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Document Sample
CMV Safety and Health:
An Economic Approach
Dr. Michael H. Belzer
Wayne State University
Transportation Research Board Session 458:
Health and Safety Effects of Intense Competition
on Transport Workers
January 11, 2005, Washington
Wayne State University Trucking Industry Benchmarking Program
Who are the CMV Drivers?
• 7,813,587 Employee workers in
“Transportation and material moving occupations”
• 1,910,788 estimated “Truck drivers, heavy and tractor-trailer”
• 2,880,994 Driver-sales workers and truck drivers
– 1,528,630 Truck drivers, heavy and tractor-trailer
– 943,840 Truck drivers, light or delivery services
– 380,120 Driver-sales workers
(May 2003 National Occupational Employment and Wage Estimates )
• An additional 382,158 own their own trucks and are
considered “self-employed.
• About 80% of “self-employed” are permanently leased to
carriers and do not operate under their own authority.
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
Employee Fatalities
by Occupation
Occupation Total Fatalities Total Transportation
Incidents
Transportation and material moving occupations 1,388 998
Driver-sales workers and truck drivers 861 711
Driver-sales workers 44 34
Truck drivers, heavy and tractor-trailer 721 595
Truck drivers, light or delivery services 96 82
(2003 Census of Fatal Occupational Industries)
The truck driver rate is 4.5 times the rate for all workers
That is 15.5% of all worker fatalities
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
Employee Fatalities
by Industry
Industry Sector Fatals % Employee % Owner- %
Drivers Operator
Truck Transportation 518 9.3 447 11.6 70 6.0
General Freight Trucking 364 6.5 317 8.2 46 3.9
General Freight Trucking, Local 43 0.8 38 1.0 4 0.3
General Freight Trucking, Long-Distance 293 5.3 252 6.5 41 3.5
General Freight Trucking, 212 3.8 179 4.6 33 2.8
Long-Distance, Truckload
General Freight Trucking, 36 0.6 32 0.8 4 0.3
Long-Distance, Less Than Truckload
Specialized Freight Trucking 128 2.3 109 2.8 19 1.6
(2003 Census of Fatal Occupational Industries)
70 “self-employed” workers were killed on the job
It appears that the rate of fatalities for employed
drivers is nearly twice that of owner-operators
Wayne State University Trucking Industry Benchmarking Program
4
October 27, 2004
Injury and Fatality Rates - Bad
Occupational Illness Rates - Worse
• Among the highest per-worker rates of workplace fatalities.
– About twice the fatality rate of construction workers
– Fatality rate of truck drivers seems to be growing while construction
worker fatality rate is flat.
• CMV drivers have higher rate of non-fatal injuries and
illnesses than construction workers.
• Truck driver injury rate has risen while construction rate has
fallen.
Even bigger failure:
We do not look closely at driver health
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
Acute Injuries are Obvious
• Truck crashes are public events.
– Fatal injuries are hard to hide, especially on the highway.
– A DOT reportable crash involves a tow-away vehicle, injury treatment
away from the scene, or fatality.
– Non-crash workplace injuries are substantial, but not headline-
grabbers. Many not likely reported by owner-operators.
– Exception: Acute fatigue is measurable but crashes due to fatigue are
very hard to document retrospectively.
Cost to current employer is direct.
– High workers’ compensation cost
– Substantial cost of lost labor time
• Cost to public is substantial: lost productivity in distribution
chain.
Wayne State University Trucking Industry Benchmarking Program
6
October 27, 2004
Cumulative Injury is Less Obvious
• Cumulative stress on muscles and ligaments
– Backs, and joints due to lifting and pulling
– Repetitive motion including steering and shifting
• Cumulative stress on organs
– Kidneys, spines due to vibration, jarring
– Heart due to over-stress or lack of aerobic exercise
• Hard to prove specific link to specific employer or even to
general work activity
– Turnover averages over 120% annually in truckload.
– Few drivers have retirement benefits so they don’t retire.
– Many non-union drivers do not have health insurance either.
– Cumulative disability does not happen at point of injury.
• Society, not the market, absorbs this cost
• Costs not captured by the market are inefficient externalities.
Wayne State University Trucking Industry Benchmarking Program
7
October 27, 2004
Cumulative Illness is Least Obvious
Long delay between exposure and illness
• What do we know?
