Social
Health and Safety
General principle
The MODEC Group recognizes it is critically important to ensure the health and safety of its employees and maintain appropriate working conditions to enable each employee works at their full potential for our sustainable development. Every employee, contractor and vender are expected to understand and comply with both our HSSEQ* policies and their procedures.
In particular, we make an effort to secure the health and safety of employees who are engaging in FSO/FPSO operation as they work in a remote environment. We have formulated our “Health Safety Declaration” for ensuring the health and safety of our employees, and are aiming to achieve it.
*HSSEQ: Health and Safety, Security, Environment and Qualiry
- Health and Safety Declaration
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In the entire MODEC Group, we promote employees' health through enhancement of occupational health and safety systems.
- We comply with local labor standards and related laws and regulations, and carry out extensive management in all countries.
- Under appropriate management systems, we prevent work-related accidents in all workplaces. In case an accident occurs, we secure the working environment by investigating all incidents and establishing measures to prevent recurrence.
- We continue to engage in the improvement of employees' health and safety for prevention of work-related accidents and illness by our HSSEQ management systems.
Management System
MODEC, INC. has in place “HSE committee” in the purpose of following aims:
- 1Ensuring the health and safety of our employees, the protection of the environment
- 2Set HSSE performance objectives, measure results, assess and continually improve processes through the effective integrated management system
- 3Empower and support all employees and subcontractors with the right to STOP WORK or refuse to work in situations where conditions or practices are deemed unsafe
- 4Contribute to sustainable development through environmental protection
- 5Other important matters recognized as necessary for safety, health and environment protection.
General Occupational Health & Safety and Environment Manger (executive officer in charge of human resources) chairs HSE Committee, which consist of Occupational physician, Health Supervisor (designated by law) and Representative of workers (appointed by half of committee members in the union) attend the “HSE committee.”
In addition, The MODEC group organizes “MODEC Group HSSEQ Executive Committee” supervising and monitoring activities of entire Group's occupational health & safety, environment and quality. The committee is chaired by VP & Chief HSSEQ Office and consists of MODEC, INC. CEO, heads of each business units, Chief Compliance Officer and Chief Human Resources office for supervising and monitoring group wide HSSEQ activities.
Efforts for Occupational Health, Safety and Security
| Year to Year | 2023 | ||||
|---|---|---|---|---|---|
| 2023 | 2022 | 2021 | Offshore | Onshore | |
| Exposure Hours | |||||
| Employee | 12,854,508 | 12,026,103 | 12,338,424 | 5,178,413 | 7,676,095 |
| Contractor | 30,843,267 | 51,978,567 | 44,665,408 | 6,209,725 | 24,633,542 |
| Total Exposure hours | 43,697,775 | 64,004,670 | 57,003,832 | 11,388,138 | 32,309,637 |
| Fatalities (work related) | |||||
| Employee | 0 | 0 | 0 | 0 | 0 |
| Contractor | 0 | 0 | 2 | 0 | 0 |
| Total Fatalities | 0 | 0 | 2 | 0 | 0 |
| Injuries | |||||
| Lost Time Injury Frequency Rate Employee | 0.54 | 0.23 | 0.41 | 1.54 | 0.26 |
| Lost Time Injury Frequency Rate Contractor | 0.23 | 0.08 | 0.11 | 0.64 | 0.00 |
| Lost Time Injury Frequency Rate (Total) | 0.32 | 0.11 | 0.18 | 1.05 | 0.06 |
| Total Recordable Incident Frequency Rate Employee | 0.86 | 0.78 | 0.73 | 2.32 | 0.65 |
| Total Recordable Incident Frequency Rate Contractor | 0.88 | 0.41 | 0.29 | 1.93 | 0.37 |
| Total Recordable Incident Frequency Rate (Total) | 0.87 | 0.48 | 0.39 | 2.11 | 0.43 |
| Occupational illness | |||||
| Employee | 9 | 13 | 0 | 9 | 0 |
| Contractor | 1 | 3 | 0 | 1 | 0 |
| Total Recordable Occupational Illness Frequency Rate (employees only) |
0.70 | 1.08 | 0.00 | 1.74 | 0.00 |
| Security | |||||
| Work- related security incidents | 6 | 6 | 3 | 3 | 3 |
| Work-related security incident resulting in physical harm to employees (number) |
1 | 0 | 0 | 0 | 1 |
LTIF= Number of Lost Time Injuries x 1,000,000/ Manhours Worked
TRIR=Total number of Recordables x 1,000,000/ Manhour Worked
