Page 574 - Encyclopedia of Business and Finance

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OCCUPATIONAL Organizations with ten or more employees are subject
to OSHA regulation, and those not in compliance may
SAFETY AND HEALTH
suffer large fines. For instance, OSHA proposed signifi-
ADMINISTRATION cant fines against a steel firm where alleged safety viola-
(OSHA) tions cost two workers their lives. Since OSHA was
created, workplace fatalities have decreased by half, but
Prior to and during the early 1970s, workplace safety con-
every day about seventeen Americans die on the job.
cerns became an issue in the United States. No consistent
OSHA strives to create worker awareness of and com-
guidelines required employers to provide safe and health-
mitment to resolving workplace safety and health issues by
ful working environments. Workers were experiencing
collecting and studying data to identify workplace safety
job-related injuries, and too often those injuries were fatal.
and health problems, as well as achieving problem resolu-
To address these concerns, Congress enacted PL 91-596
tion through regulation, compliance assistance, and
(Occupational Safety and Health Act of 1970), which
enforcement strategies. To enforce regulations, OSHA
established the Occupational Safety and Health Adminis-
conducts unannounced, on-site inspections. Data on the
tration (OSHA), a federal agency headed by an Assistant OSHA Facts homepage indicate that 34,264 federal and
Secretary of Labor for Occupational Safety and Health.
56,623 state inspections were conducted by OSHA dur-
OSHA is functionally structured, with its major programs
ing Fiscal Year 1997, and 87,710 federal and 147,610
grouped into eight directorates (Administrative Programs, state violations were documented. For both federal and
Construction, Compliance Programs, Federal-State Oper-
state violations, approximately $147 billion in penalties
ations, Health Standards Programs, Policy, Safety Stan-
were assessed.
dards Programs, and Technical Support) as well as an While businesses agree that workplaces should be safe
Office of Statistics. Senior executive service members head
and healthy, many have experienced difficulty in meeting
these directorates and offices. Regional offices and subor-
OSHA standards. Because small business owners have
dinate area and district offices or service centers carry out found OSHA standards to be financially constricting and
various programs.
consider OSHA penalties harsh, a reform movement is in
OSHA’s mission, as set forth in the 1970 legislation, progress. The House of Representatives has been consid-
is to “assure…every working man and woman in the ering incremental reform of the OSHA Act. On 17 March
nation safe and healthful working conditions.” Therefore, 1998, two bills (H.R. 2877 and H.R. 2864) concerning
OSHA developed and implemented certain standards and OSHA’s consultation program and elimination of inspec-
enforcement procedures, as well as employers’ compliance tion and penalty quotas were approved; and on 27 March,
assistance plans to help employers achieve and maintain the Workforce Protections subcommittee heard bills rec-
healthful and safe workplaces. ommending peer review panels to oversee OSHA’s rule-

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