– Sleep deprivation leads to chronic illness
• Endocrine disruption
• Weight gain
• Sleep apnea (in part predicted by weight gain)
• Diabetes (in part predicted by weight gain)
• Heart disease (predicted by sleep apnea, weight gain, diabetes)
– Long hours and irregular sleep cycle is an occupational
hazard
– All of these illness factors raise safety risk as well
• Drivers appear to die at average age of 56-57.
Wayne State University Trucking Industry Benchmarking Program
8
October 27, 2004
From Research to Practice
To understand and solve the problem we need
cooperative research
– Cooperative research will inform researchers about industry operations
and issues
– Cooperative research will inform trucking companies, drivers, and their
representatives about the research process
– Cooperative research eventually must include the shippers and receivers
because they “drive” the process
– Cooperative research engages the subjects and gets buy-in to solutions
• What NIOSH calls “r2p” provides the keys to success
– Access to data
– Development of mutually acceptable solutions
– Cooperative development of those solutions
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
Self-Managing Safety
• If there were no regulation, we would have to
invent it.
• Self-management is self-regulation.
• Why wait until regulators tell you what to do,
when you can take control yourself?
• Regulations tend to be prescriptive
– Not driven by results but rather by rules
– Rules are easier to design and enforce
– Rules don’t necessarily predict outcomes
Wayne State University Trucking Industry Benchmarking Program
10
October 27, 2004
One Example of Self-Management:
Safety Benchmarking
• Benchmarking is an iterative, data-driven process.
• Puts “sound science” behind safety self-management.
• Allows the research, industry, and policy
communities to learn to work together.
• Develops a culture of measurement.
• Develops a culture of continuous improvement.
• Brings IR to OSH and OSH to IR.
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
“Best Practices” Must Have an
Empirical Foundation
• Best Practices are not opinions.
• Best Practices are iterative.
• Best Practices are developed through
research.
• Best Practices are data-driven.
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
TIBP On-Line Benchmarking
• Flexibility
– Easy to reconfigure to meet organization’s needs.
– Customer-driven because survey is customizable.
– Allows carrier associations to add modules as needed or
change the questions when appropriate
• Ease of use
– No special software needed; just use your browser.
– No special training needed.
– Anyone who can fill out a form can fill it out.
• Low cost
Provides data for empirical analysis and verification.
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
Safety and Sound Science
• Data generated provides basis for analysis.
• Using multivariate analysis we can use these data to
predict safety outcomes based on carrier practices.
• Overcomes the weakness of experience ratings for
small firms that enter and exit the market frequently.
Harness the power of the market to link efficiency to
safety as well as to equity.
Accurate ratings will shift the cost of unsafe
operations to the carriers that create the
problem.
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
Benchmarks Across Firms
Average Driver Age - Graphical Display Options
Relative to the minimum Relative to the average
Relative to the maximum Relative to the median
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
Benchmarks
Number of Moving Violations per Driver
Relative to the average
Wayne State University Trucking Industry Benchmarking Program
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
Benchmarks
Number of Crashes with Injuries
per Million Miles
Relative to average
Wayne State University Trucking Industry Benchmarking Program
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
Benchmarks
Average Earnings per Driver
Relative to average
Wayne State University Trucking Industry Benchmarking Program
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
Benchmarks
Annual Company Payment for PL and PD
Insurance per Company-Owned Power Unit
Relative to the average
Wayne State University Trucking Industry Benchmarking Program
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
End Product: Safety Index
• Multivariate analysis of all benchmark data will
produce Safety Index.
• Carriers with high Safety Index impose lower costs
on the market because their crash probability is
lower.
• Safety costs money so carriers with a high Safety
Index should be entitled to:
– Reduced regulatory oversight
– Reduced insurance
– Other benefits if safety costs outweigh benefits to the firm.
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
Safety Self-Management References
• For the four presentations at last year’s
session of TRB’s Task Force on Trucking
Industry Research and Truck and Bus
Safety Committee, go to
www.ndsu.edu/ndsu/trb
• To test drive the TIBP Safety
Benchmarking site, go to
www.ilir.umich.edu/TIBP
Wayne State University Trucking Industry Benchmarking Program
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October 27, 2004
