services (Ergonomists, Engineers,
  Occupational Hygienists)
• Training/Education Services (Public, In-house,
  Internet, CD-Rom)
• Products (more than 100 products)
• Partnerships and alliances locally, nationally
  and internationally (e.g. Canadian Manufacturers
  and Exporters, Ontario Furniture, Canadian
  Foundry Assoc., Hong Kong Council, ILO, ISSA,
  WHO, PAHO, DGSST-Mexico)
• Community-based programs through a network of 900
  industry volunteers

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IAPA Member Firms
We have 47,000 member firms and 1,550,000
employees representing diverse industry sectors

• Ceramics Stone
• Chemical Industries
• Food Products
• Grain, Feed Fertilizer
• High Tech
• Industrial Equipment
• Leather, Rubber Tanners
• Metal Trades
• Office Related Services
• Printing Trades
• Textiles and Allied Trades
• Woodworkers

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• This presentation will take a high level view at
  incentives used in Canada through
• Community-based Coalitions
• Industry Partnerships and Collectives
• Financial and Non-Financial Incentives
• Social and Moral Incentives

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Accreditation Programs
The general objective of an accreditation program
would be to promote the adoption of good OHS
policies, programs and practices in
workplaces The goal is to encourage employers to
adopt an Integrated Management System driven by a
comprehensive continual improvement process,
designed to assist them in managing and
integrating their organizations safety, health
and environmental needs with overall business
requirements in a manner which is
sustainable Accreditation has the potential to
strengthen workplace commitment to high standards
of OHS practice through economic, social and
possibly legal motivators.
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Ecomomic Motivators

• Giving accredited firms a competitive edge in
  obtaining contracts for products and services.
• Possible economic incentive would be to tie
  accreditation to lower insurance premiums

Social Motivators

• Accredited can be tied to positive public
  recognition of accredited companies, leading to
  improved public relations and possibly improved
  market position.

Legal Motivators

• Accredited firms would expect to receive less
  enforcement attention from government agencies

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Potential benefits

• Accreditation standards would promote
  understanding and sharing of the qualities and
  practices known to be associated with successful
  health and safety outcomes
• Accreditation could be a source of pride and
  recognition for accredited firms
• By identifying firms with good OHS practice,
  accreditation would allow regulatory and
  enforcement efforts to be concentrated on poorer
  firms.
• Accreditation would entail a market advantage to
  those that have nigh quality OHS programs and
  practices.
• For buyer firms, accreditation will provide a
  consistent means for ensuring that suppliers have
  achieved a standard level of OHS practice.

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Potential Risks

• High program delivery costs are a possibility
• If standards, audit tools or program delivery are
  not well-designed an administered, various
  unacceptable outcomes could ensue, such as
• Bad public relations for accrediting
  organizations
• Perception that the accreditation program is
  unfair
• Accreditation of unworthy firms
• Failure to accredit worthy firms
• Requirements that are too onerous, especially for
  small business.

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IT TAKES A WHOLE COMMUNITY TO SAVE A LIFE
Canada was the first country to use the workplace
as the catalyst for developing coalitions and
partnerships for prevention of injuries in
communities.

• Skilled experts and practitioners in workplace
  injury and illness prevention
• Framework of legislation and standards (including
  International Standards)
• Belief in the need to generate greater social
  awareness of the magnitude of the unacceptable
  injury problem
• Economic political benefits of prevention
• Bringing together leaders in communities with
  knowledge and expertise in business, government,
  planning, public health and social sciences,
  education, epidemiology, crime prevention, fire
  prevention, transportation safety, childhood
  safety, seniors safety and more!

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Helping make Canada the safest country in the
world to live, learn, work and play.

• The Safe Communities Foundation has a practical
  plan for workplace and community-wide safety with
  the following outcomes
• protecting lives
• reducing the cost of losses
• creating a healthy climate for investment

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Ontarios Safe Communities Incentive
Program (SCIP)

• Partnership with the Ontario Workplace Safety and
  Insurance Board (WSIB), the 24 Safe Communities
  and the Safety Associations, based in Ontario
• Provides group financial incentive to small
  business who register and fulfill criteria
• Provides Risk Evaluation to workplaces to improve
  health and safety
• Provides Awareness Training to employers and
  workers
• Provides assistance and coaching in developing
  actions plans for implementation
• Sector Specific training to identified group
  needs

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Safety Groups (Ontario)

• WSIB and Safety Associations partnering with the
  business community
• Each safety group has a sponsor from a trade
  association or a health and safety association
• Sponsor promotes group interaction through
  meetings, workshops and guidance on action-plan
  development and tracking progress
• A collective average improvement determines the
  rebate that the group will equally share
• Each group should strive for a 20 reduction
  during each year of the program

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Industry Partnerships
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A Suggessful Story
Over the last three years IAPA worked with the
Canadian Foundry Association and accomplished the
following

• Developed a Foundry health and safety guide
• Developed sector-specific health and safety
  training
• Formed a Safety Group

Results!

