Sounds a bit over the top to me. engineers aren't idiots, you should only have this level of paranoia if the public have access to the shop. The trouble with going this far is when you see something you think is unsafe but it hasn't got a warning label on it you could think "oh well, it doesn't say it's unsafe- must be ok then".
Mind you, saying that: I sharpened a knife for a collegue (and I mean real sharp- you could cut a ciggy paper with it) and he decided to see how sharp "sharp" was by running his thumb down the blade... guess I should have stuck a "caution sharp!" sticker on it. Claret everywhere. Pass the elastoplasts
I'm all for safety, but you can go too far- I swear I've seen a packet of KP peanuts with the rather helpfull cautionary warning "caution, may contain nuts" on it. Honest.
I love deadlines- I like the whooshing sound they make as they fly by.