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Survey on Relationship between Productivity and Occupational Safety and Health
*Japan Industrial Safety and Health Association* 1. Circumstances and a purpose The theme of the survey was officially settled at APEC/HRD/NEDM (APEC / Human Resource Development/Network for Economic Development Management) in the Philippines in June of 1996. At that conference, the Philippines asked the U.S. for cooperation to prevent occupational injuries and deaths at small and medium-sized enterprises. The proposal was made to collect good examples which show that improvement of occupational safety and health also improves productivity and business. In order to respond to this request, National Safety Council of the U.S. asked Japan Industrial Safety and Health Association (JISHA) for cooperated survey. This survey started in June of 1997 with the participation of Toyota Motor Corporation and Matsushita Electric Industrial Co., Ltd. from Japan, and in March 1998 Tachi Corporation joined as a representative of small and medium-sized enterprises. 2. Policy of survey Though relation between productivity and occupational safety and health is important, it has not been studied and documented in a systematic way. In the U.S., according to the NSC, there are many cases that companies not only reduced occupational injuries and deaths, but also improved productivity in accordance with adoption of safety and health program to keep the expenses of occupational injuries and deaths lower. However, there are very few examples that have macroscopically studied and documented the relationship between productivity and safety and health. One of the reasons may be a difficulty of methodology. On the other hand, discussion about the benefit of reduction of occupational injuries and deaths from the financial point of view is not common in Japan partly because of the Japanese culture. Therefore, such surveys have hardly been carried out. However, taking account of the APEC's request mentioned above, such studies and its documentation becomes very important in order to make executives and managers understand that effective occupational safety and health programs bring their company profits. From this point of view, JISHA and NSC agreed to indicate positive correlation first rather than negative correlation, setting aside a causal relationship between productivity and safety and health. In addition, the study were carried out with the following points in mind. 1) To avoid statistical fluctuation, target period should be long enough. 2) Recent tendency of occupational safety and health problem in Japanese companies with good S&H program is shifting to musculoskeltal problems such as back pain. To utilize the results of surveys for companies in Southeast Asian countries that suffer from high rate of accidents, historical studies are necessary. 3) The report from Japan should consist of two parts. The first part is a general remark or summary and the second part is a case study from each participating companies. 3. The progression of productivity and occupational injuries and deaths in Japan Figure 1 shows the past 40-year statistics of occupational injuries and deaths in Japan. The statistics show that industrial accidents decreased to one third, from 480,000 (1961) to less than 160,000 (1996). At the same time, occupational deaths also decreased to about one third, from 6,172 (1961) to 2,078 (1996). Figure 2 shows that the number of injuries with absence of one day or more decreased to less than one tenth from 1956 to the present. There was a great achievement in terms of the reduction of occupational injuries and deaths. On the other hand, Figure 2 shows that productivity increased nearly eight times in the same period. Thus, in Japan, the statement of this study, occupational safety and health is effective to high productivity, stands macroscopically. As a matter of convenience, we would like to divide this period into four and give consideration to each period from the point of view of government action and measures taken by private sectors; the first is from the end of the World War II to 1955; the second, from 1956 to 1972; the third , from 1973 to 1980; the fourth, from 1981 to the present. (1) The first period (from the end of the World War II to 1955) An event worth special mention in this period was that Labor Standards Law was established in 1947. This law provided the minimum requirements of working conditions, and contributed to the improvement of occupational safety and health until Industrial Safety and Health law was established in 1972. In 1949, surveys on Accident Statistics Index (frequency rate, severity rate) started, and systems such as Qualification program for workers with special skill, Focused guidance on non-performing workplaces, Full-time safety & health staff system, Non-accident record acknowledge system, were also established in 1949, 1950, 1952, 1952, respectively. The National convention of industrial safety and health, which had been interrupted due to the war, resumed in 1951, and contributed to improve awareness of safety and health. In those days, companies gave priority to productivity, and not seriously concerned about workers' safety and health. They just followed administrative guidance. Only 2Ss activity (Seiri, Seitonn: Neatness, Orderliness) and small group activities were conducted. Early cases at Toyota and Matsushita proved those activities to be efficient. Main problems at that time were explosions, fires and Pneumoconiosis. Awareness about the occupational health was not sufficient and the main concern was tuberculosis and parasites. In this period, frequency rating of injuries decreased by half. (from 44.08 in 1950 to 24.49 in 1955) (2) The second period (from 1956 to 1972) In this period, although the frequency rating of injuries declined, the number of deaths and injuries soared maybe due to the economic growth. With this background, the following measures were taken. - The five-year industrial safety and health plan. (1958) - Establishment of accident prevention organization, JISHA and industry-wise associations such as the Japan Construction Safety and Health Association, the Japan Land Transportation Industry Safety and Health Association, the Japan Port Labor Accident Prevention Association, the Forestry and Timber Manufacturing Labor Accident Prevention Association, the Japan Mining Safety and Health Association.