Interim presentation to SSDC, Brussels 10th March 2011
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1 Study on social policy effects resulting from the scope of application of the European framework agreement on the prevention of health risks in the hairdressing sector Interim presentation to SSDC, Brussels 10th March 2011
2 Structure Introduction Study aim and objectives Key impact questions to be addressed Findings Economic structure of the sector Labour market trends in the sector National health and safety legislation and occupational health and safety situation Interest representation First assessment of impact Next steps
3 Study aim and objective Aim: to assess the social policy consequences of different options for the scope of the social partner agreement and its implementation, in particular regarding the inclusion/coverage of different types of self-employed hairdressers. Objective: to inform the social partner and the Commission s evaluation of whether it is necessary to include self-employed persons in the scope of the agreement, and which type of self-employed persons should be included.
4 Options being considered The options are: Only employers and their (dependent) workers in the sector; In addition self-employed hairdressers working together with (dependent) workers and/or employers in the same workplace (chair renters); In addition self-employed hairdressers operating their own salons from a fixed location that do not have dependent employees; In addition mobile hairdressers
5 Methodology Key aspects of social impact methodology will be used in relation to: Employment and the labour market Standards and rights related to job quality Social inclusion and the protection of particular groups Equality of treatment and equal opportunities and non-discrimination Social protection, health, social security and education systems Public health and safety
6 Important impact questions Would the application of the agreement to employers and their dependent employees only lead to a crowding out effect of existing hairdressing businesses by owner operated (micro-)salons and/or chair renters? Would the application of the agreement to all individuals engaged in the sector have an impact on the extent to which hairdressing activities are carried out in the undeclared sector?
7 Important impact questions Would the limitation of the agreement to certain parts of the sector lead to distortions of competition? Would a limited scope of application of the agreement lead to improvements in health risks in those parts of the sector that are subject to the provisions but that are outweighed by a lack of improvements in the non-covered parts of the sector resulting in a negative overall (net) impact on occupational health/social security/equity grounds?
8 Baseline Trends and developments over the past 10 years and future impact Economic impact Total number of establishments (size, types and trend development); Turnover/sales; Prices and cost structures; Geographical distribution. Labour market impact Level of employment by -sex - age - skill level - type of contract Levels of self employment; Undeclared work; Wages; Share of workers covered by collective agreements. Health and safety impact Number of occupational accidents per year; Severity of accidents, injuries and diseases; Level of workrelated sickness absence; Characteristics and cost for occupational health and social security schemes.
9 Economic impact baseline data Number of hairdressing establishments has increased over last 10 years, with the exception of DK (% change)
10 Economic impact baseline data Number of owner operated salons without employees has increased in all countries apart from: DK decline IT remained stable Number of small salons (1-9 employees) has declined Number of large salons (franchises/chains) has generally increased (i.e. DK, DE, FR) but generally remains limited However, in the UK, chains make up 15% and franchises 8% of all hairdressing businesses
11 Economic impact baseline data Statistical evidence only from few countries on mobile hairdressers/chair renters. - Share of mobile hairdressers from all hairdressers varies strongly (i.e. 2-3% in DK and 19% in NL) - Number appears to have increased (i.e. DE, FR, UK). or example, in France the number of mobile hairdressers has doubled over the past 10 years. In the UK, recent increase due to the financial crisis. Most hairdressing businesses create modest income
12 Labour market impact baseline data With increase in number of businesses, employment in the sector has also increased Average number employees per establishment differs significantly from country to country highlighting predominance of micro-businesses in some countries Employees are mostly Young Female Medium skilled Share of part-time work varies widely between 9-70% Paid below national average
13 Employment in the sector Count ry Employment in the sector Percentage of total employment in the country DK 12,848 (Arbejdstilsynet) 0.4% FR Hairdressers: 121,500 (CNEC, 2008), 113,961 (FNC, 2009) Total working population in the sector: 173,500 (CNEC, 2008), 162,000 (FNC, 2009) % DE 274,350 (BGW) 0.7% HU 42,300 (Eurostat) 1.1% IT Approx. 150,000 (CIA, estimate TBC) 0.6% NL 46,250 (Interpolis and HBA) 0.5% SI 6,300 (Eurostat) 0.7% UK 161,819 (ONS, LFS), 245,795 (Habia) %
14 Employment in the sector
15 Share (%) of self-employed from all workers in the sector Self-employment in the sector Self-employment (% of Employment in whole economy (Eurostat LFS, 2009) DK Approximately 63% 6.2% DE 25-30% (estimate) 11.0% FR 30% (CNEC, tbc) 9.1% HU IT NL SI 61% (Eurostat, actual figure estimated to be much higher) Approximately 42% (self-employed without dependent employees) 50-69% (depending on the source with 59% quoted as most reliable) 40% (Eurostat figure, actual figure may be higher) 11.0% 23.4% 13.4% 17.3% UK 37-45% (depending on the source, tbc) 13.7%
16 National health and safety legislation - baseline All countries have implemented EU framework legislation on health and safety and cosmetics directive Some countries additionally have specific health and safety regulations applying to the hairdressing sector (DE, FR, IT, NL, SI, UK). In the UK this is guidance. In FR and NL mainly collective agreements.
