Contractor Safety

1. Contractor Safety EHS standard & Requirements

2. Contractor Safety Agenda: • Background • Definitions • EHS standard • Metrics • Self Assessment tool

3. Contractor Safety Agenda: • Background • Definitions • EHS standard • Metrics • Self Assessment tool

4. Background Australia - February 18, 2000 A contractor was welding on piping attached to a process tank when flammable vapors inside the tank ignited. The hatch cover on the tank was blown free of the tank striking the welder in the head with a fatal blow. Switzerland - July 13, 2002 A contractor was operating a “stand-up“ lift truck in a building under construction when the lift truck dislodged a temporary cover over an opening in the floor. The contractor fell through the opening 23 feet to his death. Venezuela - July 26, 2003  A contractor was replacing a section of damaged roof when he lost his balance and fell through the damaged roofing material 19 feet to his death. Ireland - March 19, 2004 A contractor was handling acetylene cylinders when a powerful explosion occurred that killed the worker and injured a co-worker. Puerto Rico - July 8, 2005 A structural steel contractor’s employees were assembling the decking material of a new equipment platform when a section became dislodged, causing the workers to fall from through the elevated deck and killing one worker and injuring a second as they struck the ground below. Puerto Rico - July 17th , 2007 As part of an expansion, a new lighting circuit needed to be connected to the existing circuits located inside an electrical box. The subcontractor was evaluating existing circuits when he received a shock of approximately 277 volts/ 20 A.

5. Background • Q1/2008 • 6 Contractor Accidents • 1 Amputation • 3 Potential Casualties

6. Contractor Safety Agenda: • Background • Definitions • EHS standard • Metrics • Self Assessment tool

7. Definitions • What is a contractor ? • General term • Individual or company • Hired to provide services => upfront agreed scope of work • (I.E Period of time/ Defined deliverables, Project, etc….) • Responsible for means & methods • Payments as defined in: • contract, service agreement or equivalent • Not a J&J employee • Not directly supervised by J&J staff

8. Definitions • Sub-contractor • Hired by the contractor • To execute a part of his work • Specialized in particular tasks

9. Definitions • ATS : • Administrative & Technical Services • Housekeeping/janitorial, food service, premise security, Information technology, research technicians, engineering design, equipment and software validation/development, etc • Different Contractor types

10. Definitions • BGS : • Building, Grounds, and Equipment Maintenance • Includes minor installation and maintenance of heating, ventilation, air conditioning (HVAC), electrical systems and equipment, plumbing systems and equipment, maintenance of J&J production equipment etc. • Different Contractor types

11. Definitions • CPS : • Construction Project Services • Employed in the Construction, Renovation, or Demolition/Removal of Buildings, Facilities or Equipment on projects funded by J&J or affiliate companies for their business purposes or use. • Different Contractor types

12. Definitions • J&J contract owner • J&J employee • Maintains contacts between contractor company & J&J • Is responsible for approving supplied services or work • Before contractor gets paid • Can be at different levels in an organization

13. Contractor Safety Agenda: • Background • Definitions • EHS standard • Metrics • Self Assessment tool

14. Selection Program Evaluation Aspects/Impacts Hazards/Risks Orientation/ Induction Contractor Engagement Contractor Safety • EHS standard • 1) Contractor Selection Process • 2) Task specific Analysis of Aspects/ Hazards and Impacts/ Risks • 3) Orientations & Inductions • 4) Practical organization, communication & Evaluation • Engagement • 5) Management Program Review Nobody gets hurt !

15. Selection 1) Contractor Selection process Nobody gets hurt ! • Requirements • Systematic process executed by a multidisciplinary team to classify contractors as High, Moderate & Low Risk • High Risk contractors • In dept screening on performance of EHS management system • High level identification of Hazards/ Risks; Aspects/ Impacts to be used as input in the selection process • Continuous improvement => See self assessment tool • Goal • The right contractor for the job

16. Selection 1) Contractor Selection process Nobody gets hurt ! • Tool • Contractor classification based on potential business & EHS Impact

