LOSS CONTROL MANAGEMENT

HISTORY
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and PHILOSOPHY of
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LOSS CONTROL
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 HISTORY
and PHILOSOPHY of
LOSS CONTROL
 Overview

• Historical Background
• Milestones
• Early Attitudes on Safety and
Loss Control
• Lessons Learned
 Code of hammurabi

(King of Babylonia 2200 BC)

 If a builder build a house for a man and do not make its
construction firm and the house which he has built collapse and
cause the death of the owner of the house – that builder shall be
put to death.
 If it cause the death of the son of the owner of the house – they
shall put to death a son of that builder.
 If it cause the death of a slave of the owner of the house – he
shall give to the owner of the house a slave of equal value.
 If it destroys property, he
shall restore whatever it
destroyed, and because he
did not make the house
which he built firm and it
collapsed, he shall rebuild
the house which collapsed
at his own expense.
 If a builder build a house
for a man and do not make
its construction meet the
requirements and a wall fall
in, that builder shall
strengthen the wall at his
own expense.
 Historical Background
• Industrial Revolution - England in
1837
• Progress in Industrial Safety
before 1911 - Nonexistent (U.S.)
• Progress after 1911 (U.S.)
• Progress after 1931 (U.S.)
• Philippines Occupational Safety
and Health Standards (1978)
Industrial revolution – 1837
The extensive use of power
machinery initially imported from
England during a time referred to
as the Industrial Revolution
ushered in a period of work deaths
and disability never seen before or
since.
• The greatest upsurge in
industrial growth occurred
around 1880 with the rapid
increase of steel production.
• Weaving machines & eqpt.
(slow hand) – steam and later
by electricity
• Labor was untrained and
unskilled.
The worker’s plight – 1900
- 11 to 13 hrs exposure to accident potential.

Public sympathy rises – labor org.

 Pittsburgh Survey – 1909
(Completed at Pennsylvania)

-revealed that 526 fatal industrial

accidents occurred in this county
alone during the 12 months of 1906-
1907
- 30,000 fatal industrial injuries in
the US in the same year (1909)
1600 of 2200 employees lost time from
work because of injury during a four year
period (1900’s) at one of the steel
company at Pennsylvania.
A Demand for Change: Legislative Progress
1870 – Employer’s Liability Acts (first corrective measures)
1897 – first true compensation act was passed by the British
Parliament
1907 – The British Act also served as a model for the first
compensation law in the US (1908)
1911 – The Compensation Law of Wisconsin (first significant
legislation in the US)
1913 – The US Dept. of Labor was created
1915 – The American Society of Safety Engrs was organized.
Comprehensive Federal Law in US
1948 – all states in the US had workmen’s compensation laws
1970 – US Congress passed OSHA of 1970
In the Philippines

The second period is characterized by the adoption of

proactive measures/policies
1974 – PD 442 (LCP) was passed.
1975 – Started the program on accreditation for safety training
organization to conduct OSH training
1977 – Tripartite body was created to study the proposed OSHS
1978 – OSHS was approved. National Tripartite Committee was
created to study the improvement of the OSHS
1984 – Tripartite consultation was held to amend OSHS Rule 1410
was amended
1988 – OSHC was inaugurated, created per EO 307 (the first in
Southeast Asia)
Progress of Safety Movement and OSH Legislations in
the Philippines

2000 – MC No. 02–Guidelines in the Application of Workplace

Component of RA 8504 known as “Phil. AIDS Prevention &
Control Act of 1998”
2001 –Amendments of OSHS (Rule 1030, Rule 1160, Rule 1170, Rule
1180 & New Rule 1240)
2003 – Department Order No. 16 amending Rule 1030 of the OSHS
(Training & Accreditation of Personnel in OSH) was approved.
2004 – Department 54 – 07 (New Labor Standards Enforcement
Framework) & Department Order 53 – 03 (Guidelines in the
Implementation of a Drug–Free Workplace Policy & Programs
in the Private Sector) was approved.
2018 – Republic Act 11058 – an Act Strengthening
Compliance on Occupational Safety and Health
Republic Act 11058 – an Act Strengthening Compliance on Occupational Safety and Health

Milestone In Loss Control in the Philippines

Understanding your responsibilities

What does the law require

you to do?
 As a manager, you know you have health and
safety responsibilities, but what is there to guide
you?
The law sets the boundaries within which
companies must operate
 The law attempts to be fair by
requiring you to be responsible for
reasonably foreseeable risks
OSH STANDARDS – RA 11058
The Law are put in place in an attempt to stop
accidents and injury before they happen
Likely outcomes of a criminal case:
Possible Imprisonment
fines and/or remedial orders
DO 198 18 – RA 11058
DO 198 18 – RA 11058
 Positive Attitudes

 “Safety doesn’t require extra time. On the

other hand, unsafe practices, particularly those
resulting in injuries and property damage, are
time-consuming and costly.”

 “The main reason for success in safety is the

day-by-day and hour-by-hour consistency with
which you apply the principles of our safety
program.”
 Lessons Learned

• Past Efforts Were Narrow

• Progress Has Been Made

• Systems Approach

• Performance and Results