17 Coverage of self-employed by h&s legislation (first ) and statutory occupational health insurance (second ) Country/type of hairdresser Employers and dependent employees Self-employed without employees Self-employed in same establishment with employees Mobile D DK F HU IT NL (current attempts to include s/e) SI (possible new legislation to exclude s/e) UK
18 National health and safety legislation - baseline National legislation largely in line with draft European framework agreement Assessment is difficult as in most countries regulation is more general and covers provisions for risk assessment (which could cover all mentioned risks) Exceptions in some countries relate to Requirement to rotate between wet and dry work Restrictions on use of certain products
19 Impact assessment of cost of implementation Evidence so far only from one country (DE) and here only for regular costs relating to skin care BGW estimates total cost as share of average turnover to be 1.2% DE example shows that implementation of stricter regulation has led to reduction of cost of occupational sickness insurance (through classification in lower risk category) NL calculation on cost savings of reduction in sickness absence: 3.3 million Euros over 3 years (0.7% reduction in absence)
20 Health and safety risks in the sector - baseline Key risks Accidents (mainly slips and trips) Occupational illness Skin disease (contact dermatitis most frequent work related illness in D, DK, IT, UK) MSDs (most frequent work related illness in F, NL) Respiratory diseases Psychological complaints Skin disease (and MSD) significantly more frequent in hairdressing sector than in other sectors
21 Share of hairdressers affected by accidents, work related illnesses (source and method of calculation vary) D (share in total workforce) DK (incidence per 100,000 workers) F (share in total workforce) UK(share in total workforce) Accident Illness 0.26% Total 0.59% Skin 0.4% Resp 0.09% MSD 0.02% 0.13% Total 1.28% Skin 0.86% MSD 0.56% Resp 0.11% 1.13% n/d 0.25% Total n/d Skin 0.11% MSD 0.02% Rep n/d
22 Health and safety risks in the sector - baseline Some evidence that occupational illness is more common in smaller salons run by owner-managers Number of accidents on the increase Incidence/trend in illness varies DE, NL decline in almost all occupational illnesses in last 10 years FR increase in MSDs, decline in skin disorders
23 Interest representation baseline Worker organisations do not generally cover the self-employed (exceptions NL and SI) Employers (with exception of organisation in France) do cover self-employed
24 First assessment regarding impact questions (1) Would the application of the agreement to employers and their dependent employees only lead to a crowding out effect of existing hairdressing businesses by owner operated (micro-)salons and/or chair renters? Question: Do countries where h&s legislation does not apply to self-employed have greater share or micro-salons, chair renters, mobile hairdressers? Inconclusive (HU has highest share, NL also high, but SI, IT higher)
25 Crowding out effect? First assessment regarding impact questions (1 cont d) Insufficient evidence of impact of h&s legislation on structure of the sector Trend is towards micro-salons (and to a lesser extent larger salons) with exception of DK However, appears that increasing trend towards mircosalons and chair renting driven by legislation/policies encouraging self-employment and training regulations rather than h&s regulation Some fears that exclusion of self-employed would lead to crowding out (SI) Some fears that covering self-employed would lead to cost increases they cannot afford (UK) but must avoid different standards applying to those working in same premises (UK)
26 First assessment regarding impact questions (2) Would the application of the agreement to all individuals engaged in the sector have an impact on the extent to which hairdressing activities are carried out in the undeclared sector? Evidence on undeclared work is scant, estimates indicate that it is relatively high but appears that this is driven more by tax considerations rather than h&s regulation
27 First assessment regarding impact questions Would the limitation of the agreement to certain parts of the sector lead to distortions of competition? Insufficient evidence of price structures in the sector Interviewees consider that it would distort competition, see no reason to exclude certain segments of the sector as all face the same risks Including self-employed working part-time might discourage some from setting up in business (NL) Customers may be forced to chose between lower costs and higher h&s standards Mobile hairdressers would have to be excluded from some provisions Enforcement may be difficult especially small salons
28 First assessment regarding impact questions Would a limited scope of application of the agreement lead to improvements in health risks in those parts of the sector that are subject to the provisions but that are outweighed by a lack of improvements in the non-covered parts of the sector resulting in a negative overall (net) impact on occupational health/social security/equity grounds? Insufficiently disaggregated evidence on accidents/occupational illness among different types of hairdressers Possibility to create negative health and safety outcomes for those not covered Could distort occupational health insurance in countries where all pay also impact on tax payer
29 Next steps Revised interim report (March) Further interviews/data collection needed to fill gaps Draft final report early April Final report May
30 Thank you
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