Safety and the management system
Safety is one of the ORLEN GROUP’s priorities. The fundamental principle that guides us in defining and implementing the occupational safety policy is that OHS aspects and standards, best practices and state-of-the-art know-how and technological solutions in this area are incorporated in all operating activities of the Group. Another crucial issue is ethical approach to the protection of human life and health, which is considered to have priority over production. This approach makes it imperative that whatever needs to be done in the given circumstances to prevent hazards, industrial accidents, fire and other disasters, is actually done.
Since 2015, the safety-at-work management system employed at the ORLEN GROUP has extended to include the employees of external contractors. Steps have been taken to further improve the safety-at-work model in place at the Group, including through the implementation of the ‘OHS Strategy’. It contributes to efficient management of objectives and activities, thus supporting the development of the broadly meant work safety culture. The Strategy also ensures the development of ORLEN GROUP companies and their advancement in two key directions: building of a common standard across the Group and satisfaction of each company’s individual needs. It also increases the efficiency of the Group’s efforts geared towards safety at work, helps identify needs for improvement in particular segments of PKN ORLEN’s safety-at-work activities, and facilitates identification of new directions for their development.
An important sphere of our efforts is educating employees on OHS issues. In 2005, we organised the Occupational Health and Safety Week at all ORLEN GROUP companies. It featured activities promoting a healthy lifestyle and balanced diet, first aid demonstrations, meetings with dietitians, medical information and relax areas, educational activities as well as games and competitions. There were also evacuation exercises and simulations of emergencies and accidents. We also continued best practices, including the ‘Report a Safety Hazard’ initiative, the OHS incentive programme, and the ‘Safety First’ project, which are designed to build and develop OHS awareness among our and our subcontractors’ employees. Safety culture was also promoted in 2015 by organising competitions for the Group employees, such as the third edition of ‘Good OHS Practice’ or the ‘Millions of Accident-Free Man-Hours’ competition, held for the first time.
Another noteworthy development was the standardisation of the process safety management system at the ORLEN GROUP by introducing new T1 PSER and T2 PSER indicators, which facilitate determining the ORLEN GROUP safety status and benchmarking of the ORLEN GROUP’s process safety records against global industry data. We also established the Process Safety Platform, a website containing up-to-date information on new process safety initiatives implemented across the ORLEN GROUP to improve and further develop the process safety management system. It is a source of data on the reported levels of process safety indicators and incidents that occurred in the ORLEN GROUP as well as incidents and other developments in the chemical industry globally.
One of the measures employed to reduce the number of failures was ‘Safety Alerts’. They are both a method of communication with the Group companies and a tool that facilitates ongoing prevention activities at individual companies.
As regards fire safety, joint drills and exercises involving delegates of all of the ORLEN GROUP’s fire brigades were organised, and preventive and operational measures were undertaken to further develop fire protection of the Group’s production and storage facilities.
Objectives and challenges expected in the years to come
The ORLEN GROUP’s OHS Strategy for 2013–2017 identifies a number of key objectives. These include primarily no accidents involving employees or contractors, and zero tolerance for unacceptable risk. Another objective is no industrial accidents and no fires. The Strategy also provides for the implementation of a segment-based OHS management system, and sets the 2016 target for the Combined Total Recordable Rate (TRR) for employees and contractors at 1.8 or less.
The plans for 2016 include implementation of minimum uniform work safety standards at the ORLEN GROUP. The project will involve identification, analysis, selection and implementation of best practices across the Group, including practices already applied at Group companies and solutions developed by drawing on the experience of global players from the oil and gas industry.
A. OHS commissions
In 2015, as in the previous year, all employees of ORLEN GROUP companies which are required by law to appoint OHS commissions had their representation on such commissions.
OHS commissions are appointed at the Group companies with the highest headcount, including PKN ORLEN, ANWIL, ORLEN Ochrona, ORLEN OIL, ORLEN Południe, ORLEN Centrum Usług Korporacyjnych, Basell Orlen Polyolefins, ORLEN Transport, and ORLEN Laboratorium.
|Year||Percentage of ORLEN Group companies that appoint OHS commissions1)||Percentage of employees that have their representation on OHS commissions2)|
1) (Number of ORLEN Group companies that appoint OHS commissions/ Number of companies which are required to appoint OHS commissions for a given year)*100%
2) (Number of employees at companies that appoint OHS commissions/ number of employees at companies which are required to appoint OHS commissions for a given year)*100%
Key issues addressed by the OHS commissions were as follows:
- Implementing changes in the work organisation system and work station equipment, implementing new technological processes and chemical substances which can pose a threat to the employees’ life or health;
- Analysing conclusions from the assessment of occupational risks;
- Accepting standards for providing the employees with personal protection equipment, working clothes and footwear, and personal care products;
- Making periodic assessments of the OHS status;
- Formulating conclusions and accepting OHS improvement plans, involvement in their implementation;
- Assessing the implementation of the working conditions improvement programme, including measures designed to prevent accidents at work and occupational diseases, and in particular the OHS improvement plans;
- Holding consultations in connection with selecting employees to be responsible for administering first aid and performing specific activities related to fire protection and employee evacuation;
- Formulating conclusions concerning laws of general application and internal regulations relating to social issues and occupational health and safety (employee meals, work performed in special conditions, etc.);
- Discussing and analysing accident rate and occupational disease incidence statistics;
- Assessing the implementation of post-inspection recommendations from institutions inspecting particular issues.
