Warning: OSHA Can Be Hazardous to Your Health; R. Keating

Unsafe workplaces have always been and remain the exception rather than the rule. Of course, OSHA acts under the opposite asMr. Keating is chief economist for the Small Business Survival Foundation. sumption, thereby imposing significant and unnecessary costs on business and the econ omy. Such costs translate into less entre preneurship, slower economic growth, and fewer jobs. There is substantial evidence that OSHA has strayed far from its much-touted edu cational, advisory, and cooperative rela tionship with business. Indeed, OSHA's concern for real safety is lost in a bureau cratic and regulatory haze of citation quo tas, tax collection, and remarkably inane regulations. For example: • OSHA imposes an incredible paper work burden on U.S. business. In 1994, seven of the top ten most frequent OSHA citations were related to paperwork. OSHA has perfected the government "make work" scheme-generate a paper blizzard of regulations and then fine businesses for not complying.

• In 1976, 95 percent of OSHA citations were classified as "nonserious," while in recent years 70 percent of citations have been classified as "serious."3 It remains difficultto fathom that "serious" violations have grown so much, especially considering the general decline in workplace deaths and injuries. More likely, a considerable, ongo ing redefinition of OSHA violations has been undertaken. Such a development re flects the arbitrary and subjective nature of OSHA citations. • With the 1990 budget deal, OSHA 163 164 THE FREEMAN • MARCH 1996 stepped up its role as a revenue collector for the federal government. OSHA's maximum allowable penalties were increased seven fold, and $900 millionin additional revenues were expected over five years. OSHA's maximum penalties range from $7,000 per violation-for "serious" and "other than serious" classifications-to $70,000for the "willful and repeat" classi fication. These are dollar levels that can put many smalland medium-sized businesses out of business. OSHA can levy an "egre gious penalty," where fines can be arbi trarily increased by counting each employee possibly exposed as a separate violation another example of the arbitrary nature of OSHA citations.

The current administration's so-called plan to "reinvent" OSHA noted a few examples of ridiculous OSHA regulations: • Plastic gas cans can be used on manu facturing work sites, but not on construction sites, even if they have been approved by local fire marshals. • OSHA only allows for radiation signs with purple letters on a yellow background, while the Department of Transportation calls for black on yellow. • OSHA requires that work-site first-aid kits be approved by a physician. Unfortunately, in the mitist of all the talk about government "reinvention," OSHA has been busily preparing additional regu lations. The federal budget offers program statistics for each agency. "Standards promulgated" (Le., regulations imposed) are estimated at 12 annually for 1995 and 1996 by OSHA-a kind of regulation quota. OSHA has committed substantial resources to three particular areas in recent years indoor air quality, ergonomics, and manda tory workplace safety commissions. Scien tificevidence pertaining to indoor air quality and ergonomics is weak, if not nonexistent, while mandatory worker safety commis sions amount to nothing more than a sop to labor unions. If implemented, such regula tions will cost tens of billions of dollars annually-translating into fewer resources for investment, employee compensation, and job creation.

Another glaring problem with govern ment regulation and inspections of any in dustry or workplace is that most, if not all, regulators lack expertise in particular indus tries. If such individuals were experts, they would hold productive, private sector jobs. They are government bureaucrats. Bureau crats know paperwork. Hence, the most cited violations by OSHA are paperwork related. The phenomenon was noted by Mr. Vitas M. Plioplys-safety services manager at R.R. Donnelly & Sons Company, the world's largest commercial printer-before the U.S. House ofRepresentatives Subcom mittee on Workforce Protections of the Committee on Economic and Educational Opportunities: Any time an OSHA inspector comes into one of our facilities, it is probably the first timethey have ever seen a large commer cial printing press. In our plants where the presses are 100 feet long and three stories high, the OSHA inspector doesn't know where to start. In every case the inspector will invariably find a guard off, or some other minor, readily apparent violation, but willpass by process equipment which, if it failed, could blow up our facility.

Because they are not experts in the in dustry they cannot know the critical is sues we deal with on a daily basis.... Our informal conferences end up being training sessions on safety in the printing industry to the local OSHA offices. They do not know our industry, yet try to cite us as if they do. Even after noting the many OSHA horror stories, regulations, paperwork burdens, and costs, some still claim that OSHA's benefits outweigh its costs. In a May 16, 1995, speech President Clinton linked OSHA with reduced workplace deaths: "The Occupational Safety and Health Ad ministration has been at work in this cause since it was created with bipartisan support in 1970. Since that time, workplace deaths have been cut in half." Of course, workplace deaths were on the decline for decades before OSHA was cre ated. Fewer workplace deaths reflect many WARNING: OSHA CAN BE HAZARDOUS TO YOUR HEALTH 165 changes in our economy-greater automa tion, shift in employment from manufactur ing to the service sector, leaps in technol ogy, enhanced knowledge, et ale There exists no clear and substantial evidence that OSHA has played any significant role in preventing workplace injuries or death.

The incentives for the private sector to maintain safe working conditions are clear. As already mentioned, many factors make safety and good health a priority for em ployers. Indeed, as many business owners and operators will tell you, maintaining a safe working environment and complying with OSHA regulations are quite often sep arate endeavors. OSHA deregulation efforts are underway in Congress, and should be applauded. How ever, OSHA eventually should be scrapped altogether-"disinvented" if you will. Private industry-with technological advancements, expanded knowledge, and proper incentives-has steadily improved the working conditions of employees. Reg ulatory efforts, have been largely incidental to such developments. Indeed, as noted above, regulations often simply create ad ditional costs with few benefits. Workplace safety can be and is ensured by individuals-employers, employees, and insurance companies-and if necessary, the courts. If the U.S. economy is to compete and succeed in the years ahead, govern ment's heavy hand of regulation must be lifted. 0 1. The Occupational Safety and Health Act as quoted in Congressional Quarterly's Federal Regulatory Directory, Sev enth Edition, Congressional Quarterly Inc., Washington, D.C., 1994, p. 394.

2. Ibid., p. 394. 3. Information provided by U.S. Representative Cass Bal lenger's office.