The Sherwin-Williams Company - National Council of Self Insurers

National Council of Self Insurers
The Sherwin-Williams Company
Workers’
Compensation
Program
May 24, 2010
1
Key Facts
History Agenda
Today’s
Founded in 1866
Headquarters
Cleveland, OH
E l
Employees
29 220
29,220
Revenue 12/31/09
$7,094,249
Divisions
•
Stores - Company owned retail & commercial locations
•
Paint & Coatings – Manufacturing & Distribution
•
Global Finishes – Automotive Finishes, Chemical Coatings
Domestic Store Count
3,354
Domestic Manufacturing & Distribution sites 32
2
Recognized Brand Names
Stores
Today’s
T
d ’ Agenda
A
d - $4.21 billion
Duration
ProMar
Super Paint
Cashmere
Duron
Harmony
MAB
Woodscapes
Columbia
Paint and Coatings - $1.23
$1 23 billion
Dutch Boy
Cuprinol
Krylon
Pratt & Lambert
Minwax
Purdy
Thompson’s Water Seal
White Lightning
Global Finishes - $1.65 billion
Sherwin-Williams Automotive Finishes Products
Chemical Coatings Industrial Products
3
Organization
Organization
Senior VP – Human Resources
Global Director Safety & WC
Manager – Workers’ Compensation
Financial/Systems
Analyst
Administrator
Retail Operations
Administrator
Manufacturing & Distribution
Specialist
WC Organizational History
Risk Management
Employee Benefits
Safety
Finance
Human Resources
Human Resources
4 years
15 years
6 years
4
Core Responsibilities
The Corporate Safety & Workers'
Workers Compensation
Department provides leadership at SherwinWilliams in the field of safety excellence and
workers' compensation.
compensation The department
benchmarks organizations and industry best
practices and integrates national standards into
it EHS managementt systems.
its
t
It monitors
it
compliance to these policies and standards
through safety & health site assessments, and
th
through
h th
the establishment
t bli h
t off standard
t d d policies
li i
and practices.
5
Core Responsibilities
The department
p
also coordinates incident record
keeping, manages US workers' compensation,
and coordinates completion of Chemical Facility
Anti-Terrorism Standards assessments.
Safety and Health professionals are available
to advise and assist sites on almost all
areas off safety
f t and
d health,
h lth including
i l di
management systems and safety controls,
fire prevention and protection, life safety,
process safety,
f t safety
f t engineering,
i
i
emergency planning, and incident management.
6
7
Stores and Branches
8
Stores Safety & Environmental Web Site
• WorkSafe Manual
 Environmental
 Transportation & Permits
 State Specific Requirements
 Safety Forms - Click Here to go to the Forms Repository
 Safety
y Information for Contractors
 Safety Equipment
 OSHA Logs
 Quarterly Training
 Wellness
9
Stores – Monthly Safety Training
PAINT STORES GROUP
SOURCE Shorts
Thi page contains
This
t i safety
f t training
t i i materials
t i l tto b
be used
d ffor monthly
thl ttraining
i i ttopics.
i
This training can be used to complement the Monthly Safety Meeting.
The Monthly Safety Meeting Sheet can be found in the Forms Repository.
Each month a safety topic and information sheets will be posted.
April 2010
Housekeeping Hall of Shame #35
Industrial Accident Example #47
March Safety Contest Winners
Reap the Rewards of Exercise
Tire Safety
10
Industrial Accident #47
Warning and danger signs are posted to help prevent
bodily injury or harm to the environment.
A construction site is usually identified by signs that state: “Danger”, “Warning”,
“Construction Site”, “Hard Hat Area”, “No Entry”, “Check in at Gate” or other
notices. A danger sign means immediate danger stay away and a caution sign
means
ea s possible
poss b e hazard
a a d stay a
away.
ay These
ese ssigns
g s warn
a aga
against
st pote
potential
t a hazards
a a ds
or to caution against unsafe practices. A construction site may also be barricaded
by fences, caution tape, do not enter tape, cones, gates, scaffolding, plywood or
other means of warning. This also pertains to outdoor work such as but not limited
to bridges, road construction, dams, tanks or other areas designated as construction
sites.
