Groups Challenge OSHA Ergo Rule Cost Estimates

Sept. 8, 2000
Industry groups and a corporate-sponsored foundation have found\r\nnew reasons to hammer away at OSHA's ergonomic rule's cost estimates.

Industry groups and a corporate-sponsored foundation have found new reasons to hammer away at OSHA''s ergonomic rule''s cost estimates on both procedural and substantive grounds.

OSHA''s $4.2 billion annual cost estimate for the rule has been widely criticized by opponents as far too low.

This much is beyond dispute: OSHA added thousands of new pages of additional research on its cost estimates in late July, after the close of the public comment period, but just before the Aug. 10 deadline for post-hearing comments.

As a result, no one will be able to comment on the new data prior to the issuance of the final rule later this year.

"Rulemaking by stealth," charged Baruch Fellner, an attorney representing the National Coalition on Ergonomics (NCE), a group of industry opponents of the proposed rule.

In a letter to OSHA Administrator Charles Jeffress, Fellner argued the new documents show OSHA has adopted a new methodology for estimating the rule''s cost.

The National Association of Manufacturers (NAM) soon joined in, and both groups demanded that OSHA extend the comment period and conduct additional hearings on the new material.

The two associations went to cross-examine OSHA and its contractor on the alleged new method.

But OSHA denied it had adopted a new methodology, and refused to schedule more hearings. "It is routine to place additional, supplementary information in the docket while the public record is open," said an OSHA spokesperson.

At least one motive of the recent flap is the effort by industry opponents of the ergonomics rule is to stockpile complaints about OSHA''s rulemaking procedures for later use in a court challenge to the standard.

Fellner''s letter closed with a thinly-veiled threat: "Playing short shrift with due process will doom any final standard in ensuing court review."

But OSHA''s last-minute submission of the new cost estimates may be an admission that this piece of the rule is in trouble.

The agency must submit its final standard for review by the Office of Management and Budget (OMB). One of the principal areas OMB looks at in proposed rules is the estimate of costs and benefits.

If OSHA''s final rule is weak here, it could seriously complicate OMB''s efforts to complete its review by year''s end.

OSHA''s original cost estimates have been criticized because they were based on informal interviews and because they made unrealistic assumptions.

Ron Bird is chief economist at Employment Policy Foundation (EPF), and industry-supported research organization based in Washington, D.C.

"Instead of going out into the field and conducting research to find out what actual practice was, they just made guesstimates sitting in their offices," said Bird.

EPF believes the ergonomics rule will cost as much as $99.3 billion a year, which would mean OSHA''s estimate is off by a factor of 23. EPF''s report cites several examples of OSHA''s errors and omissions.

According to Bird, "OSHA assumed, without doing any research, safety manager would need only one hour to become familiar with the rule. OSHA further assumed only one person in each establishment would need to spend the time it takes to read the standard."

EPF conducted a survey of safety and health professionals and discovered it would take 33 hours per establishment to understand the rule, which is over 100,000 words long, counting the preamble and explanatory material.

Bird explained, "OSHA compounded the problem with its naive assumption that only one person at each work site would need to read the rule. This amounts to a $3 billion mistake."

OSHA assumed that any firm doing something about ergonomic problems would incur no additional cost in complying with the rule.

But EPF argues the rule is so demanding, it is reasonable to assume no establishment is 100 percent compliant, adding an estimated $11.7 billion to the rule''s cost.

The rule requires an immediate protective response in the event of a single covered musculoskeletal disorder (MSD), so each employee complaint of MSD symptoms must be noted and assessed to determine if it is an OSHA recordable.

But according to EPF, OSHA fails to consider the cost of screening all complaints of potential MSDs before they are classified as OSHA recordables: a $29.7 billion mistake.

An OSHA spokesperson countered that the agency''s original economic estimates are based on sound information drawn from an extensive analysis of more than 14,000 scientific studies.

Whether OSHA sticks to its original cost estimates in the final rule remains to be seen, but Fellner offered a prediction.

"In light of what has been put in the record, they will be extraordinarily embarrassed if they stick to $4.2 billion."

by James Nash

About the Author

EHS Today Staff

EHS Today's editorial staff includes:

Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor:  Nicole Stempak is managing editor of EHS Today and conference content manager of the Safety Leadership Conference.

Sponsored Recommendations

10 Facts About the State of Workplace Safety in the U.S.

July 12, 2024
Workplace safety in the U.S. has improved over the past 50 years, but progress has recently stalled. This report from the AFL-CIO highlights key challenges.

Free Webinar: ISO 45001 – A Commitment to Occupational Health, Safety & Personal Wellness

May 30, 2024
Secure a safer and more productive workplace using proven Management Systems ISO 45001 and ISO 45003.

ISO 45003 – Psychological Health and Safety at Work

May 30, 2024
ISO 45003 offers a comprehensive framework to expand your existing occupational health and safety program, helping you mitigate psychosocial risks and promote overall employee...

Case Study: Improve TRIR from 4+ to 1 with EHS Solution and Safety Training

May 29, 2024
Safety training and EHS solutions improve TRIR for Complete Mechanical Services, leading to increased business. Moving incidents, training, and other EHS procedures into the digital...

Voice your opinion!

To join the conversation, and become an exclusive member of EHS Today, create an account today!