Even though in the short term the company may save money by neglecting housekeeping standards, when an issue happens it will end up costing the company far more. Between the costs of OSHA fines, worker medical payments, legal fees, and rebuilding, a company can end up spending millions of dollars to recover from an accident caused by housekeeping issues.
Explosive dust accumulations have become a manufacturing issue that has made headlines recently, with several high profile industrial explosions caused by dust. A study by the Chemical Safety Board found that there have been over 3,500 reported dust explosions in the past 30 years, which caused the deaths of 119 workers and over 700 injuries.
In just the period between 1996 and 2005 there were over 100 explosions that caused 16 deaths and over 120 injuries. The damage to the facilities involved was estimated at $162.8 million, and this doesn’t include the costs brought about by medical bills, legal fees from lawsuits, lost production time, and rebuilding costs. The Bureau of Labor Statistics found that during 2013 there were 148 worker fatalities due to fires and explosions, higher than the previous year.
If the company is found at fault for the incident the employees, or relatives of the employee if there was a fatality, can sue the company for negligence. When the accident is caused by a lack of housekeeping standards and an explosive dust accumulation, the company can be held at fault. Legal fees and the amounts required to pay to the victims can end up costing millions of dollars and take several years to resolve.
Fines and penalties from OSHA and other organizations can add up quickly even when no incident has occurred, but are even higher after one has. After the Imperial Sugar dust explosion, another Imperial Sugar plant was inspected for safety hazards. The findings from this safety inspection resulted in a $3,715,500 fine!
Treatment for burns can be extremely costly and emotionally distressing to the workers injured during an explosion. The cost of treating a major burn injury can be upwards of $200,000 for each 1% of the body burned. Research has found that at least one third of major burn victims feel psychological distress for at least two years after being burned, including anxiety, depression, and insomnia. The physical and emotional toll that being burned creates can cause an employee to be permanently disabled, increasing costs for everyone involved.
The good news is that all of these incidents are completely preventable, and spending a small amount of time and money up front can prevent a catastrophe and the costs associated with it. Hughes Environmental is an expert in combustible dust remediation and works to keep employees safe. If your facility has a combustible dust problem schedule a free inspection by contacting us HERE or calling 888-845-3952.