Safety And Health Also Called As Occupational Safety

Published Date: 02 Nov 2017

1.0 INTRODUCTION

Employee Safety and Health also called as Occupational Safety and Health (OSH). According to R. Wayne Mondy, the definition of ‘safety’ in this term is protecting employees from injuries caused by work-related accidents while the definition of ‘health’ is employees’ freedom from physical or emotional illness.

Safety and health on employees started to be concerned by the society in 1833, HM Factory Inspectorate which formed in UK inspect factories and ensure the child textile workers were protected by the company from injuries. A Royal Commission in UK published its findings on the state of conditions for mining workers that environment that the workers had to work in is inexcusably dangerous and high frequency of accidents. The findings initiated public angers rose Mines Act of 1842 and set up an inspectorate for mines and collieries caused many examinations and safety improvements. The first social insurance legislation in 1833 and the first worker’s compensation law in 1884 were instated by Otto Eduard Leopold, Prince of Bismarck.

Malaysian Occupational Safety and Health started with steam boiler safety and followed by machinery safety, industrial safety, boiler safety, hygiene and occupational safety and health that cover every work sectors (Mega OSH Solution). Malaysia has implemented law to protect employees’ safety and health which is Act 514, Occupational Safety and Health Act 1994. "It is an act to make further provision for securing the safety, health and welfare of persons at work, for protecting others against risks to safety or health in connection with the activities of persons at work, to establish the National Council for Occupational Safety and Health, and for matters connected therewith." (Law of Malaysia, 2006)

The importance of OSH has been a vitalpart for every organization because it is the key to high productivity and a more proficient workforce. The purposes of OSH are to improve efficiency and safe working conditions of employees. Once the working condition is safe and healthy, employees will give their full efforts to increase their performance. Thus, it brings productivity to higher level for organization. Besides, OSH can reduce the absenteeism of employees since the organizations are taking responsible on the safety and health of working conditions by giving guidelines, training and assistance to workers who work in sectors that consist of risks such as petroleum oil and gas sectors.

The objectives that we doing this research study is to understand, discuss and gain knowledge on theories or concepts of OSH.We also analysed how PETRONAS implemented OSH practices into their activities and the effects toward the organization.

2.0 Content (Theory)

2.1 Theories and concepts associated with the employee safety and health:

Occupational Safety And Health Administration (OSHA)

The Occupational Safety and Health Act of 1970 created Occupational Safety and Health Administration (OSHA). OSHA establish in United State to ensure worker safety and health to create a better working environment. In Malaysia, the OSHAenforced by the Department of Occupational Safety and Health (DOSH), a government department under the Ministry of Human Resources Malaysia to provide a safety and health standards for almost all workers in organization and ensure workplace free from a hazardous and harmful environment.The missions of OSHA is toguarantee and ensure safe and healthful working condition toemployees by setting and enforcing a standard or guidelines by providing training, education and assistance to employees. In the same time, the OSHA also secures the welfare among all employees.

Employee Assistance Programs (EAPs)

The EAPs is a comprehensive employee benefit program implemented in organization that designed to help employees to overcome the health related problems that may impact their attendance or work performance. The most basic EAPs service is counseling for various issue that affecting the emotion and mental health of employees. EAPs counselor typically provide the counseling, support and assessment to employees that experience the health or emotional problem. Examples of problem are alcoholism, drug abuse, divorce and others.The EAPs is important to organization because EAPs can help organization to lower the medical costs, reduced the turnovers and absenteeism, and increase the productivity of employees.

Wellness Programs

Wellness program is program offered by organization to help employees to prevent health problems. This program is a clearly and astute business investment because the programs that stimulating the employees regulate their healthy lifestyle in order to having a positive benefits in term of health costs, enhancing performance and quality of life. Many organizations recognize that taking this step able to build and maintain a healthy workforce. Preventive is a key point of philosophy for getting good healthy. So, the organization can starts the wellness programs such as set up of gym centre, smoking cessation, or stress management. Many organizations also hire a full-times wellness coach when applying wellness programs in order to give aprofessional management to the health of employees. The wellness programs that give the effective health and lifestyle management believed that able to cut down the health-related costs of employees and lower the absenteeism among the employees.

