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Table of Content

1.0 Introduction 2.0 Legislation (Law) 2.1 Scope and objective of Occupational Safety and Health Act 1994 (OSHA 1994) 2.2 Requirement of OSHA 1994 2.3 Function of Safety and Health communities and policy with OSHA 1994 3.0 Individual role and awareness 3.1 Roles of employers 3.2 Roles of Employees 3.3 Penalty for violation for OSHA(Occupational Safety and Health Act 1994) 3.4 Occupational Health and safety Management system (OHSMS) 3.5 Deming Cycle 3.6 Benefits of OHSMS 4.0 Economic benefits 5.0 Conclusion 6.0 Recommendation Bibliography 2 3 4 4 4 5 6 6 7 7 8 9 9 10 1 2

Executive Summary
Occupational safety and health (OSH) concerns with the protection of the safety, health and welfare of people at work place. It is established in year 1950 by International Labour Organization (ILO) and World Health Organization (WHO). OSH is governed under Factories and Machinery Act 1967 and Occupational Safety and Health Act 1994. The report further into legislation, all organization in Malaysia needs to follow the law. The law is enacted by by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliamen assembled. It is extended to various work field in organization. It also state the requirement and function of OSHA. The report then shows the individual role and awareness which explain the roles of employee and employer. The report also reports on the Occupational Health and safety Management system, deming cycle and the benefits of OHSMS. Last but not least, the report discuss about the economic benefits that brought by implementing OSH on organization.

1.0 Introduction
Occupational safety and health (OSH) is a cross-disciplinary area concerned with protecting the safety, health and welfare of people engaged in work or employment. The goal of occupational safety and health programs is to foster a safe and healthy work environment (ORNL 2012). The OSH has been introduced by International Labour Organization (ILO) and World Health Organization (WHO) since year 1950 (Coppee n.d.). The purpose of OSH is to promote and maintain well-being of worker, protection to worker from work condition and adaptation of work for workers. OSH is important to organization in a few viewpoints. First of all is legislation where there is law established to be followed by all organization in Malaysia by the law of Factories and Machinery Act 1967 and Occupational Safety and Health Act 1994. Secondly, the workers are human being and human deserve basic rights which is safety and health. Last but not least, it is a long term profit to the organization with the economic benefits brought along by practicing OSH in organization. This report will be looking into Chemical Company of Malaysia Berhad (CCM) for their practice of OSH and will be given some recommendation.

2.0 Legislation (Law)

First of all, in order to encourage all organization in focus more attention on safety and health topic in the country, it can be done through legislation or in other words, laws. Through legislation, all organization for sure is more focus on safety and health towards their employer and employee. If the organizations do not follow the legislation provided, they could be breaching the law and damaging the organization. In Malaysia, the law act is named Occupational Safety and Health Act 1994(OSHA 1994). 2.1 Scope and objective of Occupational Safety and Health Act 1994(OSHA 1994) The function of this act is for securing the safety, health, welfare of the person at work, for protecting the peoples against risk of safety and health in their works activities. Besides that, workers are given good environment in work place to work, physiological and psychological needs, and also to provide the means whereby the associated occupational safety and health legislations may be progressively replaced by a system of regulations which approved by industry codes of practice operating in combination with the provisions of this Act designed to maintain or improve the standards of safety and health. Be it enacted by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, this act named as Occupational Safety and Health Act 1994 (OSHA 1994).

In OSHA 1994, all of the organization in Malaysia that needs to follows these acts such as: Manufacturing Mining & quarrying Construction Agriculture Forestry & fishing Utilities(Electricity, gas, water, sanitary services) Transport Storage & communication Hotel & restaurants Public services & Statutory Authorities

2.2 Requirement of OSHA 1994 In this acts there are the contract services it means any agreement, whether oral or in writing, whereby one person agree to join the organization as the employee and other agree to serve his employer as an employee and includes an apprenticeship contract. According to DOSH 1994, the OSHA acts will applies when

Who is directly employed by the principal employer on any work of, or incidental or, preliminary to or connected with the work of, the industry, whether such work is done by the employee at the place of work or elsewhere

Who is employed by or through an immediate employer at the place of work of the industry or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the industry or which is preliminary to the work carried on in or incidental to the purpose of the industry

Whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service

Besides that, according to OSHA 1994 for all industries if the employees are more than five peoples, the organization must have the Safety and Health policy. If the employees are more than four, it must have Safety and Health policy and Safety and Health Committee. As for high risk industries such as construction, ship building, factory with the heavy machines, gas, oil factory, based to 1997 in Malaysia, the employees that summed up more than one hundred in the organization must have Safety and Health policy, Safety and Health Committee and A certified Safety and Health Officer. This is same as some low risk industries such as employee in office work place and the amount of employee are over five hundred peoples in the organization, the organization must have Safety and Health policy, Safety and Health Committee and A certified Safety and Health Officer.

