2014 Teddy Award Winner

Quick to Act

Compass Group is lauded for its safety initiatives and for a return-to-work program that incorporates all of its business lines. 
By: | November 3, 2014 • 6 min read

A housekeeper at Memorial Health Systems — part of the food service and support services company Compass Group North America — was hard at work mopping a patient’s room one day. He misstepped, and before anyone could react, he was down on the ground with an injured lower back, shoulder and wrist.

Normally, slip and falls of this kind — consistently one of the leading causes of injury affecting workers of all stripes — can keep an employee out of work for long periods of time.

Not in this case.

Advertisement




As usual, the employee received medical treatment and was given all of the following restrictions: No pushing. No pulling. No lifting more than five pounds, and no prolonged standing.

Fortunately, Compass Group — which boasts over 10,000 different locations across the country, offering corporate food services, facilities management, janitorial services, and more — had implemented an innovative return-to-work (RTW) program in early 2014.

That successful program and related safety initiatives are why the organization is one of the 2014 Theodore Roosevelt Workers’ Compensation and Disability Management Award winners.

The RTW initiative offers dozens of modified duties — tasks calling for minimal physical effort so that associates can get back to work in short order.

Ron Ehrhardt, vice president of operational safety, Compass Group

Ron Ehrhardt, vice president of operational safety, Compass Group

“A big part of the effort was to find different types of altered duty able to bring our associates back to work just as soon as possible — just not in their original capacity,” said Ron Ehrhardt, vice president of operational safety with Compass Group.

“They could be a cashier if not a grill cook,” in the food service units on a temporary basis, for instance, he said.

The housekeeper’s case presented a more difficult challenge, Ehrhardt said, since the Environmental Services Unit (EVS) at the worksite already had two employees on modified duty. With productivity strained, the organization was hard-pressed to provide modified duty for yet another worker.

Management was quick to act, however.

It identified a modified work opportunity with the company’s Patient Transport Division, another Compass Group business line, which includes companies such as Crothall Healthcare, Eurest Dining Services, Morrison Healthcare/Senior Living, TouchPoint, and Wolfgang Puck Catering and Events.

By moving the housekeeper and tasking him with administrative work in another unit, the company was able to maintain its productivity as well as return the man to work in an expedited fashion.

During subsequent doctor visits, the employee’s restrictions were expanded, to allow him to lift up to 15 pounds and engage in limited standing.

At the same time, one of the two employees in the EVS unit who’d previously been on modified duty was released to full duty, so management was able to move the housekeeper back to his home location to complete his modified duty roster.

The result: No loss of workdays for the injured worker or anyone else in the EVS unit.

Impressive Results

The proof of the pudding is in the eating, as they say.

“The policy we wrote on return-to-work was implemented in March,” Ehrhardt told Risk and Insurance®. And whereas Compass had been seeing a slight increase in out-of-work days prior to the new policy, the company has seen a 7 percent net improvement in this metric during the past fiscal year.

And unsurprisingly, thanks to a bonus structure which rewards Compass units that do not incur any injury claims in the course of a year, the company’s operating units are largely compensation claims free.

Advertisement




“A full 75 percent of our accounts had zero claims in the last fiscal year, 2014, which is just ending,” said Palmer Brown, chief corporate investment & risk officer with Compass Group NA.

The return-to-work program was initiated through collaboration between the company’s safety leadership team and its TPA, Gallagher Bassett.

As part of the initiative, Compass Group implemented a RTW coordinator program. Based on specific criteria (i.e., severity, injury type and work status), cases are assigned to a RTW coordinator, a registered nurse, or closed.

For less complex cases, a RTW coordinator is given the goal of managing the RTW process and monitoring each medical visit to ensure that an injured worker gets back to full duty. The coordinator’s role is to expedite this process and communicate all pertinent information to the employer and adjuster.

A nurse is assigned to more severe cases. Similar to the RTW coordinator, the nurse works with the adjuster to get the associate back to work.

Safe Storage

Compass Group also recently implemented a “safe storage” plan, designed to eliminate unsafe situations that result in poor ergonomic lifting positions in storage rooms, janitorial closets, supply rooms, and walk-in refrigerators, among other areas.

“No two storage areas are the same, so the safe stacking and storage plan are meant to be used as a guide” to mitigate or eliminate injuries caused by heavy lifting, Ehrhardt said.

