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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Thank you! Silke Van den Bogaert Social Affairs Policy Adviser