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Case studies by industry
 (as published by Working Partners of the United States Department of Labor):
 

 Retail
 
The retail industry is a "total exposure" employer. Its sales force handles customers, products, and cash. Human resource issues are significant in the retail trade, and they are becoming even more so: the greatest employment gains have been in the retail and services industries.1
The retail industry is made up largely of small companies. Unfortunately, small companies are particularly vulnerable to workers who abuse alcohol and other drugs. A recent government survey indicated that 71 percent of illegal drug users are employed; 260 percent are with companies that employ 500 or fewer workers.3
Small businesses may be particularly vulnerable to problems of drug abuse among their employees because drug abusers will seek work at smaller firms where the likelihood of drug testing is slim.4
The retail industry traditionally draws heavily from the pool of 18- to 34-year-old job seekers, a segment of the American population that is at the heart of a nationwide increase in illegal drug use. Among young adults age 18-20, 18 percent are current illicit drug users; 12 percent of those age 21- 25 and 8 percent of those age 26-34 are also current drug users.5
The future work force is also at risk for alcohol and other drug abuse. Substance abuse among American teens is increasing at an alarming rateóup 33 percent in the past year; up 78 percent in the past three years.6
In the retail industry, approximately 11 percent of full-time employees admit to using illegal drugs within the past 30 days. Nearly 20 percent indicate that they have used illegal drugs sometime during the past year and almost 9 percent admit to heavy alcohol use.7
Employees in specific retail industries reported the use of alcohol and other drugs at the following levels:8
Substance abusers do not make good employees. A study conducted by the U.S. Postal Service of workers who had tested positive in pre-employment tests, but were hired anyway, revealed the following:
 
  • nearly 70 percent were involuntarily discharged in less than two-and-a-half years;
  • almost 60 percent were more likely to be heavy users of leave; and
  • by the 33rd month, those testing positive were absent about 66 percent more often than those who had tested negative.9
Many small retail businesses have looked closely at the cost of substance abuse in their workplaces versus the cost of setting up a prevention program. A partner in a Los Angeles law firm told dealers at a National Automotive Dealers Association conference, "You have a choice; You obviously don't need to [put a drug policy in place]. The question is, what are the costs for a company not having a policy? If you put a dollar figure on what it costs you in terms of one workers' compensation injury, that could be worth about $40,000.10
Some sectors of the food service industry have experienced the benefits of workplace substance abuse programs. According to a survey of 400 Hardee's fast-food establishments, 23 percent said they had initiated substance abuse prevention programs. Of those, 57 percent reported a positive financial impact, including reduced employee turnover and absenteeism.11
From large international corporations to relatively small establishments, more and more retail companies are implementing and maintaining substance abuse programs to ensure that their work forces are productive, their workplaces are safe, and the success of their businesses are not hindered by substance abuse.
Hospitality Industry
 

The hospitality industry is as diverse as any industry in America. Its workers are made up of professionals with college educations and entry level workers with and without high school diplomas. And, like most other industries made up primarily of small businesses, it also is at risk for substance abuse among its workers.

Small businesses may be particularly vulnerable to problems of drug abuse among their employees because drug abusers will seek work at smaller firms where the likelihood of drug testing is slim.1
The hospitality industry traditionally draws heavily from the pool of 18- to 34-year-old job seekers, a segment of the American population that is at the heart of a nationwide increase in illegal drug use. Among young adults age 18-20, 18 percent are currently illicit drug users; 12 percent of those age 21-25 and 8 percent of those age 26-34 also are current drug users.2
The future work force is also at risk for alcohol and other drug abuse. Substance abuse among American teens is increasing at an alarming rateóup 33 percent in the past year; up 78 percent in past three years. 3
The hospitality industry, which includes hotel/motel companies and eating and drinking places, as well as those companies related to them, has experienced high rates of substance abuse among its workers. By specific occupations, hospitality industry workers report substance abuse at the following levels:4
Overall, in the hotel/motel industry, more than 9 percent of employees admit to using illegal drugs within the past 30 days. Seventeen percent indicate they have used illegal drugs sometime during the past year, and nearly 10 percent admit to heavy alcohol use.5
Among employees at "eating and drinking places," over 16 percent admit to using illegal drugs during the past month, while 28 percent say they have used such drugs sometime during the past year. More than 15 percent admit to heavy alcohol use.6
Substance abusers do not make good employees. A study conducted by the U.S. Postal Service of workers who had tested positive in pre-employment drug tests, but were hired anyway, reveal the following:
 
