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Workplace Safety and Health

HIWIN prioritizes the physical and mental well-being, as well as the safety management, of its employees and contractors. In addition to adhering to legal regulations, the Company also promotes safety awareness among employees and implements various healthcare measures. Its goal is to create a secure and healthy work environment, prevent occupational accidents and illnesses, and establish a comprehensive Safety and Health Mutual Protection Circle.

Promotion of Safety Culture

In 2017, HIWIN, led by President Enid H.C. Tsai , launched a joint declaration of safety culture activities among department managers. This initiative promoted active employee involvement in identifying hazards, reporting incidents, and suggesting innovative improvements. Furthermore, the Company implemented a rewards system to foster a safety and health mindset as an integral part of every employee’s DNA. HIWIN’s safety culture encompasses three key dimensions: policy, management, and individual aspects.

In 2023, every department conducted self-assessments and discovered a total of 523 hazards through independent inspections and regional activities, and 1,274 potential hazards were discovered during regional joint prevention activities were identified and addressed. Beginning in 2022, a quarterly analysis of weaknesses in safety culture promotion across different processes has been implemented. This includes the planning of relevant educational training, which has effectively improved the effectiveness and results of safety culture promotion.

Achievements in promoting safety culture in 2023
Occupational health and safety performance indicators

HIWIN employs a four-level indicator system (Safe, Caution, Careful, Dangerous) to assess Occupational Health and Safety performance. This system incorporates both proactive and reactive indicators within the framework of our safety culture. Proactive Indicators: Encourage employees to actively participate in safety and health activities and offer suggestions to improve safety; Reactive Indicators: Include the number of occupational injuries, incidents, and participation rates in environmental, safety, and health training. To create a safe and friendly working environment where employees can work with peace of mind, we focused on analyzing weaker departments with lower performance scores in 2023. Through targeted training and on-site audit guidance, we effectively reduced the “Dangerous” and “Careful” indicators. The proportion of these indicators across departments was 4.1%, a 19.3% reduction compared to 2022.

To enable employees to learn from the safety performance and practices of units with outstanding safety culture, HIWIN promoted safety culture activities in 2023 through the execution of four evaluation criteria:

Occupational Health and Safety

HIWIN adheres to the ISO 45001:2018 Occupational Health and Safety Management System standards, which were issued in March 2018. By utilizing the PDCA framework, HIWIN has made modifications to the existing OHSAS 18001 regulations. These modifications include expanding the standard to involve support and participation from leadership levels, as well as the collection and planning of internal and external issues. Additionally, HIWIN addresses stakeholder needs and expectations, identifies and assesses risks, consults and communicates with nonmanagement personnel, applies performance indicators, and evaluates the effectiveness of corrective and preventive measures. Safety concerns and improvement opportunities are identified through mechanisms such as management reviews, internal audits, automatic inspections, and safety and health inspections. This ensures that the principles of the system are effectively implemented at the management level.

Furthermore, HIWIN recognizes its employees as a crucial core competency and is dedicated to enhancing their knowledge, attitudes, and qualities regarding safety and health. In 2019, HIWIN became the first domestic precision machinery manufacturer to receive ISO 45001:2018 certification.HIWIN consistently maintains this certification on an annual basis, covering all employees and contractors. In 2023, HIWIN Headquarters, Jingke Factory 2, Factory 2, Yunlin Factory 1, Yunlin Factory 3, and Dapumei Factory 1 also obtained CNS 45001:2018 certification, earning the “Taiwan Occupational Safety and Health Management System” (TOSHMS) certificate.

Note:

1. ISO 45001:2018 certification has been successfully obtained for the Headquarters, Jingke Factory 2, Factory 2, Yunlin Factory 1, Yunlin Factory 2, Yunlin Factory 3, Dapumei Factory 1, Dapumei Factory 3.

2. Factory 1 was relocated and merged with Factory 3 in August 2023. As such, a separate ISO 45001:2018 certification was not pursued. However, the management system remains operational.