“We looked at our loss data and some of our associates were clearly getting injured — not because they were doing anything wrong, but because they were grabbing for items stored at the wrong shelf height,” he said.

For example, the safe storage model for a four-shelf unit is as follows:

• Shelf No. 1 (The top shelf) should have lighter, lesser-used items, lighter than 20 lbs.;

• Shelf No. 2 (second from the top) can be used for heavier items, but should be used mainly for the most frequently used items;

• Shelf No. 3 (second from bottom) is to be used for the heaviest, bulky, and difficult to handle items. The shelf should be outlined in yellow tape or paint; to indicate caution while lifting a heavy item; and

• Shelf No. 4 (the bottom shelf) should store lighter, less frequently used items as well as items with handles, which have not been stored on the middle shelves due to the ease of grasping and position.

In addition, he said, employees were getting injured removing heavy bags out of trash receptacles. Previously, trash bags were as large as 55 gallons, with no airflows to ease the task of pulling trash up and out. Thus, Compass Group decided to go with smaller-size vented receptacles that eliminated suction by roughly 50 percent.

These initiatives were implemented over the course of this year and have received numerous positive comments from account managers for ease of implementation and reduction of injuries.

Mike Recker, executive director with broker Willis Ltd. in Birmingham, England, applauded the new safety practices — particularly Compass’ latest return-to-work initiatives.

“A big part of the effort was to find different types of altered duty able to bring our associates back to work just as soon as possible — just not in their original capacity.” — Ron Ehrhardt, vice president of operational safety, Compass Group

In the seven years that Willis has been Compass Group’s global insurance broker, he said, “the management of risk, and specifically the safety of employees, have ranked high on the agenda at each and every Compass Group PLC board meeting,” he said.

“Under Brown’s leadership, Compass Group NA has achieved a clearer understanding of its risk profile and its injury loss drivers,” Recker added.

“We have [also] seen a closer working relationship with stakeholders including Compass TPA Gallagher Bassett as well as Willis, with a greater focus not just on cost management but how that cost is expended to achieve better results for its associates,” he said.

Advertisement




“The return to work initiatives [Compass recently] implemented are prime examples of the kind of innovation that has been introduced,” said Recker.

“Clearly, having senior inspirational leadership who are out in the field working along associates and the importance of this kind of continued engagement will enable the continued development and deployment of still more fresh innovative ideas,” Recker said.

_______________________________________________________

Read more about all of the 2014 Teddy Award winners:

11012014_02_cs_honda_150x150Building Value with Trust: Honda of South Carolina boosted its involvement with injured worker cases, making a positive first impression on employees and health care providers.

 

11012014_03_cs_harley_150x150The TLC Behind the Roar: A proactive and holistic approach to employees’ well-being has resulted in huge reductions in work-related injury claims for Harley-Davidson.

 

11012014_04_cs_compass150x150Quick to Act: Compass Group is lauded for its safety initiatives and for a return-to-work program that incorporates all of its business lines.

 

 

11012014_05_cs_coldspring_150x150Healing the Healers: Teddy Award winner Cold Spring Hills Center for Nursing and Rehabilitation proved that even small organizations can make a huge difference in their employees’ lives.

Janet Aschkenasy is a freelance financial writer based in New York. She can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

Risk Scenario

A Recall Nightmare: Food Product Contamination Kills Three Unborn Children

A failure to purchase product contamination insurance results in a crushing blow, not just in dollars but in lives.
By: | October 15, 2018 • 9 min read
Risk Scenarios are created by Risk & Insurance editors along with leading industry partners. The hypothetical, yet realistic stories, showcase emerging risks that can result in significant losses if not properly addressed.

Disclaimer: The events depicted in this scenario are fictitious. Any similarity to any corporation or person, living or dead, is merely coincidental.

PART ONE: THE HEAT IS ON

Reilly Sheehan, the Bethlehem, Pa., plant manager for Shamrock Foods, looks up in annoyance when he hears a tap on his office window.

Reilly has nothing against him, but seeing the face of his assistant plant operator Peter Soto right then is just a case of bad timing.

Sheehan, whose company manufactures ice cream treats for convenience stores and ice cream trucks, just got through digesting an email from his CFO, pushing for more cost cutting, when Soto knocked.

Sheehan gestures impatiently, and Soto steps in with a degree of caution.

“What?” Sheehan says.

