The standard implementation of Occupational Safety and Health Act

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The standard implementation of
Occupational Safety and Health Act (OSHA) in
Small and Medium-Sized Industries (SMIs) Kedah
Prepared by:
• Prof. Madya Dr. Zaliha Hj. Hussin
• Ju Soon Yew @ Yew Soon Yu
• Zaherawati Binti Zakaria
Mac 2005
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Researchers
1•
Prof. Madya Dr. Zalina Hj. Hussin (Project Leader)
2.
Ju Soon Yew (5) Yew^Soon Yu
—
Zaheraw iti
B\nti Zakaria
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ABSTRACT
The primary objective of this study is probe into the level of implementation of
OSHA in SMIs - food-manufacturing factories, which located in Kedah. In this
context, the main aim is to determine factors related to the implementation of OSHA
in the workplace. Factors that are under the scope of this study are the management
commitment and involvement, the level of employee compliance with OSH,
employees' perceptions towards the implementation and effectiveness of company's
safety programmes, workplace accident occurrences, company compliance with the
safety regulations, training activity, and respondent personal attributes. Data were
collected from 256 employees in mid-July - mid September 2004. Generally, the level
of OSH practices and implementation in these food manufacturing is at an acceptable
level. From the employee's point of view, generally three aspects of the OSH
practices are within the acceptable level. Some of the employees experienced
accidents at their workplaces, but a majority of them had encountered slight injuries.
Findings indicated that a majority of the accidents is caused by human factors, and
employers seldom took serious actions against those involved in workplace accident,
as warning is the most frequent mentioned action taken by employers. Besides that,
small cut was identified as the majority type of accident that occurred in the SMIs for
the past two years. Result also suggested that these SMIs" employers have taken food
safety seriously as safety glove and mask are the most frequent mentioned types of
personnel protective equipment provided by employers. However, the culture of
occupational safety and health practices need to be cultivate and enhance seriously in
these organization, as findings have indicated that many of the employers are less
interested in given out incentives when their employees comply with all the safety
rules and regulations. In terms of the kinds of punishment that an employee would
receive if he/she does not comply with safety rules, the most frequent mentioned
punishment was "warning''. Results also suggested that a majority of the employers
provided their employees with task-related training and employers most preferred
providing special pamphlet /regulations, holding briefing and talk session to enhance
the employees' OSH awareness and practices. Besides, few personal attributes have
implications on OSH implementation. Research suggested that the success of OSH
implementation relied on the co-operation of many parties, in particular the
employers, employees and enforcement bodies.
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ACKNOWLEDGEMENT
We would like to express our sincere gratitude to all those who have helped us to
complete this research. First of all, special gratitude to Institute of Research,
Development and Commercialization (IRDC). MARA University of Technology,
Shah Alam, for funding this research.
Secondly, we wish to express our appreciation to our research assistant, Madam Kong
Lai Kuan for her assistance and hard work in assisting the researchers in completing
this project.
Thirdly, we would like to express our special thanks to the staffs from FAMA, Kedah
for their willing assistance in distributing the survey materials to the respondents,
especially the Director of FAMA, Kedah, Mr. Hj. Abu Bakar B. Majid, his
colleagues, Mr. Aezami B. Yusuf and others from FAMA, Kedah.
We also like to express our gratitude to the librarians of UiTM, Kedah and Shah Alam
for their assistance and cooperation throughout our study.
Lastly, many thanks, to the respondents for their support and willingness in providing
data to this study.