Job Hazard Analysis (JHA)

JHA ismultistep safety management tool that designed to study and analyze the tasks or jobs and then break down the tasks into sequence of steps for identification of potential hazards in order to prevent or control of these hazards that are determined. The JHA process starts with the analysis of particular tasks. After that, the tasks will be break down into steps and prepare for identification of potential risk or hazards associated with the particular jobs or tasks. After the hazards are identified, the tasks will break down into few steps, the workers are provided with the documents or procedures to eliminate the hazards and complete the tasks at the same time. The main goal of JHA is to prevent job-related injuries and illness. The organization can achieve the JHA goal this goals in by educate the workers to handle or eliminate the hazards associated in their works, install engineering control, provide safe work procedures and prescribing appropriate personal protective equipment.

2.2 Contribution and significance of employee safety and health within the work organization

The Human Resource is the key factor toward the successful of organization. For example, The Steve Jobs is best known as "Father of Digital Revolution" since he comes out with many creative and innovative products for Apple Inc. So, the sustainability of being a successful and powerful organization always related with the physical and psychological safety and health of the employees. When the employees provided with a security and safety working environment, high employee’s satisfaction toward the working environment will reduce the turnover rate of organization. So, the organization able to sustains the potential employees in organization in order to come out with the creative and innovative products.

In the same time, the appreciation of organization towards the employees is observed by the careful attention to the safety and health of employees. When the organization provides the training, education or assistance to employees (theory OSHA), appreciation of educational effort of organization can study in economic and social-humanistic goals. The economic goals include employees get the knowledge, skills to perform the works, diminishing of work accidents, provide of job securities, reduction of maintenance and repair expenses, and prevention of material wastage. On other hand, the social humanistic goals are motivation towards the employees and improvement of sense of securities of employees. From, economic and social humanistic goals, the employees believed that they able toperform the works more effectively and efficiently after getting the training.

The Employee Assistance Programs (EAPs) and Wellness program are the programs to prevent and overcome the health-related problem not only reduce the absenteeism among the employees but the programs also help to enhance performance, productivity and morale among the employees in the same time. EAPs and wellness program that help the employees to maintain the healthy lifestyle and fitness able them to possess a nimble thinking in order to apply in their works or the employees can react faster with the change of trend of the products. So that, the employees able to create the creative and innovative products for organization. Furthermore, the programs also help to reduce the stress among the employees in order to create a stress-free and relaxed working environment to employees. In stress-free environment, the employees believed that they able to maximize their potential to work best.

So, the employee safety and health programs are very important to organization since the programs guarantee the human resource of organization in order to make sure the organization can operate effectively and efficiently to achieve the organization goals.

3.0 CASE DEVELOPMENT (PRACTICE)

3.1 Background of PETRONAS Company

In July 1882, British Resident discovered the first oil source in Baram, Sarawak. Later in the early twentieth century, petroleum was slowly replacing tin and rubber to become main commodities during British colonialism in Malaya. A lot of onshore drilling activities were going on within Sarawak shores. In 1960s, advance technology make it possible to discover oil resources off Sarawak shores and more oil reserves were discovered in Terengganu offshore in 1970s. Government of Malaya gave concessions to foreign oil companies for them to explore the oil while they paid taxes to government in return. These all changed when the government introduced the Petroleum Development Act 1974 and established the first and only national oil company, PETRONAS in Malaysia.

The establishment of PETRONAS was forced by the six-month oil embargo implemented by Middle Eastern countries on FOCs in 1971. The result of this oil embargo was a very high oil price due to shortage of oil production in many countries. The price of oil was US$1.50 then rose to US$2.28 in 1972. A great rise occurred when the Isreali War in 1973 and OPEC’s oil embargo boost the price to US$12.00. The Malaysia’s government wishes the establishment of PETRONAS can manage this limited and exhaustible resource perfectly and satisfactory instead of only contribute to economic growth.