  • nearly 70 percent were involuntarily discharged in less than two-and-a-half years;
  • almost 60 percent were more likely to be heavy users of leave; and
  • by the 33rd month, those testing positive were absent about 66 percent more often than those who had tested negative.7
Workplace substance abuse prevention programs have yielded impressive results in the hospitality industry. When Ramada Corporation introduced an employee assistance program at its hotels and restaurants, absenteeism among its participants was reduced by 50 percent, and accidents fell by 82 percent.8
A study of 700 substance-abusing employees in the hospitality industry who remained on the job after receiving treatment through an employee assistance program produced the following results:
 
  • job-related injuries fell from 9 percent to 5 percent;
  • tardiness was decreased from 39 percent to 7 percent;
  • absenteeism dropped from 42 percent to 5 percent;
  • job errors fell from 32 percent to 6 percent; and
  • failure to complete assigned tasks dropped from 23 percent to 5 percent.9
According to a survey of 400 Hardee's fast-food establishments, 23 percent said they had initiated substance abuse prevention programs; 57 percent of those companies reported a positive financial impact, including reduced employee turnover and absenteeism.10
From large international corporations to relatively small establishments, more and more hospitality industry companies are implementing and maintaining programs to ensure that their work forces are productive, their workplaces are safe, and the success of their businesses is not hindered by substance abuse.
Manufacturing
 
The demand on the manufacturing industry is projected to increase and as a result, productivity is projected to go up in the process. 1
The manufacturing industry consists primarily of small businesses. Unfortunately, small companies are particularly vulnerable to workers who abuse alcohol and other drugs. A recent government survey indicated that 71 percent of illegal drug users are employed2; 60 percent are with companies that employ 500 or fewer workers.3
Small businesses may be particularly vulnerable to problems of drug abuse among their employees because drug abusers will seek work at smaller firms where the likelihood of drug testing is slim.4
The manufacturing industry traditionally draws heavily from the pool of 18- to 34-year-old job seekers, a segment of the American population that is at the heart of a nationwide increase in illegal drug use. Among young adults age 18-20, 18 percent are current illicit drug users; 12 percent of those age 21-25 and 8 percent of those age 26-34 are also current drug users.5
The future work force is also at risk for alcohol and other drug abuse. Substance abuse among American teens is increasing at an alarming rateóup 33 percent in the past year; up 78 percent in the past three years.6
Both the nondurable and durable goods manufacturing industries experience significant substance abuse. A recent Federal Government survey found that approximately 15 percent of workers in both nondurable goods and durable goods admit to illegal drug use sometime during the past 12 months. Seven percent of nondurable goods workers and nearly 8 percent of workers in durable goods report heavy alcohol use.7
By specific industries, workers in the manufacturing of durable goods report illegal drug use levels as follows:8
Substance abusers do not make good employees. A study conducted by the U.S. Postal Service of workers who tested positive in pre-employment tests, but were hired anyway, revealed the following:
 
