Costs & benefits of investments in OSH: MSEs EESC Public Hearing 17 June 2019 17/06/2019 Voice of crafts and SMEs in Europe

Micro and small enterprises (MSEs) & OSH Backbone of the EU economy Nearly 99% of enterprises in the EU Employ around half of the workforce  Application of OSH legislation in this category of enterprises = condition for the success of OSH policy overall Ensuring a healthy and safe working environment = key concern for MSEs Challenges: compliance and costs Business case (enhanced productivity) should be further promoted Need to foster a culture of prevention, which should be a shared concern 17/06/2019 Voice of crafts and SMEs in Europe

Heterogeneity of MSEs Depending on the size Models/measures developed for larger enterprises not always as effective for MSEs Depending on the sector Occurrence of risks varies greatly Depending on the national context Enormous diversity  variety of challenges  range of potential solutions Partly explains polarised views 17/06/2019 Voice of crafts and SMEs in Europe

Costs & benefits Intervention costs Initial investments: purchasing new equipment and materials, installation, adaptation, training Recurring costs: maintenance, recurring equipment, material and training costs (in terms of money and time), costs of OSH services Benefits Productivity gains: more efficient working process Avoided costs: of reduced productivity, absence, replacement, medical costs Others: higher job satisfaction, improved well-being and working climate, enhanced corporate image, reduced staff turnover Need to find a balance + cost-benefit ratio is often unclear OSH investments are always profitable = oversimplification 17/06/2019 Voice of crafts and SMEs in Europe

Specific challenges for MSEs Compliance disproportionately affects MSEs in terms of costs and administrative burdens No economies of scale, fixed preventions costs much less affordable Lack of resources More vulnerable financially: not able to make big investments Difficulties in access to finance Lack of knowledge/expertise 17/06/2019 Voice of crafts and SMEs in Europe

Need for support for implementation Financial support: financial incentives Tailored guidance and advice: Labour inspectorates, SME organisations Labour inspectors should play a more pertinent role for raising awareness on OSH legislation, and for providing support and advice Tailored, practical and cost-effective tools Raising awareness of employers and workers Exchange of good practices Better cooperation and partnerships to support MSEs, especially at regional/local level: Social partners, OSH services, labour inspectorates, public authorities, insurance, SME organisations Key role for intermediary bodies 17/06/2019 Voice of crafts and SMEs in Europe

European framework Simplification instead of exemptions “Think small first” principle should be applied consistently  avoiding unnecessary/disproportionate burdens  improving compliance Thorough impact assessment & cost-benefit analysis Evidence-based Too restrictive measures  higher negative impact on MSEs  risk of non-compliance Economic and technical feasibility need to be taken more into account Towards a real win-win situation: not an automatic and obvious development Much room for further evaluation before a proper understanding can be achieved of what works for whom and in which contexts 17/06/2019 Voice of crafts and SMEs in Europe

Thank you! Silke Van den Bogaert Social Affairs Policy Adviser s.vandenbogaert@smeunited.eu www.smeunited.eu