Workers covered by the Occupational Health and Safety Management System

As of the end of 2023, the workforce at HIWIN can be categorized as follows: employees (4,648 individuals, 80.5%), contractors (1,073 individuals, 18.7%), outsourced cleaning staff (27 individuals, 0.5%), outsourced security personnel (9 individuals, 0.2%), and non-formal employees such as research grant recipients and part-time staff (2 individuals, 0.1%).

Efficacy & outcomes of internal audits

To ensure that all operational procedures are implemented in accordance with regulations and to comply with the ISO 45001:2018 management process, HIWIN conducts at least two internal audits annually. In 2023, the internal audit results identified a total of 1,418 compliance items (95.17%), 13 non-compliance items (0.87%), and 59 recommendations (3.96%). Upon further analysis, the non-compliance items and recommendations were primarily related to document management, risk and opportunity identification, and fire emergency management. In compliance with audit regulations, these issues were resolved within one month with a 100% improvement rate.

To maintain safety and health in operational sites, routine Safety and Health Inspections and Dynamic Inspections are consistently held across all HIWIN factories to identify unsafe behaviors, environments, and equipment; ensure ongoing safety and health improvements in each factory; prevent occupational accidents; and protect the safety and health of our workplaces and workers. Additionally, all HIWIN factories are required to undergo quarterly Senior Management Inspections, where senior management from each site conduct safety and health inspections with personnel of all levels, demonstrating a commitment to safety culture and ensuring operational safety and health at all levels.

In 2023, a total of 525 deficiencies were identified through safety and health inspections and dynamic inspections. During the quarterly senior management inspections, 720 deficiencies were also identified. The three most common categories were operational management (24%), use of safety protection equipment (21%), and automatic inspections (10%). All factories are required to confirm and rectify any similar deficiencies uncovered in internal inspections and implement on-site management, personnel safety and health training, improvement suggestions, and safety culture activities to instill safety and health practices at all levels and thereby reduce the likelihood of recurring deficiencies. By the end of 2023, all 1,259 deficiencies identified in internal audits had been successfully resolved and tracked.

Participation, consultation, and communication on occupational health and safety issues

HIWIN has established Occupational Health and Safety Committees at each operational location to create a comfortable and safe environment and facilitate communication between labor and management. The committees consist of supervisors from various levels, safety personnel, and labor representatives, with a total of 261 members. Of these members, 97 are labor representatives, accounting for 37% of the total. Regular quarterly meetings are held to collectively provide input on the Company’s safety and health policies, as well as to review, coordinate, and advise on safety and health-related matters. Simultaneously, quarterly meetings are held to make collective decisions on the planning and operation of the safety and health system. To further enhance communication, a safety and health consultation mailbox has been established, and occasional electronic surveys are conducted for employees to provide feedback.

Hazard Identification, Risk Assessment, and Accident Investigation

HIWIN has implemented protocols for identifying hazards, assessing risks, and evaluating opportunities. A thorough hazard identification is conducted for both routine and non-routine activities, with regular reviews and revisions conducted annually. Prior to making any changes to processes, equipment, raw materials, or work environments, hazard identification is performed, taking into account chemical, physical, human factors engineering, biological, and other hazards. Personnel responsible for conducting hazard identification, risk assessment, and opportunity evaluation are required to undergo a minimum of two hours of training in risk assessment. Enhancing hazard identification capabilities to reduce operational risks.

All HIWIN units classify operational activities, environmental equipment, or manufacturing processes and conduct job and task audits based on potential hazards. In alignment with each unit’s operational procedures, every operational step is documented in the Hazard Identification, Risk Assessment, and Opportunity Evaluation Form. Hazards are then ranked according to severity and likelihood, with risk levels determined using the Safety Risk Assessment Matrix. Targeted improvement plans are implemented for high-risk hazards identified in the year as a way to continually reduce operational risks, ensure a safe working environment for workers, and minimize the likelihood of occupational disasters.

In 2023, each factory has completed various operational risk and opportunity assessments. There are 125 operations with moderate risks listed as “unacceptable risks,” and risk control measures have been implemented. 23 of them have also been listed in the 2024 target management plan. For the highest proportion of “human hazards” operational risks, the main improvement measures are to replace improper actions and force with labor-saving tools and changes in related mechanisms.

