SAFETY-INCENTIVE PROGRAMS:

THE GOOD, THE BAD, THE DANGEROUS

        Safety programs should play a key role in your business, averting accidents and reducing costs.  Unfortunately, such programs can lead to negative consequences for employers.  Many companies offer financial incentives.  In implementing your program, make sure that it does not offer an unintended incentive for not reporting accidents and injuries.  If employees suffer injuries that would be legitimate Workers Comp claims, but fail to report them so that they can qualify for safety awards, they�re creating risks to you.

•        An artificially low �experience rate� for the period will lower comp costs - which will eventually be discovered, leading to higher than expected premiums, a higher experience rating, and possible penalties.

•        Worse yet, if an unreported injury later requires serious medical attention or leads to a disability, the injured worker will seek benefits for the costs of their treatment and/or lost earnings capacity, probably by suing your business (after all they can�t collect under Workers Comp), Chances are that you�ll end up footing the bill for increased medical and rehabilitation expenses, penalties for covering up a legitimate Comp claim, and the expenses of litigation - not to mention possible claims from other workers for injuries they didn�t report. 

The initial cost of a safety incentives program might be far lower than the payout of Workers Comp claims that might otherwise arise.  However, the expense and hassle of repairing the damage done by a poorly conceived plan could do far greater harm to your business.

Housing is the third largest industry in the state of Pennsylvania accounting for $25 billion annually from construction and remodeling of single and multi-family homes.

        The size of a new home was 1,550 square feet in 1981, 1,890 square feet in 1991 and 2,103 square feet in 2001.  Homes are expected to grow at half of the rate of the past 10 years during the next 10 years.  This means that the median size should be 2,231 in 2012.

        Residential construction stimulates the economy directly by generating jobs, wages and tax revenues and indirectly as the demand for goods and services created by new home construction ripples through the economy.

        Construction of 1,000 multi-family unites generates 1,030 jobs in construction-related industries, $79.4 million in wages and $42.5 million in combined federal, state and local tax revenues and fees.

        With 24 million new households expected to form between 2000 and 2020, the housing sector is poised to set new records for production and aggregate home equity.  1.2 million new homes are expected to form each year through 2020.

TRAINING AVAILABLE IN BLAIR COUNTY

The Engineered Wood Association has teamed up with Blair County Builders Association to present an affordable seminar on wall-bracing requirements for residential construction under the UCC.  PBA members may attend for $25, while nonmembers will pay a $40-fee.  Contact Bob Buddenbohn at the Blair County Builders Association at (814)693-9710 for more information.