B. Health and safety issues covered in formal agreements with trade unions
All OHS issues are provided for in the applicable internal regulations of ORLEN GROUP companies.
At PKN ORLEN S.A., OHS issues are fully covered in:
- the Company’s Collective Bargaining Agreement, drafted and registered by the Regional Inspector of the National Labour Inspectorate in Warsaw, in accordance with the provisions of Part XI of the Polish Labour Code and the Minister of Labour and Social Policy’s Regulation on the procedure to be followed in the case of registration of collective bargaining agreements, keeping the register of collective bargaining agreements and registration files, as well as forms of registration clauses and registration cards;
- Work Rules established in accordance with the provisions of Section IV of the Polish Labour Law.
Collective Bargaining Agreements of those ORLEN GROUP companies in the Republic of Poland that have executed such documents, and all companies’ Work Rules have been prepared in accordance with the applicable regulations and the relevant standard adopted at PKN ORLEN S.A. The Collective Bargaining Agreements are entered in the registers kept by the competent Regional Inspectors of the National Labour Inspectorate. The fact that they have been registered is an evidence that they were prepared in compliance with the applicable laws and regulations.
In 2015, the following ORLEN GROUP companies in the Republic of Poland had Collective Bargaining Agreements in place: ORLEN Asfalt Sp. z o.o., Basell Orlen Polyolefins Sp. z o.o., PETROLOT Sp. z o.o., ORLEN Laboratorium Sp. z o.o., ANWIL S.A, IKS Solino S.A., and ORLEN Centrum Usług Korporacyjnych Sp. z o.o. Collective Bargaining Agreements have been also executed at companies of the UNIPETROL Group and AB ORLEN Lietuva.
All employees of the ORLEN GROUP companies are covered by Collective Bargaining Agreements and Work Rules. Those companies that have not executed Collective Bargaining Agreements, have Remuneration Rules in place; in the case of companies based in the Republic of Poland, the Remuneration Rules have been drafted in accordance with the provisions of Part III of the Polish Labour Code.
Collective Bargaining Agreements address, without limitation, the following OHS issues:
- guaranteed working conditions that meet safety and hygiene standards;
- OHS manuals for particular jobs;
- an employee’s right to decline to work in the event of a direct threat to his or her life or health, in positions that require special physical and/or psychological capabilities, or without adequate personal protection equipment;
- disapplication of the right to decline to work;
- employee benefits for persons transferred to other positions on the basis of a medical statement;
- undertaking activities designed to limit emissions that are disturbing or harmful to human health;
- OHS obligations of the employer;
- working and protective clothes and footwear, personal protection equipment; washing and maintenance of personal protection equipment and working clothes and footwear;
- the matters regulated by OHS regulations;
- liability for non-compliance with OHS requirements;
- specific regulations;
- documenting work performed in special conditions or in special capacity;
- the social labour inspection function; appointment and operation of OHS commissions, in accordance with the provisions of Section XI of the Polish Labour Law.
C. Key OHS indicators
The safety improvement measures undertaken in 2015 at ORLEN GROUP companies proved successful: safety was maintained at a high level, comparable with that reported in the previous year, with the Total Recordable Rate (TRR) at 1.34 (2014: 1.32). The TRR value was strongly affected by an industrial accident that occurred in August 2015 at a Unipetrol production plant. During the rescue operation, five members of the plant’s fire brigade taking part in the firefighting activities suffered minor ear (hearing) damage.
TRR for ORLEN GROUP employees3) and number of accidents at work involving ORLEN GROUP employees4) in 2011‑2015
TRR for ORLEN GROUP employees3) in 2011‑2015
3) TRR for ORLEN GROUP employees = (number of recordable injuries of the ORLEN GROUP employees in a given year x 1, 000 000)/number of man hours worked by the ORLEN GROUP employees in the year
Number of accidents at work involving ORLEN GROUP employees4) in 2011−2015
4) Number of accidents at work involving ORLEN GROUP employees is the number of accidents acknowledged by the employer and being the direct cause of the injured employee’s using sick leave.