The Safety and Health Work Guidelines, as well as the Contractor Safety and Health Management Manual, clearly state that “Employees (contractors) who encounter an immediate danger have the right to retreat. They may stop work and retreat to a safe place without endangering the safety of other workers. They must promptly report to their immediate supervisor (or the supervising unit) and are not subject to dismissal, reassignment, withholding of wages during the stoppage period, or any other disadvantageous actions.” to protect the rights and interests of workers.

Hazardous chemical management and operation environment monitoring

Hazardous chemicals used in various stages of each plant’s processes are stored in designated areas and managed accordingly. The storage locations and containers are labeled in accordance with the Hazardous Chemical Labeling and Communication Rules and the GHS (Globally Harmonized System of Classification and Labelling of Chemicals) Regulations. Safety Data Sheets (SDS) are also placed in visible areas for easy access by operating personnel, enabling them to review them at any time and implement relevant emergency response measures. We also developed Hazard Identification Cards (H-Cards) for chemicals used throughout factories to help identify the storage locations of chemicals, providing crucial information during disaster response and preventing further risks as emergency procedures are activated.

HIWIN also adheres to the Implementation Measures for Occupational Work Environment Monitoring and contracts qualified agencies to conduct regular operational environment monitoring every six months. In 2023, the monitoring covered 56 items, including noise, CO2, dust, comprehensive temperature heat index, oil mist, xylene, and ethanol. A total of 2,113 monitoring points were inspected (covering both areas and personnel). Of these, 13 noise points, 5 illuminance points, and 2 comprehensive temperature heat index points exceeded permissible standards, and improvements were made through engineering adjustments, administrative management, or the use of protective equipment.

Contractor Occupational Health and Safety

HIWIN holds an annual meeting for contractor agreement organization to promote, consult, and communicate occupational health and safety regulations. In 2023, a total of 206 contractors participated. Before contractors enter HIWIN factories, they undergo contractor safety training and testing. In addition to occupational safety and health personnel auditing the safety of contractor operations, HIWIN has implemented measures to enhance safety management, encouraging all employees to actively participate in safety oversight and immediately uncover and eliminate any safety risks. Employees that identify a safety hazard in contractor operations can report it to the Occupational Safety and Health Department and the contractor management unit. In 2023, audits of contractor operational safety identified 66 potential hazards, which were mainly in the categories of safety and health management (22%) and protective equipment management (18%). Contractors were required to address and correct these hazards within a specified timeframe.

To simplify and streamline the process for contractors to complete environmental, safety, and health procedures before entering HIWIN factories and strengthen communication with contractors to prevent violations or occupational accidents, HIWIN took the following actions in 2023:

① Establishing a Contractor Section on the HIWIN Website: Designs were completed in 2023 but require further adjustments, which are expected to be completed in March 2024.

② Developing a Contractor Environmental, Safety, Health, and Energy Handbook: The handbook, with texts and graphics, is based on the Contractor Safety, Health, Environmental, and Energy Management Manual to help contractors better understand the Manual. The framework was completed in 2023, and designs are expected to be completed in March 2024.

③ Creating a Contractor Management Q&A Webpage: The content is ready and the webpage is expected to be operational by March 2024.

④ Implementing a Contractor Access Control System: The system is expected to be completed by April 2024.

Occupational Accident Improvement

To effectively reduce occupational accidents, HIWIN has developed 42 safety objectives management plans for 2023, in addition to promoting safety culture activities. The Company is also dedicated to ongoing safety projects aimed at enhancing operational safety. Furthermore, HIWIN aims to foster safety leadership among its supervisors through a newly established training roadmap for safety and health courses for newly promoted supervisors.

In the section on accident-related improvements and prevention, HIWIN emphasizes the sharing of safety and health insights or preventive measures related to industry / news incidents through Safety Moments. This initiative encourages self-reflection among employees and promotes mutual advocacy, reinforcing safety and health concepts and awareness.