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TABLE OF CONTENTS
Page
ABSTRACT
ACKNOWLEDGMENTS
TABLE OF CONTENTS
LIST OF TABLES
LIST OF CHARTS
FIGURES
i
ii
iii
v
vi
vii
CHAPTER
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1: INTRODUCTION
Background of The Study
Problem Statement
Significance of The Study
Objectives of The Study
Research Questions
Scope of The Research
Limitation
Definition of Terms
1
5
6
6
7
7
7
8
CHAPTER
2.0
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2: LITERATURE REVIEW
Introduction
Occupational Safety and Health and SMIs
Management Commitment and Involvement in OSH
Employee and OSH
Workplace Accident
Occupational Safety and Health Policy and Training
Conceptual Framework
Summary
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9
12
14
16
17
18
19
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CHAPTER 3: RESEARCH METHODOLOGY
3.0 Introduction
3.1 Population and Sample
3.2 Instrumentation
3.2 3.2.1 Part A: The Management's Commitment and
Involvement
3.2.2 Part B: The Level of Employee Compliance With
OSH
3.2.3 Part C: The Employees' Perceptions Towards the
Implementation and Effectiveness of Company's
Safety Programmes
3.2.4 Part D: Workplace Accident Occurrences
3.2.5 Part E: Company Compliance to Safety Regulations
3.2.6 Part F: Training Activity
3.2.7 Part G: The Respondents' Personal Attributes
3.3 Data Collection
3.4 Data Analysis
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21
21
22
22
23
23
24
24
24
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CHAPTER 4: FINDINGS
4.0 Introduction
4.1 Descriptive Data
4.2 The Standard Implementation of OSH
4.2.1 The Management's Commitment and Involvement
4.2.2 The Level of Employee Compliance with OSH
4.2.3 The Employees' Perceptions towards the
Implementation and Effectiveness of Company's
Safety Program
4.2.4 Differences between Employees with Respect to the
Standard Implementation of OSH at Their Workplaces
4.2.5 Accident at the Workplace
4.2.6 Company Compliance with Safety Regulations
4.2.7 Training Activity
4.3 Reliability Analysis
4.4 Summary
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48
51
53
53
CHAPTER 5: SUMMARY. DISCUSSION. RECOMMENDATIONS
AND CONCLUSION
5.0 Introduction
5.1 Summary of the Study
5.2 Discussion and Recommendations
5.3- Conclusion
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55
60
63
REFERENCES
65
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26
31
31
32
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LIST OF TABLES
P a
Content
1.1
2.1
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
4.19
4.20
4.21
4.22
4.23
4.24
4.25
4.26
Industrial Accident in Malaysia from 1999 to 2003
Types of Accidents 2003
The Frequency and Percentage of Respondents by Gender
The Frequency and Percentage of Respondents by Age
Group
The Frequency and Percentage of Respondents by Marital
Status
The Frequency and Percentage of Respondents by Year of
Service
The Mean Value of Management's Commitment and
Involvement
Mean Values of the Level of Employees Compliance with
OSH Practices at Their Workplaces
The Employee' Perceptions towards the Implementation
and Effectiveness of Company's Safety Program
Independent Sample Test (Gender)
Descriptive Statistics
ANOVA (Age)
Descriptive Statistics
ANOVA (Marital Status)
Descriptive Statistics
ANOVA (Years of Service)
Descriptive Statistics
Have you experienced any accidents near-miss in the
workplace?
Have you experienced any accidents in the workplace?
What is the level of injury that you have suffered?
What is the caused of accident?
Were they any action taken against you because of this
accident?
Types of accidents that occurred in your company for the
past two years
Types of Personnel Protective Equipment Provided By
Employers
Types of incentives Received When Complying with All
Safety Rules and Regulations
Kinds of Punishments an Employee would Receive if
He/She Does Not Comply with Safety Rules
Steps Taken By Employers Regarding OSH
Types of OSH Training that Employee Has Undergone
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g
4
16
27
28
29
30
31
32
32
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34
35
35
37
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40
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43
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e
LIST O F C H A R T S
P a
Content
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
Gender
Age Group
Marital Status
Years of Service
Mean: Level of Employee Compliance with OSH (Gender)
Mean: Management's Commitment and Involvement on
OSH Implementation (Age Group)
Mean: Management's Commitment and Involvement
(Marital Status)
Mean: Level of Employee Compliance with OSH (Marital
Status)
Mean: Employees'Perceptions Towards the
Implementation & Effectiveness of Company's Safety
Program (Years of Service)
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S
27
28
29
30
34
36
39
39
41
e
FIGURE
P a
Content
2.1
S
19
Conceptual Framework
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CHAPTER I
INTRODUCTION
BACKGROUND OF THE STUDY
Employees are the most valuable assets to a company, yet they are exposed to
many hazards and risks at the workplace. As Malaysia moves towards a status
of an industrialized nation, employees' safety and health are of concern to
many parties especially the government. In relation to that, the Occupational
Safety and Health Act (OSHA), established in 1994 outlined the legislative
framework to promote, stimulate and encourage high standards of safety and
health at work, as stated in Act 514 -Occupational
Safety and Health, 1994:
"An act to make further provisions 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."
