The right to live should be far more important than the right to work, and labor safety is the most crucial labor condition that the Group and its employees must jointly strive to maintain. As an employer, Eurocharm TW Xinzhuang factory does not meet the scale requirement stated in the Occupational Safety and Health Act, which mandates the establishment of an occupational safety and health management system for businesses with 300 or more workers in the first category of industries. The Company still establishes internal procedures such as “The Procedure Book for Hazard Identification, Risk Assessment, and Determining Control Measures,” “Hazard Awareness Program,” “Work Environment Measurement and Sampling Strategy Planning,” “Automated Inspection Management,” “Employee Health Management,” “Contractor Safety and Health Operation Regulations,” “Change Management Operation Regulations,” and “Personal Protective Equipment Management.” VPIC1 in Vietnam has a safety office to implement an occupational safety and health management system. We comply with labor laws and regulations, fulfill our corporate responsibilities, and take care of and protect our employees. We have established safety and health/environmental policies and labor safety and health guidelines and hold labor safety and health meetings every quarter. Employees themselves should also be aware of and have an obligation to comply with occupational safety and health regulations that directly concern them to ensure their own safety at work. VPIC1 in Vietnam has obtained ISO 14001:2015 Environmental Management System and ISO 45001:2018 Occupational Health and Safety Management System certifications. We have formulated a total of 11 related procedures and successfully completed the management review meeting on May 28, 2022, as well as recertification on July 15, 2022. The system covers 5,057 employees (96.84% of the workforce) and 165 non-employees (3.16%) in VPIC1. Procurement, development, construction, production, maintenance, and contracting fully comply with the requirements of ISO 14001:2015 and ISO 45001:2018.
Safety and Health Policy
- To focus on global safety and health issues, assess risks, and build a safe working environment.
- To actively communicate and cooperate with customers and suppliers to improve the safety and health performance of our supply chain.
- To follow and comply with domestic and foreign laws and regulations such as fire prevention, environmental protection, and safety and health laws.
- To continuously promote environmental safety and hygiene improvement to create a safe and healthy workplace.
- To identify blind spots, improve constantly through continuous auditing activities and safety and sanitation management reviews with the aim to enhance operational safety and environmental quality.
Working Environment Monitoring
Disasters are commonly perceived by the public as unexpected or unplanned catastrophic events. In fact, the concept of disaster in safety management is the process that starts from the event caused by the disaster through a chronological sequence to the result. Due to the numerous factory facilities and frequent human-machine interactions, implementing autonomous safety inspections to prevent equipment failures and human errors has always been a crucial issue in job safety. PIC1 in Vietnam regularly identifies occupational hazards and conducts risk assessments based on the “Hazard and Risk Assessment Procedure.” This is done in a continuous and proactive manner to identify hazards and assess risks associated with various operational activities, products, and service processes. In 2022, 13 highly risky items were identified, including elevator/crane cable or chain breakage, collision, brake hook entanglement with cable/chain, pinching, electric shock, and splashing of molds/springs/parts. There were 59 items classified as moderate risks and 14 items as low risks. Through these assessments, safety and health risks and opportunities are evaluated, aiming for zero accidents. By continuously identifying hazards, assessing risks, and determining opportunities to eliminate or reduce safety and health risks, we strive to achieve the safety and health policy and meet the requirements of continuous improvement. Occupational environment measurement is performed to understand the actual working environment of employees and evaluate their exposure conditions. This involves planning, sampling, analysis, or instrument measurement. Therefore, appropriate strategies must be developed to achieve this purpose. In 2022, VPIC1 in Vietnam conducted environmental monitoring for temperature, humidity, wind speed, brightness, noise, respiratory dust, carbon dioxide, carbon monoxide, toluene, benzene, xylene, etc. A total of 645 measurement samples were taken, with 606 samples meeting the permissible operating standards. The remaining 39 noise measurement samples exceeded the statutory threshold, requiring relevant preventive measures in areas such as welding, stamping, painting, cutting, and die-casting. VPIC1 in Vietnam provides employees with earplugs and earmuffs and regularly conducts special medical examinations to ensure that employees receive proper care.