| Year to Year | 2023 Regional Breakdown | |||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2021 | South America | Africa | APAC | |
| Loss of Containment- Process | ||||||
| API 754 Classified Materials | 176 | 166 | 127 | 160 | 16 | 0 |
| API 754 Classified Materials (by TIER) | ||||||
| Tier 1 incidents (number) | 6 | 2 | 1 | 6 | 0 | 0 |
| Tier 2 incidents (number) | 10 | 2 | 0 | 10 | 0 | 0 |
| Tier 3 incidents (number) | 314 | 162 | 126 | 299 | 15 | 0 |
POLICY for HUMAN RIGHTS
MODEC believes that respect for human rights is essential in all our global operations. MODEC values international human rights standards throughout the world. As one of a global company’s responsibilities and to ensure its continuity, we seek to develop diverse human resources with shared values. Through establishing labor standards, MODEC promotes a working environment in which every individual can achieve their full capability regardless of their race, national origin, religion, disability, color, pregnancy, age, military status, sex, or any other characteristic protected by applicable international/local law.
As applicable to our global business, MODEC respects human rights principles as established in the United Nations Universal Declaration of Human Rights and accompanying Covenants, the International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work, International Bill of Human Rights, Guiding Principles on Business and Human Rights, Children Rights and Business Principles and all other applicable international and local human rights standards, laws and regulations.
As MODEC fulfills our obligations to stakeholders, including customers, business partners, local communities where we conduct business, and our employees, shareholders, suppliers, and subcontractors, MODEC is dedicated to promoting respect for all people, safeguarding human rights, adhering to established labor and workplace practices and acting responsibly toward the environments in which operate. MODEC recognizes and promotes universal human rights protection and conduct our global operations under the belief that all human beings are born free and are equal in dignity and rights.
MODEC expects employees to act in a manner that respects the rights and dignity of all people, complying with all applicable international human rights laws and regulations.
Our Code of Business Conduct and Ethics stipulates the prohibition of child labor and forced labor and respect for individual human rights. Every employee must comply with our code of conduct as a member of local communities. This foundation stipulates the prohibition of any form of discrimination based on gender or nationality, as well as prohibiting child labor and forced labor(Forced labor is involuntary labor of any kind, including prison labor, debt bondage, or forced labor by the government).
No Use or Support of Child Labor
- Engage in or support the use of persons below 15 years of age or, if higher, the legally prescribed minimum age.
- Expose persons under the age of 18 to any situations, in or outside of the workplace, that are hazardous or unsafe to their physical and mental health and development.
- Interfere with mandatory schooling of children.
MODEC does not:
No Use or Support of Forced or Compulsory Labor
- Engage in or support the use of forced or compulsory labor, including prison labor.
- Require ‘recruitment fees’ or ‘deposits’ from workers - financial or otherwise.
- Withhold salary, benefits, property, or documents to force personnel to continue work.
- Engage in or support human trafficking in any form.
MODEC does not:
Provide a Safe and Healthy Workplace
- Provide a safe and healthy workplace and prevent potential occupational accidents.
- Appoint senior management to ensure health and safety and provide instructions on health and safety for all personnel.
- Implement robust systems to detect, avoid, and respond to risks and to record all accidents.
- Provide required personal protection equipment and medical attention in the event of a work-related injury.
MODEC does:
Respect Freedom of Association and Right to Collective Bargaining
- MODEC respects the right to form and join a trade union(s) and bargain collectively or to have recognized employee representation by local law. Where local law restricts such rights, MODEC allows workers to elect their representatives freely.
- MODEC ensures that there is no discrimination against trade union members, workers’ representatives, or personnel engaged in workers’ organizations.
