You are on page 1of 16


General statement of subject matter and the aim of the report which is to discuss
and explain more details on the Occupational Safety and Health Administration which
stands for OSHA. The Occupational Safety and Health Act 1994 is a piece of Malaysian
legislation which was gazette on 25 February 1994. Under the OSHA Act, employers are
responsible for providing a safe and healthful workplace. OSHA's one of its many missions
is to assure safe and hazardous-free workplace by setting and enforcing standards, and by
providing training, outreach, education and assistance. Employers must comply with all
applicable OSHA standards. Employers must also comply with the General Duty Clause of
the OSH Act, which requires employers to keep their workplace free of serious recognized
hazards. It is efforts by the federal government to ensure workplace health and safety is at
minimal level until the passage of OSHA. The American system of mass production
encouraged the use of machinery, while the statutory regime did nothing to protect
workplace safety. For most employers, it was cheaper to replace a worker who suffers from
fatality or an injured worker, than it was to introduce safety measures in their own firm.
Our group is assigned to make a report regarding the OSHA at a one specific
company that we decided on. The company that our group chose is Cemara SB Sdn Bhd.
This company handles various kinds of activities that focus on construction. However, we
only focus on the aspect of their employees who carry out all firm activities regarding their
pipeline maintenance. The aim of this report is to provide further explanations of the
Occupational Safety and Health Administration (OSHA). As general, employees are
required to comply with the rules and regulation including those prescribing the use of
protective equipment. Besides that, this report aim s to contrast the theory of OSHA and the
implementation of it onto the selected company. Then, this report introduces new
procedures after we have done contrasting both of these issues in the company. This is to
ensure that the company is to fully adapt the rules and regulation of OSHA in the

Although, even if they are adapting the OSHA regulations, there can be

problem regarding if the company does not applying the rules and regulations of OSHA
properly or it is not well implemented, and preventive steps are needed to amend or change
due to the current situation or other current workforce.


Our inquiry Cemara SB Sdn Bhd regarding their OSHA department in their company
has been well received and answered.

OSHA (Occupational Safety and Health

Administration) is indeed very essential to the company. The Cemara SB Sdn Bhd does
not provide the Occupational Safety and Health Administration Department, however all
matters related to the safety and health of workers is governed by the administrative
department of their company. The employees that manage the construction of Petronas
pipelines need to have oil and gas safety passport. Actually this passport can be obtained
when the employee attends the training in national institute of occupational safety and
health. Their administration department responsible to their employees, then they will train
these employees about the safety and health at the workplace. Besides, this training also
aid the employee in understanding better about the hazards and risks as well as current
work procedures are in oil and gas plants. The objective of the exercise is to ensure the
safety, health and welfare of employees during work. Protect people in the workplace than
those who are working in that area also one of the objective of NIOSH. The next objective is
to promote a working environment for people who are at work that are tailored to their
physiological and psychological needs. Lastly, maintain a system of regulations and
industry codes of practice to support the existing law. NIOSH- Safety Passport (NTSP)
System is a series of training activities designed for specific target groups on specific OSH
subjects and for a specific industry. The system provides the appropriate training and
assessment so as to ensure that the target groups acquire the appropriate and necessary
safety and health knowledge required for their jobs and fulfill the legislative requirements
and the companies policies. The series includes induction training for contractor, permit to
work, confined space and job safety analysis. This training is to ensure the employee follow
the rules and regulation of the company. Without proper equipment will lead to the hazard
and that employee will be exposed in danger. This is main reason why the employee will be
sent to training before starting their work, it is to ensure the employee minimize the risk of at
the workplace, know their scope of work, what types of chemical they will be handle along
with the safety steps.