In 2023, HIWIN’s various factories implemented the Safety Moment micro-learning course design. These courses, lasting 3-5 minutes, focused on the execution of safety practices and awareness. The content covered hazard prevention in the workplace, prevention of different hazard types, disaster case studies, and comparisons between safe and hazardous operations to ensure employees clearly understood hazard factors, thereby reducing the likelihood of occupational accidents. In total, 464 Safety Moment sessions were held across factories in 2023, with 14,563 participants.

In the event of an occupational accident, it will be evaluated using the PDCA (Plan-Do-Check-Act) management system approach. Source control measures will be implemented, and immediate actions for improvement will be taken to prevent similar issues from recurring. No significant penalties related to occupational safety were incurred in 2023.

To ensure the safety and health of workers, HIWIN conducts safety audits on all procurement items before raw materials are stocked. In accordance with relevant occupational safety and health regulations and risk assessment methods, HIWIN has established 116,552 procurement material codes, categorized into five main types: engineering, general goods, production machinery, non-production machinery, and others. Additionally, HIWIN has formulated the Environmental, Safety, Health, and Energy Equipment Procurement Specification, which is incorporated into procurement contract reviews as an acceptance standard. This specification is regularly reviewed and updated based on occupational accident case studies in order to strengthen the prevention of occupational risks and ensure the safety and health of workers.

In 2023, there were 28 occupational accidents (excl. traffic accidents during commutes). The most common types of incidents involved punctures, cuts, abrasions, falling objects, and being caught or entangled. By promoting safety culture, mitigating hazard factors onsite, conducting dynamic (surveillance camera) inspections, customizing safety operation standards, and enhancing our production department’s the occupational safety and health performance, we achieved a 76% decrease in the disabling injury frequency rate (F.R.) and a 67% decrease in the disabling injury severity rate (S.R.) from 2022. In 2023, we continued our comprehensive approach to injury prevention, with a focus on promoting a safety culture among all employees and enhancing proactive safety measures to achieve our goal of reducing incidents year by year.

In terms of contractor operations, due to the implementation of strict construction safety controls and supervision systems in 2023, there were no incidents of minor or disabling injuries.

In order to consistently improve employee operational safety, HIWIN has been collecting historical data on occupational hazards. As a result, we are developing initiatives to enhance workplace safety, which include:

① Reducing disabling injury frequency rate (F.R.) and disabling injury severity rate (S.R.): Implement safety culture projects, conduct safety knowledge and skills accreditation, and compile a risk map to reduce risks of relevant occupational disasters.

② Supporting weaker units through cross and dynamic inspections, providing guidance on addressing deficiencies, and offering quarterly educational training.

③ Conducting internal and cross-audits spotlighting key regulations, increasing the completion rate and depth of regulation identification, reducing the risk of violations, and improving regulatory compliance.

Voluntary reporting of near miss incidents

HIWIN has implemented a standard operating procedure to address near miss incidents. This procedure allows all employees to proactively report such incidents and provide specific improvement suggestions through an online system. When a near miss occurs, the responsible units are promptly notified to confirm and conduct an investigation. Immediate measures are taken to prevent the incident from escalating. We continuously strive to enhance workplace safety through initiatives such as environmental optimization, safety promotion, and regular inspection of protective equipment. Near miss incidents are considered as indicators of our occupational health and safety performance and are integrated into our assessment and rewards mechanism. In 2023, a total of 6 near miss incidents were reported, resulting in a Near Miss Frequency Rate of 0.01Note.

Note: Near Miss Frequency Rate (NMFR) = (Number of near miss incidents x 200,000)÷ Total work hours.

Safety and health education and training

Each year, HIWIN develops a safety and health education and training plan to enhance employees’ knowledge and skills in these areas. In 2023, a total of 9 internal educational training courses were conducted, consisting of 206 sessions, with a participation of 9,654 employees. HIWIN offers 19 different types of external training programs for professional qualifications and certifications. In 2023, we held 307 sessions for a total of 2,512 participants and a combined training time of 4,157 hours. The average participant satisfaction rating for these training courses was over 4.5 out of 5.

