A Builder of Diversity in the Workplace

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 2022, every department conducted self-assessments and engaged in regional collaborative safety initiatives. As a result,a total of 2,620 hazard factors 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

(1) 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 engage in safety and health activities and contribute safety improvement suggestions. Reactive indicators encompass occupational accidents, incidents of non-compliance, and training participation rates,among others.In 2022, there were no dangerous incidents recorded in our safety performance indicators. However, the “Careful” category accounted for 15.7% of the total. To address this, we will intensify efforts to conduct onsite audits and provide guidance.

To ensure a more accurate representation of safety and health performance across departments and to highlight our achievements in promoting a safety culture, we conducted a review and revision of our safety and health performance indicators in 2022. As part of this revision, we will introduce “Safety Moment” activities as active indicators, and deduction points for dynamic inspection deficiencies as reactive indicators.

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 non-management 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.The Company 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. Due to the relocation and reconstruction of Plant 1, ISO45001:2018 management system certification is not being pursued for that facility. However, the management system continues to be maintained and operational.

(1) Workers covered by the Occupational Health and Safety Management System

As of the end of 2022, the workforce at HIWIN can be categorized as follows: employees (4,714 individuals, 86.2%), contractors (908 individuals,16%), outsourced cleaning staff (26 individuals,0.5%), outsourced security personnel (13 individuals, 0.2%), and non-formal employees such as research grant recipients and part-time staff (5 individuals, 0.1%).

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 249 members. Of these members, 93 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.

(1) Each department classifies different operational environments, equipment, or manufacturing processes and conducts inspections of jobs and operations based on potential hazards. In line with departmental workflows, every step of each operation is documented using the Hazard Identification, Risk Assessment, and Opportunity Evaluation Form. Risk levels are determined by considering severity and likelihood, and a risk grading management system is implemented.

(2) To ensure a safe working environment for employees and workers, specific improvement targets are established annually for higher-risk hazard factors identified in each plant. In 2022, all plant sites completed various assessments of job hazards, identifying 170 tasks with a moderate risk level or higher. Risk control measures were implemented, and 10 of these tasks have been included in the 2023 target management plan. The primary improvement measure for the most common operational risk of being “caught or trapped” is the installation of additional guards.

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 anyother disadvantageous actions.”

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.

Newly hired personnel involved in handling hazardous chemicals receive general education and training on the subject upon joining the Company.Additionally, current employees undergo on-the-job education and training every three years to ensure their awareness and understanding of chemicals.

For employees performing tasks with specific health hazards, specialized physical examinations and health assessments are conducted in accordance with the Regulations on Labor Health Protection. If a health abnormality is identified, an immediate assessment of job suitability will be conducted. If necessary, the worker's exposure time may be reduced or they may be reassigned to another position to prevent further adverse effects on their health.

HIWIN adheres to the Implementation Measures for Occupational Work Environment Monitoring and engages qualified monitoring organizations to conduct regular occupational environment monitoring every six months. In 2022, a total of 37 items were monitored, including noise, carbon dioxide, dust, WBGT, oil mist, xylene, ethanol, etc. A total of 1,902 monitoring points (including areas and personnel) were completed. Among them, 23 locations exceeded the noise standard, and 3 locations exceeded the dust standard. Improvements were made through engineering modifications, 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 2022, a total of 161 contractors participated. Contractors must undergo education, training, and assessments before entering the premises. While on-site, occupational health and safety personnel conduct audits of the contractors' work safety practices. To further enhance safety management and increase proactive involvement in safety oversight, HIWIN staff members can report safety hazards to the Occupational Health and Safety Department and the engineering project management unit if they detect any during contractors' construction activities. In 2022, a total of 101 potential hazards were identified during the audit of contractor construction safety. The main hazard categories were object falling (27%) and falling/rolling objects (22%). Contractors were requested to make improvements within the specified timeframe, and after verification, all issues were found to be in compliance with regulations and have been closed.。

To ensure contractors comply with on-site construction regulations in 2023, HIWIN plans to establish an e-learning section on its official website.This section will offer timely access to training manuals on environmental safety, health, and energy education, along with a “frequently asked questions” (FAQ) section for contractors. Furthermore, an electronic access control system will be implemented to effectively monitor contractors' entry and exit records. The following measures will be implemented:

(1) Creation of a dedicated section for contractors on the HIWIN official website.

(2) Establishment of a Contractor Environmental, Safety, Health, and Energy Training Guide: Centered around the Contractor Safety, Health,Environment, and Energy Management Manual, supplemented with visual and textual explanations to effectively convey information.