The full name for PETRONAS is Petrolium Nasional Berhad, founded on August 17,1974 and fully owned by the Government of Malaysia. PETRONAS is a company mainly dealing with the oil and gas resources in Malaysia and responsible of developing and adding values to these resources. Since 1974 until today, PETRONAS already developed to become a integrated international company, a preferred business partner by international companies and host countries where we operate. PETRONAS has its business in 35 countries, more than 100 wholly owned subsidiaries and more than 40 joint venture companies. Although PETRONAS expanding gradually but all of its businesses are never run out from the base of add values to their oil and gas business which mean PETRONAS company always upholding its vision, "To be a leading oil and gas multinational of choice." Mission of PETRONAS include petroleum is our core business, our primary responsibility is to develop and add value to this national resources and contribute to the well-being of people and the nation. (Wikipedia, 2013)

The current business of PETRONAS can be divided into five major parts. Firstly is exploration and production(E&P). PETRONAS Carigali Sdn. Bhd., one of PETRONAS’ subsidiary is trying to develop and use new technologies to augment the oil and gas reserves. Second, Oil and Petrochemicals. PETRONAS owned four refineries and these refineries can produce more than 448,000 barrels of petroleum per day. Another subsidiary, PETRONAS Chemicals Marketing Sdn. Bhd. plays the role to market and sell those petrochemical products. Next, Gas and Power business in PETRONAS involved production, marketing and trading of Liquefied Natural Gas(LNG) and also the power generation and utilities business. Fourth, PETRONAS also engaged in logistics and maritime business which in-charged by MISC Berhad. MISC adds value to the petroleum and LNG business by providing transport and logistic support for international markets. Last but not least, PETRONAS pressed on Technology and Engineering since they hope technologies can improve the performance of their businesses.

PETRONAS wrote a great history in Malaysia’s oil and gas industry. Its first gas station was set up in Taman Tun Dr Ismail, Kuala Lumpur. In 1985, it had the first fertilizer and liquefied export while first time overseas operation was occurred in Myanmar during 1990. In 1994, PETRONAS has its first subsidiary, Petronas Dagangan Bhd listed on Kuala Lumpur Stock Exchange(KLSE) and now PETRONAS already have three subsidiaries listed on KLSE. PETRONAS finally moved its headquarter from Dayabumi Complex to Tower 1, Kuala Lumpur Twin Tower in 1997. (Petronas, 2012)

Fortune Magazine, the most convincing global business magazine in the world granted PETRONAS as the 13th most profitable company in the world and most profitable in Asia. Fortune ranks PETRONAS as the 95th largest company in the world in 2008 and 80th in 2009. These awards urge on PETRONAS to be more aggressive and proactive to achieve its vision and mission of leading oil and gas industry in the world. (Wikipedia, 2013)

3.2 Human Resouce Practice on Employee Safety and Health in PETRONAS

PETRONAS make commitments to continuous growth and sustainable development for the future. PETRONAS find out the best way to balance the economic, environment and social considerations when making business decisions. Therefore, PETRONAS implement Health, Safety and Environment (HSE) into every aspect of their operations.

Health, Safety and Environment (HSE)

Health, Safety and Environment consist of integrated of ISO 14001 and OHSAS 18001 standards. It is central of a business make commitment to continuous growth and sustainable development for the future. In PETRONAS, HSE is enhanced through restricting of Group Health, Safety and Environment Division (GHSED) to provide business greater accountability. Besides, a framework was established called Mandatory Control Framework (MCF). It is a set of mandatory requirements for all operating units and has become culture in the corporation.

In this infrastructure, PETRONAS HSE has three main goals which are zero accidents, no health problem due to the operation and no irreversible impairment of the environment attributable to the operation.

Zero Accidents

PETRONES set zero accidents as their target. However, PETRONAS has also established Emergency Response Team (ERT) just in case of emergencies. ERT is a team which is specially trained in dealing with hazard such as chemical accidents and explosions. They are get ready over 24 hours to administer help. ERT also work closely with local fire and hospital.

Besides that, Advance First Responders (AFR) is first aider who able to handle the incident related to chemical before the arrival of professional. While waiting the professional, they have to make early assessment of the victim. Last, they are required corporate with paramedics and send the victims to the Occupational Health Team at the Clinic onsite. The OH team is led by OH Physician and a team of trained medical to get over 24 hours for the first aid and medical emergency service.

Last, in order to make sure that they are well prepared all the time, drills and Emergency Response Preparedness Trainings is conducted from time to time.

No health problems due to operations

PETRONAS Occupation Health Department responsible provides a healthy working environment by raising the awareness among the employees through the talk and publications. A medical clinic is also available within the working area. Others efforts by this department includes training programs such as Health Risk Assessments (HRA) as well as data collection and analysis.

