Occupational health, safety and hygiene

“The Pirelli Group safeguards health, safety and industrial hygiene in the workplace, both through management systems that are continually improving and developing and by promoting an approach to health and safety based on prevention and the effective handling of occupational risk."

(The Values and Ethical Code – “Human Resources”)

 

“The Pirelli Group pursues and supports compliance with internationally proclaimed human rights. Pirelli considers protection of the integrity, health and welfare of its employees and the environment as one of the primary needs to be satisfied in organising and developing its activities. To these ends, the Pirelli Group is committed to: management of its activities by adopting occupational health, safety and rights and environmental policies in compliance with the highest international standards; the dissemination of occupational health, safety and labour rights and environmental information to its internal and external stakeholders, both by communicating with them and actively co-operating with national and international government and academic bodies; promoting use of the most advanced technologies to achieve excellence in occupational health and safety and environmental protection”.

(Group Social Responsibility Policy for Occupational Health, Safety, Rights, and Environment)

 

“The Pirelli Group considers protection of the safety, health and well-being of its employees as one of the basic and general elements in defining its own strategies and objectives, in view of obtaining evermore competitiveness on the global market on a long-lasting and sustainable basis.”

(Quality Policy)

 

The management approach to Occupational Health, Safety and Hygiene is based on the principles and commitments set out in the cited Sustainability documents, which are discussed in the introductory section of this report and whose complete text has been distributed to all Group employees in their local languages as well as having been published in the “Sustainability” section of the Pirelli website.

 

SAFETY MANAGEMENT SYSTEM

Pirelli Tyre implements a Safety Management System that is structured and certified in accordance with OHSAS 18001:2007.

All certificates have been issued with the SAS international accreditation (SAS is the Swiss Accreditation Service, which assesses and accredits compliance assessment bodies – laboratories, inspection and certification bodies – in accordance with international rules).

Beginning in 2014, RINA Services S.p.A. will be the new compliance auditor of the Pirelli Tyre Safety Management System and environment. The Company has opted for ANAB (a United States accreditation entity) international accreditation. The introduction of this new service provider addresses the need to have the greatest degree of transparency in the certification process, which assumes periodic changes in both the Management Systems compliance assessment entity and the accreditation entity.

For reasons related to transfer of the certifications from one compliance assessment entity to another, the Merlo, Argentina plant will have to get its Safety Management System recertified in the first few months of 2014. To date all Pirelli Tyre production sites are certified according to this standard, with the exception of:

  • the plant in Rome (United States), which in line with local legislation already has a management system comparable to the OHSAS 18001 standard. For this reason, the certification activity is a parallel activity whose value is relative. Instead, the Environmental Management System is fully operative and certified pursuant to ISO 14001;
  • the process for the two recently acquired Russian plants at Kirov and Voronezh was initiated in 2013 so that they may be certified in 2014;
  • the plant in Merlo, Argentina, due to purely technical reasons related to the change in certifying entity as described above.

The OHSAS 18001 (as well as the ISO 14001) certification of the Tyre manufacturing site operating in Mexico was completed in 2013 as planned.

The Safety Management System and the Environmental Management System implemented at the Pirelli Tyre production sites have been developed on the basis of procedures and guidelines drafted at corporate headquarters. This has made it possible to adopt a “common language” within the Group, in terms of the key elements of operating that guarantee effective, uniform and shared management.

SAFETY CULTURE

The Zero Accidents Target is a precise and strong corporate position. Pirelli strongly believes that leaders play a strategic role in risk prevention. Their behaviour must therefore be an example for all employees.

Management must make a clear, visible commitment to safety culture in order to achieve the ambitious aims that the Group has set itself.

From an industrial point of view, this objective is pursued through a major plan of investments for technical improvement of work conditions, while constantly insisting on the cultural and behavioural aspect of all Company players. Safety culture is of paramount importance, and it is necessary to pursue it in accordance with the rules, while maintaining a very clear idea of everyone’s responsibilities to themselves, others, and their family. In this area as well, fostering engagement and ongoing communications between management and staff has proved a successful strategy. In 2013 the Company continued to reinforce and consolidate the behaviour-related aspects of safety culture. The Company has maintained and developed the focus on Leading Indicators, namely measuring what preventive measures should be implemented and how this should be done, rather than Lagging Indicators, namely reactive indicators such as the number or frequency of accidents.

