HEALTH AND SAFETY PERFORMANCE REPORT 2009

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Contents Health and safety - a key priority for sustainable businesses

3

Overview

4

Industry initatives for occupational health and safety improvement

5

Consolidated results

6

• Site incidents

7

• Transport Incidents

7

Chemicals sector results

8

Plastics sector results

10

Responsible Care

11

®

Participating companies

11

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Health and safety - a key priority for sustainable businesses The Plastics and Chemicals Industries Association (PACIA) is the pre-eminent national body representing Australia’s third largest manufacturing sector. PACIA members include chemical manufacturers, importers and distributors, industrial, consumer and agricultural product manufacturers, logistics and supply chain partners, raw material suppliers, plastics fabricators and compounders, plastics and chemicals recyclers, research agencies and service providers to the sector. Our vision is a vibrant and sustainable industry in Australia, valued and respected by its customers, suppliers, employees, shareholders, the community and Government. Health and safety is a key element in creating a more sustainable industry. This is reflected by PACIA’s Sustainability Leadership Framework, an innovative industry led program that provides a practical roadmap for the industry across all areas of sustainability. This Framework enables PACIA member companies, both large and small across the entire value chain, to integrate sustainability into their core business practices. Health and safety is identified in the Framework as one of the priority areas for the industry for 2010/11, and the 2009 Survey demonstrates a wide cross section of companies involved in this work. Our goal for health and safety is an industry where people are safe and free from injury and disease.

Responsible Care® is a key component of the Framework, and any company sustainability program. Responsible Care® is a platform for sustainable practices in health and safety, environmental management, security, product stewardship and stakeholder relationships. Looking forward As an industry, we recognise the importance of using metrics to track progress, benchmark performance and highlight opportunities for further improvement. The Health and Safety Performance Report has enabled our industries to demonstrate performance and improvements in health and safety over many years. We are pleased to present PACIA’s Health and Safety Performance Report for 2009 to both inform and challenge those who influence workplace change and further to present ourselves as a leader among industries in promoting sustainable business in Australia.

Margaret Donnan Chief Executive

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Overview The 2009 PACIA Health and Safety Performance Report comprises data for workplace injuries, site incidents, transport incidents and occupational health and safety (OHS) initiatives, as defined. The report includes both chemicals and plastics as individual sectors, with sub sector analysis for chemicals (manufacturing, importer, and logistics sub sectors). For the second year in a row, the report also consolidates the total sample as ‘all reporting companies’ for the standard health and safety performance measures. Performance is presented with the key measures being Lost Time Injury Frequency Rate (LTIFR) on a 5 year rolling average and the Total Recordable Injury Frequency Rate (TRIFR) - refer to Definitions. The latter measure is deemed increasingly important as companies progress towards the goal of eliminating Lost Time Injuries and focus their efforts at reducing Medical Treatment Injuries. This is concordant with the goal adopted by the industry in the Sustainability Leadership Framework - an industry where people are safe and free from injury and disease.

Definitions Lost Time Injury Frequency Rate (LTIFR) The frequency of injuries involving one or more lost workdays per million hours worked Lost Time Injury Frequency Rate – 5 Year rolling average The average LTIFR for the last 5 years Medical Treatment Injury Frequency Rate (MTIFR) The frequency of injuries requiring medical treatment per million hours worked Total Recordable Injury Frequency Rate (TRIFR) The sum of LTIFR and MTIFR Workdays Lost Per Employee (WDLPE) The average number of days lost through injury per employee

National Injury Reduction Targets Industry performance is compared with recognised national OHS targets. The National OHS Strategy established targets for industry to reduce the number of workplace injuries by 40% in the ten year period (2002-2012). In 2004, the PACIA Board, in recognition of the value of setting targets for improvement, aligned PACIA reporting with this program. This equates to a target for chemical sector members of 3.66 by 2012, and 14.60 by 2012 for plastics sector companies. Health and safety is identified by the Sustainability Leadership Framework as an agreed priority area; the 2012 national OHS targets are consistent with the industry philosophy of continuous improvement in health and safety.