Combined TRR (Combined Total Recordable Rate)5) (for employees and contractors) and total number of accidents at work involving ORLEN GROUP employees and contractors6)
To ensure continuous improvement of the effectiveness of activities fostering a safe work culture, in 2015 the Combined Total Recordable Rate was implemented across the ORLEN GROUP. It provides a measure of the accident rate among Group companies’ employees and contractors, in line with the motto ‘Contractor safety is as important as the safety of our own employees’. Combined TRR in 2015 for the ORLEN GROUP was 0.86. The total number of accidents at work involving both employees and contractors was similar to 2014. The Combined Total Recordable Rate, covering also external contractors, was considerably lower than the average in the European refining sector, according to a CONCAWE report.
TRR for PKN ORLEN employees and contractors against the market (data for 2015)
**An association established by a group of leading oil companies to carry out research on environmental issues relevant to the oil industry. CONCAWE’s activities cover fuels quality and emissions, air quality, water quality, soil contamination, waste, occupational health and safety, and petroleum product stewardship.
Number of accidents at work involving ORLEN GROUP employees and contractors in 2014−2015
* 40 accidents involving employees + 30 accidents involving contractors
** 44 accidents involving employees + 28 accidents involving contractors
In 2015, the number of accidents at work involving contractors fell 7% year on year.
5) Combined TRR = number of recordable injuries of the ORLEN GROUP employees and employees of external contractors performing work for and on the premises owned or leased by ORLEN GROUP companies in a given period * 1 000 000/number of man-hours worked during that period
6) Total number of accidents at work involving ORLEN GROUP employees and contractors is the number of accidents at work suffered by employees of the ORLEN GROUP and of external contractors, acknowledged by the employer and being the direct cause of the injured employee’s using sick leave
Types of accidents at work involving ORLEN GROUP employees4): 2015 vs 2014
|Year||Workforce||Number of accidents at work involving ORLEN Group employees4)|
Accidents at work involving ORLEN GROUP employees4) by type of injury: 2015 vs 2014
|Year||Types of injuries suffered by ORLEN GROUP employees as a result of accidents at work4)|
|total number of accidents||cuts||bruises||burns||fractures||dislocations and sprains||other|
* partial amputation (1) or finger injury (1), knee joint injury (1)
** knee joint injury (1), foot stab (1), hearing impairment (5), heart problems (1), finger amputation (2), fatal injuries (1), chemical burns (1)
Types of injuries suffered by employees4) in accidents at work in 2015
Accidents at work involving ORLEN GROUP employees4) by sex
|Year||Number of accidents at work involving ORLEN GROUP employees by sex4)|
|total number of accidents||women||men|
Accidents at work involving ORLEN GROUP employees4) by sex: 2014−2015
Accidents at work involving ORLEN GROUP employees by region
|total number of accidents at work||40||44|
|Province of Warsaw||15||9|
|Province of Kraków||4||2|
|Province of Lublin||1||0|
|Province of Rzeszów||2||1|
|Province of Wrocław||0||3|
|Province of Bydgoszcz||3||9|
|Province of Katowice||1||0|
|Province of Olsztyn||1||1|
|Province of Gdańsk||1||0|
|Province of Szczecin||2||0|
|Czech Republic (town)||total||7||16|
Accidents at work involving ORLEN GROUP employees4) by country: 2014-2015
Post-accident absenteeism9) at the ORLEN GROUP: 2014−2015
Number of days lost due to post-accident absenteeism9) at the ORLEN GROUP: 2014−2015
9) Number of days lost due to post-accident absenteeism is the number of days on which the employee is on a sick leave as a result of an accident at work acknowledged by the employer
Severity rate10) at the ORLEN GROUP: 2014−2015
10) Severity rate is the quotient of the number of days lost due to post-accident absenteeism of ORLEN GROUP employees and the number of accidents at work involving ORLEN GROUP employees, acknowledged by the employer and resulting in the employee’s using sick leave
The increased absenteeism in 2015 relative to 2014 was caused mainly by long sick leaves of the employees that were injured during the industrial accident at Unipetrol.
Occupational disease cases11) among ORLEN GROUP employees in 2014–2015
* ORLEN Lietuva (7), Paramo, a.s.(1)