| Activity/ Equipment | Items with High Risks | Control Measures |
| Elevators | Cable or chain breakage | Inspect according to the elevator checklist. Operators are required to wear alarming lights. Elevators are equipped with safety interlinkage devices. |
| Cranes | Cable or chain breakage | Inspect according to the cranes checklist. Operators are required to wear alarming lights. Elevators are equipped with safety interlinkage devices. |
| Cranes | Collision when moving products/materials | Employees are trained and licensed. Fully utilize protective equipment. Equipped with alarming lights for movement of the cranes. Regular checkup, inspection, and replacement of the damaged equipment. |
| Cranes | Brakes entangled with cables/chains | Employees are trained and licensed. Adhere to regulations for operating cranes. Inspect according to daily cranes and cables checklist. Regular checkup, inspection, and replacement of the damaged equipment. |
| Forklifts | Collision when moving products/materials Collision with people | Employees are trained and licensed. Comply with the Company’s regulations for forklifts. Inspect according to daily equipment checklist. Install flashlights and honks for warning. The key must be removed whenever drivers leave the cart. Assisting personnel must keep 60cm away from the forklift when moving together; regular checkup, inspection, and replacement of the damaged equipment; forklift drivers must attend safe driving technical tests every year. Driving speed need to be controlled under 5km/h (in the die-casting plant). |
| Shearing Machine | Entrapped/jammed boards | Distribute safety cards to employees in training. Employees should operate the corrugated iron cutting machine according to the specified guidelines. Follow the daily equipment checklist. Perform regular equipment maintenance. Use a roller to support the corrugated iron behind the automatic feeding table. Install guardrails and partitions around the corrugated iron cutting blade. Secure the front shield with a locking mechanism. Install sensors on the doors around the machine. Add four additional stop positions to the surrounding shields. Create material fixtures for cutting short materials. Adjust the stop, call, and wait settings. |
| Punching Machine | Entrapped/jammed boards | Install sensors. Install dual-hand press device. Install guardrails. Install interlock device and emergency stop buttons. Install lighting. According to the daily equipment checklist, check the belt when changing molds. 1 punch press machine is equipped with 1 operator, who can switch modes by pressing 2 or 3 times. |
| Punching Machine | Splashing of molds/springs/parts | Procides protective gear: glasses, masks, etc. Protective shields are around the molds. There are protective shields by, in front of, and behind the machine. |
| Table Saw | Electric shock caused by electricity leakage | Follow the daily equipment checklist. Keep the equipment clean. Use locking mechanisms. |
| Die Casting Machine | Pinch injury (people and aluminum ingot) | Install doors and safety relays. Safety locks, emergency stop buttons |
| Trucks | Collision with people or other vehicles | Comply with traffic safety regulations. Follow inspection guidelines. Follow the daily MMTB (Maintenance, Monitoring, Testing, and Benchmarking) checklist. Regularly inspect, maintain, and replace damaged equipment. Drivers must hold a valid driver’s license. Install a vehicle black box. |
Preventing Occupational Safety Impacts
The Group views subcontractors as important working partners. To ensure the safety of subcontractor workers, measures at each production site comply with ocal occupational safety and health laws and regulations. The subcontractor’s construction plans are reviewed, and suppliers or customers entering the factories are required to wear appropriate protective equipment according to the regulations. Various management mechanisms are implemented to strengthen subcontractor construction safety, such as compliance with subcontractor control requirements (including equipment operation training records/professional licenses) and regular and random inspections of construction processes to confirm safety compliance. A subcontractor qualification review system is established, categorizing subcontractor services and creating a list of qualified vendors. This system helps procurement units have prior knowledge of subcontractor sources and improves practical requirements such as construction quality and occupational safety levels. VPIC1 in Vietnam has one safety officer per shift responsible for equipment and fire safety inspections referring to the checklist. The safety office conducts weekly plant patrols, records deficiencies for on-site improvements, and follows up improvements afterwards. The management department conducts weekly inspections of one plant, records deficiencies for on-site improvements, and follows improvements afterwards. In 2022, Eurocharm TW implemented automatic inspections for a total of 48 registered machines, following the provisions of Chapter 4 of the Occupational Safety and Health Management Regulations, and regular inspections are conducted to ensure safe operations. Operators of dangereous equipment receive regular external occupational safety and health education and training. Equipment safety at the sub-subsidiary in Vietnam is inspected periodically by external inspection companies as required by law. In 2022, occupational safety education and training were conducted for Eurocharm employees in Taiwan, with a total of 140.5 hours and 38 participants, representing a 77.8% increase in training hours compared to 2021. VPIC1 in Vietnam conducted occupational safety education and training for employees, with a total of 18,112 hours and 6,507 participants, representing a 98.68% increase in training hours compared to 2021. A cataloging system is implemented for the 311 chemicals used, in accordance with international regulations, customer requirements, and environmental trends.
Notification and Investigation Mechanism for Occupational Hazards
In accordance with the relevant provisions of local laws and regulations, Eurocharm TW and Vietnam VPIV1 supervise the investigation and handling of occupational hazards and conduct statistics for occupational hazards to grasp the status of occupational hazards in real time. The Management Department and labor safety unit initiate investigations immediately, conduct analysis, handle and develop improvement measures whenever occupational hazards occur. Safety and health issues are regularly promoted to prevent the recurrence of similar situation. No injuries occurred on the employees of our suppliers in 2022. Nine occupational incidents occurred at VPIC1, mainly pinch injuries. In addition to developing relevant operation guidelines and increasing awareness, the Company set up fences near the potentially harmful machine and equipment, actively handle the employee injury resulting from accidents, and assist impacted employees to return to the workplace.
