This article was reprinted from:

PMA Insurance Group
Fall 2005 Directions
PDF versions of Directions at:
http://www.pmagroup.com/directions.htm
 

VEKA, Inc. Transforms Employee Attitudes on Safety and Enhances Results

A Solid Risk Control Program

Headquartered outside of Pittsburgh, VEKA is the leading producer of vinyl extrusions for replacement windows, decking components and fencing. Worker injuries range from strains and sprains to hand/finger lacerations.

"We partnered with PMA on this account several years ago and we've got a cross-disciplinary approach that really benefits our client," said Glen Sandusky, Senior Vice President for broker The HDH Group.

At the end of 2002, VEKA enhanced their existing five-part safety program by developing their Defect-Free program.

The Defect-Free program changed the culture of VEKA's operations by incorporating Job Safety Analysis into employee's task procedures, thereby increasing safety awareness and enhancing accident investigation analysis. VEKA met its goal of reducing OSHA incidents by 15 percent each year, but they wanted to take their program to a new level.

Incorporating the Accountability Factor

"We spoke to VEKA about the components of an effective supervisory accountability program," said Gene Mattis, Senior Risk Control Consultant for PMA's Pittsburgh office.

"Supervisory accountability was already in place, but we needed to increase awareness of actual costs within their respective departments," said Duke Pollick, Safety & Environmental Manager for VEKA. "Many weren't realizing the financial connection between accidents and premiums."

Underwriter Jim Gray and Mattis talked with VEKA about a measurement tool that would treat incurred workers' compensation losses in much the same way they were charging back production errors and product waste. The equation outlined in Chart 1 helps to put a dollar figure on what exactly a workers' compensation loss costs the organization.

Mattis points out that the formula addresses the direct loss costs of medical expenses and lost wages. One needs to also consider the hidden costs like training new employees, accident investigations and hiring replacement workers. For that reason, it's also important to maintain a solid risk prevention strategy. The PMA Risk Control team continues to service two VEKA locations and implement proactive risk control solutions.

"This program is in its infancy stage and we're already seeing results," said Pollick. "PMA is a quality outfit with experienced safety professionals. Our combined efforts have produced strong results."

Accountability Program Drives Shift in Loss Severity for VEKA*

* Calculations include total paid losses only and not incurred losses.