This policy also pertains to deliveries at a location or facility that are not designated
as a construction site where hazards may exist such as but not limited to: trip
hazard, fall hazard, exposure to flying debris, objects falling from elevated heights,
forklift traffic, cranes, hoists, truck traffic, chemical exposure, engulfment, exposure
to asbestos or other airborne contaminants
contaminants. Do not enter into an area where
construction, building demolition, remodeling, or other renovation is taking place
without first checking in and being briefed by the site safety officer. You must remain
with an escort for the entire delivery. Do not enter a site that you believe to be unsafe.
11
Quarterly Training
The quarterly safety training system has been in place for 10 years.
Please complete the safety self–inspection
self inspection each quarter and keep
a copy in your records.
Failure to complete safety inspection is an audit infraction.
Please check out the SOURCE shorts monthly training.
Safe Deliveries and Transportation Security (START Module 162).
Driver Safety – Construction Sites
Delivery Driver Equipment
Hidden Dangerous Goods
Dollies & Hand Trucks
Load Securement
12
START Program
1.
The Sherwin-Williams Company “Store Training and Reference Tool” (S.T.A.R.T.) program.
2.
Employees complete all training for their job and become certified for their current position.
3.
Based on an employee’s operational and business exposure
4.
An on-the-job learning, self-instruction and self-paced courses, classroom or supervisor instructional
assistance,
i t e demonstration
de
t ti andd skill
kill assessment
e
e t process
e andd a competency
ete
te t
test.
5.
Each employee is certified as meeting the regulatory training requirements for their position.
6.
p y
must complete
p
a complete
p
the review of trainingg material,, complete
p
a test of understanding,
g,
Employees
complete hands-on practices, and then satisfactorily pass a knowledge test.
7.
Employees then must successfully complete a final test using the S.T.A.R.T. Testing Telephone Line.
8.
Tests employees on random questions selected from the training material.
9.
Training records are maintained on the S.T.A.R.T. system and are available upon request.
10 Employees that do not complete the appropriate safety training are not eligible for promotion or
10.
to post for jobs. A list of employees is distributed to District Management twice a week.
13
Source – WorkSafe Manual
Administrator’s Guide
The Paint Stores Group’s
p written Environmental,, Health & Safetyy Program,
g
,
entitled “The WorkSafe Administrator’s Guide” (WorkSafe), provides the policy,
procedures, and company standards required to assist Store Management in
meeting known existing federal, state and local law. In the event that more
stringent regulations become applicable to individual locations,
locations Store management
must inform the Safety & Environmental Compliance Department (S&EC) and
immediately implement such standards.
WorkSafe presents policy and standards that the Store Manager must be familiar
with and implement in his/her store. The majority of the standards and procedures
are required by law; however, there are some required Company standard operating
procedures that are based on accident and injury experience.
experience These are minimum
standards. Where state or local regulations are more restrictive than those stated in
the manual, the State or local regulations will prevail.
14
Paint & Coatings Division Locations
*VPP Site
Eastern Region
Manufacturing
Baltimore, MD
Beltsville MD
Beltsville,
Manchester, GA
Memphis, TN
Manufacturing
Morrow, GA
Orlando FL
Orlando,
Portsmoth, VA
Distribution *
Atlanta, GA
Fredricksburg PA
Fredricksburg,
Winter Haven, FL
Western Region
Manufacturing
Andover, KS
Chicago, IL
Cincinnati, OH
C ff
Coffeyville,
KS
S ((merit))
Manufacturing
Fernley, NV
Flora, IL
Garland, TX
Victorville, CA
C
Distribution *
Effingham, IL
Sierra, NV
Waco, TX
*Includes Trucking operations
Specialty Region
Specialty
p
y
Bedford Hts., OH
Ennis, TX
Fort Erie, ON
Greensboro, NC
Specialty
p
y
Holland, MI
Lawrencville, GA
Terre Haute, IN
Applicators
pp
Crisfield, MD
Portland, OR
Accurate Dispersions
South Holland,
Holland IL
Homewood, IL
15
OSHA – VPP Criteria
Occupational Safety and Health Administration VPP
•Recognizes worksites that have achieved and are maintaining excellence in worker
safety
•The VPP is composed of three different programs:
1. STAR - distinguished with the highest level of safety and health excellence;
2. MERIT - good
2
d safety
f
and
dh
health
l h programs, b
but must take
k additional
ddi i
l steps to
reach Star quality; and
3. STAR DEMONSTRATION - have Star quality safety and health programs,
demonstration and/or testing of experimental approaches that differ from current
Star requirements.