The OSH 1994 contains 15 sections of establish mechanism to protect
workplace safety and health. Amongst them are:
•
General duties of employers, manufacturers, employees, the selfemployed, designers, importers and suppliers;
•
Appointment of enforcement officers;
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•
Establishment of a national council for occupational safety and health;
•
Formulation of the organization's policy and arrangement to secure the
safety, health and welfare of people at work as well as the surrounding
community and the environment; and
•
Power of enforcement and investigation, and liability for offences.
In summary, this Act seeks to promote safety and health awareness and
institute effective safety practices through self-regulations for people at work.
In addition, Malaysia government has set up a few departments for monitoring
closely the workplace safety and health. They are as follow:
•
Department of Occupational Safety and Health (DOSH)
•
National Council for Occupational Safety and Health (NCOSH), and
•
The National Institute of Occupational Safety and Health (NIOSH).
These three agencies are amongst the major players or enforcement bodies that
take charge of issues and responsibilities in related to occupational safety and
health in Malaysia. These two bodies are under the Ministry of Human
Resources.
The major responsibilities of Department of Occupational Safety and Health
(DOSH) is to ensure occupational safety, health and welfare of people at work
as well as protecting other people from the aspect of safety and health hazards
arising from the activities of various sectors, which include:
•
Manufacturing
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•
Mining and quarrying
•
Construction
•
Hotels and restaurants
•
Agriculture, forestry and fishing
•
Transport, storage ad communication
•
Public service and statutory authorities
•
Utilities - Gas, Electricity, Water and Sanitary Services
•
Finance, Insurance, Real Estate and Business Services
On the other hand, the National Council for Occupational Safety and Health
(NCOSH) serves as the highest organization responsible for determining the
direction and national policy pertaining to occupational safety and health in
Malaysia.
On top of that, the National Institute of Occupational safety and Health
(NIOSH) provides training, research and consultancy, and disseminates
information on OSH to industries, especially small and medium-sized
industries (SMIs).
Although the government has taken all the efforts to promote occupational
safety and health practices, yet the occupational accident and workplace
hazard still occur from time to time, especially in SMIs. Table 1.1 recorded the
total industrial accident rates reported in Malaysia from 1999-2003. Statistics
show that manufacturing sector has recorded the highest industrial accident
rates and fatalities, among others.
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TABLE 1.1; INDUSTRIAL ACCIDENT IN MALAYSIA FROM 1999 TO 2003
1999
2000
2001
2003
(until Sept)
2002
Industries
Fatality
Reported
12753
Reported
Fatality
Reported
Reported
Fatality
Reported
75
9456
69
6,501
52
573
7
545
12
389
8
282
35,642
243
33523
214
23,319
164
537
8
442
13
516
14
448
11
146
4,873
159
4,593
89
5015
88
4,134
72
14685
127
15,452
151
13,774
192
13685
134
8,826
102
Transportation
4462
91
4,778
98
4,382
91
4439
90
3,218
62
Financial Institution & Insurance
627
8
687
11
602
6
567
9
388
7
Services
5987
65
6,581
72
5,950
106
5924
87
3,952
65
Public Services
6735
83
8,248
97
7,487
136
8140
141
4,334
92
92,074
909
95,006
1,004
85,869
958
81810
858
55,509
635
Reported
Fatality
Reported
132
11,893
756
14
40730
Reported
Fatality
Reported
115
12,424
626
11
232
41,331
592
11
Construction
4747
Trading
Reported
Agriculture, forestry & fishing
Mining & Quarrying
Manufacturing
Electricity, Gas, Water & Sanitary
Services
TOTAL
Source: SOCSO, (2005) or refer vvww.perkeso.gov.my
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1.1
PROBLEM STATEMENT
"According to the Department of Occupational Safety and Health
(DOSH), compliance with OSHA 1994 and its regulations by the
employers is still not up to the mark and needs further
improvement. The majority of these employers are from small and
medium size industries (SMIs) and self-employed person. "
"From DOSH records, in the year 2000, only 47% out of 16,092
workplace categories as factories have formulated a safety and
health policy and only 74% out of 9,180 factories have set up a
safety and health committee. "
(www.mohr.gov.my)
The above two statements portrayed the phenomena in Malaysia that most
SMIs face difficulty in implement OSH in their workplace. According to
NIOSH (2004), it is estimated that there are presently more than 20,000 SMI
companies, representing some 9 1 % of manufacturing establishments in
Malaysia. If non-manufacturing companies are taken into account, the number
of SMIs is estimated to more than 100,000.
