The hog production and meat processing industry has improved worker safety and protection over the past decade, significantly reducing the rate of injury. Nonetheless, on average, U.S. beef and pork processors report 6.9 injuries per 100 employees—more than twice the average for all private industry occupations, according to 2010 data from the U.S. Department of Labor’s Bureau of Labor Statistics. Smithfield’s injury rate is 4.66 injuries per 100 employees.
In 2010, Smithfield demonstrated continued improvement and outperformed our peer companies. Our U.S. Occupational Safety & Health Administration (OSHA) Total Case Rate (TCR), Days Away, Restricted, Transferred (DART), and Days Away From Work Injury and Illness (DAFWII) rates continued to decline and 2010 finished at a record low, as shown below.
OSHA Total Case Rate (TCR):1
The number of work-related injuries and illnesses per 100 employees that result in medical treatment has fallen substantially since 2006. In 2010, it improved by 24 percent over 2009 and 47 percent since 2006, indicating how well Employee Injury Prevention Management System has been adopted into our corporate culture.
OSHA Days Away, Restricted, Transferred (DART) Rate:
The number of work-related injuries and illnesses per 100 employees that result in an employee missing work, having restricted duty, or being transferred from his or her regular duty work assignment fell by 24 percent last year.
OSHA Days Away From Work Injury and Illness (DAFWII) Rate:
The number of work-related injuries and illnesses that result in one or more days away from work per 100 employees has steadily fallen each year since 2006. For 2010, we posted a 27 percent reduction over the previous year.
[TCR, DART, and DAFWII Rates Compared with National Average Chart]
All values reported by calendar year. In previous reports, these metrics were incorrectly labeled as fiscal year. We track trends throughout our fiscal year but only report the OSHA rates by calendar year. National averages based on 2010 data from the U.S. Department of Labor’s Bureau of Labor Statistics.
These rates represent significant reductions over the previous year and illustrate how effective our safety management program has been over the past four years. Our organization reduced the total number of injuries to employees by 734 (approximately 29 percent) over the previous year. Many of our independent operating companies have rates that are significantly below the most recently published Total Case Rate. Throughout the organization, 80 percent of our locations finished 2010 below the industry average, and 47 percent outperformed the general industry average. The reductions in injury and illness rates have also led to a decrease in overall workers compensation claims.
OSHA Violation Notices
In 2010, Smithfield had 16 regulatory inspections conducted at locations across the country, receiving 34 citations with penalties totaling $33,323. The number of citations is lower than in 2008, when OSHA stepped up its enforcement actions around the country. However, the penalties are getting higher for the same types of violations, which represents a national trend for industry enforcement.
Inspections Chart]
[Notice os Violation Chart]
[Penalties Chart]
All values reported by calendar year.
Safe Chemical Management
Safe storage and handling of ammonia and chlorine gas used at our facilities is essential to the safety of our workforce and our surrounding communities. Smithfield reports to the U.S. Environmental Protection Agency’s Toxics Release Inventory (TRI) database (PDF) each calendar year for these chemicals.
Historically, we have addressed ammonia and chlorine systems from an engineering standpoint. Today, we also manage them through stringent safety processes. Our independent operating companies have implemented OSHA's rigorous Process Safety Management of Highly Hazardous Chemicals standard. Over the last year, we have held full-day PSM training programs with our safety and environmental engineering employees. Smithfield and its IOCs have assigned responsibility to individuals for ensuring the physical security of chemicals at our facilities.
Smithfield's safety professionals also receive approximately four to five hours of chemical safety and security training facilitated by members of the U.S. Joint Countermeasures Task Force. These sessions provide background information and recommendations to safety and security professionals for safeguarding workplace chemicals that could be used in manufacturing controlled substances, improvised explosive devices, or other chemical weapons.
Ammonia is the primary refrigerant used in our first processing plants. Although we have reduced ammonia use through improved efficiency, Smithfield remains diligent in the handling, use, and storage of this chemical. The amounts used in our processing facilities have increased recently, due to higher production volumes of ready-to-eat products and an increased need for refrigeration.
Chlorine gas is used in on-site wastewater treatment facilities. We have worked to reduce chlorine gas and have nearly eliminated its use. Although OSHA only requires a PSM plan for facilities with 1,500 pounds of chlorine gas, we at Smithfield are going above and beyond regulations, requiring each facility to have a PSM in place regardless of chlorine quantities.
1 TCR was labeled “Total Injury and Illness Frequency Rate” (TIFR) prior to our 2009/10 report. We changed the terminology to be more consistent with OSHA reporting.