An industry that is open, accountable and communicating progress

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Industry initiatives for occupational health and safety improvement PACIA has placed the greatest importance on the national priorities identified by the National OHS strategy and has incorporated them as one of the key elements of the Health and Safety Performance Report. Industry initiatives for OHS improvement and sustainable cultural change fit well with the proactive ethic of continuous improvement. The National OHS strategy identifies and highlights priorities to bring about short and long term OHS improvements as well as longer term cultural change. These priorities are to:

• Reduce high incidence/high severity risk

It is pleasing to note that 96% of the participating companies provided a detailed response of the OHS initiatives being implemented by their company in 2009, in the national priority areas. The survey is designed to assist companies take a look at their own performance and to highlight the many improvements that might otherwise be taken for granted. It also provides some guidance in those more difficult areas for example, the preventative measures being taken to limit occupational disease in the future.

• Improve the capacity of business operators and

employees to manage OHS effectively

• Prevent occupational disease more effectively • Eliminate hazards at the design stage A summary of key points reported in 2009 against each of the priorities by the surveyed companies is detailed below: Reduce high incidence/high severity risk:

Improve the capacity of business operators and employees to manage OHS effectively:

• • • •

• • • •



• • • •

Active OHS Committees, safety observation tours Blue card Hazard ID system in use High visibility clothing Suite of hazard identification and risk assessment programs in place, incl. Safety Case, Critical Controls, KPIs Behaviour based safety programs Conduct Job Cycle Checks / Task based risk assessments Global HSE tracking systems

Regular Toolbox meetings Behavioural audits Liaison with external Risk assessors Cert IV Front Line Management training for supervisors and Team Leaders

• Training – OHS, DGs, manual handling, product awareness, driver training, Management of Change training, all employees attending “zero harm” leadership training

Site risk register

Prevent occupational disease more effectively:

Eliminate hazards at the design stage:

• Proactive medical centre activities, includes H1N1

• Use of Management of Change (MoC) procedure for new

• • • • • • • •

• Replacement program for old plant • Consultation with operators at the design and pre-purchase

management

Employee welfare and wellbeing programs in place Pre-employment and annual health screening Employee noise and chemical exposure monitoring Occupational hygiene programs Exposure monitoring; stress/fatigue/work overload Regular health assessments including personal risk factors

plant, products, systems

stages

• Training in work station layout, ergonomics, and economy of motion

• Procedures for design, selection, modification and disposal of plant

Health education sessions monthly on specific topics Noise abatement measures installed

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Consolidated results

Summary

A total of 72 companies participated in the 2009 survey, of which 64 had participated in the 2008 survey. There were 8 new participants. A combined sample of 21996 employees (chemicals and plastics companies) was reported. The 2009 Survey provided mixed results, with a slight increase in chemical manufacturers LTIFR, reversing a downward trend in recent years, with other parameters measured tending to plateau; reduced performance in the logistics companies surveyed, and an improved performance in the Importer/Distributor companies surveyed, was reported. Plastics sector companies surveyed showed improved LTIFR, workdays lost, and total recordable injury performance. A reduced sector sample is seen once more. There were no fatalities reported in the 2009 Survey.

Table 1 - Consolidated data

2008

No. of participating companies

2009

86

72

Total No. of Employees

23682

21996

Hours worked (million)

50.40

42.03

LTIFR

5.25

4.71

LTIFR 5 Year Rolling Average

5.07

4.70

MTIFR

12.70

12.11

TRIFR

18.00

16.80

0.15

0.14

WDLPE

Participants in 2009 Survey - Company type 12.5% 39%

30.5% 18%

For the total sample, all 72 reporting companies:

• Lost Time Injury Frequency Rate (LTIFR) and

Medical Treatment Injury Frequency Rate (MTIFR) both reduced from last year

• 96% of participating companies provided a

detailed response on OHS initiatives

• 49% of companies surveyed were free of

LTIs - up from 43% the previous year

• 35% of companies surveyed were free of

n=72 (100%) Chemical manufacturer, n= 28 (39%) Importer/Distributor, n= 13 (18%) Plastics, n= 22 (30.5%) Logistics, n= 9 (12.5%)

Participants in 2009 Survey - Company size

recordable injuries (LTI + MTI) – up from 29% the previous year Industry remains committed to:

• achieve the National Injury Reduction Target of 40%

for the LTIFR “5 year rolling average” by 2012

• promote the measure of Total Recordable Injury

Frequency Rate (TRIFR) to progressively reduce and eliminate workplace injuries, over an agreed timeframe

• eliminate serious injuries from the workplace thus reducing Workdays Lost Per Employee (WDLPE)

Large 27%

Medium 53%

Small 20%

Companies range from those with multiple sites and thousands of employees to small companies with less than 20 employees. The survey sample is highly diverse not only in size, but also in terms of activities, products and services.

