Hazmat safety is no accident

To ensure that hazardous materials are handled and transported safely, shippers should implement formal training programs and standard operating procedures. Here's how to do it.

By John V. Currie -- Logistics Management, 10/1/1999

How many times have you passed a business facility and seen a sign proclaiming the amount of time accumulated since an employee last had an accident? That's just one way industry shows that it takes pride in providing employees with a safe working environment. Admittedly, there also are other, less-altruistic reasons for ensuring workplace safety, such as the need to comply with local, state, and federal regulations. Companies that fail to manage safety adequately in the workplace, after all, may be forced to close their doors.

Even the most altruistic of companies, however, may find it difficult to manage hazardous-materials transportation safety. Trucks, trains, aircraft, ocean-going containerships, and even domestic feeder vessels transport all kinds of hazardous materials, often in close proximity to heavily populated areas. And it's no less complicated when regulated items are received, stored, handled, or shipped at a fixed facility such as a factory or warehouse.

Whether they move thousands of loads per year or just an occasional package, shippers of hazardous materials need to address hazmat-transportation safety with the same high level of care. That's because a major multinational chemical manufacturer with numerous complex product lines and a small paint manufacturer with a single product offering are subject to the same regulatory requirements.

Unfortunately, too many small companies wrongly believe that because they ship only an occasional hazmat consignment, their exposure to liability, either civil or criminal, is very limited. They rely on the "rabbit's foot in the pocket" approach to managing compliance--a practice that could jeopardize their survival. There's no need for any company to take such chances. Although they may not be able to afford the sophisticated hazmat information systems big chemical manufacturers use, even the smallest company can adapt the best hazardous-materials management practices of a Fortune 500 company as the foundation of its own program.

When it comes to managing hazardous-materials transportation safety, the most successful companies follow six steps to achieve their goals. What follows is a discussion of these steps, which can be applied to any company, regardless of its size or the number and frequency of its hazardous-materials shipments.

Develop a Written Program

It's crucial that companies develop a written safety-compliance program that includes policies and procedures that have been endorsed at the highest possible level of management. Although no two written programs will be alike, there are some elements that should be common to all. First, the program should include an introduction that outlines the type of business the company is engaged in and provides corporate ownership information, including the address of the facility where the business records are maintained. This section should also contain a description of the products that are manufactured, distributed, transported, offered, or otherwise handled.

The second part should clearly state the management goals and desired outcome of the program. This might include policies that show commitment to workplace safety and the continued health of all employees--in fact, you may want to stress here that these concerns are more important than financial consequences that might result from punitive action.

The program should also include a management matrix or organizational chart showing the accountability of top-level executives, corporate program directors, mid-level managers, and facility supervisory personnel, which will help to identify responsible parties. In addition, a list of job functions that have been identified as tasks to be performed by "hazmat employees" (employees officially designated as having some responsibility for or contact with hazardous materials in transportation) and identification of those employees will help ensure that all employees know where they fit in the big picture. It is essential that employees know where to go if they have a concern. The document will also be useful in making sure that inquiries are directed to a person with the training and expertise to provide accurate information.

The written program should also outline the systematic hazmat employee training the company offers and verify that it has been provided. Any written safety directives or employee manuals should be an addendum to the written program.

Written programs offer several important benefits. First, they provide you with a step-by-step blueprint for a customized safety program, so all employees know what is expected of them regarding hazmat transportation safety. Such customization will vary according to the hazard classes of goods to be offered in transportation, variations in package sizes or types, the number of shipments and/or quantities offered, and the number of employees involved in shipping or transporting these goods. If a company were to ship only small aerosol cans from a single manufacturing facility, its program would look much different from one created by a shipper that transports rail tank cars containing chemicals of all classes from numerous locations.

A written program can help you obtain the resources that are essential to implementation or continued program management. It also gives you something to place in the hands of U.S. Department of Transportation (DOT) inspectors when they arrive. Be sure, though, that you can verify that each of the program's elements has been implemented successfully. Nothing could be worse than to present enforcement authorities with a written program that focuses on safety compliance but is not being adhered to.

Establish Accountability

Who should be accountable for the effectiveness of your hazmat-transportation safety-management system? In other words, who "owns" the program? Make that decision carefully--ownership implies responsibility, and the "accountable" individual is the one who might be indicted in the event of an enforcement action! Keep in mind, too, that the definition of "person" in the hazardous-materials transportation regulations applies not only to an individual person, but also to a firm, corporation, company, trustee, or joint-stock association.