Another inquiry we asked to this company is whether they have done any activities
that have been planned and arranged by the OSHA department such as get fit by taking
the stairs instead of using elevators, health awareness campaign, and other more. Actually,
Cemara SB Sdn Bhd did not apply activities such as like get fit by using stairs, or campaign.
This company put more emphasis on safety of employees who work outside of the
company. One of the activities organized for employees in safety is to send their employees
that involves in outdoor activities such as pipeline maintenance are required to take or
attend courses related to the safety and health of workers. The employees will need to
attend the training that organized by the National Institute Occupational safety and Health
(NIOSH). NIOSH will provide training to the employee, fulfill this requirement for this
company the employee will granted oil and gas safety passport. This passport is the official
pass for the employee to easy access in the company. This passport is actually as
remarking the employee as official employees or belonging to that company and also had
attending the training. In diagram above is example of Oil and gas safety passport that will
provide by NIOSH. This oil and gas safety passport needs to display by the employee while
doing the pipelines maintenance. If the employee failed to display the card, they are not
allowed into the area that needs to be maintained. Petronas Gas Berhads higher
authorities will monitor the employees in terms of consumption as well as the safety
passport. Since this company is about dealing with pipeline, there implement strict
procedure needed to be follow because accident impossible to predict sometime small
mistake will give impact to physical employee, damages to property of the company or
environment. High supervision by the high authorities is needed because this services offer
by the company give high risk to their employee. The rules and regulation is needed to
minimize the hazard, disciplinary action is needed to correct the wrong doing act done by
the employee.
We also ask them regarding the how they get an idea and outline for their OSHA
regulations. For them it is the responsibility of the employer to ensure so far as practicable,
the safety, health and welfare at work of all his employees. To ensure safety, health and
welfare of persons at work. To protect working people and others in the workplace from a
workplace activity and activity that involves risk. They also promote a working environment
for people working at jobs for people who work with their physiological and psychological
needs. Provide occupational health and safety legislation with rules and health regulations
and industry codes of practice approved under the industry code of practice approved

under the provisions of the Act. When dealing with the human life, the company needed to
ensure their employee protected under the Act and provision, National Institute for
Occupational Safety and Health (NIOSH). This is the standard of procedure that company
need follow to ensure the safety of their employee. Since this company enacted the law
from NIOSH, the safety and health act were cover their life during working period. Without
training, the employee cant start their work because dont know the safety procedure. In
this manual, there are requirement to be save during delivery of service. Since pipeline is
dangerous work, strictly rules and regulation needed be comply by the employee. There are
several safety and health equipment, steps to handle the accident and also safety
signboard. Without training, the employees dont know the signboard stand for what
situation. There also several reason why the safety signboard is located because to reduce
the hazard. For example, No Smoking signboard is to ensure the no fire or maybe factor
that lead to the fire occurs in the workplace because its will lead to the several
consequences. If the employee breach it, there are certain law will impose to the defendant
because of negligence. The punishment or fined will imposed due to the wrongdoing act
because breach the rules and regulation.
Regarding the OSHA rules, we ask the company regarding their action when their
employee does not follow the rule, and any preventive action. OSHA stands for
Occupational Safety and Health Act or rules. For them this rules and regulation cover all the
aspect include workplace, machinery and equipment, materials power sources, first aid. If
the company deliver the technical service, there certain equipment that was design that
suited to the situation and friendly-user. All equipment in the company has their own
purposes and will decrease the injuries. The employee will be protected as long comply the
rules and regulation

If employee and employer do not comply with the directive or

regulation, the both of them will be liable to imprisonment or a penalty. For the Cemara SB
Sdn Bhd employees before they start their work, the high authorities will brief about the
attire and the safety at the workplace. Briefing is to ensure all employee give top priority
about the safe and health. Every mistake is no turning back. Mistake cant be accepted
since briefing done before work. Breach the rules and regulation, the employee will liable if
breach the rules and regulation. The disciplinary action will be conduct due to the breach of
rules and regulation. Fined or punishment imposed if the employee prove guilty. The green
card that provide by employer as prove that the employee is giving briefing first regarding
safety every day before start the work.

