Implementation of Occupational Safety and Health Management

Occupational Health and Safety Policy and Target

To establish a safe and healthy workplace with comfort while consistently lowering the rate of workplace accidents and disasters, FENC established Occupational Health and Safety Policy as the highest guiding principle governing the management of safety and health of the Company. With “risk control” and “continuous improvement” as the management principle, operational safety is our utmost concern. The Company takes an active stand toward improving the work environment, manufacturing equipment and operational approaches. Based on risk assessments and other mechanisms, the Company sets up prioritization and action plans to ensure the safety and health of the workers (including employees and who are not employees (the contractors of the Company)) and stakeholders.
⇥ Occupational Health and Safety Policy

Executive Support and Involvement in Occupational Safety and Health

During the quarterly FENC Board meetings, the president from each Business presents the Occupational Safety and Health Management Report compiled by the Labor Safety and Health Department from the headquarters. In 2023, 4 reports were presented. The Board serves the supervisory role and conducts review and questioning over the report. Improvements needed will be acted upon at production units based on Board resolutions to ensure proper occupational safety and health management.

Continuous Operation of Occupational Safety and Health Management

As of the end of 2023, the occupational safety and health management system has been implemented at all FENC sites.

1. A total of 21 sites, representing 100% of the scope of this report, have implemented the system, covering 100% of the workers (employees and contractors). Internal audits cover 100% of FENC production sites. Among them, 17 have obtained ISO 45001 certification and undergone external audits, which cover 90% of FENC workers, including employees and contractors.
2. Conducts related to occupational safety and health management; worker engagement; consultation and communication; prevention and mitigation of occupational safety and health impacts directly related to job duties are carried out in accordance with the stipulations in the occupational safety and health management system.
    

Risk Identification, Assessment and Control

Occupational Safety and Health Policy and principles governing FENC production sites are as follows:
 

1. The incorporation of new production lines, production processes or equipment is governed by Change Management Process. An application for change shall be filed and the process includes self-assessment on risk and control, change review/supervisor approval, pre-launch evaluation and closing.
2. Risk identification shall be conducted to determine the risk level of operations associated with raw materials, products, activities and services which may potentially harm the operator, including workers (employees and contractors), or cause damages to equipment.
3. Improvement goals shall be established based on risk levels and distribution of resources. Hardware improvement takes the priority, followed by control measures such as administrative management with special plans or operational guidelines. Implementation of the control measures are strictly monitored to minimize risks. Operation of control mechanisms is based on Regulations Governing Risk Identification, Assessment and Control set forth at each plant.
4. Plans and implementations regarding overwork, workplace violence and the protection of the health of the middle-aged and elderly as well as maternity care at FENC production sites are conducted in accordance with local regulations. There were no irregularities in 2023.
5. All production sites arrange risk control training for employees. In 2023, 55 sessions were held with 2,705 employees completing 6,387 training hours.
   
   
    

Hazard Recognition, Assessment and Analysis Procedures at Production Sites

Building Workplace Safety and Health with Labor-Management Participation

FENC establishes Occupational Safety and Health Committee at production sites, serving as the highest authority at each organization on the review and discussion of safety and health management. Setting up labor representatives in accordance with the seat ratio stipulated by regulations. The Committee convenes quarterly to determine the formulation, coordination and supervision of safety and health related issues at each plant to ensure full implementation. Contractors engagement and communication please refer to Stakeholder Dialogue and Sustainable Supply Chain Management.

Occupational safety and health management is one of the priority concerns when it comes to labor relations at FENC. The following subjects are included in the labor relations meetings, Occupational Safety and Health Committee meetings, and collective bargaining agreements with employees:

1. Provide personal protective equipment.
2. Implement labor relations management and establish the occupational safety and health committee with labor and employer representations.
3. Involve labor representatives in the health and safety inspection, review and investigation.
4. Provide job-related training for workers.
5. A clear reporting and grievance mechanism for employees encountering health or safety issues is established to ensure their right to refuse unsafe work and protect them from being punished for the refusal.
6. Schedule regular health checkups for workers.
7. Comply with regulations from International Labor Organizations.
8. Clearly establish safety and health goals and ways to achieve such goals.
   
   
    

The Occupational Safety and Health Committee

Reinforcing Safety and Health Awareness Through Training

FENC provides regular training to make sure that every employee is familiar with occupational safety and health regulations as well as the management mechanism. The total occupational safety and health training hours accrued by FENC and contractor employees are 254,595 and 42,117 in 2023, respectively. Major occupational accidents that had occurred in Taiwan are cautionary tales for FENC. To prevent similar accidents, the Labor Safety and Health Department recommended that FENC sites in Taiwan, mainland China and Vietnam increase disaster prevention and emergency response drills in 2023 and enhance the effectiveness of training to ensure disaster prevention.  

2023 Employee Safety and Health Personnel Training Statistics

2023 Contractor Safety and Health Personnel Training Statistics

Chemical Safety Management

All production sites of FENC have established chemical management regulations of chemicals based on Globally Harmonized System of Classification and Labelling of Chemicals (GHS).