(3) Creation of a FAQ Section on the website: Establishing a dedicated area on the website to address frequently asked questions related to environmental,safety, and health concerns from contractors and providing explanations.

(4) Implementing a contractor-specific access control system to enhance control and monitoring of contractor personnel entering the premises.

Occupational Accident Improvement

To effectively reduce occupational accidents, HIWIN has developed 24 safety objectives management plans for 2022, 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 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 2022.

In 2022, a total of 41 occupational accidents occurred. The statistical analysis reveals that the categories with higher occurrence rates are “punctures, cuts, and abrasions,” “object falling,” and “caught or trapped.”By consistently implementing a safety culture, improving on-site hazard factors, conducting video camera inspections, customizing safety operation standards, and enhancing occupational safety and health performance in the manufacturing department, the disabling injury frequency rate (FR) decreased by 26% in 2022 compared to 2021. Additionally, the disabling injury severity rate (SR) decreased significantly by 97% compared to 2021.In 2022, 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 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) Enhancing the integration of hazard identification and risk assessment.

(2) Enhance the operational mechanism of the procurement management system by regularly updating the environmental, safety, and health procurement specifications.

(3) Promote “Safety Moment” micro-learning activities, which involve reflecting on and extracting concepts and safety and health-related issues from small everyday incidents. This will provide feedback for process review and propose improvement measures.

(4) Conduct occupational safety and health counseling by analyzing management goal achievements, recurrence rates of deficiencies, safety management performance, and occupational accidents. Prioritize highrisk process stations for inclusion in the occupational safety and health counseling program.

(5) Establish a digital occupational accident database (hazard risk maps)and provide training to raise awareness of hazards.

(6) Implement thematic inspections, hazard identification for factors, and supervisory safety observations based on operational risks.

Voluntary Reporting of False Alarm Incidents

HIWIN has implemented a standard operating procedure to address false alarm incidents. This procedure allows all employees to proactively report such incidents and provide specific improvement suggestions through an online system. When a false alarm 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. False alarm incidents are considered as indicators of our occupational health and safety performance and are integrated into our assessment and rewards mechanism. In 2022, a total of 24 false alarm incidents were reported, resulting in a false alarm incident rate of 0.5(note)。

Note: False alarm incident rate = (Number of false alarm incidents x 200,000) / Total work hours.

The primary type of false alarm incidents is fire incidents, accounting for 33.3% of all incidents. Our main focus for improvement is to prevent fires caused by dust accumulation. To achieve this, we will change the belt guard cover from a sealed type to a grid type, allowing for improved airflow.Additionally, we will conduct regular weekly cleaning.

Moving on to the category of objects falling, which accounts for 20.8% of incidents, our key improvement focus is addressing the issue of workpieces slipping. To enhance safety measures, we will install supporting mechanisms to prevent hazards caused by insufficient friction force.

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 2022, a total of 14 internal educational training courses were conducted, consisting of 222 sessions, with a participation of 2,891 employees. Additionally, 11 certification courses were organized, involving 431 participants.

During the COVID-19 pandemic, HIWIN implemented a hazard awareness training program for contractors entering the premises, in order to ensure their occupational safety and health awareness, as well as the well-being of related workers. Starting in 2022, HIWIN developed training materials and provided access to the Ministry of Labor's Occupational Safety and Health Administration's digital learning platform. This enables contractors to conduct their own education and training. Upon successful completion of the course and passing the assessment, contractors are awarded an entry qualification certificate. A total of 539 individuals have completed this process.

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. Until the end of 2022, there have been no reported cases of occupational incidents caused by inadequate equipment protection among contractors.

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 2022, a total of 64 emergency drills were conducted, covering scenarios related to occupational accidents, fire evacuation, COVID-19 reporting, and natural disasters. These drills involved the participation of 1,713 individuals.

(1) 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:

(2) Occupational Injury and Illness Prevention

To prevent occupational injuries and illnesses, HIWIN prioritizes the management of five major hazard factors: “physical,” “chemical,” “human factors,” “biological,” and “socio-psychological.”

Regarding occupational injury and illness prevention, the relevant measures are as follows:

① Physical Aspect - Measures have been implemented to exceed regulatory requirements. When on-site noise operations reach 80 decibels or above, employees receive hearing protection education to explain the potential damage caused by noise. Additionally, guidance and audits are conducted to ensure the correct usage of soundproofing and protective equipment. The Hearing Protection Program has been successful, with a total of 5,134 individuals participating.

