Work environment functions in small enterprises in Sweden

Jan Johansson* and Bo Johansson**

*Acting professor and **Lecturer, Department of Human Work Sciences, Lulei University of Technology, Sweden

In Sweden, a governmental commission has formed new strategies concerning the work environment with the aims of reducing employee absenteeism and re-employing those individuals who have already left employment as a result of bad working conditions. The main features in this new approach are: strengthening of the legislation; a responsibility for work injury costs; and a distinct rehabilitation responsibility.

In this paper the authors discuss how these proposals suited the constraints and facilities of small enterprises, employing less than 50 persons. The results are based on interviews carried out with company directors, safety representatives and labour inspectors. The interviews revealed that the company directors had a negative attitude towards both the strengthening of legislation and responsibility for work injury costs. It was also revealed that the small companies lack both knowledge of how a good environment can be created and the state of their own work environment. It seems that the small companies cannot handle work environment questions in a systematic way without comprehensive education and training or without seeking expert assistance outside the company.

Keywords: Work environment functions, small enterprises, legislation

Introduction

Despite an extensive concentration on work environ- ment activities and strengthening of the legislation, the number of injuries reported in Sweden has increased from 153 OfJO to 180 000 during the period 1980-87l. The sickness insurance payments have also increased to an estimated 53 billions Swedish crowns in 1989i.

In the Autumn of 1989 the government of Sweden appointed a ‘Work Environment Commission’ to outline new policies concerning the work environment with the aim of reducing employee absenteeism and regaining those who have already left employment as a result of bad working conditions. The main features of the Commission’s work can be summarized as follows*.

Strengthening of the legislation To impose on enter- prises systematic follow-up of sickness absenteeism and work injury records within the enterprises along with their costs. Further, to oblige enterprises to work out effective schemes for improving the work environment. Special attention is to be paid to high-risk work enterprises, ie, those enterprises in which the working conditions are below the accepted or average levels stipulated for specific industries.

A responsibility for work injury costs To ensure that employers accept the responsibility for costs in connec- tion with work-related injury, the company taxation is to be based on the working conditions or on the work- related injury record of that enterprise.

A distinct responsibility for rehabilitation This respons- ibility is to be imposed on the employer so that the injured can go back to their jobs after rehabilitation. The employer is to be obliged to formulate and document the aims of adaptation and rehabilitation work. Further, the employer shall develop proper routines which can give prior indications of work injury or disease. The employer shall also survey the rehabili- tation needs, set up rehabilitation plans, initiate rehabilitation work and follow up the results.

One important question that remained with the Work Environment Commission was how far these proposals suited the constraints and the facilities of small enterprises employing less than 50 persons. To clarify this question a tri-partite working group representing the government, the employers and the trade unions was appointed, in which the authors acted as coordinators.

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Work environment functions in small enterprises in Sweden

Methods

The working group based their conclusions on three studies, carried out as follows.

• A study of enterprises which consisted of 19 visits to companies in the north of Sweden and Stockholm. The companies were selected so that they represented both good and bad working conditions in the following nine high-risk branches: slaughter-houses, saw-mills, engineering industry, grocers, hotels and restaurants, haulage contractors, cleaning services, building contractors and car repair shops. Interviews were held with the company directors, safety representatives and labour inspectors.

• Interviews held with 15 regional safety representa- tives, representing the companies in our study.

• A discussion with 12 company directors of small enterprises in the south of Sweden, from a region which was dominated by small enterprises. The selection was made by the Swedish Employers Confederation.

The working group framed a number of critical questions which resulted from the studies and they are discussed below 3. The group has not estimated the depth of each problem area as the amount of material collected from the investigations was on the whole very little. The problem areas and conclusions presented reflect the questions posed by the Work Environment Commission's proposal.

Results

According to official statistics from 1985-86, about 42% of the total number of employees in Sweden work in small companies 4. The small companies also account for 36% of all work injuries and 33% of all occupational diseases 5. Accordingly, the statistics indicate that the work environment in small companies is better than that of large companies. One explana- tion for this difference may be that small companies have a more varied workload. Another is that the accident reporting of small enterprises is not as efficient as that of the large companies.

Work environment in the small enterprises studied Very few company directors that were visited

considered that they had major work environment problems that remained to be solved. According to them, most of the problems have already been solved and there were no reasonable solutions to the problems that remained. At the same time, the company directors were convinced that their own work environ- ments were better than average when considering similar types of industries.

Most of these company directors believed that it is easy for them to handle work environment functions in a systematic way and to formulate plans to improve the work environment. They believed that this work can be carried out by themselves and that they do not need expert assistance from outside. At the same time, they had a poor knowledge of work injuries that have occurred within their enterprises. Many company

owners had difficulties remembering the details of their work accidents which were already recorded and included in official statistics. They also lacked or had no knowledge of minor injuries and injuries that had occurred during leisure time.

