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Safety pays off for contractors |
08/03 |
BASF: Bonus system for contractors
Whether it's repair work, installation or transportation - a lot of the work at BASF's Ludwigshafen site is performed by contract workers. Around 4,000 contractors work on the site every day. To further improve their safety awareness, BASF works management has now introduced a new bonus/malus system for work carried out by contract companies on all individual contracts exceeding € 500,000.
So what does this mean? All future agreements that BASF signs with contractors will include a bonus comprising up to 5 % of the costs of the work to be performed. Let's say that a contract company is hired to carry out work on a € 5 million construction project. The bonus is calculated according to the volume of work outsourced to the contractor, in this case € 1.5 million. If the bonus agreed is 2 percent, this will amount to € 30,000, to be borne equally by BASF and the contract company.
If an employee of a contract company breaches one of BASF's safety regulations, the bonus will fall by a certain, pre-determined percentage. Forgetting to wear safety gloves, for example, costs 2.5 percent or € 750 based on our € 30,000 bonus example. A lost-time accident that exceeds three days lowers the bonus by 30 percent and the sum is credited to BASF. Contract company employees' compliance with safe working practices will be assessed by the relevant site and project managers at BASF.
This means that the higher the safety levels of contractors are, the more bonus is left for them to collect at the end of the project. If no safety regulations have been contravened, they are entitled to the full bonus.
Dr. Albert Heuser, Works Manager at BASF Aktiengesellschaft's Ludwigshafen site, has said of the new regulations: "Our target for the Ludwigshafen site is 'zero accidents by 2010', regardless of whether we are talking about accidents involving our own employees or contract companies. The bonus/malus system will ensure that we achieve this target."
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For media inquiries please contact:
BASF Aktiengesellschaft
ZOA/SU - C 100
Dr. Kristina Winzen
Phone: +49 (0)621 60-20285
Fax: +49 (0)621 60-92933
E-mail: kristina.winzen@basf-ag.de
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