competition

Document Sample
competition Powered By Docstoc
					             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
                                                                                      2
                                     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
                                                                                                       3
                                         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
                                                                                   5
                                  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
                                                                                  9
                                 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
                                                                          11
                         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
                                                                          12
                         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
                                                                              13
                             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
                                                                          14
                         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
                                                                          15
                         October 27, 2004
Wayne State University           Trucking Industry Benchmarking Program
                                                                          16
                         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
                                                                          18
                         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
                                                                          20
                         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
                                                                          22
                         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
                                                                          24
                         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
                                                                              25
                             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
                                                                          26
                         October 27, 2004

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:10/25/2011
language:English
pages:26