2003 Safety and Health Performance Report

At Cooper, the safety of our employees is an integral part of our business. Cooper’s goal is to reduce employee injuries and inherent risks of our operations to the lowest extent possible. To that end, we seek to create a mindset where people believe it is possible to work injury free, regardless of their geographical location and type of manufacturing process. Across the organization, Cooper manages its risks through risk assessment-based safety and health management standards and other dedicated safety systems and metrics.

Seeking to create a mindset where people believe it is possible to work injury free.

 Safety Performance

During 2003, Cooper Industries continued to see improvements in overall safety performance and a consistent demonstration of safety as a core value at all levels of the organization.

During 2003, Cooper experienced a total recordable incidence rate of 4.2. This is a 9 percent improvement over the 2002 incidence rate of 4.6. These cases are defined as injuries requiring medical attention beyond first aid and are measured in cases per 200,000 man-hours worked.

These improvements indicate that the initiatives taken to drive continuous improvement in safety performance are impacting behavior. Our strategies for safety improvement focus on people and systems, with emphasis on:

• Continued improvement lowering accident rates and successfully controlling injury risks.
• Continued facility and division line management involvement in and accountability for safety management systems.
• Effective employee training and involvement in regulatory programs and risk awareness.

 Promoting a Safe Working Environment

The following safety initiatives were completed during 2003 to support the areas focused on safety improvement.

• Development of a Risk Rating Metric – a broader leading indicator of operational and manageable safety risks.
• Safety Leadership workshops in North America and Europe for division and facility management.
• Ergonomic workshops in North America for facility management, engineering and safety personnel.
• Integration of ergonomics and machine safeguarding into Cooper’s Manufacturing Variance Program.

 2003 Safety Milestones

• Cooper’s incidence rate of total recordable cases of 4.2 for 2003 was 42% below the National Bureau of Labor Statistics’ average for the manufacturing sector.
• Cooper’s incidence rate of lost time cases of 0.8 for 2003 was 53% below the National Bureau of Labor Statistics’ average for the manufacturing sector.
• 22 locations received Take Charge safety awards by working specific periods of time or man-hours without a lost time accident. The more significant performances were:

  6 Million Hours Cooper Lighting • Vicksburg, MS 2 Million Hours Cooper Crouse-Hinds • Roanoke, VA 1 Million Hours Cooper Hand Tools • Sumter, SC Cooper Lighting • Monterrey, Mexico Cooper Power Systems • Greenwood, SC 12 Years Cooper Power Systems • Franksville, WI 6 Years Cooper Crouse-Hinds • Roanoke, VA Cooper Wiring Devices • Phoenix, AZ

 SAFETY & HEALTH LEADERSHIP WORKSHOPS

Over 542 division and facility management personnel throughout Cooper have attended the Safety & Health Leadership Workshop. Workshops have been conducted in the United States, Mexico and United Kingdom, with attendees from Brazil, Canada, Costa Rica, France, Greece, Ireland, Italy, Netherlands and Taiwan. This workshop is designed as a orientation to Cooper’s safety systems for division and facility management who are new to Cooper or were recently promoted to these positions. The workshop also offers additional training in safety leadership techniques for experienced managers at both division and facility levels.

 TAKE CHARGE ANNUAL SAFETY AWARD PROGRAM

Cooper’s highest safety awards are presented through the Take Charge Annual Safety Award Program. Each year, the divisions submit an application for specific facilities which are then judged on the following criteria:

1. Safety Performance;
2. OSHME Performance; and
3. Innovative Safety & Health Program Narrative.