  • nearly 70 percent were involuntarily discharged in less than two-and-a-half years;
  • almost 60 percent were more likely to be heavy users of leave; and
  • by the 33rd month, those testing positive were absent about 66 percent more often than those who had tested negative.10
A survey conducted by the Project for Substance Abuse Assistance, a coalition of manufacturing industry associations primarily in the print and publishing sectors, found it was fairly easy to purchase alcohol and illegal drugs while at work. Overwhelmingly, respondents indicated that "more information on alcohol and drug problems" would be the most helpful way to assist co-workers with substance abuse problems.11
The National Association of Manufacturers (NAM), for example, has taken a leadership role by providing drug-free workplace information to its members. NAM's custom-designed drug-free workplace kit was developed to help manufacturers with substance abuse problems. The kit contains information resource lists, sample policies, and success stories about companies that have implemented successful programs.
From large international corporations to relatively small establishments, more and more manufacturing firms are implementing and maintaining substance abuse programs to ensure that their work forces are productive, their workplaces are safe, and the success of their businesses is not hindered by substance abuse.
Wholesale
The wholesale industry consists primarily of small businesses. Unfortunately, small companies are particularly vulnerable to workers who abuse alcohol and other drugs. A recent government survey indicated that 71 percent of illegal drug users are employed;160 percent are with companies that employ 500 or fewer workers.2
Small businesses may be particularly vulnerable to problems of drug abuse among their employees because drug abusers will seek work at smaller firms where the likelihood of drug testing is slim.3
The wholesale industry traditionally draws heavily from the pool of 18- to 34-year-old job seekers, a segment of the American population that is at the heart of a nationwide increase in illegal drug use. Among young adults age 18-20, 18 percent are current illicit drug users; 12 percent of those age 21- 25 and 8 percent of those age 26-34 are also current drug users.4
The future work force is also at risk for alcohol and other drug abuse. Substance abuse among American teens is increasing at an alarming rateóup 33 percent in the past year; up 78 percent in the past three years.5
In the wholesale industry, 8 percent of full-time employees admit to using illegal drugs in the past month. More than 15 percent indicate they have used illegal drugs sometime during the past year, and approximately 10 percent admit to heavy alcohol use.6
Employees in specific sectors of the wholesale industry report the use of alcohol and other drugs at the following levels:7
Substance abusers do not make good employees. A study conducted by the U.S. Postal Service of workers who tested positive in pre-employment tests, but were hired anyway, revealed the following:
 
  • nearly 70 percent were involuntarily discharged in less than two-and-a-half years;
  • almost 60 percent were more likely to be heavy users of leave; and
  • by the 33rd month, those testing positive were absent about 66 percent more often than those who had tested negative.8
The wholesale industry may be particularly attuned to the costs and risks associated with workplace substance abuse. A reported increase in workplace injuries was centered largely in "wholesale and retail trade, finance, and service industries.9
Peck Foods of Milwaukee, Wisconsin, reported an overall 50 percent decrease in injury rate, a 15 percent decrease in unexcused absenteeism, and a 75 percent drop in property damage incidents during the first year of the company's substance abuse prevention program.10
From large international corporations to relatively small establishments, more and more wholesale companies are implementing and maintaining programs to ensure that their work forces are productive, their workplaces are safe, and the success of their businesses are not hindered by substance abuse.



 

 National Institute on Drug Abuse (NIDA) study found that drug-using employees were:

2.2 times more likely to request early dismissal or time off
2.5 times more likely to have absences of eight days or more
3 times more likely to be late for work
3.6 times more likely to be involved in a workplace accident
5 times more likely to be injured in an accident off the job, which affected attendance or job performance
5 times more likely to file a workers' compensation claim
   
Source:
 Backer, Thomas E,  Strategic Planning for Workplace Drug Abuse Programs, National Institute on Drug Abuse (NIDA), 1987, p.4.



The United States Postal Service

The US Postal Service would have saved $52 million by 1989 had it screened out all the drug-positive postal service applicant's in 1987.  By June of 1991 this figure more than doubled ($105 million).  Employees testing positive on their pre-employment drug tests were 77% more likely to be fired in the first three years of employment, and were absent from work 66% more often.  37% of the positive testers had been disciplined one or more times during their three years of employment verses 19% of the negative testers.
   
Source:
 Pre-Employment Drug Testing:  Associations with EAP, Disciplinary, and Medical Claims Information, United States Postal Service Personnel Research & Development Branch Office of Selection and Evaluation, July 1992.

Southern Pacific Railroad

 Southern Pacific implemented reasonable-suspicion testing  with a 22.9% positive rate in 5 months.  Three years later, the rate dropped to 5.8%.  Testing was expanded to include post-accident and as a part of a regularly scheduled physicals.  Personal injuries and accidents have dropped dramatically: 71% for injuries and 88% for train accidents due to human failure.
   
Source:
 Taggart, Robert W.  "Results of the Drug Testing Program at Southern Pacific Railroad," Drugs in the Workplace:  Research and Evaluation on Data, National Institute on Drug Abuse (NIDA), Rockville, MD, 1987, pp. 97-108.