17. Selection Aspects/Impacts Hazards/Risks 2) Task specific Analysis of Aspects/ Hazards & Impacts/ Risks Nobody gets hurt ! • Requirement • Sharing of A / I & H/R with contractor by site staff • Process to review, analyse & implement controls for A/I & H/R that contractors bring on site. • Process to create & share the results of risk assessments between contractor companies & the J&J contract owners • Prior to the commencement of a work • Continuous improvement => See self assessment tool

18. Selection Aspects/Impacts Hazards/Risks 2) Task specific Analysis of Aspects/ Hazards & Impacts/ Risks Nobody gets hurt ! • Requirement • Ongoing service contractors • Task specific A/I & H/R reviews based on scope, scale & contractor company classification. • Low Risk => 3 Year • Moderate Risk => 2 Year • High Risk => Annual • Goal • Full knowledge of EHS Risks

19. Selection Aspects/Impacts Hazards/Risks 2) Task specific Analysis of Aspects/ Hazards & Impacts/ Risks Nobody gets hurt ! • Tool : • Assessment tool with simple 5 x 5 matrix • Health and Safety Section • 10 hazard classifications/63 expressions • Environmental Section • 7 aspect classifications/16 expressions

20. 2) Task specific Analysis of Aspects/ Hazards & Impacts/ Risks

21. Selection Aspects/Impacts Hazards/Risks Orientation/ Induction 3) Orientations & Inductions • Requirement • All contractor employees at the beginning of their assignment • Refresher trainings at defined intervals not exceeding 3 years • Based on Contractor company classification • Low Risk => 3 Year • Moderate Risk => 2 Year • High Risk => Annual • Take into consideration • Contractor company classification • Nature of the jobs being executed • Potential negative impact on affected employees Nobody gets hurt !

22. Selection Aspects/Impacts Hazards/Risks Orientation/ Induction 3) Orientations & Inductions • Requirement • Formal recordkeeping process tracking participation • Continuous improvement => See self assessment tool • Goal • Clearly communicated expectations Nobody gets hurt !

23. Selection Aspects/Impacts Hazards/Risks Orientation/ Induction 3) Orientations & Inductions • Remarks • Often first contact of tradesmen with : • The site, • Contracting company • Contract owner. • Focus on: • Site specific requirements • Permits, evacuation, gowning, etc. • Avoid: • Means & methods to execute job requirements • Potential liability issue as this might be perceived as training Nobody gets hurt !

24. Selection Aspects/Impacts Hazards/Risks Orientation/ Induction Contractor Engagement 4) Practical organization, Communication & Evaluation • Requirement • Control & Monitoring of contractor employee access • Informal observations • Ongoing evaluation of how things are going • Formal follow-up for significant infringements • Proven practices => See self assessment tool • Systematic “End of Job” or “Annual” evaluations by J&J contract owners. • Systematically sharing results of observations and/ or End Of Job/ Annual Reviews with the contractors. • Goal • Collaboration to assure contract requirements are met with adherence to EHS expectations Nobody gets hurt !

25. Selection Aspects/Impacts Hazards/Risks Orientation/ Induction Contractor Engagement 4) Practical organization, Communication & Evaluation • When you discover this at your site you only have 2 choices : • You step up and correct, OR • . you close an eye and walk by. Nobody gets hurt !

26. Selection Program Evaluation Aspects/Impacts Hazards/Risks Orientation/ Induction Contractor Engagement 5) Management Program Review • Requirement • Annual documented multidisciplinary review process • Evaluation of contractor response/ records regarding • Formulation of corrective actions as result of : • Observations, • End of Job/ Annual reviews • Accident/ Incident Investigation • Using previous obtained information in the decision process if a contractor remains a company in good standing. Nobody gets hurt !

27. Selection Program Evaluation Aspects/Impacts Hazards/Risks Orientation/ Induction Contractor Engagement 5) Management Program Review • Requirement • Evaluation of all continuous improvement efforts to assure they target weakest program areas • Goal: • Check for effectiveness Nobody gets hurt !