The company owners in the sample had scarce knowledge of the costs associated with work absence. Often their cost awareness was limited to that of holiday payment during the sick leave period. At the same time some small companies (especially within the service sector) gave low costs to sickness absence, partly because the actual absence was low and partly because substitute employees were seldom employed.

The working group's view of the companies was similar to that of the labour inspectors; that some of the companies in the study clearly have poor work environ- ments, far below normal standard for that industry. There remains much work to be done before the physical environments can be considered to be good. The working group considered that small companies lack both the knowledge of how a good environment can be created and the knowledge of the state of their own work environment.

There are large differences in the environmental conditions (physical and chemical) within small enter- prises. These differences are not reflected in the sickness absence records. Short absences (less than 14 days) hardly exist in enterprises that are situated in thinly populated areas or in small cities, and are also proportionately low in companies situated in Stockholm. The same seems applicable to long absences, even though it was not so clearly evident.

In many cases it is difficult for the labour unions to appoint safety representatives in small companies. Even if they succeed in appointing them, it is almost impossible to provide them with the required education and training.

The degree of voluntary affiliation with regional company health centres is low among small enterprises. Some company owners recommend a compulsory company health service to avoid unequal conditions in competition. Others justify a voluntary affiliation and point out the merits of stimulating competition among several company health centres.

The technical section of the regional company health service centre has a major role to play in the local work environment functions in small enterprises. This role has not, however, won the confidence of the enter- prises. There was criticism of the safety engineers' inadequate knowledge of the production processes, which limited the generation of constructive solutions. However, the health service centres organized by a group of businesses engaged in the same industry did not attract this criticism.

Many company owners considered they had special problems in handling psycho-social questions, eg, dealing with an employee who is an alcoholic or who has undergone constant discrimination.

The small enterprises were ill-prepared to handle rehabilitation work. They knew that employees had

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work stress injuries, but had not take firm steps to solve these problems. The reasons are due more to inadequate knowledge than lack of will.

Organizational solutions for rehabilitation, in the form of reduced working time or reduced working pace, are available in many enterprises. One exception is the employment of contract labour where the customer demands high productivity.

In small enterprises it is difficult to shift workers from one job to another for purposes of rehabilitation. Those employed in one job are not always replaceable with those performing another job, and even if such jobs are available they are often similar in character from a workload point of view. The access to easy work tasks is restricted and the few available places are usually occupied.

Company directors' views on the Commission's strategies

Strengthening of the legislation One of the strategies of action of the commission

was to persuade the enterprises to improve their work environment by strengthening the labour health legislation.

The company directors had a negative attitude towards more labour health laws.Instead, they preferred to improve the work environment on a voluntary basis. In case there is a need to enforce more laws, their major demand was that the regulations Should be common to all enterprises. In this respect some company directors were prepared to accept rather stringent laws as long as they were made applicable to all companies. For instance, one director proposed that the approval to establish a company should be given only if there is satisfactory proof of the availability of minimum work environment standards.

The company owners in our study did not think that a formal and systematic follow-up of absenteeism and work injuries is necessary. Many emphasized the need for personal relationships with their employees as they work together with their employees daily. Many owners emphasized that the personal commitment of the individual employee is essential for a good working environment. The individual employee has to take personal responsibility in order to avoid work injuries.

A responsibility for work injury costs The second feature of the Commission's strategy was

to get the employer to accept the responsibility for costs in connection with work-related injuries. This was to be implemented in two ways: (a) changes in the sickness insurance benefits and (b) introducing a method of company taxation based on working conditions or work injuries.

The Swedish sickness insurance scheme today covers sickness absenteeism benefits from the first day of sickness. Absence with or without a valid reason has not been a big problem in small enterprises. Company owners are of the view that they can therefore easily adopt a sickness insurance scheme which entails company responsibility for the costs during the first 14

J JOHANSSON AND B JOHANSSON

days of sickness. This scheme can be complemented with a private insurance scheme for long absence where the premium is related to the working environ- ment of the individual companies. Through this scheme the companies should have a better control over 'malingerers'.

However, small company managers found it harder to accept the other method where company taxation should be based on the working conditions or the work- related injuries of that enterprise. A number of companies disagreed on this issue. Those recommending a variable taxation meant that it should be based on an objective assessment of the specific company environ- ment. The majority thought that labour inspectors ought to make this assessment.

A distinct rehabilitation responsibility The Commission's final strategy of action was to

impose a distinct rehabilitation responsibility on the employer so that the injured can go back to their jobs after rehabilitation.

Most of the enterprises believed that there was no need for formal routines in order to take care of injured workers who come back after rehabilitation. They believed that the existing social network of the enter- prise is able to manage such situations.

The enterprises in our study did not see the need for any economic and social support for the functions of rehabilitation of their employees. But a pre-requisite for successful rehabilitation is that the injured are accepted back at the workplace. The injured workers must be welcomed both by the employer as well as their own colleagues. Often high sickness absenteeism precedes a work injury which can create problems for the employed. Sometimes a painful injury may influence their mood and relations with work comrades in a negative way.