2020 Statistics of Occupational Injuries
| Item | Taiwan | Vietnam |
| Number of Occupational Injury Cases | 0 | 9 |
| Injury Rate (IR) | 0 | 0.165 |
| Lost Day Rate (LDR) | 0 | 7.2 |
| Number of Work-Related Deaths | 0 | 1 |
| Rate of Work-Related Deaths | 0 | 0.02 |
| Serious Injuries | 0 | 0.0735 |
| General Injuries | 0 | 0.0735 |
| Injury Frequency Rate (FR) | 0 | 0.37 |
| Injury Severity Rate (SR) | 0 | 31.79 |
2021 Statistics of Occupational Injuries
| Item | Taiwan | Vietnam |
| Number of Occupational Injury Cases | 0 | 6 |
| Injury Rate (IR) | 0 | 0.116 |
| Lost Day Rate (LDR) | 0 | 3.24 |
| Number of Work-Related Deaths | 0 | 0 |
| Rate of Work-Related Deaths | 0 | 0 |
| Serious Injuries | 0 | 0.0387 |
| General Injuries | 0 | 0.0775 |
| Injury Frequency Rate (FR) | 0 | 0.19 |
| Injury Severity Rate (SR) | 0 | 12.11 |
2022 Statistics of Occupational Injuries
| Item | Taiwan | Vietnam |
| Number of Occupational Injury Cases | 0 | 9 |
| Injury Rate (IR) | 0 | 0.155 |
| Lost Day Rate (LDR) | 0 | 3.43 |
| Number of Work-Related Deaths | 0 | 0 |
| Rate of Work-Related Deaths | 0 | 0 |
| Serious Injuries | 0 | 0.0690 |
| General Injuries | 0 | 0.0863 |
| Injury Frequency Rate (FR) | 0 | 0.35 |
| Injury Severity Rate (SR) | 0 | 16.82 |
| Severity of the Injury | Description of the Incidents | Improvement Measures |
| Severe | An employee in the processing department was assisting in taking down trollies piled to three layers. During the operation, the trolley on the third layer collapsed and injured the employee, resulting in a fracture of the left thigh bone. | 1. Prohibit anyone from approaching within three meters of the forklift in operation. |
| Severe | A stamping operator failed to wear protective goggles as required. During the trial process, fragments from a broken mold guidepost struck the employee’s left eye. | 1.Revise the standard operating procedures for mold installation, clearly defining each step. 2.Enhance employee awareness that it is required to use protective equipment during operation. |
| Severe | An employee in the processing department slipped and fell while operating a fixture, resulting in a fractured hand. | 1.Fixtures are to be placed on the first layer of the shelf and with wheels for easy moving. |
| Severe | An employee in the welding department was pulling a trolley to the trolley storage area by hand. While turning at a corner, the employee’s left foot was accidentally tripped by the stacking foot frame of the trolley. | 1.Enhance employee awareness that trolleys should only be pushed. 2.Revise the position and shape of the foot frame for stacking trolleys |
| General | During the welding operation, an employee failed to follow the proper sequence, resulting in the left middle finger being injured by a cylinder clamp. | 1.Strengthen training and management for new employees. 2.When there are changes in work positions, training and operational instructions must also be provided. 3.Install protective barriers at accident-prone areas and conduct a comprehensive inspection of other welding equipment. |
| General | An employee from the improvement department took over production during rest time. When in operation, parts got stuck in the upper mold. The employee did not press the emergency stop button as required and removed the parts manually, resulting in a cut on the right palm. | 1.Disseminate information about this work-related injury to all factory staff. 2.Replace the damaged nitrogen springs in the molds and add this as a checkpoint in the inspection process. 3.Reinforce employee awareness that when a part sticks to the upper mold, the machine must be stopped immediately, and the incident should be reported to management before further handling. |
| General | While adjusting the parts during the welding process, an employee’s index finger on the left hand was injured by the pneumatic cylinder. | 1.Installed protective barriers at the location where the accident occurred and conducted a comprehensive inspection of other welding equipment. 2.Strengthen training and management for new employees, especially on operational techniques. |
| General | In the paint department, a colleague accidentally trapped his fingers in the iron door handle while opening the swing door at polishing area. | 1.Modified the design of the door handle to prevent finger trapping and inspect the door handles across all factory areas. |
| General | An employee in the welding department at Plant 6 was operating a forklift to open the cover of the waste conveyor belt when the cover suddenly slipped down, causing injury to his fingers. | 1.Modify the operating method to utilize the screw holes at the four corners of the iron cover for lifting purposes. |