Yesterday, we talked about the impact and benefits of proposed revisions to the hazcom standard. Today, we look at the costs of compliance.
OSHA reports that the compliance costs associated with the proposed revisions to the hazard communication standard would generally be incurred by affected industries as one-time transition costs over the phase-in period of 3 years.
The costs primarily include reclassification of all chemicals and additional training of workers on the new label elements and MSDS format.
Once the transition period is over, ongoing annual compliance costs associated with the proposed revisions to the hazcom standard are expected to be the same or lower than under the existing standard.
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Breakdown of Costs
OSHA estimates that the cost of classifying chemical hazards in accordance with the Globally Harmonized System of Classification and Labeling of Chemicals (GHS) criteria and revising safety data sheets and labels to meet new format and content requirements would be $11 million a year on an annualized basis for an estimated 90,000 establishments.
The agency says that training for workers to become familiar with new warning symbols and the revised MSDS format under GHS would cost $44 million a year on an annualized basis for all affected workplaces.
OSHA also estimates annualized costs of $42 million a year for management to become familiar with the new GHS system and to engage in other management-related activities as may be necessary for industry’s adoption of GHS.
This brings the total transition costs over the 3-year phase-in period to approximately $97 million per year.
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How Can You Keep Up?
In addition to hazcom revisions, OSHA is proposing changes to provisions of a number of other standards, including standards for flammable and combustible liquids, process safety management, and most substance-specific health standards, to ensure consistency with the modified hazcom requirements.
How can you be sure to keep up with all these changes? There’s one very easy and affordable way—and that’s Safety.BLR.com.
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