According to Wikipedia (2012), "HRA is a health questionnaire, used to provide individuals with an evaluation of their health risks and quality of life". The main objectives of HRA are to assess health status, estimate the level of health risk and provide feedback to motivate the employees to change their behavior in order to reduce the health risk. One of the benefit of conducting HRA is employers are allowed to evaluate the change of health behavior and health risk from time to time.

No irreversible impairment of the environment attributable to the operations

Environmental friendly is the popular issue in the oil and gas industry. Therefore, Verbund concept is applied into the production to protect the environment. Verbund is a concept of linked various type of manufacturing plants with a network of pipes. These pipes are using to send the by-products whereby it can be served as others raw material. Besides, the excess heat also has been reuse. It converted into the steam instead of release to the environment.

3.3 Advantages of HSE

Implementation of proper Health, Safety and Environment (HSE) as per requirement of ISO 14001 and OHSAS 18001 standards often having a positive effect on investment, sales growth, competitive advantage, employee motivation and so on.

3.3.1 Reducing the risk of accidents

People believe that all incidents can be prevented through HSE training. Effective HSE training help employees learn the knowledge and skills that needed to perform their jobs safely. For instances, through the Emergency Response Preparedness Trainings, employees will know better the potential hazards and proper responses to the undesired events. According to the PETRONAS PE2011 Sustainability Report, Fatal Accident Rate (FAR) was decreasing year to year from 2007.

3.3.2 Environmental Friendly

HSE is playing a significant role in protecting the environment. HSE guide the business conduct their operations through efficient use of raw materials and natural resources, directly minimize the wastage and damage to the environment. For instances, in years 2011, PETRONAS proved that they able to reduce 3.14 million tons of CO2e into the atmosphere. Besides that, they always ensure that their product can be recycled or disposed such as principle of 3R- recycling, reusing and reducing.

3.3.3 Competitive Advantages

HSE is a wise choice for a business to distinguish themselves from the market. By implementing HSE, it creates an efficient and effective operation and brings competitive advantage to the business. PETRONAS has received many rewards over these years. For example, in year 2007, it received "PETRONAS Group HSE for Merit Award 2006/2007" Above all offer a better reputation among the customer and investor. By this, it can be treated as strength while promoting in the international trade.

3.3.4 Lower Turnover Rates

HSE training may be a matter of life and death in many hazardous industries like PETRONAS. It is essential to make sure that employees are satisfied with the working environment. Otherwise, it may come out result of high employee absence and even high turnovers. Obviously, HSE is a one of the wise way to retain the employees.

3.3.5 Cost Saving

Efficiency use of raw material and natural resource not only protect environment from pollution but also help a business optimizing their operation cost. By applying 3R and Verbund concept, the volume of used raw material and natural resources will be reduced.

Furthermore, turnover rate of the business is expect will be remained constantly. A safety and health work environment will retain skilled employees from resigning. A business can also avoid recruitment, selection and training cost for staffing. By the same token, it even can put up the productivity of employees. As a result, a business will pay less and return more in return.

3.4 Disadvantages

3.4.1 Additional Spending for Operation

A business need to spend a lot of time and resources so that all the facility and working environment running at optimal safety level. For instances, a standard maintenance is needed to conduct from time to time to ensure everything is well going.

Besides, Verbund concept need installment expenses before a business really can minimize their cost. Moreover, a lot of programs also need to set up to help the employees always keep in health either in mind or physical and alert to the risk.

Last, implement of Environmental technology (envirotech) is also a cost to the business. These technologies are expensive and complex. Furthermore, employed skilled worker or specific training is necessary to control the advance technology.

3.4.2 Cooperation of Employees With the Company

It is impossible to ask all employees to follow the procedures. Some procedures are difficult to follow. Therefore, they might try to seek another easy way to perform their job. Sometimes, company will forces their employees complete the job within a period and the procedures are complex, they might feel pressure. Under these pressures, they will find a shortcut in order to reach the target. It can also be happened that they are not properly understand the risk. All of these will force employee refuse to follow the procedures.

