ECOSH-ROWER Workshop Management and regulation of occupational health and safety in SMEs: the ongoing issues Paul Leonard Gallina Ph.D., LL.M., DOHS Williams School of Business Université Bishop’s University Sherbrooke QC J1M 1Z7 CANADA Contact

ECOSH-ROWER Workshop Issues discussed Characteristics of SMEs and why SMEs are important OSH management issues for the SME Regulatory process Types of interventions possible The Canadian experience with interventions SMEs as an independent contractor

ECOSH-ROWER Workshop The process Regulatory intervention →Management → Desired change in firm behaviour Better accident experience Better economic outcomes

ECOSH-ROWER Workshop Characteristics of SMEs small firm < 100 employees medium firm > 100 < 250 employees 90% or approximately 260,000 companies in the Province of Ontario are small SMEs employ about 1/3 or the workforce

ECOSH-ROWER Workshop Firms 100 Comparisons– no of firms, employees, LTIF

ECOSH-ROWER Workshop Why are SMEs important for the economy as a whole job creation export expansion sources of innovation

ECOSH-ROWER Workshop OSH management issues with SMEs Champoux and Brun (2003) worse accident experience than larger firms general lack of knowledge about osh management tend to personalize accidents– worker behaviour issue fragile economically and no economies of scale = less likely to devote money and time to OSH programs Quebec/Canadian experience similar to elsewhere as reported in the literature

ECOSH-ROWER Workshop Regulatory process meetings with stakeholders, drafting legislation, revisions, passing legislation developing policy guidelines expanding upon the legislation developing compliance strategies to get the desired change in behaviour and results

ECOSH-ROWER Workshop What do we know about compliance in employment law Major variables that have an impact: firm size unionized or not sector age of the firm

ECOSH-ROWER Workshop How do we get compliance combination of soft law(voluntary strategies) and hard law (enforcement strategies) enforcement when necessary, but not necessarily enforcement (Ayres and Braithwaite, Baldwin, Sparrow)

ECOSH-ROWER Workshop How is the compliance system structured The Ontario example IWH– research and knowledge transfer MOL- set standards, communicate, enforce HSAs – information, training and assistance WSIB – financial incentives, social marketing, system support

ECOSH-ROWER Workshop Risk reduction strategy High risk firms were first idenfied as those who has the following characteristics: injured more often; calculated or projected compensation costs are higher; and workplace injuries are more costly Doubled the size of the inspectorate with employer insurance premiums Cost savings of CAD $2.2 billion

ECOSH-ROWER Workshop Inspector focus injuries that contributed to the firm’s high risk status workplace specific sector hazards health and safety program and policy IRS– self reliance compliance with the Act training requirements/deficiencies young worker health and safety

ECOSH-ROWER Workshop Self-identified needs of SMEs Priority– management coaching in OSH Training– web based No prosecutions needed

ECOSH-ROWER Workshop Program delivery specifically directed to SMEs Safe Work Associations-- voluntary compliance strategies Experience rating specifically for the small business Direct assistance with the workers compensation claims through the Office of the Employer Advisor

ECOSH-ROWER Workshop Issues with independent contractors Contractor/owner wants to be an independent operator and not an employee Also hires employees who he/she deems to be an independent operator

ECOSH-ROWER Workshop Regulatory issues Who has responsibility for OSH on the worksite Accident insurance

ECOSH-ROWER Workshop How are these resolved Self-regulation-- industry wants all to be covered by accident insurance – liability issue OSH the responsibility of the contractee not the contractor Control test for employment status

ECOSH-ROWER Workshop Summary of SMEs, osh management and regulatory intervention poor accident rates and management issues are ongoing firm experience v societal benefit is a public policy issue soft and hard law interventions needed independent contractor = regulating the employment contract and osh responsibilities