Given that the single fatality, that occurred in 1990 cost the company an increase of 7% in workers compensation insurance premiums which over the long run has been a substantial cost and individual falls have since cost the company significant time and production loss as well as other increased in premiums, related to injuries and simply as increases have occurred. Finally, the initial fatal fall cost the company a 4 million dollar benefits claim to the family of the employee and $1.7 in litigation and attorneys fees. Additionally, the settlement was mitigated by the attorneys, who managed to reduce the claim for pain and suffering significantly and calculated the remainder based on the lifetime earning potential of the individual at his current salary. It is unlikely that such mitigation would occur in every case, and the cost of a trial would be exponential if a reasonable settlement had not been made. The mitigating legal reason for the high cost of this settlement is related directly to the fact that the company, at the time of the injury had not yet instituted a formal fall protection plan and therefore showed negligence in the situation. (Leigh, 1995, p. 6) Though part of the settlement demanded that this be done, the company, at the time, chose to meet the bear minimum standards requirements, which were much less stringent then than they are today. Finally, accidents related to falls occur on average of one a month on the manufacture floor and once every two to three months in the warehouse. Though these injuries are usually relatively minor, often only resulting in a few days of absenteeism and a few medical bills, paid by workers compensation insurance, the potential for greater injury is always there and any fall can be dangerous. If bad luck and ignorance combine any fall can be fatal and any accident can impact an individual far more than a simple few days off work and a single trip to the ER. This is the proverbial "crap shoot" that this company is no longer willing to risk. (Williams & Cooper, 1999, p. 135)
The company briefly discussed reducing compensatory damages by increasing the pay of some workers, utilizing a plan that would take into consideration the compensatory needs of employees who face some risk of injury, but this plan was almost immediately scrapped, partly because the management considered it unethical, in comparison to making the workplace safer an because the job is not indicative of high risk pay and such plans are arguably not compensatory enough for a situation such as a fatality. (Roberts, Burton, & Bodah, 2005, p. 3) Finally, with regard to cost savings associated with increased safety and implemented safety programs there is some indication the workers compensation and other insurance premiums will be reduced by 0.4%-1% annually as a result of both the implemented program and the realization of a reduced accident claim rate. (Roberts, Burton, & Bodah, 2005, p. 4)
Aims and Objectives of Study
The goal of the company is a zero tolerance success rate for the elimination of falls and other injuries, as cost comparison between the costly and lengthy settlement for the single fatality (which would likely be far greater in today's economy) and the subsequent cost of other injuries has created in the company management the desire to do as much as humanly possible to prevent such incidents in the future and respond to them efficiently and rapidly when they occur to mitigate further...
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