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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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