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Maintaining a Safety Culture Company-Wide 

Safety is our highest priority on the job. It is essential to keeping our commitments to customers and maintaining our strong reputation as an employer. More than 460 people at UPS work full-time to protect the health and safety of their fellow employees. This is in addition to the health and safety committees that are part of the Comprehensive Health and Safety Process (CHSP) described below. Our primary safety strategies include: 

• Conducting regular and comprehensive training for employees working with vehicles, with airplanes, or in freight handling roles. We spent US$118.4 million (about 25 percent of our training budget) on teaching more than 150 formal safety training courses in 2012. Our employees devoted more than 3.8 million hours to safety training during the year. 

• Continually increasing the safety of our facilities and equipment. Many of the ideas for these improvements and upgrades come from our Comprehensive Health and Safety Process (CHSP) members. There are more than 3,000 CHSP committees in UPS facilities worldwide. The committees are run primarily by hourly employees, with management support. The CHSP committee framework is designed to allow for participation of approximately 10 percent of the workforce, who represent all UPS workers in their operations. It is ultimately up to every employee to help maintain a safe workplace. 

• Enforcing stringent policies governing working hours and rest hours, rest facilities, and leave times for people who drive and operate vehicles. These policies recognize the differences between the safety requirements for delivery drivers, long-haul drivers of freight vehicles, and airline pilots. Our policies conform to laws and regulations in the countries, states, and other political entities where we operate, and they are often included in our contracts with collective bargaining organizations. We regularly audit conformance to these policies and review their continued effectiveness. 

• Recognizing outstanding safety performers. In 2012, we honored 1,283 drivers with membership in the UPS “Circle of Honor” for reaching 25 years of driving without an avoidable accident. This group included 36 women. The Circle of Honor now includes 6,486 drivers who have achieved this remarkable record, including 132 women. 

We deeply regret the fatal auto accidents that claimed the lives of 11 UPS male employees in 2012. Whenever an accident occurs, we invest significant management attention in investigating the cause and improving our procedures and safety training if possible. In 2012, 19.2 percent of injuries in the U.S., Canada, and Puerto Rico involved women. 

Programs for Whole-Person Health 

In 2012, UPS provided health benefits for more than 722,000 employees, retirees, and their dependents. We administer several benefit plans to meet the health and wellness needs of various employee groups. In addition, we make contributions on behalf of employees in unionadministered plans. While there are variations in available plans, the following is an overview of UPS employee benefits: 

• Medical 
• Dental 
• Vision 
• Prescription Drug Program 
• Life Insurance 
• Supplemental Group Universal Life Program 
• Business Travel Accident Insurance 
• Sickness & Accident Insurance 
• Long-Term Disability with Inflation Coverage 
• Long-Term Care Insurance 
• Child/Eldercare Spending Accounts 
• Healthcare Spending Accounts 
• Cancer Insurance 
• Work-Life Balance Programs 

Our benefits programs also include education programs, tools, counseling, prevention, and risk-control programs in place to assist employees, their families, or community members regarding substance abuse and serious diseases. Topics include smoking cessation, health assessments, drug counseling, management of diabetes, and management of high blood pressure, among many others. The goal of these programs and tools is getting our employees to take wellness personally, by making informed choices in how they live and respond to wellness challenges. 

One of our strategies for achieving this is to match employees with people—including peers on the job—who can help them. 

• Our “health coaches” program gives eligible UPS employees access to registered nurses who provide confidential assistance in understanding healthcare issues and navigating the healthcare system. Health coaches helped more than 22,000 UPS employees and family members in 2012. 

• Our “Wellness Champions” program supports members of the Comprehensive Health and Safety (CHSP) committees. The program provides CHSP committee members with tools and resources that inform coworkers about health risks and encourage them to adopt healthy lifestyles to prevent or offset their health risks. 

• Our Employee Assistance Program (EAP) provides practical information, referrals to trained professionals, and support for a wide-range of work/life issues from financial concerns and childcare to substance abuse and bereavement. Since its inception in 2006, 598,666 UPS employees and/or household members have benefited from the EAP. 

Pilot and Aircraft Safety 

During 2012, we continued implementing recommendations from the Joint UPS-IPA Safety Task Force. The Task Force includes three members from the Independent Pilots Association (IPA), which represents most of the pilots flying for UPS Airlines, and three members from UPS management. Together they have been working with the Federal Aviation Administration, Boeing, Airbus, safety vendors, and other industry experts, examining more than 40 options for enhancing safety in airplane cockpits. We began implementing Task Force recommendations in 2011, and expect the majority to be completed by 2014. One example is the installation of new full-face oxygen masks on our MD- 11 aircraft. The masks replace a separate mask-and-smoke goggle combination that took about 20 seconds for pilots to put on. The new masks can be put on in just a few seconds and offer a significant safety advantage in an emergency. 

The Task Force and UPS continue to study emerging technologies that will allow crew members to safely land aircraft in fire situations. These include fire containment covers, temperature sensing systems, portable fire suppression for containers, and container mounted suppression systems. We will continue our exhaustive research and endeavor to make the right decisions to ensure the safety of our people, aircraft, and customer shipments.