Nr. 2016 | 2017
Online Sustainability Report

SAFE LABOR CONDITIONS

A company can only develop top-quality products and solutions in the long term if it actively promotes its employees’ health and productivity.

MAINTAINING HEALTH, GUARANTEEING OCCUPATIONAL SAFETY

A company can only develop top-quality products and solutions in the long term if it actively promotes its employees’ health and productivity. OTTO FUCHS makes an above-average effort in the areas of occupational safety and health. As a metalworking company, we also rise to the challenges which are specific to our industry. Many of the work processes involve hazards, be it casting or forging metal, or handling hazardous substances and heavy-duty machinery. The long-term overarching objective of OTTO FUCHS is to bring the number of workplace accidents down to zero. Preventive measures at the German sites have already had a positive impact on accident incidence. We will continue to focus on active prevention and go significantly above and beyond the statutory regulations. A new health, safety, and environment (HSE) strategy was introduced at the German sites in 2017, and will be rolled out throughout the Group in the medium term.

To allow our employees to enjoy a long and healthy working life and to boost their awareness of health issues, we established a workplace health management (WHM) system and created the position of a health officer in 2016. The WHM system comprises a wide array of health promotion activities, including a company integration management program that helps employees return to work after an absence of six weeks or more due to injury or illness.

The frequency of accidents with lost time of three or more days was reduced by 70 percent at the Meinerzhagen site between 2000 and 2016.

PROJECTS AND MEASURES


ASPIRATION AND THE MANAGEMENT SYSTEM
OTTO FUCHS continuously works to improve workplace health and safety at all of its sites. These endeavors play a part in the company holding on to qualified employees in the long term, recruiting new workers, and reducing the costs incurred due to lost time. The risks vary from plant to plant. For example, not all the sites work with the same hazardous substances, and the accident patterns rarely repeat themselves. OTTO FUCHS has put management processes in place that are effective throughout the Group and which are supplemented by locally adapted measures.

INTERNAL AUDITS

One of the key instruments within the occupational health and safety management system is internal audits. OTTO FUCHS conducts regular short audits within the production departments at the Meinerzhagen site in order to monitor issues like occupational safety policy, duties and responsibilities, documentation, and incident investigations. The various focuses are determined randomly. Since 2016, the set of questions has also included elements relating to energy management.

There are additionally combined audits that cover environmental protection and system safety. Weber Metals organizes monthly cross-departmental audits, for example, in which coworkers from other divisions review the hazard situation. At OTTO FUCHS Technology Shenyang, a comprehensive internal audit is conducted every December in the areas of health, safety, and the environment. Starting in 2018, OTTO FUCHS Hungary will conduct “HSE tours”, in which a different production area will be examined each month regarding occupational safety, health, emergency plans, and ergonomics, with any follow-up measures implemented also being reviewed.

CERTIFICATION IN ACCORDANCE WITH OHSAS 18001
OTTO FUCHS sees the statutory specifications for occupational health and safety management as minimum requirements. Compliance with these specifications is monitored at random on a regular basis. In addition, the main site in Meinerzhagen and the subsidiaries Foxtec-Ikhwezi in South Africa and OTTO FUCHS Technology in China are currently certified in accordance with OHSAS 18001 (Occupational Health and Safety Assessment Series). Certification of the Dülken site is a medium-term goal.

     

LOST-TIME INJURY FREQUENCY (LTIF) per 1 million hours worked in 2017

COURSES AND TRAINING
We familiarize new members of staff with the most important statutory and company rules regarding occupational safety before their first day at work. This instruction is then repeated annually. Each site also organizes training which is tailored to the site’s specific needs. OTTO FUCHS Technology Shenyang is in the process of introducing a mandatory three-stage occupational safety training program for its entire workforce.

The subsidiary OTTO FUCHS Hungary provides annual training in areas including fire prevention, health, and ergonomics, working closely with the regional health authority. In addition to undergoing regular training, the employees at Weber Metals begin each working day by working through a safety checklist. The site plans to expand its training program in the future, in particular for first-aiders.


CODETERMINATION
OTTO FUCHS strongly believes in the employees being able to have a bearing on their labor conditions and make suggestions for improvements. As such, 100 percent of the workforce at all our sites is represented on occupational safety committees, with the actual setups varying at the local level. At Weber Metals, every employee has a supervisor who represents their interests in the area of occupational safety on the management committees. 


WORKPLACE HEALTH MANAGEMENT
Although there are no specific occupational diseases at OTTO FUCHS, preventive health care is becoming more and more important in all sectors. The reasons behind this include the increasing average age of the workforce and the ever greater requirements within the modern-day working world. In view of this, OTTO FUCHS KG introduced a workplace health management (WHM) system. Among other things, this helps to promote an allround understanding of health care and to incorporate health care topics into processes and structures, to allow the employees to enjoy a healthy working life. Since 2016, all the activities in this area have been managed centrally by a health officer with the support of the Health Steering Committee. Another element of the WHM system is the
regular rounds of the continuous improvement process regarding health.

