Pavan Baichoo, LABADMIN/OSH Promoting OSH through the supply chain Pavan Baichoo LABADMIN/OSH 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH General conditions necessary to prevent occ. injuries and diseases and improve OSH: Strong legal frameworks and standards Effective systems for oversight of OSH compliance mechanisms Social dialogue Resources Occupational health services Employment injury insurance OSH professionals and institutions Promotion 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Introduction Business increasingly rely on outsourcing Implications for OSH of workers of supplier and contracting companies 2 main supply chain networks: Primary network (a company and suppliers of certain goods) Secondary network (a company and its contractors and sub-contractors for specific services) 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Supply chain approach to OSH Most governed by one company (focal company) which is at the centre of the SC 2 networks within a supply chain: Primary network: primarily a flow of materials and goods in which production, distribution and sales occur Secondary network: comprises of a flow of people and services (contracting) often includes services sporadic in nature 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Primary network supply chain Focal companies govern the supply chain, provide direct contact to the customer and design the product Suppliers provide goods and services to the focal company directly (as compared to contractors and sub-contractors) 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Promoting OSH for focal companies in the primary network supply chain 3 main ways: Market based initiatives Regulatory initiatives Joint private/public initiatives 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Market based initiatives Consequence of pressure from the public or pressure groups Social sustainability to establish a social footprint Implementation of social (SA 800, ILO-OSH 2001) and environmental (ISO 14001) Reputation (loss) 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Regulatory driven initiatives Regulatory initiatives such as statutory procurement requirements Works better in heavily regulated sectors Governmental control 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Joint public/private driven initiatives Initiatives that include partnerships with international organisations, trade unions, NGOs Through TC with international organisations to raise OSH in countries 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Promoting OSH for suppliers in the primary network supply chain Purchaser procurement standards Purchasers in strong positions to influence OSH among suppliers and selection based on OSH criteria) Management systems Relate to minimum performance criteria and are usually voluntary Codes of conduct and IFAs CoD usually voluntary and offer guidance, goals and objectives enhanced by monitoring. IFAs are usually transnational agreements between MNEs and unions. OSH is usually a major element Trade/industry initiatives Cooperation between dealers and producers and usually based on best practices and information flow so that early detection of OSH risks can be signalled and adequate controls implemented industry wide. 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Promoting OSH for contractors in the secondary network supply chain Main problems: Outsourcing may cause non-permanent labour (temporary work, self-employment..) Usually undertaken in SMEs who usually possess less adequate systems for OSH risk management, OSH investment, training.. Work usually undertaken on the main site without knowledge of the hazards 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Promoting OSH for contractors in the secondary network supply chain Regulatory framework Cooperation between client and contractor Sharing of information Guidance from OSH authorities Provision of incentives by public procurement agencies 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Promoting OSH for contractors in the secondary network supply chain Purchaser procurement strategies with the following criteria for selection Evidence of experience in the area of work References from previous clients Accident statistics Evidence of qualifications and OSH training Risk assessment for the work to be undertaken Above can be used to select safe contractors and sub-contractors 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Promoting OSH for contractors in the secondary network supply chain Safety certification schemes for contractors Voluntary Usually third party certifiers to evealuate, certify and ensure the performances and competencies of contractors as well as there workers with regard to OSH Individual schemes Safety passport Simple schemes ensuring only workers with sufficient competence in OSH are allowed to work 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Recommendations Primary network OSH should be a part of a company’s values Policy makers consider developing regulations that enhance OSH being taken up by companies Enforcement of OSH regulations, especially among SMEs and the provision of guidance Awareness raising by public authorities for OSH 14/10/2018 Pavan Baichoo, LABADMIN/OSH

Pavan Baichoo, LABADMIN/OSH Recommendations Secondary network Outsourcing based on strong relationship between client and contractors supported by information and communication Companies should select safe contractors Client companies, contractors and workers should cooperate Outsourcing contract to consider information of hazards and measure taken to eliminate them Third-party certification Training for contractors in OSH 14/10/2018 Pavan Baichoo, LABADMIN/OSH