(1964) - Establishment of regulations for specific areas where the safety and health issues are more serious, i.e., cranes, boilers, pneumoconiosis, organic solvent and so forth. The First Occupational Accident Prevention Plan which started in 1958 aimed at a 50 percent reduction of occupational injuries and deaths, with the background of significant increase of accident cases, especially in SMEs, and frequent occurrence of explosions and roof-falls. To achieve this aim, such measures are taken in this Plan as accident prevention in SMEs, safety and health education/training, establishment of necessary regulations, S&H awareness promotion campaign, measures against mining accident, etc. As for activities in companies, 4Ss (Seiri, Seiton, Seisou, Seiketu: Neatness, Orderliness, Cleanness, Purity), setting up of in-house safety and health management organization and regulations were conducted. With introduction of QC, PDCA (Plan Do Check Action) method began to be applied to S&H area. Patrol at workplace and "Near-miss incident reporting system" were estimated to have begun in those days. Safety and health education/training started, however, the target was limited to safety and health staff, not ordinary workers. Frequency rate in this period dropped from 22.99 (1956) to 7.25 (1972) while total productivity of all industry became about 3.6 times as high. (3) The third period (from 1973 to 1980) Industrial Safety and Health law was established in 1972, which was two years later than the U.S., and two years earlier than the UK. It is interesting that these three countries established this sort of law in succession among four years. Some features of Industrial Safety and Health law are; to support voluntary activities of employers regulations for the multi-layered subcontract system control of hazardous material or equipment before they are carried into workplace. The fact that the concept of "comfortable workplace" has already been introduced from the beginning indicates that this law is very advanced for that time. In addition, many safety standard was created of in this period, such as Working Environment Measurement Law(1975), the Toxicity Inspection System for Chemical Substances (1977), the Safety Assessment of Chemical Plants (1977), and Structure Code of Safety Device for Press Machines and Shear (1978). The followings can be listed as examples of activities in the private sector; guidance of SMEs by big companies who were their parent (or customer) 5Ss activities in which Situke (discipline) is added to 4S contrivance and proposal system for the improvement of working procedure or equipment Safety and health education/training for foremen and ordinary workers In this period, frequency rate decreased from 7.25 (1972) to 3.59 (1980). Productivity of industries increased by 1.4 times. (4) The forth period (from 1981 to the present) In this period, stress was put on musculoskeltal problems, health promotion, comfortable workplace, and traffic accident. Some examples of activities carried out by the government are; guidelines for VDT operation (1985) the prevention of back pain (1996) guidelines about smoking in the workplace (1996) guidelines against traffic accident(1994) At the companies side, they introduced 6S, expanded contrivance and proposal system, TPM(Total Productive Maintenance or Total Preventive Maintenance), and TQM (Total quality Management). In addition, health education for employees who are supposed to work overseas as a result of the globalization of companies, safety and health management for employees who need special consideration such as aged worker, women, handicapped, and foreigners were promoted. Frequency rate during this period decreased from 3.23 (1981) to 1.75 (1998). Productivity of industries increased by 1.5 times. 4. Conclusion (1) During the period of survey, industrial accidents decreased significantly while productivity increased. (2) Accidents at large companies, Toyota and Matsushita, decreased significantly at the early stage. After that, problems moved to musculoskeltal issues such as back pain. Tachi Corporation followed the same course. Main activity in this period was 4Ss. All participating companies in this survey have consensus that 4S activity was very effective on reduction of injuries. (3) Concept and activities of 4Ss were very effective on productivity, too, because it does not require any expenses, 4Ss can be recommended for companies at the early stage in terms of safety and health, that is, those in Southeast Asia and SMEs in Japan. (4) It is natural that productivity increases if there is no accident which inhibit production. Our next assignment is to study further relation between productivity and safety and health performance, and factors contributing to safety and health and productivity, excluding those which has already been covered in this report. One of the hypotheses which derived during this study is; Since there is a good overlap in factors for the improvement of safety and health, quality, cost, and productivity, the comprehensive performance is enhanced when safety and health performance is improved as a result of good program, as shown in the attached figure. 5. Future survey (1) Future case studies (2) Establishment of theory (3) Application of findings in domestic and overseas (e.g. APEC) |
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