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Site incidents

Transport incidents

The total number of site incidents in 2009 was 235, covering the broad description of incidents involving chemicals/chemical processes. Within this number are specific criteria definitions for the more serious incidents, or where a regulatory report is required - see boxed Definition and Table 2 data below. The overall figure of 235 includes both these specifically defined incidents as well as those less serious incidents (eg small spills to a bund). It should be noted that the number of site incidents reported reflects an increasing rigor in company collection and reporting of these events.

Definition for the purposes of this report A transport incident is described as any occurrence posing a danger or potential danger to life, property or the environment which results from a leakage, spillage, fire or explosion of goods during transport including loading and unloading. Data is reported on several categories that are taken to constitute a transport incident. These are incidents:

• involving Dangerous Goods; and/or • involving loss of containment; and/or

Definition for the purposes of this report The PACIA Site Incident survey highlights the more serious incidents that involve chemicals or chemical processes, that is, incidents involving:

• resulting in fire or explosion; and/or • posing a danger to the environment

• Fire or explosion with at least $50,000

Table 3 - Transport Incidents

property damage; and

Chemical manufacturer

Importer/Distributor

Logistics

Plastics

Total

Chemical manufacturer

Importer/Distributor

Logistics

Plastics

Total

No. of participating companies

28

8

9

15

60

30

14

8

26

78

Incident involving Dangerous Goods

28

10

11

0

49

33

26

7

0

66

Incident involving loss of containment

16

9

12

0

37

40

30

7

3

80

Incident resulting in fire or explosion

0

0

0

0

0

0

0

0

0

0

Incident posing a danger to the environment

7

5

1

0

13

4

2

1

0

7

greater than 200 litres or 200kg

These are situations that may have “off site” impacts and may prove critical to the business. The report also collects releases/emissions reported to the State EPA – these can include minor excursions above a Licence limit. There were no incidents reported in the category relating to ‘fire or explosion with at least $50,000 property damage’. It is encouraging that 56% of the participating companies reported that they used leading Key Performance Indicators in their Process Safety system (up from 52% in the previous year).

Previous year 2008

Chemical manufacturer

Importer/Distributor

Logistics

Plastics

Total

Chemical manufacturer

Importer/Distributor

Logistics

Plastics

Total

2009

28

10

8

15

61

28

13

9

27

77

0

0

0

0

0

0

0

0

0

0

Incident with Dangerous Goods release >200L/200kg

41

1

4

0

46

14

9

2

2

27

Incident with chemical release requiring EPA Report

42

0

4

0

46

22

0

1

0

23

No. of participating companies Fire or explosion >$50k property damage

2008

2009

• Release of dangerous goods equal or

Table 2 - Site Incidents

Previous year

As with the 2008 survey before, the 2009 Survey identified ‘Loss of Containment’ as the major event in transport incidents.

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Chemicals sector results • A total of 50 chemicals sector companies

• Medical Treatment Injury Frequency Rate (MTIFR)

participated in the 2009 survey, comprising:



∙∙ 28 chemical manufacturers

• Workdays Lost per Employee (WDLPE) increased

∙∙ 13 importers/distributors



• Lost Time Injury Frequency Rate increased over last

time injuries

• 34% of companies surveyed were free of recordable

year, rising from 3.95 in 2008 to 4.28 in 2009



• Lost Time Injury Frequency Rate (LTIFR) 5 year rolling

to 0.12

• 46% of companies surveyed were free of lost

∙∙ 9 logistics

decreased slightly to 10.51

injuries (LTI + MTI)

• 98% of participating companies provided a detailed

average reduced slightly to 4.62 (Refer to Graph 1)



response on OHS initiatives.