In 2013 the Company signed a global agreement with DuPont Sustainable Solution in support of the Management System outlined above, with a special focus on a standard approach to Behavioural Safety in the Group.

The resulting programme begins in 2014, initially at the English sites and in Venezuela, and will then be extended to all Pirelli industrial sites.

Communication and sharing information play an important role in internal dissemination of the Safety Culture. This is accomplished with monthly newsletters like the Safety Bulletin, and the periodic publication of significant events through the traditional channels of internal communication.

Consistently with its own “cultural” approach to occupational safety, Pirelli has been an official partner of the European Occupational Health and Safety Agency (EU-OSHA) for years, actively supporting its campaigns. Every two years the Agency tackles a different issue. The theme for the 2012-2013 period was “Working together for Risk Prevention”.

The common goal of the various European Agency campaigns is to provide further support to management when it comes to showing leadership in the context of occupational health and safety, and fostering worker participation. Workers and their representatives are encouraged to share their ideas and work with management to improve health and safety for all.

SAFETY TRAINING

In addition to safety training offered locally at every Pirelli location (which is illustrated in the section of this report dedicated to employee training), special mention has to be made of Group activities and projects, which simultaneously target several countries by allowing an alignment of culture and vision, fully benefiting pursuit of the Company’s own improvement targets.

The Manufacturing Academy merits special mention.

This is the Pirelli Professional Academy dedicated to factories, where health, safety and environment issues are discussed in detail. In 2013 attention was focused on training for assessing the risks related to machinery, consistently with the concurrent update of applicable internal procedures.

It must be pointed out that 11% of the training provided by Pirelli in 2013 addressed occupational health and safety issues.

The sixth edition of the Pirelli Health, Safety and Environment global meeting is scheduled to be held in the first quarter of 2014, at the Pirelli manufacturing centre in Yanzhou, China. The meeting has always had the purpose of treating the best practices applied by the various Pirelli sites in the world as a common factor.

HEALTHCARE ASSISTANCE DURING WORKING HOURS AND PREVENTION CAMPAIGNS

The infirmaries at the production units offer all employees care by health care workers and specialised physicians on duty during working hours.

These facilities provide first aid care, advice on health problems unrelated to work and health supervision for workers exposed to specific hazards.

Once again in 2013, Pirelli offered all its employees the opportunity to be inoculated with the seasonal flu vaccine free of charge.

The Health and Lifestyle campaign developed in Brazil was particularly significant, engaging the participation of nearly 4,000 employees, and will be completed in 2014. This programme involves medical exams, blood chemistry and instrumental tests, and individual interviews aimed at improved understanding.

MONITORING OF PERFORMANCE

Alongside establishing specific guidelines and procedures for implementing management systems, Pirelli uses the web-based Health, Safety and Environment Data Management (HSE-DM) system, elaborated and managed at corporate headquarters by the Health, Safety and Environment Department. This system makes it possible to monitor HSE performance at every production site in the Tyre Business and prepare numerous types of reports as necessary for management or operating purposes.

In particular, the HSE-DM system collects all information about accidents that occur in factories (accident analysis, corrective measures adopted, etc.).

If the dynamics of a particular case are significant, all plants are not only provided with the information via a Safety Alert system, but also urged to conduct an internal audit as to whether conditions similar to the ones that caused the injury exist at their plants too and define any corrective measures. By using this system, every site may audit the solutions adopted by other plants in order to share the best choices.

In 2013 the HSE-DM system was further developed, enhancing its data management and analysis capabilities.

PERFORMANCE

In 2013 Pirelli achieved an FI (Frequency Index – i.e. the ratio of accidents to the hours actually worked)) of 0.62, meeting and surpassing two years early the target it had set in the Industrial Plan 2012-2014 and Vision to 2015. This target called for reducing the Occupational Accident FI by 60% in 2015 from the 2009 figure. The new target, set with the Industrial Plan 2013-2017 and Vision to 2020, calls for reducing the FI by 90% between 2009 and 2020.

In 2013 the Frequency Index (FI) of accidents at the Group (i.e. for all employees) fell by a total of 20% from 2012. It should be pointed out that the frequency index for women is considerably lower than the Group’s average, partly due to the fact that most of the female employees are engaged in activities with a lower level of risk as compared with male employees.

