7.3 Health and Employer Size

In Canada, 98% of all employers are small enterprises (<100 employees). Small enterprises employ two thirds of private-sector workers.^[1] Small enterprises are also common in the non-profit sector. Most of the research focusing on small and medium enterprises (SMEs) (<500 workers) has been conducted in the past 15 years and has found that workers employed by SMEs are more likely to experience work-related injury and illness. Incidents are more common in SMEs, especially those resulting in fatal or serious injuries, and SME workers are more likely to be exposed to physical and chemical hazards.^[2] That said, some studies have found that their psycho-social working conditions are better due to the close social relationships associated with SMEs. Psycho-social conditions are, however, highly dependent upon the behaviour of the employer.^[3]

Researchers attribute these poor outcomes to particular attributes of SMEs. The tendency of SMEs to have informal management structures, unstructured approaches to OHS, and a lack of OHS resources and knowledge are all factors that contribute to the heightened risk of injury. SME owners also tend to downplay safety risks, see safety as a relatively minor matter compared to the other challenges of running a business, and view government regulations as bureaucratic interference. They also overestimate their knowledge of OHS and, importantly, tend to push responsibility for safety down to their employees.^[4]

These attributes of SMEs interact with other factors. For example, SMEs are more likely to provide precarious work and employ vulnerable workers such as women, immigrants, and youth. Combining inadequate OHS structures in SMEs with the vulnerable and precarious attributes of SME workers intensifies the health and safety risks to those workers.

When examining how to improve the safety climate in SMEs, attention has tended to focus on tailoring training and education approaches for an SME environment or simplifying safety management systems. Recommendations include building trust and communication, creating action-oriented education, checklists, and integrating safety goals with management goals.^[5] Few of these proposed methods have been rigorously evaluated to determine their level of effectiveness, and their application has been sporadic.

A broader view of the issue reveals that the current system of injury prevention, regulation, and enforcement was designed for (and by) large enterprises. Rules are detailed and written in technical and legalistic language. Hazard control efforts often require extensive knowledge, training, and investment. OHS inspectors lack the resources required to cover the large number of SME workplaces, while the close social relations in SMEs make it less likely that workers will complain for fear of being identified and ostracized. Watering down regulations for small workplaces, often the preferred solution of SME employers, would only make matters worse, as it would further relax safety requirements. Improving the safety conditions in SMEs requires reforms to the OHS system that address the dynamics specific to SMEs that place workers at risk.

In particular, the reforms need to recognize that the conflicting interests found in all workplaces are more acute in SMEs. The employer, who is likely on the worksite daily, sees the effects of safety measures on productivity and cash flow, making them more likely to resist safety improvements. Employers’ close contact with the workers makes it harder for workers to recognize and give voice to the idea that worker interests (safety) may be in conflict with employer interests (profit or cost containment). More effective training approaches do not erase that conflict.