Furthermore, according to statistics, almost 38% of Malaysia employees
working in SMI-manufacturing
sector; in addition, nearly 9 3 % of all
establishments in the manufacturing sector in Malaysia consist of SMIs which
have fewer than 150 employees, and produced nearly 27% of the Malaysia
manufacturing outcome (SMIDP Study Report, 2000).
The above figures underline the important roles and contributions of SMIs to
our national economy. Hence, there is a need to study the implementation of
OSH in SMIs, especially the OSH compliance in manufacturing sectors.
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However, till to date, little research has carried out on this sector, particularly
in Kedah State; much of the research is focused on other areas such as
construction industries. Hence, this study tries to investigate the standard
implementation of OSHA in SMIs, Kedah, giving special emphasis on the
aspect of food manufacturers, one of the major players in Kedah economy.
1.2
SIGNIFICANCE OF THE STUDY
This study could provide useful insight of the OSHA implementation in SMIs,
Kedah, in particular the sector of food-manufacturers. This meaningful
information could help to create a better understanding on the factors that may
lead to greater implementation of OSHA. Besides, findings from the study
could also help the SMIs employers to identify the problems and gaps between
employees' perceptions of OSHA implementation and the actual OSH
practices in their workplaces as well as the influence of demographic
background towards occupational safety and health. With such findings,
employers could take the necessary actions to overcome the problem and
restructure the safety and health work culture in their workplaces.
1.3
OBJECTIVES OF THE STUDY
There are three objectives of this study:
i)
To find out the levels of OSHA implementation in SMIs, Kedah;
ii)
To discuss and determine problems faced by SMIs in managing OSH
in their workplace;
iii)
To promote "safety and health" work culture.
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1.4
RESEARCH QUESTIONS
i)
To what extent, SMI employers practice OSH in their workplaces, in
the context of management commitment and involvement, training
provided and compliance of safety regulations?
ii)
What are the employees' perceptions towards the implementation and
effectiveness of company's safety programmes?
iii)
To what extent, do SMI employees comply
with the OSHA
requirements in their workplaces?
iv)
What are the types and causes of accident that happen in SMIs?
v)
What are the actions taken by the employers following the occurrence
of accident?
1.5
SCOPE OF THE RESEARCH
This study covered 51 SMIs - food-manufacturing factories which are located
in Kedah.
1.6
LIMITATION
This study aims to investigate the OSHA implementation in SMIs Kedah.
However, due to the big sample sizes, this research only focused on the food
manufacturers which are located at Kedah. On top of that, this research only
takes consideration from the employees' perspective to examine the aspects of
OSHA
implementation
in food-manufacturing
factories. Therefore,
the
findings might not represent the actual setting of SMIs Kedah, and the
findings
of the research could not be generalized to all SMIs. Any
interpretation on the findings has to be carried out cautiously.