“I’m not sure how much of an issue this will be, but I just got some safety reports back and we got a positive swipe for Listeria in one of the Market Streetside refrigeration units.”

Partner

Partner

Sheehan gestures again, and Soto shuts the office door.

“How much of a positive?” Sheehan says more quietly.

Soto shrugs.

“I mean it’s not a big hit and that’s the only place we saw it, so, hard to know what to make of it.”

Sheehan looks out to the production floor, more as a way to focus his thoughts than for any other reason.

Sheehan is jammed. It’s April, the time of year when Shamrock begins to ramp up production for the summer season. Shamrock, which operates three plants in the Middle Atlantic, is holding its own at around $240 million in annual sales.

But the pressure is building on Sheehan. In previous cost-cutting measures, Shamrock cut risk management and safety staff.

Now there is this email from the CFO and a possible safety issue. Not much time to think; too much going on.

Sheehan takes just another moment to deliberate: It’s not a heavy hit, and Shamrock hasn’t had a product recall in more than 15 years.

“Okay, thanks for letting me know,” Sheehan says to Soto.

“Do another swipe next week and tell me what you pick up. I bet you twenty bucks there’s nothing in the product. That swipe was nowhere near the production line.”

Soto departs, closing the office door gingerly.

Then Sheehan lingers over his keyboard. He waits. So much pressure; what to do?

“Very well then,” he says to himself, and gets to work crafting an email.

His subject line to the chief risk officer and the company vice president: “Possible safety issue: Positive test for Listeria in one of the refrigeration units.”

That night, Sheehan can’t sleep. Part of Shamrock’s cost-cutting meant that Sheehan has responsibility for environmental, health and safety in addition to his operations responsibilities.

Every possible thing that could bring harmful bacteria into the plant runs through his mind.

Trucks carrying raw eggs, milk and sugar into the plant. The hoses used to shoot the main ingredients into Shamrock’s metal storage vats. On and on it goes…

In his mind’s eye, Sheehan can picture the inside of a refrigeration unit. Ice cream is chilled, never really frozen. He can almost feel the dank chill. Salmonella and Listeria love that kind of environment.

Sheehan tosses and turns. Then another thought occurs to him. He recalls a conversation, just one question at a meeting really, when one of the departed risk management staff brought up the issue of contaminated product insurance.

Sheehan’s memory is hazy, stress shortened, but he can’t remember it being mentioned again. He pushes his memory again, but nothing.

“I don’t need this,” he says to himself through clenched teeth. He punches up his pillow in an effort to find a path to sleep.

PART TWO: STRICKEN FAMILIES

“Toot toot, tuuuuurrrrreeeeeeeeettt!”

The whistles of the three lifeguards at the Bradford Community Pool in Allentown, Pa., go off in unison, two staccato notes, then a dip in pitch, then ratcheting back up together.

For Cheryl Brick, 34, the mother of two and six-months pregnant with a third, that signal for the kids to clear the pool for the adult swim is just part of a typical summer day. Right on cue, her son Henry, 8, and his sister Siobhan, 5, come running back to where she’s set up the family pool camp.

Henry, wet and shivering and reaching for a towel, eyes that big bag.

“Mom, can I?”

And Cheryl knows exactly where he’s going.

“Yes. But this time, can you please bring your mother a mint-chip ice cream bar along with whatever you get for you and Siobhan?”

Henry grabs the money, drops his towel and tears off; Siobhan drops hers just as quickly, not wanting to be left behind.

Advertisement




“Wait for me!” Siobhan yells as Henry sprints for the ice cream truck parked just outside of the pool entrance.

It’s the dead of night, 3 am, two weeks later when Cheryl, slumbering deeply beside her husband Danny, is pulled from her rest by the sound of Siobhan crying in their bedroom doorway.

“Mom, dad!” says Henry, who is standing, pale and stricken, in the hallway behind Siobhan.

“What?” says Danny, sitting up in bed, but Cheryl’s pregnancy sharpened sense of smell knows the answer.

Siobhan, wailing and shivering, has soiled her pajamas, the victim of a severe case of diarrhea.

“I just barfed is what,” says Henry, who has to turn and run right back to the bathroom.

Cheryl steps out of bed to help Siobhan, but the room spins as she does so.

“Oh God,” she says, feeling the impact of her own attack of nausea.

A quick, grim cleanup and the entire family is off to a walk-up urgent care center.

