Occupational Safety and Health

Phison is committed to providing employees with a safe and health work environment. We introduced the Occupational Health and Safety Assessment Series 18001 (OHSAS 18001) in 2014, and completed conversion to its new version, i.e., ISO 45001 Occupational Safety and Health Management System, in 2020. The company continues to identify OHS regulations applicable to all operating locations, implement standardized management procedures and training, adhere to the principles of formulating safety regulations, regularly assess risks, audit and confirm effects of implementation and principles of continuous improvement, so as to strengthen the existing OHS management system and continue to achieve the goals of zero work injuries and no work-related deaths.

Occupational Health and Safety (OHS) Management System

Organization for Safety and Health Implementation

Phison has established its safety and health organizations as required by law (OHS management unit/ commitee) and appointed personnel to carry out safety and health management affairs (see the chart below). The occupational safety and health management unit (OHS Unit) is the organization of Phison in charge of formulating, planning, promoting and supervising OHS-related businesses. It is dedicated to identifying hazards in the work environment or operations, maintaining the safety of contractor operations, implementing OHS trainings and OHS performance assessment, and other relevant management affairs, thereby attaining the "prevention" of occupational injuries and "protecting" employee health. The Safety and Health Committee is the company's organization for reviewing, coordinating and recommending on OHS-related affairs. The committee has 12 members (serving a term of 2 years). While the Chairman of the Board of Director serves as the Chairman of the Committee, five employee representatives (elected in employee-employer meetings) shall also be appointed. The other members shall be designated from OHSrelated personnel by the Chairman according to actual needs (see the chart below for details). Committee meetings are held on a quarterly basis.

Health Risk Identification and Management

The physical and mental health of employees is the foundation for a company's productivity. Every year, Phison implements better health check-ups than required by law, and the expenses are fully borne by the company. Through the check-ups, we identify health-related risks and plan follow-up activities of health promotion. Phison has set up a health center staffed by two full-time nurses dedicated to worker health services and contract doctors who offer in-house worker health services to implement health-related services and operations three times per month and three hours each time.
After reviewing health check-up reports and analyzing the processes of relevant operations, we identified four health risks that pose the greatest threat to employees, including: traffic accidents in travel to/from work; metabolic syndrome; anomalous workload; and human-factors hazards. We carefully regarded these four risks and proposed preventive measures, as well as continually evaluated and improved on the measures.

For employees performing operations that are particularly hazardous to health (lead-related operations and ionizing radiation operations) in factory areas, Phison provides health check-ups for such specialized operations every year to track and ensure the health of the operators. Tiered management is implemented in accordance with the Worker Health Protection Rules. The management methods can be divided into 4 levels: Level 1 (no anomalies); Level 2 (anomalies are found but are unrelated to work); Level 3 (anomalies are found, but their relation to work cannot be confirmed); and Level 4 (anomalies are found and confirmed to be related to work). For any case of Level 2 or above, health consultation will be arranged for during the doctors' on-site services. According to the 2020 statistics of health check-ups for employees performing extraordinary operations, no employees engaging in two or more operations that are hazardous to health were classified as subjects for Level 3 or 4 management.

Analysis of Occupational Injuries

In 2020, there were no deaths of employees and contractors resulting from major industrial accidents in Phison. There were a total of nine occupational injuries, all of which resulted from traffic accidents during employees' travels to/ from work. The injury rate (IR) was 0.41; occupational disease leave rate (ODR) was 0; disabling injury frequency rate was 2.35; disabling injury severity rate (SR) was 24.75; and frequency-severity indicator (FSI) was 0.241. Below is the statistical information of occupational injury in recent years:

Note 1: Total working hours are the working hours of all employees.
Note 2: Injury rate (IR) = number of occupational injuries × 200,000 / total working hours.
Note 3: Lost day rate (LDR) = total lost days × 200,000 / total working hours
Note 4: Disabling injury frequency rate (FR) = number of occupational injuries × 1,000,000 / total working hours.
Note 5: Disabling injury severity rate (SR) = total lost days × 1,000,000 / total working hours.
Note 6: Frequency-severity indicator (FSI) = (FR × SR/1000) ^1/2
Note 7: IR, LDR, FR, and SR are rounded down to the nearest hundredth.
Note 8: Disabling injury severity rate is rounded down to the nearest integer.
Note 9: AR (Absence rate) = total absence days / (number of employees × total working hours) × 100%

Occupational Injury Handling and Reporting System

Phison established the Regulations Governing the Reporting and Investigation of Occupational Injuries. When a major occupational incident occurs, we will implement handling procedures in accordance with the regulations and applicable labor laws, and report the incident to the local labor inspection agency (Occupational Safety and Health Center in central Taiwan) within 8 hours of its occurrence. In addition, we conduct statistical analysis of investigation reports and propose corrective and preventive measures.

Contractor Occupational Health and Safety Management

In order to continuously achieve the goals of zero work-related injuries and zero deaths, while ensuring that contractors abide by the relevant regulations and to maintain the order, safety, health and environmental protection when performing work, the Company has formulated "Contractor Management Regulation". All contractors must sign the “Contractor’s Safety and Health Commitment” before entering the company for construction. The contract clearly stipulates the policy of insurance and prohibition of child labor. In addition, all contractors must complete the training before they conduct work
During the construction period, the environmental safety and health department will conduct on-site audits to monitor contractor’s safety performance according to the "Contractor’s Safety and Health Performance Evaluation Form", and provide the results to the contract issuing unit. If the evaluation is unqualified for two consecutive times, the environmental Safety and Health Department and contract issuing unit responsible for the project will evaluate whether to replace the contractor. Besides, if the contracted work is of high risk, the environmental safety and health department will additionally apply for special construction work.
In 2020, the Company's contractors did not have any work-related injuries or deaths.