In a small company, hazmat compliance may be just one of an employee's responsibilities. In some cases, the owner of the company may have assumed the role of compliance manager. Today's most effective management systems, however, usually include a corporate-level compliance manager who identifies all hazmat transportation regulations that apply to the company and its products. That manager then implements policies and procedures to ensure that the company complies with those regulations.

Corporate compliance managers should not be so overloaded with other responsibilities that they don't have time to review regulatory amendments and implement changes. All too frequently, we see stressed-out managers being tugged in every direction because they are responsible for compliance with regulations governing environmental issues, labor management, and industrial hygiene in addition to hazmat transportation safety.

The more effective safety programs also provide corporate managers with mid-level management support to handle day-to-day facility-related issues. These mid-level managers often have dual reporting functions to site managers as well as to the corporate safety-compliance director. The goal is to allow the "accountable" individual to be aware of all compliance-management related activities without having to micro-manage each facility.

In some companies, the hazmat compliance manager works within the logistics function, while in others, he or she is a part of the safety function. In most cases, I find that incorporating hazmat-transportation safety into the broader safety function enables the manager to use the resources required for maximizing control over compliance activities most effectively.

Regardless of the safety-compliance manager's functional location within the company, he or she should report to the highest possible level of corporate management. That's because top-level management commitment and an empowered hazmat-transportation manager both are prerequisites to an effective safety-compliance program. It's important, too, that everyone in the company have a positive, productive attitude toward safety--an attitude that comes from the top down.

Train Employees

Perhaps the single most important component of an effective hazmat-transportation safety program is training. According to the DOT, the majority of reported hazardous-materials accidents or releases are the result of human error. The agency therefore requires employers to provide specified levels of training for all "hazmat employees" within 90 days of their hiring or changing jobs, and at least every three years thereafter.

This may be difficult unless the company devises a corporate strategy for providing systematic training. In some larger companies, one or more employees may receive comprehensive regulatory training on all aspects of compliance; they then become responsible for providing in-house training to other hazmat employees with various function-specific jobs. For small companies, though, it may be more practical to send employees out to commercially available training courses that meet their specific needs. In any case, it is the employer's responsibility to make sure that training is adequate and effective--in other words, that it enables the hazmat employee to understand and perform his or her job as required by the applicable regulations.

A related issue is the need to make safety a top priority among all employees. One way to promote that is to make sure that corporate practices don't inadvertently conflict with safety requirements. For example, if a production manager's performance is rated solely on productivity, he or she might tend to de-emphasize safety in the quest for greater efficiency. You might consider including questions pertaining to safety compliance in performance evaluations for all employees--from the plant manager to the shipping clerks.

Provide Sufficient Resources

Once training plans have been made, the next step is to guarantee that resources needed to implement the safety-compliance program will be provided. That includes proper staffing, information sources and systems, and funding.

Some small companies are not able to dedicate sufficient in-house staff to manage their hazardous-materials transportation safety program, so they contract with an outside vendor to design, implement, and oversee the maintenance of their program. But their responsibilities don't end once they've hired a vendor. Although they may legitimately depend on the contractor's knowledge and skills to meet their business needs, they cannot contract away their accountability for training and compliance. Someone in the company must be cognizant of that responsibility and document the contractor's work to verify that the company's interests are being adequately protected. That individual, moreover, must be trained in the regulatory requirements in order to fulfill that responsibility.

More and more companies are depending on computer software to help them manage their hazmat safety and compliance programs. Some software systems can create and maintain a database of products in inventory, generate transportation documents and package markings, generate instructions for offering goods by different modes of transport, and track additional data such as information on shipments, incidents, accidents, releases, and employees' training records. Many programs available today even provide access to state and federal regulations on hazmat transportation and safety. The Internet also can be a valuable tool for a safety-management professional. Today, access to regulatory codes, research reports, government agency homepages, training materials, and a growing number of reference libraries is a mouse click away. In addition, various chemical-company trade associations offer downloadable information and forms to assist with hazmat-program management.

Unfortunately, a lack of funding often restricts the safety manager's ability to meet his commitment. This is an area where resourcefulness often is needed because it is difficult to show tangible results of your work. One of the most effective methods of gaining upper-level management's attention is to make comparisons between your company and others with similar business interests. I'm not talking about comparing stock quotes or quarterly earnings publications; I'm suggesting clipping newspaper articles on hazmat incidents. Take your concerns to the highest level possible and show actual scenarios involving your shipments that could have produced catastrophic consequences. A few recent articles regarding indictments of top executives as culpable parties and proposed penalties that include incarceration might produce some effects!

Enforce the Program's Provisions

Even after you feel that you have developed the most effective safety-compliance program possible, you cannot rest until you have ensured delivery of that program to every business unit within the company. The program should be implemented as a systematic management function that touches all aspects of your company's business. That's where the issues of communication and enforcement come into play.