28. Selection Program Evaluation Aspects/Impacts Hazards/Risks Orientation/ Induction Contractor Engagement Contractor Safety Nobody gets hurt ! Agenda: • Background • Definitions • EHS standard • Metrics • Self Assessment tool

29. < 50 % < 50 % 50% - 75% 50% - 75% 75% - 90% 75% - 90% > 90% > 90% Enterprise-Level Metrics • Contractor Injury Rates • Injury Rate Per 100 Contractor Employees (IRCE) • IRCE = All injuries*100/Average # contractors per day • Multidisciplinary Risk Assessment per Project • For BGS & CPS, percent of projects where Aspects/Impacts and Hazards/Risks were identified internally by a multidisciplinary team prior to initiating the selection process. • Contractor Engagement • For BGS & CPS, percent of contractor jobs where there was an in-person contact between the J&J project sponsor/contact and the executing contractor employees.

30. Enterprise-Level Metrics • Data Collection • 1st round => MY 2009 • Prepare organization • Identify potential difficulties • YE 2009 • Complete reporting & analyzis

31. Selection Program Evaluation Aspects/Impacts Hazards/Risks Orientation/ Induction Contractor Engagement Contractor Safety Nobody gets hurt ! Agenda: • Background • Definitions • EHS standard • Metrics • Self Assessment tool

32. Self Assessment Tool 1,2 & 3 are pre-defined questions Well defined criteria what red, yellow, green means Continuous improvement

33. Self Assessment Tool(Risk Assessment & Orientation/ Induction)

34. Self Assessment Tool(Contractor Engagement)

35. Self Assessment Tool(Program Review)

36. Construction Safety Task Force. . . Find the What’s Wrong . . . • What’s wrong ? • The number of safety incidents/accidents at construction sites • Increase in level of seriousness

37. Project Assessment • Assessed • 9 projects ( Including large, small, complex, less complex) • Method • Tool provided by CURT (Construction users Round Table) • Added elements from J&J’s EHS contractor management standard • Comparison done for 20 area’s (See back up slide)

38. Projects Assessment

39. Projects Assessment Organizational changes: Reversed score ( Low numbers indicate no-changes)

40. Key Learnings • We have good safety practices • Create a safety culture and awareness from start of project • Define higher accountability for safety • Develop an integrated, project specific safety plan, areas of attention: • Communication (inform and engage people & management) • Safety enforcement (set safety standards and live by them) • Incentive program (show that you care) • Training/induction on safe behavior • Organize independent audits

41. Key areas Organization SAFETY CULTURE engineering business Procedures Training EHS Supervision

42. Organization Procedures Overview action plan Training/tools • All • Business • EHS • Engineering Pre- construction Supervision Selection Construction Close out • EHS in selectionprocess • Reinforce role Safety Coordinator • Define R&R & authority of safety personnel • Mgt commitment • Safety leadership • EHS assessment tool • Safety checklistin RFP • EHS assessment(safety workshop) • Project specific safety Plan • Induction program • Action focused safety program • Incident program • Safety close out report • J&J lead by example • Identify tools to promote safety • Create safety awareness • Enforce Safety Plan • Promote safety • Tool box meetings • Task risk assessment • More detailed safety metrics in ESI • Develop safety improvement program • Safety Coordinator to ensure contractorsafety capabilities • Safety training for full team • Involvement Mgt in safety • Independent safety audits

43. Selection • Ensure EHS aspects in the contractor selection process • Reinforce role of the EHS & Safety Coordinator • EHS assessment (if needed): • Define project complexity to support risk based decision making • EHS screening of contractor • Feedback ESI • Safety checklist in RFP • Ask for Contractor safety program • Not just safety metrics or VCA certification

44. Pre-construction • Define R&R and authority of safety personnel • Organize project specific safety workshop and perform a safety risk assessment • Develop a project specific safety plan • Identify tools to promote safety • Create safety awareness • Organize safety training for the full team (project specific)

45. Construction • Main responsibilities for the contractor • EHS execution plan • Action focused safety program • Task focused risk assessments • Incident investigation program • (Independent) safety audits • Promotion of safety culture & safe behaviors • Management engagement (show you care !) • Focus on actions rather than just results • Schedule regular tours/ visits • Participate in person in accident/incident investigations • Safety training full team • J&J lead by example

46. Close out • Safety Close out note/report • More than metrics alone • Background information • Lessons Learned on actions, tools used, …. • Input from learnings to our processes & procedures

47. Questions ?