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Investment in safety again pays big dividends to employees at Pennsylvania Steel Foundry.

For the second consecutive year, employees of Pennsylvania Steel Foundry and Machine Co., Hamburg, Pennsylvania, reaped the rewards of the company's new safety program.

On February 12, the foundry's 210 hourly workers gathered in the company lunchroom to receive an average $424 each. Last year's handout averaged $275 per employee.

Company owner and President Dan Goodyear congratulated his workers and then distributed mints with the firm's logo and the inscription: "Working safely saved our company a mint this year. Here's your share!" A drawing for a new Ford Ranger pickup truck topped off the celebration.

The bonuses were the result of a new safety program that provided Pennsylvania Steel with massive savings in workers' compensation insurance during the past two years. Losses plunged from an all-time high of $650,000 in 1990 to $53,000 in 1991. In 1992, that figure dropped to $18,000.

The "Safety Incentive Plan"--developed by Thomas M. Hartman, vice president of administration--is designed to limit the costs of workers' compensation insurance by continuously improving safety performance through constant training and increasing awareness.

Throughout 1992, monthly and quarterly goals were achieved in all but one month. Monthly rewards ranged from free coffee and soft drinks to hot dogs, hamburgers and pizza.

Gimmickry and clever posters kept employees alert and always cognizant of the ongoing program. By means of drawings, workers claimed quarterly prizes of a VCR, five $100 cash rewards and five $200 handouts.

Pennsylvania Steel's Safety Incentive Program has resulted in inquiries and calls from industries nationwide.

The program also has been recognized and honored by the Pennsylvania MILRITE Council, an independent state economic development agency that seeks solutions to economic problems through the cooperative efforts of business, labor and government.

In addition, Pennsylvania's House of Representatives issued a citation honoring the foundry's innovative Safety Incentive Program.

"While business, labor and government discuss much-needed changes to workers' compensation legislation in Pennsylvania, by far the best method of lowering costs is by working safely," Hartman said. "The key to success of the program is increased awareness of safety."

Goodyear, who was installed last month as 1993-94 president of AFS, concurred.

"The guys really have gotten aboard the program," he told the Reading Eagle/Times. "We don't want to create an atmosphere where someone doesn't go to the doctor who should. But now that we've gone two years, it's become a matter of pride. We've knocked the socks off any statistics you can name in our industry."
COPYRIGHT 1993 American Foundry Society, Inc.
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Title Annotation:Pennsylvania Steel Foundry and Machine Co.
Publication:Modern Casting
Date:May 1, 1993
Previous Article:GM executive voices concerns about American industry.
Next Article:Implementing TQM in foundries.

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