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Impact of restructuring on health and safety of workers

In June 2005, a project on ‘Work organisation restructuring in the knowledge society’ (WORKS [1]) was launched, funded by the European Commission [2] under the Sixth Framework Programme [3]. The WORKS project analysed the impact of organisational change – taking place in the context of restructuring [4] processes – on social institutions and workers. The project was based on the assumption that the reorganisation of work can only be fully understood in the context of a global restructuring of value chains, entailing a simultaneous decomposition and recomposition of economic sectors, organisations, labour processes and skills. [1] http://worksproject.be/home.htm [2] www.eurofound.europa.eu/ef/observatories/eurwork/industrial-relations-dictionary/european-commission [3] http://ec.europa.eu/research/fp6/index_en.cfm [4] www.eurofound.europa.eu/ef/observatories/eurwork/industrial-relations-dictionary/restructuring

Restructuring processes generally have a negative impact on workers, although a small number of positive effects are also observed. These are the findings of a report on the impact of restructuring on workers’ health and safety, as well as their quality of working life, with a particular focus on psychosocial risks. The findings are based on an analysis of 58 organisational and 33 occupational case studies, highlighting some cross-national trends in health and safety.

About the study

In June 2005, a project on ‘Work organisation restructuring in the knowledge society’ (WORKS) was launched, funded by the European Commission under the Sixth Framework Programme. The WORKS project analysed the impact of organisational change – taking place in the context of restructuring processes – on social institutions and workers. The project was based on the assumption that the reorganisation of work can only be fully understood in the context of a global restructuring of value chains, entailing a simultaneous decomposition and recomposition of economic sectors, organisations, labour processes and skills.

Based on the results of the project, a series of 11 thematic reports was compiled, examining the question of how employment practices are adapting to change and with which effect. Of these, one particular thematic report (825Kb PDF) looks at the impact of restructuring on workers’ health and safety and quality of working life – with a particular focus on psychosocial risks.

Research methodology

The report’s findings are based on the results of 58 organisational case studies carried out in 14 countries, along with 33 occupational case studies covering different business functions such as research and development, production, logistics, customer service and information technology (IT). The case studies were carried out in the clothing, food and IT industries, as well as in public sector organisations and services of general interest. The countries involved were Austria, Belgium, Bulgaria, Denmark, France, Germany, Greece, Hungary, Italy, the Netherlands, Norway, Portugal, Sweden and the United Kingdom (UK).

The organisational case studies covered business functions that feature prominently in the external restructuring of companies, including for example production and logistics. The qualitative research on organisations was complemented by occupational case studies designed to investigate the impacts of changes at work on individuals and their households.

In order to create a common theoretical framework, the analysis of the case studies was based on the model developed by Kristensen (1999), which identifies six dimensions of work-related stress:

  • demands in work;
  • influence over work;
  • social support;
  • recognition and reward;
  • predictability of employment and work tasks;
  • meaning of work.

Main effects of restructuring on workers’ health

The report’s findings show that some of the changes implemented during restructuring processes have a strong influence on determining employees’ health conditions. Changes that lead to very serious consequences – based on the six dimensions of the Kristensen model – include the following:

  • market and customer orientation;
  • the standardisation and centralisation of work processes;
  • an increase in surveillance;
  • the intensification of work;
  • specialisation and increases in skills;
  • team work;
  • increased flexibility;
  • restructuring of working time;
  • changes in workforce consistency;
  • a high rate of organisational change;
  • changes in industrial relations.

With regard to the impact on psychosocial health, the report points to a clear trend towards a more passive and intense work organisation, with an uncertain and individualistic work life for the workers involved in restructuring processes. These factors lead to stressful working conditions and a worsening of the psychosocial work environment.

On the other hand, restructuring may also have positive effects on the psychological work environment, even though such effects seem to be quite rare. The main opportunities for workers in this context relate to increased meaning in the job due to greater customer orientation and enhanced skills, along with greater social support due to teamwork, and the favourable benefits of recognition and reward.

Finally, the research results show an unequal risk exposure, with the effects of restructuring varying across sectors of activity, the position in the value chain, employment groups, skills levels and the type of restructuring processes. The report also shows that women seem to be more vulnerable to risks than men, because they hold more marginal positions and they have to combine work with family care responsibilities. For migrant workers, ethnicity is a risk factor when there are biases concerning access to the profession, career opportunities and occupational stability.

Conclusions

The report concludes that the negative effects of restructuring generally outweigh the positive ones. In particular, the case studies indicate a worsening of the psychosocial work environment as a result of restructuring. However, restructuring may also bring new opportunities, including increased meaning and recognition, upgrading of skills and greater social support. The report’s recommendations include a call for more explicit coverage of change and restructuring in health and safety legislation, improved change management with a focus on reducing employees’ workload, greater worker participation in restructuring processes, and a strong attention to the consequences of flexibility for workers’ health and safety.

References

Kristensen, T.S., ‘Challenges for research and prevention in relation to work and cardiovascular diseases’, Scandinavian Journal of Work Environment & Health, Vol. 25, No. 6, 1999, pp. 550–557.

Davide Dazzi and Volker Telljohann, IRES Emilia-Romagna



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