Some company owners said that they have to decide on their own, depending on the circumstances, whether or not to accept an injured worker back after rehabilita- tion. That opinion will influence their interest in investment in further rehabilitation work. It is believed that the trade unions can also be influential in obtaining more support for the injured from their work comrades.

Only a few enterprises have expressed a willingness to employ a handicapped worker who has not previously worked within that enterprise. If such a worker is employed, then economic support is needed to com- pensate for additional costs. Another condition is that employment must be preceded with an agreement that, during a fixed period of employment, the employer has the ability to terminate the worker's services if the worker is not suitable for the job.

Discussion and conclusions

A comprehensive education The obstacles in introducing good work environment

functions in small companies are lack of both the knowledge of how a good environment can be created and the state of their own work environment. Small companies cannot handle work environment questions

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Work environment functions in small enterprises in Sweden

in a systematic way unless they undergo comprehensive training and education in work environment.

The working group considered that small-company executives must be given comprehensive education in work environment, and if possible such education must be tailored to the needs of the respective industries.

An effective work environment function requires well educated safety representatives. It is believed by the working group that a joint course given to the manage- ment and the safety representatives would encourage safety representatives in carrying out their functions.

The working group considered that schools also ought to contribute towards an awareness of the working environment. Professional and technical courses in the upper secondary vocational schools should provide education on the work environment.

Legislation or on a voluntary basis? The working group was of the view that there is scope

for effecting important work environment improvements on a voluntary basis. If legislation is introduced it must be done in a way that is fair to all companies.

The working group thought that it is important to safeguard the good social relationships that exist within a small enterprise. Formal follow-up of causes of absence and work injury records should not substitute for personal contacts. When it comes to problems with drugs and alcohol, the working group is looking to an increased involvement of unions in these questions. An alternative is the development of psycho-social sections in the company health services which can assist in solving such problems.

On the discussion about a compulsory company health service, the working group was unanimous about voluntary affiliation, as they assumed that the degree of affiliation among small enterprises will increase considerably. The group thought that measures to stimulate a high degree of affiliation were desirable - for example, by a reduction of fees for small companies. If not, the risk is great that the enterprises where the largest services are needed are the ones that will affiliate the least.

The working group considered that it was important for the company health service's technical division to develop confidence with the enterprise. One method to improve the competency of safety engineers is by educating them in production techniques.

Another complementary measure is to organize company health services by industry for those regions with large populations. For small localities, the working group was of the view that every company health service can develop a specialist area of competency. Thereby, health service centres can pool their resources for mutual benefits.

In order to create a cost awareness within small companies, the working group suggested that a simple and a reliable basis of cost estimation must be introduced. This will assist in persuading the companies to take action on the work environment.

Legislation and increased responsibility for work injury costs

The working group discussed the pros and cons of a tax system based on the judgement of the quality of the work environment in different enterprises. The group found that it was hard to find any workable parameters on which to base such judgments. Further, if such a system is chosen, the judgment should be based on the state of working conditions of the whole industry. This group was of the view that it is important that the system should be simple and fair.

The working group considered that company taxation based on absence records will not reflect dissimilarities in the environmental conditions in the workplaces. It is more likely that work absence is a direct reflection of the quality of the social relationships between employees and management. It is also probable that absences reflect differences in regional labour markets rather than differences in work environment conditions. In other words, sickness absence is not a good indicator of environmental conditions.

The working group also considered that with an increased responsibility for work injury costs there is a risk that some employers would try to act as medical officers, which can impair the good social relations prevailing in small enterprises.

The working group recommended a penalty for liability in an occupational accident if the relevant company has not provided work environment education and training for the employees.

Rehabilitation To ensure that small enterprises should take a

greater responsibility for rehabilitation, the working group considered that competence should be obtained from outside the enterprises, eg, company health service or public health service.

Further, the widening of employer responsibility for rehabilitation should be preceded by education on occupational injuries and rehabilitation.

The working group considered that it may become difficult to integrate a handicapped worker (previously not employed in the enterprise) within small enterprises. A prerequisite for such integration would be economic assistance from a social insurance organization. Further, the working group suggested exploring the feasibility of rehabilitation pools in small enterprises. The working group also considered that it is unrealistic to expect all small enterprises to provide rehabilitation work.

References

1 Ministry of Labour 1988:63 Directive for "Work Environ- ment Commission" Ministry of Labour (1988)

2 SOU 1990:49 Arbete och hiilsa Report by Work Environ- ment Commission, Ministry of Labour (1990)

3 SOU 1990:49 appendix A4 Arbete och hiilsa report by the Work Environment Commission's working group for small enterprises, Ministry of Labour (1990)

4 SCB Enterprise register Official Statistics of Sweden (1989) 5 ISA Work injuries statistic, Swedish NaUonal Board of

Occupational Safety and Health (1986)

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