Will companies have to pay for compliance assistance?

September 7, 2010 by Fred Hosier

Posted in: cost of safety, In this week's e-newsletter, Latest News & Views, OSHA news, Voluntary Protection Program

The head of OSHA seeks the support of companies for a proposal to charge user fees for a voluntary safety program.

David Michaels wants to fund OSHA’s Voluntary Protection Programs (VPP) through user fees instead of federal government dollars.

Michaels made his case for the proposal in a speech to the annual national conference of the Voluntary Protection Programs Participants Association (VPPPA).

VPP recognizes employers and workers in the private industry and federal agencies that have implemented effective safety and health management systems and maintain injury and illness rates below national Bureau of Labor Statistics averages for their respective industries. VPP participants are exempt from OSHA programmed inspections while they maintain their VPP status.

Michaels told the conference that, with federal budget cuts, OSHA had to decide whether to put its limited resources into companies that “get it,” or those that continue to injure and kill workers.

As has been widely publicized, OSHA has chosen to put more funding into enforcement.

OSHA and Congress are looking into alternate funding sources for VPP, including user fees from participants. OSHA supports that funding idea.

Michaels warns that, without an alternate funding source, VPP isn’t likely to continue. A Senate version of OSHA’s FY 2011 budget contains no funding for the program.

“If we are to succeed in saving this program,” Michaels said, “we — OSHA and VPPPA together — need to present a united front on this issue.”

But it doesn’t appear that VPPPA will come over to Michaels’ thinking on the subject.

VPPPA has asked its members to send a letter to members of Congress asking to codify VPP and eliminate any idea of a user-fee system for the program.

With limited federal funds, what do you think is the solution? Let us know in the Comments Box below.

Also, see our poll on the SNA homepage on the topic of how OSHA should allocate its funding.

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Tags: David Michaels, federal funding, Voluntary Protection Program, VPP, VPPPA

6 Responses to “Will companies have to pay for compliance assistance?”

Sad State Says:
September 8th, 2010 at 2:17 pm
Let’s face it “Fees” is just government double talk for taxes, so now the government wants to tax the companies that have instituted a VPP program. The companies have already absorbed the cost of creating, implementing, running and maintaining these programs, now the government wants the companies to pay a tax on top of all the other costs for the privilege to have these programs. Sounds like another step closer to a Socialist state to me, oh that’s right I am just one of the little people and don’t understand what is best for me or the Nation, Nov 9, 2010 and Nov 13, 2012 can not get here soon enough, it is time to clean house and take our county back from the Social and Academic elite. We have lost more rights in the last Score of years than The Revolutionary war was fought for. “Of the People, By the People and For the People”, NOT “Of the Government, By the Government and For the Government”. Sorry, I got a little carried away but this has become real.
lgg Says:
September 8th, 2010 at 3:27 pm
If you step up enforcement and actually start hitting those companies who don’t get it with some substantial penalties, those penalties should offset VPP expense. You might even motivate the right behaviors with both the carrot and the stick. Afterall, any good safety program does the same. Why shouldn’t OSHA follow its own suggestion?
1st grade mathematician Says:
September 8th, 2010 at 5:07 pm
“Michaels told the conference that, with federal budget cuts, OSHA had to decide whether to put its limited resources into …”
I couldn’t believe my eyes when I saw Michaels referring to “federal budget cuts.” A qick search revealed OSHA’s budget increased from $486M in FY08, $513M in FY09, $564M in FY10, and proposed $573M in FY11. What cuts is he talking about?
Sad State Says:
September 9th, 2010 at 10:25 am
The Liberal definition of “cuts” is not getting more than was wanted, it has nothing to do with receiving more than the year before.
Steve Says:
September 15th, 2010 at 10:59 pm
Why should we be suprised? Our Secretary of Labor (Hilda Solis) staed in her confermation speech “Partnerships, alliances and Voluntary programs don’t work. MSHA and OSHA will get back to its fundemental roots of enforcement.” So…who does Michaels work for? RRRRIGHT…Hilda Solis! And who does Hilda report to….RRRRIGHT….Barry Oboma who just LOVES business and free enterprise. Keep drinking the Kool-Aid if you want change…change from Freedom to Controled.
Business group supports OSHA’s position on incentive programs | SafetyNewsAlert.com | Occupational safety and health news for workplace safety professionals. Says:
October 25th, 2010 at 6:01 am
[...] wants to use fees paid by participating companies to fund VPP in the future. The VPPPA wants federal funding of the program to [...]