Table 4 - Chemicals sector data 2002 No. of participating companies

2003

2004

2005

2006

2007

2008

2009

71

75

76

75

77

64

55

50

Total No. of Employees

15459

21752

20262

23527

29065

22940

21678

20545

Hours worked (million)

30.80

35.30

41.80

47.22

60.02

43.27

46.57

39.45

LTIFR

4.90

5.50

5.20

5.60

5.00

4.30

3.95

4.28

LTIFR – 5 Year Rolling Average

6.10

6.06

6.14

5.98

5.24

5.12

4.81

4.62

MTIFR

14.10

12.50

10.60

10.30

9.40

9.10

10.70

10.51

TRIFR

19.00

18.00

15.80

15.90

14.40

13.40

14.60

14.79

0.12

0.09

0.10

0.07

0.06

0.07

0.10

0.12

WDLPE

Graph 1 - Chemicals - 5 Year Rolling Average LTIFR vs National Injury Reduction Target

Graph 2 - Lost Time Injury Frequency Rate

Graph 3 - Total Recordable Injury Frequency Rate

Graph 4 - Medical Treatment Injury Frequency Rate

Graph 5 - Work Days Lost Per Employee

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Nature of Injuries 2009

Sub sector statistics for 2009

Graph 6 - Lost Time Injuries

Table 5 - Chemical Manufacturers 2007 No. of Companies

Total

Chemical Injuries

Non Chemical Injuries

The chemical sector traditionally reports a low level of “chemical related” injuries, with most injuries related to manual handling and slips and trips. In 2009 ‘chemical’ related injuries continued this trend, representing 6% of Lost Time Injuries and 6.1% of MTIs, reported as ‘chemical related’.

Graph 7 - Medical Treatment Injuries

Chemical Injuries

Non Chemical Injuries

This is an improvement on the previous year (2008) for LTI, MTI and chemical related data – when 8.3% of LTIs and 6.4% of MTIs were reported as ‘chemical related’ respectively. Importers record the lowest frequency of chemical related injuries, then logistics, with chemical manufacturing the highest (approx. 8% of all LTIs are chemical related in this sub sector).

2009

31

31

28

Total No. of Employees

13804

15682

14873

Hours worked (million)

26.20

31.79

25.79

LTIFR

3.40

3.39

3.72

MTIFR

6.60

7.46

7.83

WDLPE

0.05

0.067

0.10

• The LTIFR increased to 3.72 • A slight increase in the MTIFR to 7.83 was reported • 29% of companies were free of recordable injuries ∙∙ up from 20% of companies in 2008 • An increased WDLPE to 0.1 was reported Table 6 - Importer/Distributors 2007 No. of Companies

Total

2008

2008

2009

23

15

13

Total No. of Employees

8002

4045

4062

Hours worked (million)

14.70

11.58

10.53

LTIFR

4.30

4.14

2.75

MTIFR

10.80

6.65

4.27

WDLPE

0.06

0.12

0.13

• The LTIFR markedly improved, down to 2.75

• The MTIFR has also improved to 4.27 • 39% of companies were free of recordable injuries ∙∙ up from 33% of companies in 2008 • A slight increase in the WDLPE was reported Table 7 - Logistics 2007 No. of Companies

2008

2009

10

9

9

Total No. of Employees

1134

1591

1610

Hours worked (million)

2.33

3.20

3.10

LTIFR

15.40

8.76

14.20

MTIFR

25.80

58.16

54.20

WDLPE

0.28

0.42

0.30

• The LTIFR improvement last year has reversed to 14.20

• MTIFR is roughly similar to last year at 54.20 • 11% of companies were free of recordable injuries ∙∙ down from 33% of companies in 2008 • A decrease in the WDLPE was reported

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Plastics sector results • A total of 22 plastics sector companies participated

• Workdays Lost per Employee (WDLPE) decreased to 0.44

in the 2009 survey

• 57% of companies surveyed were free of lost time

• Lost Time Injury Frequency Rate decreased over



last year, from 21.1 in 2008 to 11.28 in 2009

• Lost Time Injury Frequency Rate (LTIFR) 5 year rolling

injuries. 47 % of companies surveyed were free of recordable injuries (LTI+MTI)

• 90% of participating companies provided a detailed

average reduced slightly to 15.12 (Refer Graph 8)



response on OHS initiatives

• Medical Treatment Injury Frequency Rate (MTIFR)

also decreased slightly to 36.5

Table 8 - Plastics sector data 2002 No. of participating companies Total No. of Employees Hours worked (millions)

2003

2004

2005

2006

2007

2008

2009

64

70

55

52

50

31

31

22

4094

4703

3978

3800

4126

2393

2004

1451

7.80

9.69

8.68

7.26

8.45

4.36

3.83

2.57

LTIFR

24.40

22.10

13.20

13.20

11.96

18.10

21.10

11.28

LTIFR – 5 Year Rolling Average

—

—

21.62

19.28

17.00

15.71

15.51

15.12

MTIFR

65.60

47.90

30.70

32.50

31.80

56.90

36.80

36.50

TRIFR

90.00

70.00

43.90

45.70

43.80

75.00

57.90

47.80

0.60

0.50

0.30

0.25

0.23

0.34

0.63

0.44

WDLPE

Graph 8 - Plastics - 5 Year Rolling Average LTIFR vs National Injury Reduction Target