• A site that applies for participation in the VPP must submit a written
application that addresses the major elements of the program: management
leadership and employee involvement; worksite analysis; hazard prevention
and control; and safety and health training. An onsite review by OSHA officials
to evaluate the workplace safety and health program and to interview
employees at the facility is the final stage of the application process.
16
SMART
Safety Means Awareness Responsibility and Teamwork
17
SMART – 10 ELEMENTS
SMART is one of the most important Sherwin-Williams safety tools, which is designed
to drive continuous improvement and employee involvement. SMART consists of 10
elements, which requires participations of all levels of workforce. The two themes
common to all 10 elements are employee involvement and communication.
18
Changing Times in Safety
Past / Traditional Program
Objective
Compliance Driven
Value Driven
Management Driven
Employee Driven
Reactive
Proactive
Conditions ((Hardware))
Behaviors ((Software))
Safety-Stand Alone
Integrated/Synergy
Flat Incidence Rates
Improving Rates
19
Conditions
Behaviors
•Equipment Guarding
•
•Power Industrial Trucks
•SMART Safety Observations
•Tanks / Piping / Valves
•Risk Assessments
pp
•Fire Suppression
Systems
•Safety “Culture”
•Electrical Distribution
S t
System
•Robotics
Process
•Management of Change
•“Brother’s/Sister’s Keeper”
•Total Employee Engagement
•Training > At-Risk Behaviors
•Tractors
T t
/ Trailers
T il
•Housekeeping Excellence (HKE)
•Dock Locks / Levelers
•Audits / Inspections /
Assessments
•Racking
20
Claim Intake
SWIM entry
•Manufacturing &
distribution facilities
access SWIM through
Company intranet
•Stores Locations call
800 number into
W k ’C
Workers’
Comp D
Dept.
t
for adding injuries
into SWIM
Electronic
transfer to CS
Stars
•Daily flat file feeds
to CS Stars.
•Create generic
electronic system
file
•Produce
P d
paper
FROI for records
confirm individual
claim established
CS Stars
electronic
transfer to TPAs
•Daily transmissions
to TPA
TPA forwards
FROIs to states
• TPAs receive and
set up claims in their
claim systems for
processing
•As necessary,
electronic FROI
transmitted to states
TPAs return
financial data
monthly
•Monthly TPA data
transmitted to CS
Stars for capturing
financial
transactions,
payments, reserve
changes
g
•Restricted user
access, tied to HR
System – employee
look-up
21
SWIM
Welcome to Sherwin-Williams Incident Management
•
SWIM is a safety incident management system. Used to record and report
near misses, injuries, illnesses, fires, spills, driver accidents, corrective actions,
and collects monthly work-hours.
