New Framework to Improve Safety & Health for Workers

10 March 2005

MOM unveiled a new occupational safety and health (OSH) framework to make possible quantum improvements in the safety and health of its workers. The target is to halve the current occupational fatality rate1 within 10 years and attain standards of the current top ten developed countries with good safety records.

Background

2  While safety standards have improved steadily over the last 20 years, they have stagnated over the past few years at 2.2 industrial accidents2 per million man hours worked. More recently, several serious workplace accidents have occurred resulting in the precious loss of lives. In terms of accident statistics, Singapore ranks below most of the countries in the European Union (EU15), except Austria and Portugal. However, it is ranked above Asian economics like Hong Kong, Taiwan and Malaysia. (Please refer to Annexes A and B.)

3  Recognising that we would stagnate at current levels if we made incremental changes to the current safety framework, MOM has fundamentally reviewed its framework, including studying the best practices of various countries, to design a new and radical framework to achieve a quantum leap in safety standards.

New Framework to Change Mindsets and Culture

4  The new OSH Framework will adopt the following three principles:

(i) Reduce risks at source by requiring all stakeholders to minimise or eliminate risks which they create.

5  Our current approach tends to focus on addressing risks presented at the physical workplace instead of tackling them at source. The underpinning principle under the new framework is to prevent or mitigate risks at source, and not merely to accept or respond to existing risks. All workplaces will need to conduct risk assessments to help identify the source of risks, actions that should be taken and parties responsible for doing so.

6  In line with this principle, the parties that create the risks would be held accountable for managing and reducing those risks. Occupiers, employers, suppliers, manufacturers, designers and persons at work, will all have the responsibility to identify potential risks and take appropriate actions to mitigate such risks at source. For instance, top management will bear overall responsibility for the safety of the workplace. They have a responsibility to put in place adequate safety management systems and ensure they are complied with. Management must appoint personnel with the right skills and experience to manage safety, and provide them with adequate resources, training and powers to carry out their duties effectively. Architects and engineers must be responsible for designing construction projects that are safe to build and maintain. Manufacturers and suppliers must be responsible for ensuring that the machinery they supply or maintain are safe to use in the workplace. Workers have a responsibility to adopt safe work practices. Every person at work must accept responsibility for his own safety, for those under his charge and those he affects through his work.

(ii) Industry will be required to take greater ownership of safety outcomes.

7  The current Factories Act is highly prescriptive, with safety requirements spelt out in detail. This creates a mindset for management and employees to simply follow the “letter of the law” and not address safety aspects outside prescribed legislation. Given the pace of technological change and variable work processes in different industries, legislation will inevitably lag behind safety risks.

8  Under the new framework, legislation and enforcement will move from a prescriptive to a goal-setting approach, augmented with some prescriptive guidance for hazardous sectors and activities. The new framework will make it the responsibility of managers and workers to develop work and safety procedures suited to their particular situations in order to achieve desired non-negotiable safety outcomes.

(iii) Prevent accidents through higher penalties for poor safety management

9  Currently, safety lapses resulting in mishaps are severely punished, but the penalties for offences in the absence of mishaps are comparatively lower. For example, composition fines are only limited to $2,000 per offence. This encourages the industry to tolerate sub-optimal safety practices until accidents occur. MOM will impose greater financial disincentives and penalties on workplaces with unsafe systems, before any accident has occurred. This will create the right environment where all workplaces find it more cost effective to improve their safety management systems.

Key Measures to Effect the New Framework

10  Based on the above principles, the following measures would be implemented by end 2005:

(a) Redesign the Legislative Framework

11  The new Workplace and Safety Health Act, enshrining the three key principles, will replace the current Factories Act. The new Act will:

• Focus more on OSH goals and systems and set outcome goals as opposed to prescriptive rules thereby allowing employers to create and adapt safety systems to their workplace conditions.

• Specify liabilities for a wider range of stakeholders and strengthen personal accountability, making those who create risks accountable to manage and reduce those risks.

• Increase financial disincentives and penalties for offences so that workplaces will find it more cost effective to implement good safety systems from the start.

• Institutionalise proper risk assessment along the whole work process chain from design to maintenance by mandating adequate Health and Safety Plan (H&S) and Safety Management System (SMS) to reduce or mitigate these risks.

• Enhance the responsibilities and powers of Safety Officers to help ensure compliance with safe work practices on the ground by giving them additional powers to stop work, and also place on them duties to report certain lapses to MOM.

(b) Set up a New “Workplace Safety and Health Council”

12  To involve industry stakeholders in developing and revising safety and health standards, MOM will set up a “Workplace Safety and Health Council” (WSHC).The WSHC will comprise experts and representatives from leading companies in safety and health, professional bodies, insurance companies, employer associations, unions, academics and relevant government agencies.

13  The duties of the WSHC would include:

• Identify new areas that require regulating, in line with promoting a self-regulation culture;

• Oversee industry-specific advisory committees to develop and set OSH industry standards;

• Promote safety and health awareness among top management in industries;

• Gather and release pertinent information, such as employers’ safety records, to insurers and the public.

(c) Set up an International Advisory Panel

14  To keep abreast with international developments, MOM will appoint an International Advisory Panel comprising external experts in various safety and health fields to inject fresh and objective views, review and critique our regulatory regime, practices and standards in Singapore, and provide international benchmarks. This will help identify strengths and shortcomings so as to achieve continuous improvements.