The key remits of the WHM system include the promotion of health, communication, addiction prevention, and analysis, for example on the basis of employee surveys. Other areas covered include company integration management, HR development, and leadership.

The Meinerzhagen plant conducts workplace visits with the company doctor every two weeks in order to develop and implement ideal ergonomic and therefore health-promoting workplace conditions for the employees. The labor conditions at Weber Metals are likewise examined regularly by a medical expert. In particular severely disabled people are supported at all the sites. In Germany, for example, such support is offered in the form of light jobs and workplace conversions. More than 10 percent of the OTTO FUCHS workforce in Germany is severely disabled, putting the Group well above the statutory requirement of 5 percent.

Mit der Arbeitssicherheit und dem BGM sicher durch den Arbeitsalltag.


HEALTH PROMOTION
OTTO FUCHS promotes all sorts of activities and campaigns that contribute to good health. For example, some 100 employees enter an AOK company run every year under the name of “Fitte Füchse” (“Fit Foxes”). And at the Meinerzhagen site, OTTO FUCHS gives all the employees the opportunity to lease a bike through the company. Around 800 employees have already chosen to make the most of the especially good leasing conditions. The site also organizes preventive checkups, back health days, flu vaccinations, and stress management courses, among other things. Additionally, the Health Steering Committee meets once a month to discuss the latest health care issues and decide on potential areas of action. The committee comprises representatives of the management, the HR department,
the Production and Occupational Safety divisions, and the Works Council. The regular rounds are also attended by the company doctor, the severely disabled people’s representative, and the WHM officer.


COMPANY INTEGRATION MANAGEMENT
Anyone who is unable to work for an extended period – in total, for more than six weeks within a year – is legally entitled to reintegration support. OTTO FUCHS has created a company integration management system to this end, which helps employees find their feet again quickly at work and prevents new cases of sickness from occurring. This is founded first and foremost on a voluntary company integration management meeting that an employee is invited to attend by the HR department. At this meeting, the employee, their supervisors, the Works Council, the HR officers, and the severely disabled people’s representative jointly examine ways in which the employee’s work situation might be made easier, if necessary, for example by means of lifting aids, height-adjustable tables, or a tailored on-ramping period based on the “Hamburg model” of gradual workplace reintegration.

MR. KLOTSCHE, IS IT DIFFICULT TO ENFORCE THE USE OF PROTECTIVE CLOTHING WITHIN PRODUCTION?
All violations of the rules are penalized and can even result in labor law consequences. We’re very strict about this. There are “taboo rules” at OTTO FUCHS, and anyone who disregards them, thus putting themselves and others in danger, is invited to attend a staff appraisal. These rules include the wearing of personal protective equipment including safety glasses, a bump cap, gloves, hearing protectors, and protective footwear. We also use the German
6S system, which is an important part of our continuous improvement process. Translated into English, the last of the six Ss stands for “Observing occupational safety at all times.” With measures like these, the mindset of the employees has fundamentally changed over time.

INTERVIEW WITH DANIEL KLOTSCHE, HEAD OF THE MEINERZHAGEN FORGING/PRESSING SEGMENT, AEROSPACE DIVISION

AND IF THEY DO FAIL TO WEAR PROTECTIVE CLOTHING OCCASIONALLY?
All violations of the rules are penalized and can even result in labor law consequences. We’re very strict about this. There are “taboo rules” at OTTO FUCHS, and anyone who disregards them, thus putting themselves and others in danger, is invited to attend a staff appraisal. These rules include the wearing of personal protective equipment including safety glasses, a bump cap, gloves, hearing protectors, and protective footwear. We also use the German
6S system, which is an important part of our continuous improvement process. Translated into English, the last of the six Ss stands for “Observing occupational safety at all times.” With measures like these, the mindset of the employees has fundamentally changed over time.

WHAT ARE THE MAIN HAZARD SOURCES IN A CLOSED AND OPEN-DIE FORGE?
There are high temperatures, it’s loud, the climate is rough, and the material is tough. We work with very large and powerful machines and vehicles, and these are the main hazard sources.

IS REPETITIVE WORK A HAZARD SOURCE, TOO?
The work we do isn’t monotonous. Each employee sets up their press at least once per shift. In addition to the changing of tools, there are always new challenges to overcome because of the regular changes in the materials used, namely titanium, nickel, and aluminum.

SOUNDS LIKE HARD WORK ...

Yes, it’s a physically demanding process. We have introduced a lot of protective measures like setup aids for the large and heavy parts. This is very satisfying work for the employees, even with the physical exertion involved. Because it fills them with pride to be able to say to their kids when at the airport: “I forged that part of the plane and that part there, too.”