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1.7
DEFINITION OF TERMS
For the purpose of this study the key terms below are defined as follows:
i)
Small and Medium-Sized Industries (SMIs):
Referring to the manufacturing sectors, small firms or enterprise that
have fulltime employees not exceeding 150 employees and annual
sales turnover not exceeding RM 25 million (NIOSH, 2004).
ii)
Occupational Safety and Health Act:
"An act to make further provisions 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. (Occupational Safety and Health Act
and Regulations, 2004).
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CHAPTER 2
LITERATURE REVIEW
2.0
INTRODUCTION
This chapter covers literature review pertaining to the aspects of occupational
safety and health and SMIs. There are five sections of discussion, which
includes: (i) OSH and SMIs; (ii) The Management Commitment and
Involvement in OSH, (iii) The Employee and OSH; (iv) Workplace Accident,
and (v) Safety and Health Policy and Training at the workplace.
2.1
OCCUPATIONAL SAFETY AND HEALTH AND SMIs
As stated in the Occupational Safety and Health Act and Regulations, (1994),
the objects of the OSHA, 1994, are:
i)
to secure the safety, health and welfare of persons at work against
risks to safety or health arising out of the activities of persons at
work;
ii) to protect persons at a place of work other than persons at work
against risks to safety or health arising out of the activities of
persons at work;
iii) to promote an occupational environment for persons at work which
is adapted to their physiological and psychological needs;
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iv) to provide the means whereby the associated occupational safety
and health legislations may be progressively replaced by a system
of regulations and approved industry codes of practice operating in
combination with the provisions of this Act designed to maintain or
improve the standards of safety and health.
The roles of occupational safety and health in Malaysia could be traced back
to the end of 19th century before the existence of OSHA, 1994 (DOSH 2003
Annual Report). These act and ordinance are for example: the Selangor Boiler
Enactment 1892, The Machinery Ordinance 1953, Factories and Machinery
Act 1967, was established to play a role in the occupational safety and health
duties in Malaysia. In 1994, OSHA 1994 has been gazette.
In general, all these acts are aimed to promote occupational safety and health
awareness and institute effective safety practices in the workplace. However,
in the context of OSHA, there is no specific piece of regulation for SMIs.
In Malaysia, SMIs is one of the major recruiters and contributors to the
national economy, but the OSH implementation and performance of SMIs has
yet to achieve the necessary standard. In 2000, according to the DirectorGeneral of DOSH. multinational and big companies in Malaysia probably
adhere well to the philosophy of self-regulation for people at work to enhance
OSH standard. In contrast, due to factors such as lack of expertise, resources
or manpower, SMIs Malaysia are unable to apply the OSHA 1994 philosophy
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and as a result it has led to their low levels of OSH
performance
(www.dosh.gov.my).
In 2001, the Minister of Human Resource reminded that SMIs employers and
self-employed person are the group of people who are still not up to the mark
and needs further improvement (www.mohr.gov.my).
Evidence has proven that the size of establishment or the number of people
employed in an establishment has a close relation with injury rate. Nichols,
Dennis and Guy (1995) have conducted a research on the relationship between
size of employment unit and injury rate in British manufacturing using a
secondary analysis of the Workplace Industrial Relations Survey (WIRS) 1990
data. Their study found that there is a negative relationship between small
establishment and injury rate (small establishment, higher injury rate). One of
the possible reasons is that small establishment tend to have little resources
(Nichols, etal., 1995).
Holmes's (1999) research has similar findings with Nichols (et al., 1995). His
study on a sample of Australian small business construction firms' show that
in the aspect of manage OSH risk, small business firms are not as effective as
larger firms.
Lingard and Rowlinson (1994) research also suggested that organizations
which possess more resources and experience tend to deal with health and
safety issues more effectively.
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Lin and Mills (2001 )'s research findings are also consistent with research
conducted by Lingard and Rowlinson (1994), Nichols (et al., 1995) and
Holmes's (1999) that company size has a significant influence on a company's
OSH performance; majority of the smaller contractors do not have safety
committee experience.
All this research proposed that size of company has significant influence on
OSH performance and it is found that larger organizations tend to be more
committed to safety.
