Farah, a production engineer for Shine Manufacturing, joined the company about a year ago. Shine Manufacturing has 80 employees and they are mostly attached to the production division. The Chief Executive Officer (CEO) had instructed her to look into safety-related problems and promised to support her proposals for improvement. One day several employees complained to Farah that their work area was also used to store several hazardous chemicals and the chemical containers where not property labelled. Several days later, Farah discovered that the plant had not installed safety guards on all exposed machines.
Farah submitted her proposal for the improvement of safely and estimated that it would cost RM 50,000 to complete the necessary rectification works. However the CEO said that he would like to think it over and get back to her soon. Six months passed and nothing was done. Recently, a worker barely avoided serious injury and another fainted after working the work area that stored the chemical substances. She heard through the grapevine that someone had informed the regional officer of OSHA about these events.
Her information was confirmed the very next week when an OSHA inspector appeared at the plant to conduct an inspection. The inspector noted all the safety violations and advised that the fines would total RM 5,000. The inspector also informed her that if the problems were not corrected immediately the repeat violations would incur additional fines of RM 50,000 and a possibility of imprisonment.
REQUIRED:
a. Criticise the CEO's level of commitment to occupational safety for Shine Manufacturing. In your criticism, comment whether should there be a trade-off between the CEO's need for low expenses and the workers need for safe working conditions. (8 marks)
b. Recommend the institutional structure that could be put in place in Shine Manufacturing so that safety-related issues can be addressed expeditiously. (12 marks)
Suggested Answer:
a. The CEO is having a casual attitude toward occupational safety issues at Shine Manufacturing, which is translated into his lack of commitment to seriously consider the proposals. He does not 'walk the talk' by giving empty promise to Farah that he will support her proposals for improving work-related safety problems. His procrastination is approving the proposal indicates that he does not consider the current safety violations need to be address expeditiously. It appears that keeping cost low is his main priority even it involves compromising his employees safety and livelihood.
He is proven wrong when the OSHA inspector urges Shine to rectify the safety violations immediately failing which fines will be imposed. Hence, there should not be a trade-off between CEO's need for low expenses and the workers need for safe working conditions. Both aspects of business are equally important and the CEO must find ways to strike a balance between the two needs.
b.
1. ESTABLISHMENT OF SAFETY AND HEALTH COMMITTEE
Section 30 of the OSHA Act 1994 requires employers who employ more than 40 workers to establish a safety and health committee at their workplaces. Hence, it is imperative upon Shine to ensure that the committee is formed as soon as possible so as to avoid from being penalised under the Act. The Occupational Safety and Health Act 1994 imposes a penalty involving a fine of not exceeding RM 5,000 or six months imprisonment or both for failure to establish a safety and health committee at the workplace (MSOSH, 1999).
Functions of the Committee
The safety and health committee has two main functions as stipulated by Section 31 of the Act.
The main functions are:
- To review the measures undertaken to ensure the safety and health of persons at the place of work.
- To investigate any matters at the place of work - which a member of committee or an employee considers is not safe or is a risk to health and which has been brought to the attention of the employer.
In addition, MSOSH also suggested that the committee perform the following additional functions:
- To assist in the development of programs and safe system of work
- To review effectiveness of program.
- to inspect workplace
- To report unsafe conditions and acts,
- To recommend corrective actions,
- To review and recommend revision to safety and health policy,
- To investigate into any work-related accident, dangerous occurrence, poisoning or disease,
- To study trends of accidents/diseases
- To assist to organise promotional activities.
Membership of the committee
Shine Manufacturing can appoint members of the committee as follows:
- Chairman - ideally from the top management, for example, the Chief Executive Officer.
- Secretary - any committee members, preferably, the safety and health officer
- Management's Representatives
- Workers Representatives
Further, it is important for Shine to ensure that there is a fair representation in the committee. As such, all departments must be represented so that all issues pertaining to occupational safety and health at their respective workplaces are bought to the committees attention promptly.
Shine Manufacturing needs to consult workers representatives in the committee on matters pertaining to occupational safety and health. Likewise employees have to get involved and cooperate with the employers (MSOSH, 1999).
In addition, Shine Manufacturing has an obligation to inform the Department of Occupational Safety and Health of DOSH accidents and occupational diseases. In such cases, the Director General may hold an enquiry. The Department may serve improvement and prohibition notices to organisations, such as removing the danger or reducing the risk, ordering a complete shutdown of operations.
Frequency of meeting
Shine Manufacturing should hold more frequent safety and health committee meeting given the fact that its manufacturing site is classified as hazardous workplace.
Suggestions to have an effective committee:
- The Chairman and members should confine to safety and health matters only.
- All relevant information on occupational safety and health must be made available to members.
- Members must also be given relevant training.
- Minutes must be efficiently recorded and distributed.
- Speedy decisions and follow-up actions must be made on any recommendations from members.
- Top management and committee members should strictly work on the concept of consultations, cooperation, and full participation from all members.
- Proper meeting facilities must be made available for committee use.
- Members should preferably be given some form of recognition by top management.
2. APPOINTMENT OF A SAFETY AND HEALTH OFFICER
Although the law does not require Shine Manufacturing to have a health safety officer, the management team may want to consider appointing Farah as an officer-in-charge of safety and health matters in the manufacturing plant. She is appropriate for the job because she is the production engineer. However, the management team must also allow Farah to get appropriate training in health and safety aspects.
The above institutional structure is necessary given the fact that the CEO is having a relaxed attitude toward occupational safety issues. The OSHA committee, with fair representation and the appointment of safety and health officer can serve as pressure groups to the CEO to take safety-related issues more seriously. In addition, greater involvement employees in tracking occupational safety issues enables Shine Manufacturing to proactively identify any problem areas and to think of innovative and cost-effective solutions to overcome such problems.
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