3.4.3 Completion of Written Procedures

There are many procedures applied in a business but not all are useful. It is impossible that all procedures are suitable to all equipment or people. It is also hard to have a perfect written procedure. Nowadays, the technology changes rapidly, if a business does not update themselves from time to time, their procedure might out of date and cause accidences. Moreover, some business even does not clearly write down or use inadequate procedures to guide their employees.

3.4.4 IMPOSSIBLE ALL ACCIDENCES CAN BE AVOID

According to the HSE, PETRONAS believe that all accidences can be avoided. In reality, it is hard to apply. Others than human factor root cause, natural disaster is also another causes. According to THE STAR ONLINE (July 29, 2012), oil drilling platform catch fire during a thunderstorm. It proved no matter how well preparation is done or how completion of procedures is, accidences only can be reduced, but not eliminated at all.

3.5 Critiques and Effects from Employee Safety and Health Practices on the Effectiveness of PETRONAS

When people talk about occupational safety and health, they will directly think about the working environment and the condition of their job. Safety and health standards in the workplace are the important factors for the employees’ well-being. Therefore, employer should be priority concern employees’ safety and health in the workplace. When the working environment and condition for the employees being implemented with good safety and health standard, it will be benefit to both parties which are employees side and also business side. Thus, the guidelines for safety and health in the workplace are vital to appliance.

Many peoples didn’t realize the important of safety and health especially in the gas and oil industry. There are many peoples known about the safety and health standard or guidelines but they don’t care about it and they also do not make the observation and operate the safety system management frequently. Besides, they also do not revise or evaluate all the things in the Health, Safety & Environment (HSE). As a result, many accident or incident will easily happen in the working area due to lack of management of all this safety , health and environment system and effect the high risk of safety and hazard posed to the employees. For instance, when the accident happened, workers do not know the procedure of safety and how to handling material or the employees may be without the knowledge of emergency plan of the workplace(Petronas, 2012).

Since the Gulf of Mexico incident happened in 2010, health, safety and environment (HSE) have been the main focus part for the oil and gas industry. The organizer of the industry aware there is important of the processes of tightening, reviewing, proceeding and operating the HSE. It can be minimized the risks posed to people and environment during the incident happened. Therefore, in order to ensure safety and reliability of the operation of PETRONAS, it develops health, safety and environment Standard and monitor effective application of HSE policies. To enables the business unit of PETRONAS to have larger or more accountability, rearrangement of Group Health, Safety and Environment Division (GHSED) have been developed to improve the management of health, safety and environment of the industry(Petronas, 2012).

The major purpose to improve HSE performance of PETRONAS is to minimize the risk and expose which are posed to the business and also to maintain regularity in the application of HSE standards and requirements(Petronas, 2012). Moreover, to ensure assets’ integrity, and to assess the protections operationthat are the integral constituents of maintaining a safety workplace. Besides that, PETRONAS also develops the process of safety initiatives and operational excellence in order to monitor and review the reliability and integrity of their assets.

On the businesses side, if employees are given a safety environment to carry out their tasks, then they will more focus on their jobs regardless of everyday concerns and they will also complete their tasks in a more satisfaction and comfortable condition. Then, if the well-being and health of the employees are also take care well by the employer, thus, most of the employees will feel appreciated or valued. Therefore, all of these positive and good feeling will give the advantage to help the workers improve their productivity and reduce their lateness and absenteeism. Hence, business will be able to run more smoothly because of the increased productivity and efficiency of employees. Then, there are also create a good word-of-mouth reputation or good name by the businesses and it may become helpful for the company when dealing the business matter with other company or to implement new projects which involves the community or public.

In addition, there is an important experience for the employees work in a safe and healthy working environment and condition. Many of the employees willabsolutely feel their employer is also concerned or take care about their welfare whenthe company applied health and safety standard in the workplace. Consequently, the employees will have the feeling to listen and understand in accordance of working condition and to be happy with their task given. Therefore, when the workers with a positive and routine experience in the working environment, they will become more energetic and motivated in order to achieve the organization’s objective (KnowsWhy.com, 2012).

4.0 RECOMMENDATION

Being one of the famous companies in oil and gas industry, PETRONAS is always focusing on the best and excellent safety and health policies or standards for their employess. However, there are also accidents happening in the company due to the carelessness of the employees and also because of some weaknesses in the working procedures. Therefore, some suggestions have been recommended to the company to improve their employee’s safety and health standards.