22
Benchmarking
S-W Injury & Illness Recordable Case Rates
2009 vs 2008
8.00
2008
2009
North American Industrial Classification System
7.90
7.00
6.80
6.00
5.00
4.90
4 00
R t 4.00
Rate
3.80
3.82
3.73
3.00
3.20 3.10
2.75 2.65
2 00
2.00
1.77
1.41
1.00
0 00
0.00
S-W TOTAL
NAICS - 49311
PAINT & COATINGS
NAICS - MFG
STORES GROUP
NAICS - STORES
’09 SW data compared to ’08 NAICS rates & ’08 SW data compared to ’07 NAICS rates, since 2009 rates not yet available
23
Benchmarking
W o r k e r s C o m p e n s a t io n - # C la im s p e r 1 0 0 Em p lo y e e
# C la im s p e r 1 0 0 E m p V a lu e d a t 1 2 / 3 1 / 2 0 0 9
4 .0 0
3 .9 3
3 .5 0
3 .4 5
3 .4 4
3 .0 4
3 .0 0
2 .5 7
2 .5 0
2 .0 0
1.5 0
1.0 0
0 .5 0
2005
2006
2007
2008
2009
Safety Performance RCR
2009
DART
2009
Change
3 Year
RCR
Change
3 Year
DART
Global Finishes
1.94
1.33
-12.1%
-10.0%
Paint & Coatings
1.41
0.73
-20.1%
-28.6%
Stores Group
3.73
2.70
-6.8%
0.6%
RCR = OSHA Recordable Case rate
DART = Away From Work Cases + Restricted Duty Cases
24
Workers’ Compensation History
Self-Insured States (TPA)
California
Self-Administered states
1984
Florida
Ohio
1984 Revenue - $2.0B
Maryland
Kentucky
Employees – 19,437
Virginia
Stores – 1,535
Transition
1986 – 1996
Self-administered SI med only claims in approximately 20 states.
At one point self-administered 50% claims
Transition
1996
Relinquished self-administering SI med only claims & Kentucky claims,
retain Ohio self-administration
1996 Revenue
R
- $4.1B
$4 1B
Transition
Employees
E l
– 20,768
20 768
S
Stores
– 2,156
2 156
2003
Relinquished
q
self-administering
f
g Ohio Claims
2003 Revenue - $5.4B
2004 Revenue - $6.1B
Employees – 25,777
Employees – 28,690
Stores – 2,943
Stores – 3,254
25
Current Self-Insured Program
Alabama
Arkansas
California
Florida
Georgia
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Minnesota
Missouri
Nevada
New Jersey
New York
North Carolina
Ohio
Oklahoma
Pennsylvania
South Carolina
Tennessee
Texas
Virginia
S lf I
Self-Insured
d program payrollll – 86%
26 states
t t
Insured program by payroll – 14%
21 states
(State Funds - ND, WA, WY)
TPAs
Gallagher Bassett Services – 1990
(all states except IL, NV, OH, TX)
Sedgwick Claims Management Services – 2003
(IL, NV, OH, TX)
26
Workers’ Compensation Staff
Financial/Systems Analyst
SW service: 4 years
•Manage & maintain SWIM incident management system
•Provide
Provide departmental financial & accounting support
•Manage & process administrative expenses
•Complete annual, quarterly or monthly SI filings
•Complete monthly safety statistical report & distribute to management
and key personnel
Administrator - Stores
SW service: 7 years
•Manage lost time claims and coordinate action plan with TPA
•Coordinate & communicate with Store Managers & Field HR Representatives
•Facilitate
Facilitate RTW opportunities
Specialist
SW service: 8 years, WC Dept. service: 2 years
•Complete phone intake for retail/commercial & field operations
•Add claim content to SWIM
•Assess incident, communicate concerns to TPA
•Evaluate the need & assign telephonic medical management
•Manage medical only claims up to 90 days
Administrator - Manufacturing & Distribution
SW service: 4 years
•Manage lost time claims and coordinate action plan with TPA
•Coordinate & communicate with Human Resources and Safety Managers
•Facilitate RTW opportunities
27
Discussion Topics
•Interaction with other Sherwin-Williams Departments
Legal
Occupational Health
Employee Benefits
Medical Director
•Centralized Internal Claim Management
•How we manage our TPAs
p TPAs
•Use of multiple
•RTW / Modified Duty Issues
Medical Management
•Medical
•SI Security Issues
(Bonds, LOCs, Guaranty Funds)
28
Thank You
Thank You
29