** PKN ORLEN (1), ORLEN Lietuva (3), Paramo.(1), ANWIL (1).
11) Number of acknowledged occupational disease cases is the number of decisions issued by the State Sanitary Inspector to confirm recognition of an occupational disease of a current or former employee of an ORLEN GROUP company
|Employee groups in which occupational diseases have been recognised||Number of occupational disease cases11) in each employee group|
|Office and administrative staff||0||0|
|Higher-rank and mid-level technical staff||2||0|
|Operators of process units and equipment||4||2|
|Repair and maintenance employees||0||3|
|Transport and storage employees||2||1|
Employee groups exposed to a high risk of occupational diseases
|Groups of employees in positions involving exposure to a high risk of occupational diseases||Percentage of employees in positions involving exposure to a high risk of occupational diseases in each employee group12) [%]|
|Office and administrative staff||0||0|
|Higher-rank and mid-level technical staff||0.19||0.18|
|Operators of process units and equipment||3.28||3.16|
|Repair and maintenance employees||0.08||0.08|
|Transport and storage employees||0.03||0.07|
12) Number of positions in each employee group exposed to a high risk of occupational diseases as a ratio of the total headcount, expressed as %
Percentages of groups of employees in positions involving exposure to a high risk of occupational diseases13) in 2014−2015
13) Number of employees in positions involving exposure to a high risk of occupational diseases in each employee group as a ratio of the total number of employees in positions involving exposure to a high risk of occupational diseases, expressed as %
D. Number of process safety incidents, by type of activity
Number and types of fires
Number of fires at the ORLEN GROUP in 2014−2015
|Year||Number of fires at the ORLEN GROUP|
|total number of fires||of which: relating to technological processes||of which: requiring action by the National Fire Service|
In 2015, the number of fires reported at the ORLEN GROUP fell slightly year on year. In 2015, 72% of the fires (18 cases) were related to technological processes, compared with 77% (20 cases) in 2014. Of the total number of fires in 2015 and 2014, only 6 and 4, respectively, required action by the National Fire Service.
Number of acknowledged industrial accidents16) at the ORLEN GROUP in 2014−2015
16) Number of industrial accidents is the number of industrial accidents that have been declared to meet the criteria of a ‘serious industrial accident’ as defined in the Environmental Protection Act, and have been reported to the relevant unit of the National Fire Service and the Environmental Protection Inspectorate.
Number of TIER 1 and TIER 2 emergencies
|Number of TIER 117) and TIER 218) emergencies at the ORLEN GROUP in 2015|
|Total||Number of TIER 1 emergencies||Number of TIER 2 emergencies|
17) Emergencies with a potentially significant impact related to substance release due to a ‘weakness’ in protection layers. They may include unforeseen and uncontrolled release of any substance, which may also be non-toxic and non-flammable, in the course of a process, resulting in one or more of the following consequences:
- injury to and/or death of an employee of the ORLEN GROUP or of a contractor or subcontractor,
- hospital admission and/or death of any other person,
- officially announced evacuation of local residents or recommendation for them not to leave their homes,
- fire or explosion resulting in losses in the form of direct costs of at least USD 25 thousand (USD 25, 000 x ~3 PLN/USD = ~PLN 75 000),
- release of excessive pressure into the atmosphere with the use of pressure relief devices above the threshold amounts for a period longer than 1 hour,
- release of a substance above the threshold amounts for a period longer than 1 hour.
18) Emergencies with a potentially lesser impact related to substance release due to a ‘weakness’ in protection layers, which is contained by the protection system. They may include unforeseen and uncontrolled release of any substance, which may also be non-toxic and non-flammable, in the course of a process, resulting in one or more of the following consequences:
- injury to an employee of the ORLEN GROUP or of a contractor or subcontractor,
- fire or explosion resulting in losses in the form of direct costs of at least USD 2.5 thousand (USD 2.500 x ~3 PLN/USD = ~PLN 7.500),
- release of excessive pressure into the atmosphere above the threshold amounts for a period longer than 1 hour,
- release of a substance above the threshold amounts for a period longer than 1 hour.
T1 PSER and T2 PSER process safety indicators
|T1 PSER19) and T2 PSER20) levels at the ORLEN GROUP in 2015|
|T1 PSER||T2 PSER|
19) T1 PSER = number of TIER1 emergencies x 200, 000/ number of man hours worked by the employees and contractors
20) T2 PSER = number of TIER2 emergencies x 200, 000/ number of man hours worked by the employees and contractors
In 2015, a leading process safety indicator was introduced, based on the number of TIER3 emergencies. It is meant to represent a challenge to the system of barriers/protections which are a safeguard against and may prevent a TIER1 and/or TIER2 emergency. The indicator provides an additional opportunity to identify and correct weaknesses within the barrier system (preventive layers).
TIER 3 ratio is calculated as follows:
- TIER 3 production emergency represents the number of emergency shutdowns of installations or process nodes triggered by active or passive protections (automatic or mechanical).
- TIER 3 logistics emergency represents the ratio of the number of emergency shutdowns of product loading to rail tank cars and road tankers triggered by active or passive protections (automatic or mechanical) to the total number of loading operations performed at a given time.
In addition, 2015 saw the launch of a project to implement minimum uniform work safety standards at the ORLEN GROUP, planned to be executed in 2016. It will involve identification, analysis, selection and implementation of best practices across the Group, including practices already applied at Group companies and solutions developed by drawing on the experience of international companies active in the global oil and gas industry. It will also cover selected aspects of process safety.