OTTO FUCHS SEES THE STATUTORY SPECIFICATIONS FOR OCCUPATIONAL SAFETY AS MINIMUM REQUIREMENTS. DO ALL THE EMPLOYEES KNOW WHAT THAT MEANS IN CONCRETE TERMS WITH REGARD TO THEIR WORK?
We instruct our employees and our subcontracted workers before they take up their work and subsequently at least once a year, explaining the rules and requirements in the area of occupational safety and also the workplace directives. In these classroom-based training sessions, the executives give practical examples of how we follow the rules at OTTO FUCHS.

FOR EXAMPLE?
For example, that you don’t cross the road until you can see the whites of a forklift truck driver’s eyes, because you always have to assume they haven’t seen you.

“ You don’t cross the road until you can see the whites of a forklift truck driver’s eyes.” (Daniel Klotsche)

IS WHAT’S TAUGHT TAILORED TO THE INDIVIDUAL DIVISIONS?
We changed our training strategy five years ago. The concepts for the large forging shop are now developed centrally so that we teach the same things throughout the Group when it comes to the key strategic topics. The individual segments can also offer training on specific topics. For example, not everyone needs to be taught about hazardous substances, as these are only used in certain areas.

IT’S NO DOUBT JUST AS IMPORTANT, IF NOT MORE SO, THAT THE TOPIC OF OCCUPATIONAL SAFETY ALWAYS BE BORNE IN MIND IN EVERYDAY WORK.
Indeed. And we have fixed dates to ensure this: the forepersons sit down with their employees once a month as part of the continuous improvement process (CIP), to share information and discuss workplace accidents. In addition, the various managerial levels come together once a week. We are also permanently preparing for audits in areas like occupational safety, quality management, and HR management. Our production is audited on a regular basis. The workers in this area carry pocket cards and have internalized the information given on them. These cards list our departmental goals, our ten golden safety rules called “Getting home safely,” the ten golden environmental rules, and the taboo rules mentioned above, which must not be violated under any circumstances. These cards help us meet the minimum standards.

DO YOU HAVE OCCUPATIONAL SAFETY GOALS WHICH ARE SPECIFIC TO YOUR AREA?
Each department has annual goals, and the goals for the individual segments are derived from these. We always seek to develop the measures together with the employees in the CIP rounds. In other words, they are based on dialog rather than being dictated. And when we come up with a good solution, it is standardized and codified.

DOES THE SAME GO FOR TECHNICAL SOLUTIONS? YOU ALREADY MENTIONED THE HEAVY MACHINERY AND VEHICLES.
Regular vehicle servicing is very important in terms of effective prevention, to ensure that vibrations do not become too strong, for example. We have made a great deal of progress in the area of servicing thanks to what’s known as predictive maintenance. Everything is also recorded in SAP. And we want to apply the CIP idea in this area in the future, too.

WHAT WOULD YOU SAY WERE THE CHALLENGES THE MANAGERIAL LEVELS CURRENTLY FACE?
I firmly believe that the management is crucial to safety topics being implemented and communicated. We need a comprehensive foreperson structure here. Digitization and self-organization can be no substitute for personal supervision from a direct manager, in other words a foreperson. This is also borne out by the successful work of our load suspension device officers, who train small groups of employees on-site. We also need to do more to encourage people to see the bigger picture: what happened in the adjacent department and what can I learn from this?

HAVE THERE BEEN SERIOUS WORKPLACE ACCIDENTS IN SPITE OF ALL THIS?
Only on a handful of occasions in my 17 years with OTTO FUCHS. But on every occasion, including the less serious incidents, the first-aiders did a fantastic job. Incidentally, we go above and beyond the minimum requirements in this regard, too, with our first-aiders always making up more than the statutory 10 percent of the workforce. We are exceptionally well covered in the area of firefighting in particular.

HOW DO YOU ENSURE A MISTAKE ISN’T MADE TWICE?
We keep accident reports. We reproduce the accidents in pictures and analyze the reasons behind them using cause-and-effect diagrams. We are currently working on making this information available to all the employees in a more systematic way.

WHAT’S ESPECIALLY IMPORTANT TO YOU PERSONALLY WITH REGARD TO SAFETY?
Direct communication. Information is our most important tool. For me, this means getting out there alongside the worker at their workplace, operating the crane, and quite clearly saying: “This is something you need to pay attention to.”

“ There’s no substitute for person-toperson communication.” (Daniel Klotsche)

Daniel Klotsche, Dipl.-Ing. (FH), has been with OTTO FUCHS since 2001. After training as a metalworker, he studied mechanical engineering and is now head of the Forging/Pressing segment at the large forging shop in Meinerzhagen. The segment’s primary area of responsibility is the massive forming of forged products for the aerospace sector using high-performance materials like aluminum, titanium, and nickel alloys in closed and open-die forging presses.

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