Proceed to another question is regarding the management of Cemara SB Sdn Bhd

actions when their employee involves in a crime. If one of the company's employees is
involved with a criminal offense, companies need to research the types of criminal offenses.
If involved in drug abuse, the company must give notice to stop working within 24 hours. If
employees are involved in crimes such as snatching is not important, steal or more, the
company must provide counseling to employees, reported to the police and if the significant
issue had to stop work notice within 24 hours. Crime may affect the name of the
organization. Every in the organization particularly choosy in hired the employees. Hiring
the employee conduct by the several organizations is really strict and all the background of
the employees need for consideration. Employees that have bad reputation background will
be terminated early. There have several actions that Cemara SB Sdn Bhd considered when
to hiring employee. This is to ensure the name of company is secure. There several
procedures conduct by the certain company such as check the background of the
employee at the police department or has the hacking system own by the company. This is
to ensure the employee is free from the criminal cases. There is negative impact when
hiring the employee that had background crime such as drug addict. Drug addict need
much money to buy drug, wrong hiring can lead to loss of the company. To ensure the
employee is clean, the company must have strict hiring procedure to enter the company to
ensure no repetitive crime done by the employee. Taking the workers who are involved in
crime such as the drug is cant. This is because the company is prohibited to take such


We ask to Cemara SB Sdn Bhd is regarding their action when their employee gets
in an accident when performing an outdoor activity. Actually for their company, when there
an accident occurs while the employee doing outdoor activities and injuries are only minor
injuries, the victim will be treated with the first-aid kit. However, but if the accident causing
the injury is severe, the victim will be sent to a nearby hospital. Beside, another colleague
must inform the employer about the accident that happened whether the victim suffered
minor injuries or severe. According to section 32 of the Act safety and health of workers
every employer must report any accident, dangerous occurrence, occupational poisoning

and occupational diseases. Besides, an employer shall notify the nearest occupational
safety and health office of any accident, dangerous occurrence, occupational poisoning or
occupational disease which has occurred or is likely to occur at the place of work.
However, when the accident that occurred is serious the employer still need inform to the
responsible party. This is because one of the rules for them to investigate the causes of that
accident. All persons that saw the accident that occur need to give the cooperation to them
carry out their investigation. The investigation actually is to identify the factors of the
accident. Then they will impose the other preventive action to avoids this accident
happened again. They also will record the accident that happened for their investigation
The next question is regarding the compensation for employee when an accident
occurs, does the company pay for the compensation or whether if theres any insurance
covers for it. Cemara SB Sdn Bhd has owns rules and regulation. This company practices
social security scheme for their employee. The main objective of social security schemes is
to guarantee payment of benefits to workers and their dependents in the event of
unforeseen events to the employee. Medical treatment services, physical rehabilitation and
vocational training are also provided in addition to taking steps to prevent accidents and
improve job security. Recovery facilities to enable workers return to work as soon as
possible interrupted. Cemara SB Sdn Bhd also registered with and pays contributions to
workers' compensation insurance or insure against liability to pay compensation under the
compensation ordinance work, 1952. Apart from proof of registration as an employer with
workers' compensation insurance by submitting his registration number, the contractor must
also get worker's compensation insurance. Insurance should cover the entire period of
completion of work including the defects liability plus 3 months and 14 days. The total
amount to be insured is the amount of salaries of employees who are not eligible covered

workers' compensation insurance scheme. Workers covered by workers'

compensation insurance by the insurance scheme. If an accident and injured workers,

workers will be paid by an insurance scheme which is PERKESO security schemes.
Cemara SB Sdn Bhd also insured the public liability insurance. Actually all contractors are
required to insure liability arising on the side "Common law" against personal injury, death
or injuries and property damage arising from the execution of the work in time. Insurance
should be executed or maintained or on behalf of the government and the contractor.
Insurance should cover the entire period of completion of work including the defects liability
period and added three months and fourteen days.


The next question is regarding the any safety equipment that needs to wear by the
employee. Cemara SB Sdn Bhd provided their employee with safety equipment that need
to wears during the outdoor activities. The employee need to wearing the personal
protection equipment (PPE) for prevent action to avoid accident happened. This equipment
is provided by the employer to their employee. Personal protective equipment (PPE) refers
to protective clothing, helmets, goggles, or other garments or equipment designed to
protect the wearer's body from injury or infection can refer to appendix. The hazards
addressed by protective equipment include physical, electrical, heat, chemicals,
biohazards, and airborne particulate matter. The pipelines maintenance in Cemara SB Sdn
Bhd need to have this safety equipment, the company must prepare all the equipment
during working hour. All the equipment has their owned purposes that minimize the risk at
the workplace. Uncompleted equipment will give impact to the employees.



