Recent Developments in Industrial Safety in Infrastructure Projects

The Regulations require enterprises already in operation to obtain a production safety licence before January 2005, while new enterprises must obtain such licences before undertaking production.

Applicants must submit evidence of compliance with 13 listed requirements, including compliance with current standards on training of staff, special training for management, designation of personnel as being in charge of production safety, as well as the establishment of an 'emergency plan'. The Regulations impose administrative and criminal penalties for violations, including failure to obtain a licence. The licence is valid for three years and can be automatically extended if no deaths occur at the enterprise.

Expansion of the "Three Synchronies" Principle

The 2002 Production Safety Law (Law) expands the application of the principle of the "three synchronies" (designing, constructing and putting into use at the same time as the main construction project); the principle is best known in the area of environmental law. This principle has been applicable to mining under the PRC Mining Safety Law (issued in November 1992) and their Implementing Regulations (issued in October 1996). The Law extends the application of the principle to the construction and hazardous chemicals industries, and requires enterprises in mining, building construction and hazardous chemicals production industries (three target industries) to submit a "production safety" impact report to the production safety authorities for approval before beginning operations. A separate report is not required under the mining safety legislation. Upon completion of the project, the Law requires the production safety authorities to undertake completion acceptance procedures in respect of the production safety aspects.

Improving the Regulatory Framework

One of the reforms in this area was the establishment of the State Production Safety Commission (PSC) in 2003 as an agency directly subordinate to the State Council. The PSC assumed authority that was previously exercised by the now abolished State Economic and Trade Commission, Ministry of Health, and Office of Production Safety of the State Council to become the production safety regulator for mining, hazardous chemicals, fireworks, and offshore oil industries. Oddly enough, when the SPC regulates the coal mining industry, it adopts the title State Coal Mining Safety Commission. However, in the cases of power, telecommunications, construction, transportation and other industries, production safety supervision and enforcement remains with the relevant ministries. The PSC is charged with coordinating production safety policy and enforcement among these ministries. Additionally, legislation calls for the establishment of production safety authorities at the local level.

Strengthening Enforcement

The PRC government is working to strengthen enforcement in the area of industrial safety. To give teeth to the regulatory authorities, the government issued the Production Safety Penalty Regulations (May 19 2003), which set forth nine types of penalties: warning; fine; confiscation of illegal gains; compliance order; cessation of production; detention; closing of factory; cancellation of relevant licenses; and other penalties.

The imposition of major penalties under these regulations should be done after a hearing.

Company Staffing Requirements

Relative to the Mine Safety Law, the Production Safety Law increases the requirements for specialized safety personnel within companies. The Law stipulates that companies within the three target industries, regardless of size, must establish an internal management body or designate specialized staff to administer production safety. Companies outside the three target industries but otherwise having more than 300 employees must also satisfy this requirement.

Conclusion

It is clear that the PRC government wants to improve the country's industrial safety record and decrease the industrial project-related death and injury rates, especially in the mining industry. To that end, the government has a new regulatory agency, is improving relevant legislation, seeks to increase enforcement, and look to eventually to accede to the International Labour Organization Convention on Occupational Safety and Health.

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