(d) Improve Regulatory Monitoring and Enforcement Mechanisms.

15  MOM will improve its regulatory monitoring systems and beef up enforcement mechanisms. In line with the new legislation, enforcement measures will focus on detection of systemic weaknesses, e.g., the adequacy of Safety Management Systems and Health & Safety Plans. Workplaces will have to ensure that they have comprehensive and effective safety management systems that are complied with.

Collaboration with Stakeholders in Implementation

16  These changes will take time to implement and MOM will work closely with stakeholders to ease in the implementation of the measures. Sufficient lead time will be given for adjustment. We will work with our stakeholders to address their concerns and support their needs to implement this new framework, including building up the competencies of relevant parties. We believe that a concerted effort by all parties to make the new system work will save precious workers lives and place Singapore among the safest places to work in the world.

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1  Workplace fatalities are currently at 4.9 per 100,000 employees compared to the EU15 average of 2.5. Please refer to Annex A for more information.

2 These refer to accidents reportable under the Factories Act i.e. those resulting in 3 or more days of absence from work, occurring in general factories, construction worksites or shipyards. Please refer to Annex B for more information.

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ANNEX A

Notes: Industrial accidents refer to those resulting in three or more days of absence from work, occuring in general factories, construction worksites or shipyards. Our industrial accident frequency rate has been 2.2 accidents per million man-hours worked since 2002.

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ANNEX B

International Comparison of Occupational Fatality Rate, 2002

Rates of Fatal Injury per 100,000 workers / employees

 Country / Region 1  Rate of Fatal Injury 2

 Sweden  1.2

 Great Britain

  1.3

 Netherlands  1.9

 Denmark  2.0

 Finland  2.0

 Australia 3  2.0

 Italy  2.1

 USA (2000)  2.2

 Luxembourg  2.4

 Germany  2.5

 EU15 Average  2.5

 Ireland  2.6

 France  2.6

 Belgium  2.6

 Japan 4  2.6

 Greece  3.8

 Spain  4.3

 Singapore (2004) 5  4.9

 Austria  5.1

 South Korea (2001) 6  6.3

 Portugal (2001)  9.0

 Taiwan (2001) 7  6.9

 Hong Kong 7  8.6

 Malaysia 3  10.8

Sources:

(a) EU countries: Eurostat. Eurostat data is only available up to 2002.

(b) USA: Statistics of workplace fatalities and injuries in Great Britain - International Comparison of Accidents 2000, HSE

(c) Singapore: Work Injury Compensation Department and Employment Statistics, MOM.

(d) Australia and Asian economies (excluding Singapore, Japan, and South Korea): LABORSTA Internet database, International Labour Organization

(e) Japan: Japan Statistical Yearbook 2004

(f) South Korea: International Labour Organization Yearbook of Statistics 2003

Notes:

1. This ranking list is not comprehensive. Certain noteworthy countries (e.g. Canada) have not been included due to difficulty in obtaining comparable statistics.

2. There are some differences in methodology across countries and regions, such as variations in accident reporting requirements and insurance coverage. Therefore the ranking should only be taken as indicative.

Generally, Eurostat statistics exclude commuting accidents, transport industry accidents and road traffic accidents from rates of fatal injury. All rates of injury are based on 9 branches of industry: agriculture (including hunting and forestry), manufacturing, utilities, construction, retail and wholesale distribution, hotels and restaurants, transport, financial services and real estate activities. For non-EU countries, variations from the EU convention will be highlighted in the notes section.

3. Rates for Australia and Malaysia are based on the 9 Eurostat branches of industry plus fishing; mining and quarrying; public administration and education; personal, health and social services; private households with employed persons; and extra-territorial organizations and bodies.

4. Rates for Japan are based on workmen's accident compensation insurance statistics which include all industries. We were unable to extract the comparable 9 Eurostat branches of industry as classification system is different. Accidents while commuting are excluded.

5. The number of fatalities used in calculating the occupational fatality rate is based on those reported under the Workmen’s Compensation Act, excluding traffic-related accidents, accidents at sea and non-work related cases. To be comparable with the figures which Eurostat collates for EU members3 , the base number of workers refers to those in selected industries e.g. manufacturing, construction, hotels and restaurants. Singapore’s occupational fatality rate in 2004 was 4.9 per 100,000 workers.

6. Rates for South Korea are based on the 9 Eurostat branches of industry plus education, health, social, and community services, and domestic workers.

7. Rates for Hong Kong and Taiwan are based on the 9 Eurostat branches of industry plus fishing; mining and quarrying; and personal, health and social services.

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3 Eurostat figures are based on 9 branches of industry – agriculture (including hunting and forestry), manufacturing, utilities, construction, retail and wholesale distribution, hotels and restaurants, transport, financial services and real estate activities. Singapore’s figures are based on the 9 Eurostat sectors plus the fishing, and mining and quarrying industries.

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ANNEX C

Glossary for Technical Terms

Safety Management System (SMS)

A Safety Management System is a comprehensive documented management tool which workplaces develop to better manage workplace hazards and ensure high standards of safety and health for their workers. It covers 14 elements ranging from hazard analysis to training to safe work practices.

Health & Safety Plan (H&S)

A Health & Safety Plan is an actionable plan with specific targets taking into account the operational schedule of the project. It is the key mandatory instrument in the construction industry required for the pre-design, design, construction and maintenance phase of the building.