2.3 Function of Safety and Health communities and policy with OSHA 1994 The safety and health communities are assisting in the development of safety and health rules. It will develop or create the rules in safety and health within the organization such as, employee need to have the body checkup every year, must ensure employee in sober condition while on their duty, proper wear to work place. For workplace Safety and Health, the air condition need to be good, equipment are all working proper. The safety and health communities also review the effectiveness of safety and health program for the employer and employee to attend, such as outdoor activates for some physical exercises. Besides that, seminars about safety and health are given to employer and employee. For the safety and health policy, the organization has its own policy about safety and health to ensure their employer and employee know about it. All the organization have their own policy that mention about safety and health that all the worker that work in the particular organization must follow.

3.0 Individual role and awareness

3.1 Roles of employers: To make the workplace safe by eliminating any unacceptable level of risk to employees, customers or the environment. For e.g. taking precautions against the risks caused by flammable or explosive hazards, electrical equipment, noise and radiation. Preventing risks to health by providing relevant Material Safety Data Sheets (MSDS) on the hazards of chemicals to their customers, urging them to use and dispose of products in a safe manner. To ensure that plant and machinery is safe to use and safe working practices are set up and followed, for e.g. set up emergency plans. To assure that all chemical materials are handled, stored and used safely. A proper knowledge has been provided to the workers about the chemicals and other substances used by the firm. To prevent exposure of hazardous substances that may impair our health. For e.g. provide adequate first aid facilities.

Comply with all legal requirements which affect their operations, for e.g. Occupational Safety & Health Act 1994 (OSHA 1994), Factories and Machinery Act 1967. Work actively and assiting Government to develop new satandards to provide a safer working place to its employees.

3.2 Roles of Employees To take reasonable safety and health measures for themselves and other persons; To co-operate with their employer to carry out their duties in an efficient manner. To use and wear any safety or protective equipment or clothing provided by employer to be cautious. To co-operate and comply with the occupational Safety and Health Manager. They should carry out their duties with care, so as to cause no harm to others while at work. They should get proper training, understanding and follow Company's Safety and Health policies. They should not be misusing any utilities provided for Safety and Health welfare.

As Malaysia is highly dependent on foreign workers, there is a growing concern for the inequitable level of care provided for their health and safety. Cultural and ethnical differences makes it difficult to provide adequate training at the workplace for the management and supervise such workforce.

3.3 Penalty for violation for OSHA (Occupational Safety and Health Act) 1994 For employer: For non-compliance with the OSHA the employer is to be penalized with a fine up to RM50000 or imprisonment not exceeding two years or both. For employee: The penalty an employee has to pay for non-compliance with OSHA is a fine of Rm1000 or imprisonment not exceeding two years or both.

3.4 Occupational Health and safety Management system (OHSMS) Occupational Health and safety Management system is a, frame work that allows an organization to consistently identify and control its health and safety risks, reduce the potential for accidents, help achieve compliance with health and safety legislation and continually improve its performance (British Standard Institution 2012).

3.5 Deming Cycle

(EcoCampus, 2011) An organization can improve its Occupational Safety and Health environment by planning to improve its OHS objective, legal requirements and risk assessment. Next, they can provide training, increase operational control and increase emergency preparedness. Once the system has been implemented they can carry out accident investigations, internal auditing and performance checking to see if it is functioning effectively. Finally, they can use the system for a continuous improvement by taking corrective and preventive actions and conducting management review to changing circumstances.

3.6 Benefits of OHSMS: OHSMS allows the organization to identify the hazards and take necessary control to prevent accidents. Implementing an OHSMS shows a clear commitment to the safety of the employees and helps to bring more efficient and productive workforce. It reduces cost for the company in long run as fewer accidents will mean less expense and will have an improved ROI (Return on Investment) for the company. Establishing a continuous monitoring and improvement in the health and safety performance. Provide information and training for employees at all levels so that they can work safely.