• Loss time injury rate dropped by 50
• Insurance assessment rate dropped 9 in 2002, a
  savings of 875,000
• Safety Group realized rebates of 264,000

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Other Canadian Jurisdictions Financial Incentives
ALBERTA Albertas Workers Compensation Board
offers a voluntary Partners in Injury Reduction
program that provides discount of up to 20 of
premiums for implementing health and safety
programs and mitigating claim costs. To qualify,
each employer must achieve the Certificate of
Recognition Audit Standard. Four communities
that participated as a group in PIR reduced their
workplace injuries by as much as 40
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Other Canadian Jurisdictions Financial Incentives
(cont'd)
MANITOBA Manitoba is moving to a system where by
2002, the public sector and private purchasers
of construction services would require bidders on
contracts exceeding 250,000 Canadian to have
appropriate Industry Association Certification
of Recognition accreditation or equivalent. NEW
BRUNSWICK New Brunswick offers 4 levels of
financial incentives 2, 5 and 10 of premium.
Each level requires an increase in audit score as
well as consideration of the firms decrease in
total cost of new injuries and of claims and the
disability management program.
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BRITISH COLUMBIA
BC Certificate of Recognition (COR)

• Voluntary program 5 incentive
• Industry driven industry funded
• Requires employers to go beyond
• BC Regulatory compliance
• Training requirements
• Audit component
• Administered by industry safety association
  Certifying Association

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IAPA's Health and Safety AwardsStart the Journey
Towards Health Safety Excellence IAPAs Health
and Safety Awards recognize progressive
achievement in health and safety with three
distinct honours Achievement Award, Safety Award
and our prestigious Presidents Award.  These
awards have been developed with one goal in mind
to provide guidance and recognition to IAPA
member firms in their quest towards occupational
health and safety excellence.
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How IAPAS Member Firms Benefit
IAPAs Health and Safety Awards make significant
milestones in their journey towards a systematic,
dedicated approach to health and safety
management. By meeting the requirements of these
awards, they will not only maintain a proactive
approach to achieving health and safety
excellence, they will also ensure their health
and safety initiatives address industry standards
and the needs of their employees.
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IAPA member firms derive numerous other important
advantages from the program as well

• Focus their health and safety improvement efforts
  on tangible goals
• Use the program criteria to guide the development
  of their overall health and safety plan
• Demonstrate their commitment to staff, their
  customers and their community
• Celebrate their achievement by displaying their
  award in a place of prominence
• Formally acknowledge employees for their efforts
  in helping earn the award
• Become eligible for special pricing on many IAPA
  products
• Receive recognition and publicity in IAPA
  publications, on IAPAs web site and at IAPA
  events.

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Corporate Social Responsibility in a globalized
industrial world is about making the business
investment and the community promise sustainable
for the company and for the communities we
operate in, its people and environment. It
demands

• LEADERSHIP
• INTEGRITY
• RESPECT
• RELATIONSHIPS
• ITS ABOUT RESPONSIBLE CITIZENSHIP

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IAPA believes that in order to move the
prevention yardstick in health and safety, we
need to integrate moral, social, economic and
legal incentives. Collectively they are
motivators for improvement

• Moral and social incentives are about not
  accepting poor performers as part of our value
  system
• An economic incentive is a motivator to improve
  from a business and competitive perspective -the
  market will only recognize good performers
• Legal incentives force poor performers to improve
• Communities and the public will recognize and
  demand corporate social responsibility in health
  and safety

The ultimate goal is to utilize a judicious mix
of strategies leading to sustainable cultural
change
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Coming together is a beginning, staying together
is progress, and working together is
success. - Henry Ford
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Share Our Vision -
A World where risks are controlled because
everyone believes suffering and loss are morally,
socially and economically unacceptable.
Jennifer Quintal Age 9
IAPA 207 Queens Quay West, Suite 550,Toronto,
Ontario M5J 2Y3 Tel [phone] Fax (416)
506-8880
www.iapa.on.ca