Chemical management at all production sites places are according to the items as following:
 

1. Chemical management at all production sites places an emphasis on source management. When procuring hazardous chemicals, the manufacturer, importer or supplier must provide the hazardous label and Safety Data Sheets (SDS). The same information is required when changes are made to existing data.
2. When the chemicals arrive at the plant, on-site staff or the end-user must conduct examination based on the label, SDS and applicable regulations prior to acceptance.
3. Post identification for hazardous chemical and prepare safety data sheet (SDS).
4. The Company utilizes Chemical Control Branding (CCB) to evaluate the likelihood of exposure (usage and the degree of spread) and takes corresponding or control measures to mitigate risks. When changes occur to the types of chemicals as well as operational or production procedure, exposure assessment must be conducted again within 3 months before or after the changes occur.
5. Waste liquids and containers for chemicals are disposed of and treated by qualified waste disposal companies in accordance with the regulatory requirements.
6. To track and ensure the health of employees responsible for chemical operation, special health checkups are provided and their work environment is monitored every six months
   
    

Grievance/Reporting/Acceptance Mechanism Related to Hazardous Chemicals

SHEF Task Force, Mainland China

FENC’s production sites in Shanghai, Suzhou, and Wuxi in mainland China hit record lows in terms of the injury rates and the numbers of workers experiencing occupational injuries in 2023. The performance has satisfied the 2023 safety goals set by the SHEF Task Force. The priority tasks carried out by the SHEF Task Force in 2023 are as follows:

1. Assistance was provided to FEDZ and FEIW to establish the safety, health and environmental and firefighting teams, and the implementation of jurisdictional management began in January 2024. The plants also started a trial of the paperless PTW system for special risk operations.
2. A total of 34 special training sessions were conducted on occupational safety, health and environment covering topics such as safety, health and environment instructors; team leader safety; hoisting operation; temporary electricity use; contractor management; hazardous chemical safety; identification and assessment of safety risk; governmental inspection; safety observation; safety leadership; hazardous waste management. A total of 905 participants took advantage of the training. The SHEF Task Force was also invited to conduct professional firefighting training for the security team at FEPV to help the staff master the ability to operate fire trucks and respond to fires.
3. Nearly 30 plant visits and exchanges were conducted, during which the SHEF Task Force members conducted cross-validations and audits for the safety, fire protection and management systems. For coaching purposes, the task force also inspected the detection and monitoring systems for wastewater, waste gas and waste materials in accordance with the latest regulatory requirements.
4. Technological and practical support was provided during the safety observation campaigns at OTIZ and FEAZ. Assistance was also provided to help FEAZ build a safety culture and pass the level 3 certification of Nike’s Culture of Safety Maturity Assessment.
5. Promotion and implementation efforts continued in the reporting of various safety, health and environmental incidents to help identify hidden dangers and deficiencies immediately. The total number of close calls reported increased from 25 in 2022 to 104 in 2023.
6. A total of 60 notices of newly promulgated governmental regulations and standards were provided to employees promptly and four issues of the SHEF magazine (22 issues to date) were published. The quarterly magazine features subjects such as forklift safety, safety culture and special equipment safety. Also among the subjects are the eight preventions during summer, which include the prevention against electric shocks, lightning strikes, flooding, drowning, fires and explosions, traffic accidents, heatstroke and food poisoning. Mostly written by employees from the front line, the content is a fusion of professional expertise and field experience, and it is the hope that more employees will benefit from them.
7. Assistance was provided to FEIW and other FENC sites to strengthen safety management among contractors.
8. Ongoing efforts are devoted to develop, expand and optimize the functions of the SHEFs smart management platform.

Safety and Health Enhancement Campaign – Worker Engagement

1. Performance Review of Occupational Safety and Health Management System at Kuanyin Chemical Fiber Plant

To encourage businesses to self-manage occupational safety and health, the Ministry of Labor commissioned verification agencies and instructed local labor departments to conduct the review of occupational safety and health management systems. Kuanyin Chemical Fiber Plant initiated a review of its own safety and health management system, which was approved by the Ministry of Labor. The approval is valid from July 26, 2023 to July 25, 2026.

2. 2023 Occupational Safety and Health Hazard Prevention Tour Exhibition From Hukou Mill

Hukou Mill conducts educational campaigns to help employees experience first-hand the importance of preventing occupational safety and health hazards. To improve their awareness of physical and mental health as well as safety and prevention, the plant provided labor safety videos; simulation of hazards such as noise, confined space, falls and chemicals; displays of safety and health protective equipment. A total of 180 employees took part in the campaigns.

3. Road Safety Lecture at Hsinpu Chemical Fiber Plant

According to the Ministry of Transportation and Communications, an average of nearly 1,000 traffic accidents occur every day in Taiwan. Traffic accidents involving workers commuting to and from work account for 30% to 40% of occupational accidents in Taiwan, making commuting a high-risk factor for workers. To prevent traffic accidents and ensure safety during employee commutes, Hsinpu Chemical Fiber Plant invited experts from the Hsinchu Safety-Educational Center as lecturers during the 14 defensive driving courses for a total of 1,620 employees to enhance their safety awareness.

Strengthening Emergency Response with Safety Drills

To strengthen employees’ ability to react immediately during emergencies and activate emergency responses to reduce the loss of lives, property and production capacity, all FENC sites must conduct risk identification and assessment with considerations given to the geographic location, type of hazardous chemical, and area prone to natural disasters. Once the assessment is completed, staff shall consider controllable measures within the plant and propose emergency response procedures targeting various emergency scenarios. The order of each training and drill is determined based on the type and frequency of the disaster.

During an emergency, all production sites shall follow the protocol established for emergency response and notification procedure. Staff shall identify the disaster, notify applicable units and personnel, and engage in damage control to keep the situation from worsening. Ongoing assessment shall be made to the on-site conditions to minimize harm to the staff, property and environment with adequate treatment to prevent secondary disasters. The investigative unit shall conduct thorough reviews over the cause and propose improvement strategies. A report shall be presented and the unit responsible for the emergency shall undergo educational training to prevent future occurrence.