Improving Safety, Decreasing Costs in the Washington State Logging Industry

Tuesday, June 24, 2014: 2:30 PM
209, Nashville Convention Center
David Bonauto , Washington State Department of Labor and Industries, Olympia, WA

BACKGROUND:  Logging is an iconic industry of the US Pacific Northwest. It has long been recognized as a high hazard industry for worker injury. Differential risk of injury based on the type of logging operations - mechanized vs. non-mechanized - has not been well described. In 2012, Washington State landowners approached the Washington State workers compensation (WC) division about a need to lessen the high WC premium for non-mechanized logging operators. This presentation will describe the reasons for increasing WC premiums understandable to a public health researcher.  We will also present the safety incentive program developed to improve safety and reduce premiums in the Washington State logging industry - the Washington State Logging Safety Initiative (LSI).  

METHODS: We conducted a descriptive analysis of the Washington State Fund WC claims for the logging risk classes - identifying accepted claims rates, compensable claim rates, acute inpatient hospitalization rates, types of injuries, time loss duration, and medical and indemnity costs from 2004-2011. We describe our state OSHA activity in the non-mechanized and mechanized logging industry - with documentation of OSHA general and serious violations for the logging industry. 

RESULTS:  For the period from 2004 – 2011, the accepted claims rate in the non-mechanized logging risk classification was 60/100 full-time equivalent employee (FTE). This compares to a rate of 5.6/100 FTE in the mechanized logging risk classes. The claim rate for those cases requiring more than three days off from work was 28/100 FTE compared to a rate of 2.1/100 FTE. Hospitalization rates in non-mechanized logging are 60 times greater than the overall state workforce rate. Current workers compensation premiums in the non-mechanized logging industry are more than $20/hour reflecting a high hazard industry for worker injury. Increasing premiums reflect the high injury rate, high injury severity and diminished employer compliance with premium payment.

CONCLUSIONS:  Logging is a high hazard industry with non-mechanized logging in particular reflecting the most hazardous type of logging. Premium reflects this high hazard. We will discuss the formation of the LSI to improve safety in the logging industry.  LSI includes enhanced expectations of safety from participating logging contractors with verification through the state OSHA program, and a third party audit program.  Successful participants in LSI can receive a premium discount on their WC premiums.