To ensure that contractors are well-versed in occupational safety and health before entering factories and that related workers’ health and safety are protected, HIWIN has strengthened hazard notification training for contractors since 2021. HIWIN has developed training materials and provided access to the Ministry of Labor’s Online Occupational Safety and Health Digital Learning Platform, empowering contractors to conduct internal training.

After completing the course and passing the contractor’s exam, participants receive an entry certification. By the end of Dec. 2023, a total of 1,073 individuals had completed this training. In 2019, HIWIN installed electricity leakage detection boxes in various factory areas. They also provided training to internal employees on how to inspect equipment brought in by contractors. This initiative not only strengthened contractor management within the facility but also contributed to the overall safety of contractor operations. As of the end of 2023, under the consistently strict safety management of contractors, there were no reported occupational accidents related to inadequate machine protection.

Emergency response drills

In addition to regular safety and health education training, HIWIN conducts annual emergency response drills. These drills are based on current events, occupational hazard scenarios, and the results of hazard identification, risk assessment, and opportunities evaluation for issues categorized as moderate risk and above. The purpose of these drills is to educate personnel on activating emergency response mechanisms, reporting to relevant individuals, evacuating to safe zones in potentially harmful or hazardous situations, and reviewing process details and protocols with colleagues after the drill. Contractors are also invited to participate in these drills and are provided with information about potential hazards upon entry. If there is an immediate danger, contractors are allowed to cease their operations and move to a safe location without endangering other workers. In 2023, HIWIN conducted 59 emergency response drills, covering scenarios such as fire emergencies, chemical leaks, high-risk operations, and workplace violence incidents. A total of 3,443 participants took part in these drills.

Health-Friendly Workplace

HIWIN prioritizes the overall growth of its employees, focusing on their physical and mental well-being. To accomplish this, HIWIN follows a thorough five-step health management approach. This approach encourages employees to adopt proactive health habits, improves their performance at work, and collaborates with them to create a workplace environment that promotes good health.

Workplace health management

HIWIN employs a comprehensive management approach to employee care, focusing on three main areas: “Occupational Injury and Illness Prevention, Healthcare, and Health Promotion.” These efforts are carried out through five major steps:“Assessment, Diagnosis, Plan, Implementation, Evaluation,” systematically manage employees of all categories and protect employee health.

Occupational injury and illness prevention

To prevent occupational injuries and diseases, HIWIN is targeting five hazards, related actions are as follows:

Health risk assessment map

To effectively implement workplace health management, we prioritize specific groups. We accomplish this through the use of questionnaires or assessment analyses, considering the relevance to job responsibilities and the impact on company operations. Health Risk Assessment Map is as follows.

Based on the 2023 Health Risk Map, the high relevance of special health check hazards to workplace activities indicates that PPE management could potentially have a significant impact on company operations. In response to this risk, HIWIN has implemented an integrated management approach that includes providing occupational health consultations and health education based on different health classifications, developing PPE management protocols according to operational hazard assessments and workplace environmental monitoring data, and ensuring the appropriate PPE use through proper application processes and periodic audits to confirm employees are wearing PPEs correctly, effectively mitigating the potential impacts of these risks on our company operations.

Healthcare

HIWIN implements a variety of health examination programs, including regular employee health checks and specialized assessments for tasks involving specific hazards, on an annual basis. In compliance with regulations, HIWIN organizes occupational health consultations and offers health education guidance through occupational health physicians and nurses. Healthcare related actions:

① Conducting employee health checkups based on age and years of service, going beyond legally required frequency.

② Implementing hazard management for personnel involved in environmental operations, addressing health risk factors such as dust and hazardous substances.

③ Offering monthly consultations for employees on illnesses, return-to-work assessments, and health check results.

④ Developing monthly health education themes to promote employees’ health awareness.

⑤ Providing support for employees with occupational injuries.

In 2023, HIWIN conducted cancer screenings as part of a Taichung City government initiative, meeting requirements for cancer screening in the workplace and securing the Healthy Workplace Enterprise Award.

Health promotion