Everyone who has even the remotest connection with hazmat transportation must be trained and aware of safety-compliance issues or the system will fail. Getting high-level and mid-level managers; transportation, warehouse, and dock employees; and even the company's lawyers on board may not be enough.

The problem is that many times, employees do not think of themselves as hazmat employees or do not even realize that the materials produced or distributed by the company are regulated. All too often, sales personnel will transport or ship samples to a customer--and, as luck would have it, that's the hazmat package that leaks on an airplane. Research engineers or scientists who want to share information with colleagues in a distant laboratory or get a second opinion on a new manufacturing process may simply box up chemical components and ship them via courier service or through the postal system. These small, undeclared packages of dangerous goods represent one of the most serious problems in transportation. When these shipments are discovered through random inspection or an accidental release, the DOT will take severe penalty action with accompanying press coverage.

This kind of dangerous ignorance can be avoided through proper training and communication of safety-compliance policies. Whether employees work regularly with or only have peripheral contact with hazardous materials in transportation, they must get the message that proper control of regulated substances is critical to their own safety and to that of the general public. In order to gain that control, a company needs to enforce its safety-compliance policies strictly. Deviations from those policies and procedures should be reflected in employees' performance evaluations.

Maintain Required Records

When a DOT inspector comes calling, it won't matter whether your company is small or large--both types will be required to verify that they are in compliance with hazmat safety regulations. Written records in any format that are kept in the normal course of business will have to be produced for inspection.

The DOT requires shippers to make available a wide range of documents. The shipper must be able to provide verification and justification for how it packages, labels, and describes its products, whether it offers one product or hundreds for transportation. All reports produced by the testing laboratory should be kept on file, including records of any laboratory analyses performed on the products and of the assignment of a classification according to the United Nations hazard-classification system. If the shipper is using a regulatory exception or has been granted a written exemption by the DOT, it should carefully document the circumstances under which it is authorized for use. DOT also often will request copies of shipping papers from past shipments.

DOT will use all available documents to assess the level of compliance of the shipper or carrier that is the target of a compliance and safety audit. The hazmat safety manager who can offer a written management program, complete with all records to demonstrate compliance, will make a favorable impression on the inspectors. A good management system will ensure that all required documents are maintained and are readily retrievable for inspection. The time to document your management system is now, not while the DOT inspector watches you thumb through your files.

Editor's Note: Logistics columnist John V. Currie writes, teaches, and conducts audits on hazardous-materials transportation and regulatory compliance.

Six Steps to a Successful Safety Program

Hazmat training expert John V. Currie recommends that shippers follow these six steps when designing a safety-compliance program.

1 Develop a written program that includes policies and procedures that have been endorsed by the highest possible level of management;

2 Establish accountability throughout the management chain;

3 Train employees to enable them to comply with the management program's requirements;

4 Provide sufficient resources, including money, information, and personnel, to enable employees to meet the program's goals;

5 Strictly enforce the program's provisions and bring all deviations to the attention of the appropriate level of management to ensure corrective action; and

6 Maintain the program and all associated records as though a U.S. Department of Transportation inspector were arriving at any moment.

Two Models for Managing Hazmat Safety Compliance

There's no single right answer to the question of where to place hazmat-transportation safety within the corporate structure. Some companies assign it to logistics or transportation, while others keep it under the umbrella of regulatory compliance. There are other options as well, and which way a company goes depends on many factors. Here are two examples of how different companies manage hazmat-transportation safety.

- One motor carrier that has maintained an excellent safety record manages hazardous-materials transportation within its corporate environmental, health, and safety department. The carrier considers hazardous-materials cargo acceptance and handling to be an important part of its overall safety-management program, and participation is required from everyone--from drivers all the way up to the corporate safety manager.

The department manager reports to the vice presidential level of the company. The corporate manager selects regional safety directors and gives them extensive training in all aspects of safety, including the handling of hazardous materials. The regional directors must answer to the corporate safety manager when accidents occur or violations are cited in their regions. The regional managers also are responsible for providing training to designated terminal personnel, who in turn train drivers and manage safety at the level where the rubber meets the road. Unsafe performance or instances of repetitive noncompliance may result in an employee's termination.

- A large international chemical manufacturer uses the team concept for managing its hazardous-materials transportation program. Each business unit within the company appoints a member of the team who works with the corporate hazmat-transportation manager. Team members all participate in joint training exercises. When it's time to make changes in their management program or in information or operating systems that support the compliance program, they meet to discuss how that could best be accomplished. This approach to management ensures that each of the business units feels "ownership" for the overall program, since they are involved in the decision-making.