Recommendation for the question one is regarding the OSHA department. Actually
all the company need has the OSHA department. This department exactly will carry out the
task regarding all the safety and health of the employee in that organizations. Cemara Sb
Sdn Bhd needs to develop the OSHA department in their company. This is because mostly
the activities conducted by their employee is faced with danger and could invite accidents.
Employers that invest in workplace safety and health can expect to reduce fatalities,
injuries, and illnesses. This will result in cost savings in a variety of areas, such as lowering
workers' compensation costs and medical expenses, avoiding OSHA penalties, and
reducing costs to train replacement employees and conduct accident investigations. In
addition, employers often find that changes made to improve workplace safety and health
can result in significant improvements to their organization's productivity and financial
Next recommendation a new procedure for question that related about activities
that have been done under OSHA department such as get fit by using stairs, campaign,
health and wellness in Cemara SB Sdn Bhd company. Base on the observation actually this
company did not conduct many activities that related to the OSHA department. Company
need to conduct more activities to their employee regarding the safety and health. This is a
major to make the employee more regular with the appropriate action that involve in the
hazard or any accident that might happen. The company must at least focus on the health
of the employee along with the safety of the employee in the workplace. Healthy is
importance to ensure the efficiency and effectiveness of the employee during their working
hours. By organizing campaign of health every twice a month will develop sense of
belonging and more appreciate their work. The employee feels their life is valuable.
Through this campaign can trace the high or low risk disease that may affect the

productivity of the employee in the future. This campaign act as preventive action and
determine the employee fit enough for their job or not.
Another recommendation for the next is about the OSHA ideas regulation. For the
observation, OSHA ideas and regulation is not one that we can only create. However it is
one that we can apply by using the act that already government imposed. Employer need
use knowledge of their environment to understand what things are putting people in risky
situations. Employer needs the control to make appropriate changes to the system. Under
the OSH Act, employers are responsible for providing a safe and healthful workplace.
OSHA's mission is to assure safe and healthful workplaces by setting and enforcing
standards, and by providing training, outreach, education and assistance. Employers must
comply with all applicable OSHA standards. Employers must also comply with the General
Duty Clause of the OSH Act, which requires employers to keep their workplace free of
serious recognized hazards.
Next recommendation is for the employee that does not follow the OSHA rules.
Employee can breach the rule that company impose. One of the recommendation is the
company enforced the rules and regulation stated in OSHA regulation. This company must
carry out further investigation and allowed the employee to defence himself before deciding
the punishment. Not all circumstance has same punishment. The panel must consider the
merit of the cases before the conclusion in making the decision. Since the employee is hard
to find and fit to that particular job, all matters must be take into account.
Another recommendation is for the company that dealing with employee that
involves in a crime. Company needed to conduct disciplinary action to ensure free and fair
in delivering decision. The company must always notify their employee about involving
crime will involve in disciplinary action. The company must always reminds their employee
by having assembly every once a week. This can reduce the probability of the employee
involving in serious crime. Preventive action is needed rather than act after things done.
The company can deliver decision when all the consideration need into account. The
serious cases cant be tolerates. The outcome from the cases can be learned by another

Next is recommendation for company when the employee involved in accident.

Every accident whether negligence done by the employee himself or done by another
employee needed to notify the upper management. That company only focuses on major
injuries. Minor injuries also needed to give further treatment because minor injuries
sometimes can lead to the major injuries. Responsible person must sent their injured
employee to panel clinic or hospital for further treatment along with the investigation. The
information about this accident can be file in the personal file of that employee. Preventive
action is needed at the early stages and further investigation with proper filling is needed. If
injured, call a supervisor for help. If the supervisor is not available, get medical assistance
or call 911. All employers must notify OSHA within 8 hours of a workplace fatality or within
24 hours of any work-related inpatient hospitalization, amputation or loss of an eye.
Employers under federal OSHA's jurisdiction were required to begin reporting.
Recommendation for the company to improve their compensation and the insurance
thats cover the employee when they involve in accident. Company need to have the
compensation fund. The Compensation Fund provides compensation for employees who
get hurt at work, or sick from diseases contracted at work, or for death as a result of these
injuries or diseases. It is covered by the Compensation for Occupational Injuries and
Diseases Act (No 130 of 1993) (COIDA) and the Compensation for Occupational Injuries
and Diseases Amendment Act (No 61 of 1997). The Compensation Commissioner is
appointed to administer the Fund and approve claims of employees. Where an employee is
entitled to receive compensation from the Compensation Fund, and not the employer will
pay the employee. Actually employers pay into the Compensation Fund once a month.
Employees do not pay anything to the Fund, so employers cannot deduct money from
employees' wages for this. The following employers do not have to pay into the Fund.


