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VPP Programs Safety and Health a Priority at VPP Lockheed Martin Sites Result in Lower Injury and Illness Rates and Higher Worker Compensation Savings


Background:

Lockheed Martin’s participation in VPP began in 1994 when their Syracuse and Owego facilities in New York attained VPP recognition. The Syracuse site first achieved VPP Merit recognition in February 1994. Later that year, the Owego site attained OSHA VPP Star recognition. Lockheed Martin continues to be active in VPP and as of February 2008, the company had eight sites participating in VPP, including seven Star sites and one Merit site.

Success Impact:

Lockheed Martin Missile and Fire Control Site in Archbald, PA Reduces Injury and Illness Rates - Total Case Incidence Rate (TCIR) and Days Away from Work, Restricted, or Transferred (DART)

Lockheed Martin’s Missile and Fire Control site, located in Archbald, PA, currently employs approximately 606 full-time staff and 30 private contractors at the site. The facility operates 24 hours a day/seven days a week covering three eight-hour shifts. This facility performs metal fabrication for the U.S. military comprising of shipboard metal cabinet assemblies, mortar fin assemblies, Laser Guided Training Rounds (LGTR), and components for Laser Guided Bombs (LGB). The Archbald Missile and Fire Control is the first site to participate in OSHA’s VPP from this particular business division of Lockheed Martin.

The site’s three-year average Total Case Incidence Rate (TCIR) was 2.4 which was 65 percent below the 2005 Bureau of Labor Statistics’ (BLS) national average. The site’s three-year Days Away from Work, Restricted, or Transferred (DART) average rate was 1.6 which was 54 percent below the 2005 BLS industry average. The below table presents this site’s injury and illness rates’ average between 2003-2005 compared to BLS’ national average in 2005.

 
  TCIR DART
Site’s Injury and Illness Rates (3-Year Average) 2.4 1.6
BLS National Industry Average for 2005 6.9 3.5
Percentage (%) Below BLS 2005 Industry Average 65% 54%

Lockheed Martin VPP Maritime Systems Site in Moorestown, New Jersey Sees Workers’ Compensations Costs Plummet

Lockheed Martin’s Maritime Systems facility, located in Moorestown, New Jersey, has been an OSHA VPP Star site since 1999. At that time, this site’s workers’ compensation costs were over $740,000 per year.

However, after receiving VPP Star status, Maritime Systems decreased their workers’ compensation cost the following year to $188,869 per year – close to a 75 percent reduction. This site continues to maintain similar savings. These decreasing workers’ compensation costs show the impact that VPP has on reducing injuries and illness while helping the company’s overall bottom line. In 2006, the site’s workers’ compensation costs were about $94,000 annually – 646,183 less than the first year they became a VPP Star site.

The below chart, developed by Maritime Systems, presents the site’s increased workers’ compensation savings between 1999 through 2006.


Workers Compensation Costs
 
TEXT VERSION OF CHART DATA:

Chart Title: Workers Compensation Costs
Chart Type: Vertical Bar identifying the increased workers' compensation savings between 1999 through 2006.
Chart Elements: 8 - One bar for each year
Values:
  • 1999 = 740,121 (We became a VPP Star site in 1999.)
  • 2000 = 188,869
  • 2001 = 197,713
  • 2002 = 406,609
  • 2003 = 187,583
  • 2004 = 849,573 (In 2004, we had two very expensive injuries, one costing $339,000 and one costing $105,000.)
  • 2005 = 283,769
  • YTD 2006 = 93,938


Origin: Regions II Albany Area Office and Region III Philadelphia Area Office

Entered VPP: 1994

Industry: Manufacturing (NAICS Code 3329)

Employer: 1

Employees: 140,000

Source and Date: Mike Levy, Region II Albany Area Office and Chrysoula Komis, Region III Philadelphia Area Office (February 2008)