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Cummins Inc. 2007 Sustainability Report

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Our goal is to<br />

make <strong>Cummins</strong><br />

a best-in-class<br />

company when it<br />

comes to safety.<br />

Safety<br />

By many measures, <strong>Cummins</strong> does a good<br />

job of providing clean, safe and healthy<br />

workplaces for its employees. For example,<br />

the company-wide incidence rate in <strong>2007</strong><br />

was 1.5 – better than the target of 2.0<br />

and significantly better than our industry<br />

average. We had 30 sites go the entire<br />

year without a single reportable incident.<br />

Likewise, a severity rate of 0.56 was below<br />

the target of 1.0, while lost work days rate<br />

was just a bit above target.<br />

These are positive signs that <strong>Cummins</strong><br />

takes this issue seriously and is doing many<br />

of the right things. Still, we had too many<br />

major safety incidents in <strong>2007</strong> – including<br />

two deaths and a serious injury late in the<br />

year. Even a single major safety incident is<br />

one too many, and obviously a work-related<br />

death in our facilities is simply intolerable.<br />

The majority of those incidents can be<br />

directly traced to a lack of standard<br />

72 <strong>Cummins</strong> <strong>Inc</strong>. <strong>2007</strong> <strong>Sustainability</strong> <strong>Report</strong><br />

Providing a Safe Working Environment<br />

operating procedures in facilities or failure<br />

to enforce safety procedures, followed by<br />

workers being injured as a result of poor<br />

quality equipment.<br />

The most severe injuries have occurred<br />

when workers were performing non-routine<br />

work on manufacturing equipment without<br />

first following the necessary Lock Out, Tag<br />

Out procedures. Additionally, analysis has<br />

shown that contract workers in our facilities<br />

are less informed and less trained on our<br />

safety practices, resulting in a greater risk of<br />

injury to those workers.<br />

In addition to some specific actions aimed at<br />

improving safety in our China facilities, which<br />

suffered two fatalities late in <strong>2007</strong>, <strong>Cummins</strong><br />

will be implementing a number of actions<br />

and process changes across the Company.<br />

These changes are aimed at better<br />

educating our employees on key safety<br />

practices, identifying and implementing best

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