- MODEC respects employees’ “freedom of association” and “the rights of collective bargaining” through explicit adoption of the International Labor Standards set by the International Labor Organization (ILO) and compliance with applicable local laws and regulations.
No Discrimination
- Discriminate based on race, national or territorial or social origin, caste, birth, religion, disability, gender, sexual orientation, family responsibilities, marital status, union membership, political opinions, age, or any other condition that could give rise to discrimination.
- Discriminate regarding hiring, setting remuneration, access to training, promotions, termination decisions, and retirement.
- Tolerate discrimination based on the above-mentioned or any other legally protected categories.
- Interfere with the exercise of its employees’ tenets or practices.
- Tolerate threatening, abusive, exploitative, and coercive behavior at the workplace or MODEC facilities.
MODEC does not:
Reasonable and Fair Disciplinary Practices
- The use of corporal punishment.
- Mental or physical coercion.
- Verbal abuse of personnel.
- Harsh or inhumane treatment of personnel.
MODEC treats all personnel with dignity and respect.
MODEC does not engage in or tolerate:
Reasonable and Fair Working Hours
- MODEC complies with applicable laws, collective bargaining agreements (where applicable), and industry standards on working hours and public holidays.
- MODEC endeavors to ensure that employees’ working hours and use of leave entitlements are appropriately managed, and excessive overtime work is prohibited by following local legislation.
Reasonable and Fair Compensation
- MODEC complies with all applicable laws and regulations regarding pay practices and employment classification according to job level and status.
- MODEC endeavors to ensure statutory minimum wages at least the living wage for employees and shall not unreasonably reduce wages.
Diversity, Equity, and Inclusion
- MODEC is dedicated to nurturing, promoting, and upholding a culture centered around diversity, equity, and inclusion.
- MODEC values and honors the diverse attributes that make each of our employees unique, including but not limited to age, ethnicity, gender identity, physical and mental abilities, political beliefs, religion, sexual orientation, and socioeconomic background.
- Brazil Pay Equality and Transparency Report
Reinforcing our commitment to transparency and in compliance with Law No. 14,611/2023, known as the Brazilian Equal Pay Law, and the Brazilian Ministry of Labor’s Ordinance No. 3,714 to Decree No.11,795 of 2023, we publish the salary equality reports of MODEC Serviços de Petróleo do Brasil Ltda offices with more than 100 employees: Rio de Janeiro, Santos and Macaé (including the office, base and all offshore units).
MODEC emphasizes that the documents were prepared directly by the Ministry with data from 2022 and the methodology used may not reflect the most recent dynamics of the company.
MODEC promotes diversity and inclusion initiatives in the job market and reinforces that the topic is part of the company's business strategy through the Mid-term Business Plan 2024-2026.
Labor Standards
As one of a global company's responsibilities and to ensure its continuity, the MODEC Group seeks to develop diverse human resources with shared values. Through establishing labor standards, we promote a working environment in which every individual can achieve their full potential regardless of their nationality or sexuality.
Policy on Labor Standards
We believe that respect for human rights is essential in the course of undertaking projects all over the world. Based on this belief, we establish our “MODEC Human Rights Policy”. The policy stipulates prohibition in any form of discrimination based on gender or nationality, as well as it prohibits child labor and forced labor.
Additionally, we respect employees' “freedom of association" and "the rights of collective bargaining” through explicit adoption of the International Labor Standards set by International Labour Organization (ILO) and comply with applicable local laws and regulations. We endeavor to ensure that employees' working hours and use of leave entitlements are appropriately managed and excessive overtime work is prohibited by following local legislations.
In addition, we endeavor to ensure statutory minimum wages at least the living wage for employees and shall not unreasonably reduce wages.
Participation in the UN Global Compact
We joined the UN Global Compact in January 2020, declaring our commitment to the universal ten principles in the four fields (human rights, labor, environment and anti-corruption). Guided by our "Code of Business Conduct and Ethics", we prevent any form of discrimination and harassment, and promote actions under each principle of the "UN Global Compact".
MODEC as a Corporate Citizens
MODEC has actively engaged in the contributions to the communities in the regions where there are shipyards working with us and where we have vessels in operation in the countries.