Graph 9 - Lost Time Injury Frequency Rate

Graph 10 - Total Recordable Injury Frequency Rate

Graph 11 - Medical Treatment Injury Frequency Rate

Graph 12 - Work Days Lost Per Employee



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Responsible Care®

The Australian Responsible Care® Program

Responsible Care® is an initiative of the international chemical industry to continuously improve the health, safety and environmental performance of its operations and to increase community involvement and awareness of the industry. The Australian chemical industry joined the program in 1989, the third country to do so after Canada and the United States. Responsible Care® is another key program under PACIA’s Sustainability Leadership Framework, which focuses on assisting the industry to meet its goals in a range of priority areas including Health and Safety, Community and Stakeholders, and Workforce.

The Australian Responsible Care® program consists of a self-assessment program whereby eligible companies assess their HSE and product stewardship practices against industry best practice codes of practice, covering the life cycle of the chemical throughout the supply chain. Compliance against each Code is reported to PACIA over a two year cycle, and a performance report published after this. Companies who meet their minimum requirements under the program are entitled, and encouraged, to use the PACIA Responsible Care® logo in their marketing programs. Responsible Care® performance reports are available from the PACIA Website.

Participating companies Air Liquide Australia Limited

Era Polymers

Plastral Pty Ltd

Allviron Pty Ltd

Evonik Degussa Australia Pty Ltd

PPG Aerospace

AndPak (Aust) Pty Ltd

ExxonMobil Chemical Australia Pty Ltd

Ant Packaging Pty Ltd

FBT - Transwest Pty Ltd

Proserpine Cooperative Sugar Milling Association Ltd

Arkema Pty Ltd

Foamex Victoria Pty Ltd

Qenos Pty Ltd

BASF Australia Limited

GE Water & Process Technologies

Redox Pty Ltd

Bayer Australia Limited

Handel and Sons Pty Ltd

RMAX

BOC Limited

Huntsman Polyurethanes ANZ

Safety Path System Pty Ltd

Border Express Pty Ltd

IMCD Australia Limited

Schiplas Pty Ltd

Bostik Australia Pty Ltd

Integrated Packaging

Shell Company of Australia Ltd

Brotec Services

International Sales & Marketing Pty Ltd

Shepherd Color International Inc.

Buckman Laboratories Pty Ltd

JFTA Pty Ltd

Slab Systems Qld Pty Ltd

Caled Containers Pty Ltd

Kalari Transport Pty Ltd

SNF (Australia) Pty Ltd

Chemcolour Industries

L.J. Wallace Group

Solvay Interox Pty Ltd

Cognis Australia Pty Ltd

Lubrizol International, Inc.

Sulo MGB Australia Pty Ltd

Connell Bros Company Australasia Pty Ltd

LyondellBasell Australia Pty Ltd

Terminals Pty Ltd

Coogee Chemicals Pty Ltd

Marstel Terminals Pty Ltd

Thermoplastic Foam Industries

Coregas Pty Ltd

Megara (Australia) Pty Ltd

Toll Chemical Logistics

CSBP Limited

Nalco Australia Pty Ltd

Valpak (Aust) Pty Ltd

Cytec Australia Holdings Pty Ltd

Norfoam Australia Pty Ltd

Valvoline (Australia) Pty Ltd

Dow Chemical (Australia) Ltd

Nowra Chemical Manufacturers Pty Ltd

Viscount Plastics Pty Ltd

Drew Australia Pty Ltd

Nufarm Australia Ltd

Vopak Terminals Australia Pty Ltd

DuPont (Australia) Ltd

Orica Australia Limited

Wacker Chemicals Australia

Ecolab Pty Ltd

Pacific Terminals

Eka Chemicals (Australia) Pty Ltd

PBE Roboplas

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For further information or comments please contact: Stephen Holland Director, Corporate and Community Relations Plastics and Chemicals Industries Association, PO Box 422 Flinders Lane, Victoria 8009 Phone: (02) 9438 2273 Email: [email protected]