4.0 Economic benefits

Furthermore, there are also economic benefits resulting from focusing more on occupational safety and health. The benefits include employees motivation and costs reduction. Maslows hierarchy of needs Selfactualisation



Maslows hierarchy of needs is often portrayed in the shape of a pyramid, with the largest and most fundamental levels of needs at the bottom, and the need for self-actualisation at the top. The most fundamental and basic four layers of the pyramid contain what Maslow called deficiency needs of d-needs: esteem, friendship and love, surety, and physical needs. With the exception of the most fundamental (physiological) needs, if these deficiency needs are not met, the body gives no physical indication but the individuals feels anxious and tense.

From this theory, modern leaders and executive managers find means of employee motivation for the purpose of employee management. In this report, the safety needs level is emphasized. Safety needs are important for survival. These lower but basic needs must be satisfied before higher needs such as sense of belonging, recognition and self-development are pursued. Examples of safety needs include a desire of safe and healthy workplace, steady environment, job security and guaranteed benefits. In order to encourage staff to reach their maximum potential, managers and leaders should create a safe and healthy environment. Under this circumstance, employees perform more effectively in good physical conditions. There are less sick leaves and employees produce goods or services with higher quality. In addition, employees are easily to concentrate on task in good environmental situation. A healthy and safe work environment can not only help to improve organisational effectiveness but also decrease the direct costs and indirect costs. On the one hand, health and safety measures protect employees from the hazards of the workplace. An organisation can avoid the risk of industrial accidences and the subsequent compensation. On the other hand, an organisation can reduce the costs associated with work-related injuries, disability, absenteeism and illness. There are also indirect costs which can be eliminated through focusing more on occupational safety and health. These costs include overtime payment necessary to make up for lost production, a cost of retaining a replacement employee and a cost for the time spent by HRM personnel recruiting, selecting and training the new employee. In a less typical case, there may be a cost associated with loss of revenue on order cancelled or loss if the accidence causes a net long-term reduction on sales and revenue. In a word, for an organisation, the return will be definitely greater than the investment on effective safety and health. A healthy and safe work environment is propitious to reduce to costs and increase organisational effectiveness and productivity. If work-related illness and accidents can be transposed to the balance sheet, the organisation can apply the same management effort and creativity to designing and maintaining a healthy and safe workplace as managers customarily apply to other facets of the businessas Creighton & Rozen stated accident prevention can be integrated into the overall economic activity of the firm (2007).

5.0 Conclusion In a nutshell, occupational safety and health is important to organization as mention in the report. It is important in term of the legislation, individual role and awareness, social value and moral, and economic benefits. For legislation, every organization in Malaysia is needed to follow the law established in OSHA 1994. Individual role and awareness is needed for the workers of organization to know their rights so that they can enjoy their benefits as a worker. The organization that practices OSH will have a better comment from their workers and will raise their organization image based on the social value and moral. In long term operation of the organization, OSH will help an organization profit more because of the economic benefits that will gain from less compensation of sick leave and medical expenses.

6.0 Recommendation OSH has been practising in the company of CCM. There are some recommendations to the company for some improvement. The company should provide physical or health examination in annual basis for their employees so that they can have highest productivity towards the company. Reasonable works and hours for overtime should be controlled by company to ensure their employees from over exhausted from work. In order for the employees to stay healthy, company can organize physical and sports activities. Occupational insurance can be given by company for the loyalty of the employees to stay with the company. Working environment provided by the company should be clean and comfortable since employee may need to work at such environment for long period of time.

British Standard Institute 2012, BS OHSAS 18001 Occupational Health and Safety, viewed on 10 April 2012, http://www.bsigroup.com/en/Assessment-and-certification-services/managementsystems/Standards-and-Schemes/BSOHSAS-18001/

Coppee, GH n.d., OCCUPATIONAL HEALTH SERVICES AND PRACTICE, viewed on 10 April 2012, http://www.ilo.org/safework_bookshelf/english?content&nd=857170174

Creighton, B & Rozen, P 2007, Occupational Health and Safety Law in Victoria, The Federation Press, p.105.

DOSH 1994, GUIDELINES ON OCCUPATIONAL SAFETY AND HEALTH ACT 1994, viewed on 10 April 2012, http://www.dosh.gov.my/doshv2/phocadownload/guidelines/garispanduan2006bi.pdf

EcoCampus 2012, Environmental Management Systems (EMS), viewed on 10 April 2012, http://www.ecocampus.co.uk/ecocampus_scheme/ems.html

ORNL 2012, Oak Ridge National Lab Safety Document, viewed 10 April 2012, http://www.ornl.gov/

Stone, R. J. 2008, Managing Human Resources. (6th Eds), John Wiley & Sons, Australia.