Incentives for Prevention in small and medium sized Entreprises

1. 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

2. 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

3. 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

4. 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’

5. 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

6. 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 organization’s 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.

7. 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

8. 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.

9. 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.

10. 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!

11. “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

12. Ontario’s 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

13. 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

14. Industry Partnerships

15. 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

16. Other Canadian Jurisdictions Financial Incentives ALBERTA Alberta’s 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%

17. 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 firm’s decrease in total cost of new injuries and of claims and the disability management program.

18. 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

19. IAPA's Health and Safety AwardsStart the Journey Towards Health & Safety Excellence IAPA’s Health and Safety Awards recognize progressive achievement in health and safety with three distinct honours: Achievement Award, Safety Award and our prestigious President’s 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.

20. How IAPA’S Member Firms Benefit IAPA’s 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.

21. IAPA member firms derive numerous other important advantages from the program as well: • Focus their health and safety improvement efforts ontangible 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 IAPA’s web site and at IAPA events.

22. Corporate Social Responsibility is not the latest bullet or business fad, it not a philanthropic idea. It is an International Imperative for both business and the countries we are operating in.

23. 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 • IT’S ABOUT RESPONSIBLE CITIZENSHIP

24. 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

25. “Coming together is a beginning, staying together is progress, and working together is success.” - Henry Ford

26. 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: (416) 506-8888 Fax: (416) 506-8880 www.iapa.on.ca