A bolt of fear runs through Cheryl as the nurse gives her the horrible news.

“Listeriosis,” says the nurse. Sickening for children and adults but potentially fatal for the weak, especially the unborn.

And very sadly, Cheryl loses her third child. Two other mothers in the Middle Atlantic suffer the same fate and dozens more are sickened.

Product recall notices from state regulators and the FDA go out immediately.

Ice cream bars and sandwiches disappear from store coolers and vending machines on corporate campuses. The tinkly sound of “Pop Goes the Weasel” emanating from mobile ice cream vendor trucks falls silent.

Notices of intent to sue hit every link in the supply chain, from dairy cooperatives in New York State to the corporate offices of grocery store chains in Atlanta, Philadelphia and Baltimore.

The three major contract manufacturers that make ice cream bars distributed in the eight states where residents were sickened are shut down, pending a further investigation.

FDA inspectors eventually tie the outbreak to Shamrock.

Evidence exists that a good faith effort was underway internally to determine if any of Shamrock’s products were contaminated. Shamrock had still not produced a positive hit on any of its products when the summer tragedy struck. They just weren’t looking in the right place.

PART THREE: AN INSURANCE TANGLE

Banking on rock-solid relationships with its carrier and brokers, Shamrock, through its attorneys, is able to salvage indemnification on its general liability policy that affords it $20 million to defray the business losses of its retail customers.

Advertisement




But that one comment from a risk manager that went unheeded many months ago comes back to haunt the company.

All three of Shamrock’s plants were shuttered from August 2017 until March 2018, until the source of the contamination could be run down and the federal and state inspectors were assured the company put into place the necessary protocols to avoid a repeat of the disaster that killed 3 unborn children and sickened dozens more.

Shamrock carried no contaminated product coverage, which is known as product recall coverage outside of the food business. The production shutdown of all three of its plants cost Shamrock $120 million. As a result of the shutdown, Shamrock also lost customers.

The $20 million payout from Shamrock’s general liability policy is welcome and was well-earned by a good history with its carrier and brokers. Without the backstop of contaminated products insurance, though, Shamrock blew a hole in its bottom line that forces the company to change, perhaps forever, the way it does business.

Management has a gun to its head. Two of Shamrock’s plants, including Bethlehem, are permanently shuttered, as the company shrinks in an effort to stave off bankruptcy.

Reilly Sheehan is among those terminated. In the end, he was the wrong person in the wrong place at the wrong time.

Burdened by the guilt, rational or not, over the fatalities and the horrendous damage to Shamrock’s business. Reilly Sheehan is a broken man. Leaning on the compassion of a cousin, he takes a job as a maintenance worker at the Bethlehem sewage treatment plant.

“Maybe I can keep this place clean,” he mutters to himself one night, as he swabs a sewage overflow with a mop in the early morning hours of a dark, cold February.

Bar-Lessons-Learned---Partner's-Content-V1b

Risk & Insurance® partnered with Swiss Re Corporate Solutions to produce this scenario. Below are their recommendations on how to prevent the losses presented in the scenario. This perspective is not an editorial opinion of Risk & Insurance.®.

Shamrock Food’s story is not an isolated incident. Contaminations happen, and when they do they can cause a domino effect of loss and disruption for vendors and suppliers. Without Product Recall Insurance, Shamrock sustained large monetary losses, lost customers and ultimately two of their facilities. While the company’s liability coverage helped with the business losses of their retail customers, the lack of Product Recall and Contamination Insurance left them exposed to a litany of risks.

Risk Managers in the Food & Beverage industry should consider Product Recall Insurance because it can protect your company from:

  • Accidental contamination
  • Malicious product tampering
  • Government recall
  • Product extortion
  • Adverse publicity
  • Intentionally impaired ingredients
  • Product refusal
  • First and third party recall costs

Ultimately, choosing the right partner is key. Finding an insurer who offers comprehensive coverage and claims support will be of the utmost importance should disaster strike. Not only is cover needed to provide balance sheet protection for lost revenues, extra expense, cleaning, disposal, storage and replacing the contaminated products, but coverage should go even further in providing the following additional services:

  • Pre-incident risk mitigation advocacy
  • Incident investigation
  • Brand rehabilitation
  • Third party advisory services

A strong contamination insurance program can fill gaps between other P&C lines, but more importantly it can provide needed risk management resources when companies need them most: during a crisis.



Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]