Even the Severity Index (SI) of accidents at the Group continued tracking a steady downward trend that had begun in the previous years, falling from 0.26 in 2012 to 0.18 in 2013.

The Severity Index (SI) was calculated by considering all calendar days (excluding the date of the accident) between the injured person’s work interruption and the employee’s return to the factory as “lost,” i.e. the actual days necessary for complete rehabilitation.

Both in the case of the Frequency Index and the Severity Index, Europe and Latin America have a higher rate than the other geographical areas where Pirelli operates (Africa, Asia, North America and Oceania), although it has been steadily declining for years.

The calculation of the IF and IG rates mentioned above do not include the business in itinere accidents and agency worker accidents, which are listed separately.

FREQUENCY AND GRAVITY INDEX

 2013 2012 2011 
Frequency Index 0.62  0.77  1.10 
FI men 0.68  0.86  n.d. 
FI women 0.10  0.18  n.d. 
Gravity index 0.18  0.26  0.27 
In-itinere accidents 107  136  142 

The most representative accidents involve events resulting in contusions, cuts and fractures to upper limbs. There were seven accident events involving agency workers at the Group in 2013.

There were 104 accident events involving workers of independent contractors working at Pirelli. There are no workers in the manufacturing process who have a high incidence or high risk of illness related to their occupation. As illustrated in the following table, the Frequency Index of occupational diseases in 2013 fell to 0.09.

OCCUPATIONAL DISEASES

201320122011
Frequency Index of occupational diseases 0.09 0.10 0.07

FATALITIES

  • 2013: there was no fatal accident involving Group employees or employees of independent contractors working at the Group’s operating sites.
  • 2012: there was no fatal accident involving employees of independent contractors working at the Group’s operating sites; on September 30, 2012, one Group employee suffered a fatal accident at the Carlisle, United Kingdom plant. Following and investigation of the incident, the authorities found that it was accidental. Pirelli continues to provide full support to the UK Health & Safety Executive authority as the investigation proceeds.
  • 2011: there was no fatal accident involving Group employees or employees of independent contractors working at the Group’s operating sites.

BEST PRACTICES

Eight tyre manufacturing plants were “sites of excellence” in 2013, since no employees were injured there in 2013:

  • CMP Milano (since 2009);
  • Slatina-Steelcord in Romania (as in 2012);
  • Breuberg-MIRS in Germany;
  • Kirov in Russia;
  • Rome-MIRS in the United States;
  • three “Fitted Units” in Brazil (Sao Josè dos Pinhais, Camaçarì, Sorocaba).

These results should be attributed to the constant focus on leading indicators, namely in terms of prevention.

HEALTH AND SAFETY EXPENDITURE

In 2013 health and safety expenditure by Pirelli Tyre totalled more than 14 million euro. Pirelli Tyre expenditure (in millions of euro):

  • anno 2011: 12,2;
  • anno 2012: 14,7;
  • anno 2013: 14,3.

The expenditure made targeted improvements on machines and plant and, more in general, the workplace environment as a whole (e.g. improvement of microclimate and lighting conditions, changes in layout for ergonomic improvement of activities, measures to protect the healthfulness of infrastructure, etc.).

HEALTH AND SAFETY TARGETS

Quantitative

  • 2015: reduction in the Accident Frequency Index by 60% in 2015 from 2009 (strategic plan to 2015): achieved two years early in 2013.
  • 2020: reduction in the Accident Frequency Index by 90% from 2009.

Qualitative

  • OHSAS18001 certification of the Guacara factory (Venezuela) achieved;
  • 2013-2014: OHSAS 18001 and ISO 14001 of the Silao, Mexico site: achieved;
  • OHSAS 18001 certification for the Voronhez and Kirov, Russia sites and ISO 14001 certification for the Voronezh site: pending;
  • 2011-2012: integration of an HSE module in the Process Kaizen Engineer training course; this goal has been broadened to include HSE training in the new Manufacturing Academy: achieved;
  • 2013-2015: implementation and consolidation of the systems Behaviour Based Safety (BBS), LockOut tagOut (LOTO), and Point of Work Risk Assessment (POWRA): pending;
  • 2014-2018: implementation of the global programme “Excellence in Safety”. Starting in Carlisle, Burton and Guacara.