Lastly is recommendation for the company need to prepare safety equipment for

employee wear during the outdoor activities. That is the responsible to prevent from any
accident happen. Many OSHA standards require employers to provide personal protective
equipment, when it is necessary to protect employees from job-related injuries, illnesses,
and fatalities. With few exceptions, OSHA requires employers to pay for personal protective
equipment when it is used to comply with OSHA standards. These typically include: hard


hats, gloves, goggles, safety shoes, safety glasses, welding helmets and goggles, face
shields, chemical protective equipment and fall protection equipment Under the OSH Act,
employers are responsible for providing a safe and healthful workplace. OSHA's mission is
to assure safe and healthful workplaces by setting and enforcing standards, and by
providing training, outreach, education and assistance. Employers must comply with all
applicable OSHA standards. Employers must also comply with the General Duty Clause of
the OSH Act, which requires employers to keep their workplace free of serious recognize

Conclusively, the primary findings of this project to date point the need for a
change in culture at this company. But firstly a company that mainly based its
operation with the conduction of dangerous and risky activities actually needs to
implement Occupational Safety and Health Administration Act in their company. This
kind of company should start up a specialized department for workplace safety to
make sure the safeties can be ensured. This department is important because it is
responsible for employees welfare and safety. For example, this department should
provide the employees who are responsible in carrying out outdoor activities with
appropriate training and other consultation programs regarding the safety when
facing with dangerous activities in real-time situations and how to handle those
situations with appropriate and vigilant precautions. The basic intent of OSHA Act
was to preserve human life by reducing accident rates and eliminating serious
health hazards in the industrial sector in certain company. This intent was stated in
the purpose of the act and was alluded to time and time again during the
congressional debate.


1. Occupational Safety & Health Administration 200 Constitution Ave., NW,
Washington, DC 2010. Summary Report on OSHA Inspections Conducted at
Superfund Incinerator Sites. Retrieved, from

2. Amier adam. January 31, 2012, ALL ABOUT SAFETY. (n.d.). Retrieved from
3. Occupational Safety & Health Administration 200 Constitution Ave., NW,
Washington, DC 2010. OSH Act of 1970.Retrieved from

4. Official website National Institute of Occupational Safety and Health. April15, 2016.
Hazards and risks. Retrieved from

5. George W. Bohlander, Scott Snell. (2012). Principle of Human Resource

Management (16th ed.)



(En. Fauzi Ham dan)
(Rosmaria Bt Hassan)

(Zarina Bt Hashim)

(Zamari B Othman)


(Mutapa Kamal B Adam)

(Hairil B. Adnan)

(Fadli B. A mir)

Cemara SB Sdn Bhd is a private company that provided the construction services.
One of the construction services is constructions of engineering. The company is situated in
Kuantan and operated since 2001. This company also has binding contracts with Petronas
Malaysia at Segamat regarding the construction of engineering pipelines. One of the tasks
is restoration. They policy is to clean up and restore the work area as soon as possible. After


the pipeline is backfilled and tested, disturbed areas are restored as close as possible to their
original contours. Restoration measures are maintained until the area is restored, as closely as
possible, to its original condition. Other task constructed pipelines are pigged to remove
hydrostatic water and general construction debris. For enhanced cleaning and drying, multiple
runs with low density swabs, foam disc pigs and wire brush pigs are used to achieve a required
dew point and to remove mill scale, rust and weld bead slag. Cemara SB Sdn Bhd bind contract
with Petronas Gas Berhad to conducting the construction of all pipelines in southern state only
which is Johor Darul Takzim


(National Institute of Occupational Safety Health)

(Oil & Gas Safety



(Personal Protective Equipment)