8
SUSTAINABILITY

GLOBAL MATERIAL ISSUES
TEAM MEMBER HEALTH AND SAFETY
GRI G4-DMA

Team member health and safety is a priority issue for the JBS global business platforms. It covers training and good working conditions, including personal protective equipment, as well as safe facilities and machinery to carry out all operating procedures. In order to continually improve its industrial processes, JBS conducts mapping, analysis, monitoring and controls to eliminate or minimize the occurrence of incidents, aimed at improving its team member’s quality of life, health and safety. The Company also utilizes ergonomics programs and provides quality of life initiatives to promote a positive work-life balance. GRI G4-LA7

As part of its efforts to continually improve, in 2015, JBS Brazil created a multidisciplinary group of team members and consultants, including safety engineers, ergonomists and attorneys, with the specific goal of inspecting the JBS units in Brazil to identify gaps related to team member health and safety. After each visit, a report is generated with corrective actions in order to ensure compliance with internal policies related to the issues and the relevant laws.

This initiative is in addition to several others that have already been inserted into the Company’s work routines, such as the Health and Safety Management System, used to encourage team members to adopt best practices. This system is based on the Occupational Health and Safety Self- Management Program (PSSAG), which provides periodic training sessions, lectures, campaigns (such as the Internal Occupational Accident Prevention Week - SIPAT), programs and internal audits focused on health and accident prevention. The occupational health and safety indicators are monitored daily and analyzed periodically in order to evaluate the performance of each unit.

Investments in training and campaigns to promote occupational health and safety in 2015 resulted in a reduction in the number of accidents with time lost (see chart). Nevertheless, the Company laments the increase in the number of deaths, mainly due to the significant increase in accidents while in transit. For 2016, JBS restructured the health and safety area, in order to enhance training and reduce the number of accidents in its operations.

Team members of JBS (Brazil) also participate in the Internal Accident Prevention Commissions (CIPAs). In 2015, 135 CIPAs were established, with the participation of 766 team members. There is also the Safety Committee, made up of members of the senior management, which analyzes the health and safety indicators and all of the proposals for improvements suggested by team members. In 2015, more than R$134 million was invested in Brazil in improvements aimed at the health and safety of team members. GRI G4-LA5

In Brazil, JBS has 166 agreements and protocols that address issues relating to health and safety of its team members, representing 89% of all agreements and protocols it has executed. GRI G4-LA8

At Moy Park (JBS Europe), health and safety are also priority issues. In the last three years, the Company improved performance on these fronts by 78%, with some of its units having accumulated over two million hours without incident. Results like these led Moy Park to be awarded the RoSPA Food and Drink Health & Safety Award.

The awards from the Royal Society for the Prevention of the Accidents (RoSPA) have existed for almost 60 years and are widely recognized as the “Oscars” of health and safety throughout industry in the United Kingdom.

In addition to this recognition, Moy Park also received, for the fourth time, the International Safety Award, conferred by the British Safety Council.

The importance of these issues for JBS USA led the Company to institute a Health and Safety Program in 2015 based on the culture of prevention and engagement, rather than the previous reactive approach, focused on lagging performance indicators. This change seeks to educate and engage the workforce in a culture of safety by identifying risks and correcting deficiencies before incidents occur. It also aims to raise awareness among leaders about their responsibilities in these processes.

Occupational Health and Safety¹ South America North America³ Europe
GRI G4-LA7, GRI G4-LA6 Brazil²
JBS USA Pilgrim’s Australia Canada
Moy Park
Accidents Lost time 1,196
158 90 304 29
55
Without lost time 1,226
799 532 292 258
212
Number of total accidents 2,422
957 622 596 287
267
Injuries (frequency rate) Lost time 5.65
0.64 0.31 22.00 1.44
2.55
Without lost time (recordable rate) 5.78
n/a** n/a** n/a** n/a**
9.86
All injury frequency rate n/a**
3.85 2,13 43.03 n/a**
n/a**
Days lost Due to accidents 100,807
5,070 1,761 n/a** 700
695
Rate of days lost (severity rate) 475.65
20.40 6.03 n/a** 34.73
32.32
Dart Rate* Days away, restricted or job transfer rate n/a**
2.43 1.20 n/a** n/a**
n/a**
Fatalities Typical accidents 4
0 1 0 0
0
Commuting accidents 8
n/a** n/a** n/a** n/a**
0
Total 12
0 1 0 0
0
¹The indicators of each business/region are calculated according to specific formulas according to each country legislation in place.
²Beef, Leather, JBS Foods and Related business
³Australia is considered in the North American platform
* Not applicable in Brazil
** n/a - not applicable


Actions taken by the business areas in 2015

BRAZIL

  • A JBS Beef features a Consequence Committee. Implemented at the units with high workplace accident rates, it is an initiative run by the Occupational Safety team to provide warnings about accident prevention and reinforce the duty of each team member to comply with Safety Regulations and preventive management. The Company also conducts behavioral audits, as part of its preventive initiatives, to detect deviations in procedures when conducting workplace activities.
  • A JBS Leather participated in the creation of a booklet with guidelines for Brazilian and foreign suppliers, to comply with NR-12, a regulation that specifies safety levels for machinery and equipment in the tanning industry. The booklet is an initiative from the federal government.
  • A JBS Foods includes a Daily Safety Dialogue (DDS) in its agenda. Every day, leaders meet with their teams to discuss pre-defined topics regarding this issue. It also organized seminars throughout the year on Occupational Health and Safety (OSH), which are used to disseminate guidelines for the management of these issues and present the Self-Management Safety Process (PSAG).

EUROPE

  • A Moy Park invests in training and management in order to ensure that safety is part of the foundation of the Company’s culture and values. In 2015, team members received on average more than 15 hours of training. Health and safety issues are already integrated into business decisions, which involve the workforce and encourage the role of leadership in order to identify and manage risks, as well as analyze performance.
  • There are also working groups and seasonal campaigns to encourage collaboration and the exchange of experiences and best practices. One example of this is the ‘Forklift Truck - and Heavy Goods Vehicle (HGV) - Safe Driver of the Year Competitions’, a competition among forklift and heavy vehicle operators, in which a number of skills are tested, recognizing a winner in each category.

UNITED STATES

  • A JBS USA and Pilgrim’s have safety management systems at all units, overseen by two teams: the health and safety team and the Executive Safety Team, which includes the CEO of JBS USA and the CEO of each business unit.
  • At the Pilgrim’s units, daily safety assessments are carried out and the DuPont Behavior Based Observation (BBS) process has also been adopted. Through BBS, each supervisor performs at least five safety evaluations inside his/her plant each week. Furthermore, a complete audit of the Safety Management System (SMS) is conducted annually. The Company follows the best management practices and industry guidelines, in line with the recommendations of institutions such as the North American Meat Institute, the National Chicken Council and National Pork Producers Association, among others. The Company has also adopted the DuPont Safety Training Observation Program (STOP).