MANAGEMENT C O M M I T M E N T AND INVOLVEMENT I N OSH
"// should be the duty of every employer and every selfemployed person to ensure, so far as is practicable, the
safety, health and welfare at work of all his employees "
(Part IV, Section 15, OSHA 1994)
The above clause of OSHA indicates clearly the duty of employers in
protecting worker and workplace safety and health. In this context, employers
themselves or their management plays an important role in providing proper
workplace safety and health, especially in SMIs. In reality these SMIs lack
resources in many aspects, which could have affected their abilities to
implement OSH at their workplace, such as, provide employee with specialist
safety training, purchase of safety equipment, enquire consultation service,
among others.
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Nichols (et al., 1995) study found that in small establishment, the management
is more likely to deal with safety and health without consultant, as compared
to the practice of large establishment. In Malaysia, under Section 16, OSHA
1994, every employer and every self-employed person is responsible to
formulate safety and health policy. However, management alone is not solely
to responsible providing proper safeguard at the workplace and for worker
safety and health.
For instance, while Nichols (et al., 1995) study suggested that small
organization tend to have higher injury rate as compared to big establishment.
They also found that in the aspects of OSH joint committee, almost 90% of the
establishments in manufacturing with 250 or more employees have some form
of joint committee for health and safety. In contrast, for the company with less
than 250 employees, only about 36% of them do have some form of joint
committee for safety and health.
Prior to that, Nishgaki (1994) conducted a research to investigate 35 cases of
construction injuries that happened between 1981 to 1985. He found that
management commitment takes responsibility to majority of the "humanware"
problem in the workplace. According to his definition, "humanware" is
referred to a function consist of leadership, fellowship, and the interaction
between them. In other words, his research suggested that the attitudes of
employers and employees play a significant role in ensuring safety at the work
site.
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Lin and Mills (2001) research findings have also indicated that OSH is likely
to be improved if the contractors are committed to ensuring that their
employees use the safety equipments.
In conclusion, these findings suggest that the commitment of the management
and the involvement from other parties, such as union, consultants and
employees are important factors to safeguard the safety of the workplace.
E M P L O Y E E AND O S H
The general duties of employee at work are stated in the Part IV, Section 24,
OSHA 1994. In general, under this Act, employee responsibilities are:
i)
to take care of the safety and health of himself and others,
ii)
to co-operate with his employer or any other person in the
discharge of any duty or requirement imposed on the employer
or that other person by this Act,
iii)
to wear or use at all times any protective equipment or clothing
to prevent risks to his safety and health; and
iv)
to comply with any instruction on OSH.
It is important to note that employee commitment to safety is one of the
criteria for good safety culture (Pidgeon, 1991). Lin and Mills (2001)
suggested that employees should participate in safety program as they tend to
be more aware of hazard in the workplace than others. Co-operations between
employers and employees could help to improve safety performance in the
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workplace through interaction, communication and sharing expertise of each
party.
However, the worker attitudes on safety vary from one to another. Nichols (et
al., 1995) research finding indicates that organization, which has higher
percentage of part-time employees is associated with lower injury rates.
In contrast, Huang, Chen, Rogers and Krauss (2003) research indicate a
contradicting result that part-time employees reported fewer injury incidents.
The purpose of their research is to evaluate the relationship between
employment status and job satisfaction, with the focus on the moderating roles
of perceived injury risk and injury incidence. Their findings reveal that the
level of job satisfaction for full-time workers was about the same regardless of
the level of injury risk they perceived. Nonetheless, job satisfaction of parttime workers was significantly higher when they perceived low injury risk.
Their findings also support the potential adverse implications of injury
incident and injury risk on job satisfaction for both of the parties.
Zakaria (et al., 2002) findings show that although in general, the level of
compliance with OSH rules and regulations is good for their respondents but
quite a large portion of firms were reported to have unsatisfactory level of
compliance, i.e. 11.4% and 21.4% for the 44 manufacturing and 28
constructions firms respectively. On top of that, non-compliance to rules and
procedures is more likely to be associated to employee-related problems.
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