I guess that might motivate the other employees to be "more safe", especially if they know why the accident prone employee was let go, but can you safely let employees know why someone is terminated?
and I would far rather have a "positive (carrot) idea than a "stick" idea. I know of a company that has a drawing for a $100.00 gas card every other month when there is a very limited amount of reportable injuries in the previous period.