② Chemical Aspect - Efforts have been made to educate employees on the correct selection and usage of protective equipment. Furthermore,employees' physical conditions are verified to determine the suitability of cup-shaped masks or gas masks, followed by additional testing to confirm mask compatibility. The results are as follows: 1. Personal Protective Equipment management, involving a total of 2,619 individuals; 2. Respiratory protective equipment assessment and management, involving a total of 181 individuals.

③ Human Factors Aspect - The following actions have been taken: 1.Employees who report discomfort in the musculoskeletal system,joint range of motion limitations, or work-related issues in the MNQ (Musculoskeletal Nordic Questionnaire) undergo assessments of their work time, workstations, workflow, and work posture. After identifying individuals at moderate to high risk, unit management implements administrative measures (such as adjusting work hours, workstations,or workflows) or engineering improvements (such as adding fixtures or adjusting workstation components). 2. Health education includes teaching simple stretching exercises to alleviate muscle fatigue and providing protective aids like wrist supports, back belts, and knee pads.3. On-site physicians and occupational health nurses are available to assist employees potentially exposed to hazards that require assessment,offering functional evaluations, consultation, and recommendations for job redesign or adjustments. The results are as follows: 1. Musculoskeletal hazard prevention management, involving a total of 210 cases; 2.Return-to-work management, involving a total of 165 individuals.

④ Biological Aspect - In response to infectious diseases, relevant health education information and guidance are provided. In 2022,a comprehensive approach was planned to address the COVID-19 pandemic, covering five aspects of prevention and control, including the management of confirmed cases, close contacts, and individuals under self-management. The results are as follows: Emerging Infectious disease prevention and control management, involving a total of 5,543 individuals.

⑤ Social/Psychological Aspect - The following actions have been taken:1. One-on-one health education and counseling are provided for employees during each trimester of pregnancy and postpartum, along with breastfeeding information and guidance. 2. Individuals with three or more of the following risk factors - abdominal obesity, high blood pressure, high fasting blood sugar, high fasting triglycerides, and low high-density lipoprotein cholesterol - are managed and controlled. 3. Control measures are implemented for colleagues with hypertension and diabetes. The results are as follows: 1. Maternal health protection,involving a total of 50 individuals; 2. Metabolic syndrome management,involving a total of 226 individuals; 3. Promotion of cardiovascular and cerebrovascular disease prevention, involving a total of 244 individuals.

(3) Health Risk Assessment Map

To effectively implement workplace health management, we prioritize specific groups, including Maternal Health Protection Case Management,Metabolic Syndrome Personnel Management, Musculoskeletal Hazard Prevention Management, Cardiovascular and Cerebrovascular Disease Prevention Management, General Health Check Management, Special Work Health Hazards, Respiratory Protection Assessment Management, HearingProtection Program, Emerging Infectious Disease Prevention and Control Management, Return-to-Work Management, and Personal Protective Equipment (PPE) Management. We accomplish this through the use of questionnaires or assessment analyses, considering the relevance to job responsibilities and the impact on company operations.

Based on the 2022 health risk map, the management of emerging infectious diseases is closely tied to our work environment. This means that we have a significant number of individuals to oversee, which could potentially have a substantial impact on our Company's operations. To address this risk, HIWIN employs a comprehensive five-dimensional approach to control and mitigate it, effectively minimizing its impact.

Pandemic Management

When Taiwan reported its first confirmed case of COVID-19 in 2020, HIWIN promptly implemented a range of measures to prevent and control the pandemic during the Lunar New Year. Regular meetings on pandemic prevention were conducted, taking into account the specific work patterns of our employees. We established comprehensive and adaptable measures for pandemic prevention, actively collaborating with government efforts to minimize the risk of COVID-19 infection. Our priority was to provide a safe and secure working environment for our employees.

(1) 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.

(2) Health promotion

In order to promote employee health awareness,HIWIN organizes a variety of health promotion activities and courses aimed at encouraging employees to adopt healthy exercise habits.

Health promotion initiatives include:

1.Health participation point-based activities.

2.Collaborating with blood donation centers every quarter to encourage employees to actively participate in blood donation.

3.Organizing health courses and activities.

Creating a welcoming work environment not only improves employee morale and job stability, but also, according to multiple studies, prioritizing employee health is crucial for enhancing productivity.

To further encourage the Company to foster a positive and friendly workplace, HIWIN will expand its initiatives in promoting health promotion and healthcare. This will also involve greater involvement of stakeholders in the planning process.