Foster Farms Risk Manager Ernie Machado Named 2009 Risk Innovator in Manufacturing and Responsibility Leader
Sept. 16, 2009
Solving a decades-old problem in the poultry industry that often disabled workers with a unique testing program.
Ernie Machado, risk manager at Livingston, Calif.-based Foster Farms, is revolutionizing safety standards and practices in the high-risk poultry-processing business.
"I really believe that if Foster is successful in sustaining its post offer of employment testing (POET) program, it will change the poultry industry," said Gary Pohlmann, senior vice president, director of risk consulting in Marsh's Atlanta office.
Foster Farms, Machado's employer for the last 29 years, processes about 1.2 million chickens and turkeys daily. The seemingly unattainable Holy Grail for Machado and others in the poultry industry is how to reduce upper extremity accidents, which Marsh's Pohlmann said had long been considered "almost a cost of doing business." It's very tough work, Pohlmann added.
Machado's search for a solution gained traction when Marsh introduced him to Denver-based BTE Technologies Inc., which custom builds equipment and software that tests protocols and sets up clinics where applicants can be tested. Machado hired BTE and the POET program was kicked off in June of 2008 at the company's Livingston plant and it is now in place at all of the Foster Farm plants.
Like other major poultry processors, Foster Farms had worked hard to install the best possible ergonomics-friendly machines and workplaces.
But upper extremities repetitive motion injuries were highest on the injury chart.
Machado knew that if Foster Farms could better understand the physical requirements of a job and then hire job applicants who demonstrate the physical capacity of the job, the frequency of injuries--particularly in the first year of employment--would decrease.
What attracted Machado to BTE was that it had helped "dozens" of companies build protocol-testing equipment. BTE is a leader in functional evaluation technology and rehabilitation technology. If Machado could pull off a POET program at Foster Farms it would be a first in the poultry industry.
Machado underscored that the POET testing is open to all employees--incoming and those who have worked for more than a few years and aspire to a better position. With POET they now have a chance to scientifically demonstrate their ability to handle a different job.
"Prior to this, much of the job hiring and job advancement work, as well as expediting back-to-work cases, was done very subjectively," said Machado.
The Results
To launch the POET program, a six-month-long job-site analysis was completed, test protocols were developed and validated and testing was implemented. One of the early challenges was a conundrum--how can you afford to screen out potential new hires when it is already difficult to recruit qualified candidates?
The solution was to classify all jobs in three tiers of physical demand requirements, thereby facilitating selective placement. This procedure also reduced the potential risk of reverse-impact for females and older workers who can't handle the most physically demanding jobs.
In addition, an important benefit of the analysis identified a number of ergonomic risks. Machado worked with plant supervisors and BTE's clinical team to implement equipment and process changes to mitigate the risk issues.
Although both Foster's human resources department and organized labor leaders were skeptical of POET, they now are fully supportive of the program, said Machado.
Results at the one-year mark last June:
- 87 percent of applicants tested were placed in jobs that matched their physical capability to safely perform the job.
- 57 percent of incumbent employees tested were able to progress to more physically demanding jobs.
- 47 percent of incumbent employees were not transferred to jobs that would have placed them at a high risk of injury.
- In the year since POET was initiated, 100 percent of new claims have been closed.
- A 300 percent reduction in cost in the targeted injury category of new employees, again a huge reduction.
Machado is known to colleagues as very bright but also notably self-effacing. "He is fantastic to work with," said Connie Miller, vice president of business development at BTE. "He knows what he wants but he's flexible about how to get there."
Added Marsh's Gary Pohlmann: "Ernie is the most knowledgeable, well-rounded safety and risk management person I've ever dealt with."
--By Steve Yahn
Responsibility Leader: Ernie Machado
Ernie Machado asked the "responsible" question: Why does it have to be that way? Workers for poultry producers are prone to severe injuries, especially newly hired, young workers.
This problem was "almost considered the cost of doing business" but Machado, risk manager for Foster Farms, refused to accept the status quo.
After attempts to solve the problem using more standard ergonomic solutions, Machado found that testing new employees for the right kind of physical skills would reduce injuries and lower costs. Machado used testing expertise from BTE Technologies to find a post-offer testing process and then expanded its use to experienced workers who may have been looking for a better job within the company. Machado faced push-back from human resources and organized labor, but he wouldn't give up.
Now the successful results are in and all parties agree it was a classic "win-win."
Ernie Machado
Risk Manager
Foster Farms
Livingston, Calif.