4.1 Place or Set Safety Goal for their Employees

PETRONAS should set safety goals for their employees for example, "perform job without any accidents, injuries and also without causing any loses to the company continuosly for the year". Employees who achieve these goals in performing their job without any injuries and accidents should be rewarded by the company. These rewards can be in the form of bonuses, commissions and also in the form of salary increments. Setting this goal will reduce the cost of providing training and developments to the employees because, employees will be more concious, aware and will follow all the safety method in performing the job to be more safer and to avoid from getting injured and also from the occurrence of accidents to grab the rewards offered by the company. Therefore, there will be no necessitate or needs for the company to provide safety and health related training and developments or programs for their employees to improve their safety and health standards. This will reduce the company’s cost or expenditure on the training and development programs.

4.2 Post Safety Rules at Hazardous Working Areas

PETRONAS Company should place the safety rules and policies that should be followed or executed by the employees at the higher risk areas in the company. For example, in the exploration and production departments, chemical laboratories, gas and power stations, logistics departments, maintenance areas and also in the armada garages of the company. The safety rules should include all the instuctions and also precautionary method that should be followed by them at the higher risky area. The company should post the signs of no smoking, eating or drinking, no usage of unpleasant perfumes, body spray and body odor at the laboratories which consist of chemicals and hazardous substances and also about the precautionary attire such as coats, walking boots, gloves and also eye protecting spectacles while handling with the hazardous chemicals, and also in the production and manufacturing departments. This safety rules is very important basic criterion that should be followed by the employees because without these safety measures with the carelessness of employees will leads to the occurences of fatal accidents such as fire accidents which happened at three sites in PETRONAS in 2012 acccording to Quintella Koh.

4.3 Form a Safety Team of Upper Managements and the Workers

PETRONAS may form a safety team which consists of the upper management and also the employees from each department in the company. This team may work together and may discuss together the strategies to be carry out to achieve the target of each departments and as well as the company’s objectives or goals with higher quality of safety and health standards. For instance, the team may hold a monthly meeting where both the upper management and the employees from each department come together and converse about the problems or obstacles faced by the employees in performing their job or task to the upper managements. They also may suggest or recommend any alternative ways that can be implemented in the work procedures to perform their task successfully and also safely. This will improve the relationships, undersatndings and also cooperations between employees and the company. This may reduces the employee’s pressures on their complicated task which is assigned to them.

4.4 Execute Task Analysis

The management should execute the task analysis and the work procedures or strategies frequently to set an appriopriate work method for their employees. This is very important because the employees interest and initiatives to work is depends on the efficiency of the work procedures. The work method should be updated with the changes in technologies. The management must investigate or analyze the improvements that can be done in the written procedures. So, that the employees can shows initiatives in their work and increases their involvements in their job. It decreases their pressures to follow the old and outdated work methods which may unsafe and risky for them and causes accidents at the workplace. For instance, in the exploration and productions and manufacturing department in PETRONAS, the company can install Quality Assurance (QA) systems at the department which can identify any fault or errors in the productions which can be corrected in fast mode. This helps the work method to be efficient and effective rather than following the outdated written procedures.

4.5 Training and Development

PETRONAS Company should provide training for their employees especially for newly hired employees in their company. This training and development is very important because employees who are newly hired may not know the safety measures that must be followed while they are in the company. Through this training the emplooyees are be educated with their task or job requirements and how to accomplish their task more safely and without causing any accidence. This is vital because, most of the accidents are occuring because they were not trained with the essential skills to handle the risky job and the hazardous substances with safely. So, through this training and developments the employees can be trained and develop themselves to be more safety concerned employees in the workplace.

4.6 Organize Health Screenings for the Employees for Free

PETRONAS may organize free health screenings for their employees. For instances, they may organize free medical check-ups to check the employees blood pressures, diabetes and cholesterol levels. This is vital because an employee’s well beings and healthiness plays a major role in accomplishing their task securely without causing any accidents and loss to the company which helps the company to achieve their goals and objectives successfully. So, they may arrange this free health screening to make sure their employees can undergo the check ups and take any treatment if necessary base of the health screenings.

5.0 Conclusion