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 COPYRIGHT @ UiTM Researchers 1• Prof. Madya Dr. Zalina Hj. Hussin (Project Leader) 2. Ju Soon Yew (5) Yew^Soon Yu — Zaheraw iti B\nti Zakaria COPYRIGHT @ UiTM 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. 1 COPYRIGHT @ UiTM 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. 11 COPYRIGHT @ UiTM 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 9 9 12 14 16 17 18 19 iii COPYRIGHT @ UiTM 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 20 20 21 21 22 22 23 23 24 24 24 25 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 42 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 55 55 60 63 REFERENCES 65 iv COPYRIGHT @ UiTM 26 26 31 31 32 32 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 v COPYRIGHT @ UiTM g 4 16 27 28 29 30 31 32 32 33 34 35 35 37 38 40 40 42 43 44 45 46 47 48 49 50 51 52 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) VI COPYRIGHT @ UiTM S 27 28 29 30 34 36 39 39 41 e FIGURE P a Content 2.1 S 19 Conceptual Framework Vll COPYRIGHT @ UiTM e 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; 1 COPYRIGHT @ UiTM • 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 2 COPYRIGHT @ UiTM • 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. COPYRIGHT @ UiTM 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 4 @ UiTM COPYRIGHT 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. 5 COPYRIGHT @ UiTM 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. 6 COPYRIGHT @ UiTM 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. 7 COPYRIGHT @ UiTM 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). 8 COPYRIGHT @ UiTM 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; 9 COPYRIGHT @ UiTM 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 10 COPYRIGHT @ UiTM 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. 11 COPYRIGHT @ UiTM 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. 12 COPYRIGHT @ UiTM 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. 13 COPYRIGHT @ UiTM 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 14 COPYRIGHT @ UiTM 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. 15 COPYRIGHT @ UiTM