CUPRINS - Universitatea George Bacovia

EU-Accession Of Cyprus: Implications And Challenges For EnterprisesThese process-related regulations/measures by their nature tend to be mostresisted by enterprises due to the financial imposition and complexity of theirimplementation, requiring frequently entire restructuring and reengineering ofprocesses, installation of new equipment, building new premises, adoption of newhealth and safety rules, compliance with environmental regulations, training andretraining of personnel, etc.For instance, health and safety measures involve an initial investment followed bya stream of recurring operating expenses. The various costs will consist ofinvestments in new machinery (and/or buildings) to bring them up to standardsrequired by the relevant EU directives, new production processes that safeguardsafe and healthy working conditions, and limit the exposure of workers tohazardous substances, prepare and follow manuals for handling heavy materials,in-house inspection and control mechanisms, apply certain standards for usingprotective devices, apply standards for working with display screens, applystandards for working conditions in various occupations (such as on fishingvessels, construction, loading docks at ports, mines, etc).So what are the benefits, if any, to enterprises from adopting the health andsafety rules and regulations? It is generally accepted that the benefits are mediumto long term and accrue to companies in the form of lower absenteeism, lowerincidences of accidents (translating to fewer lost days and lower medical costs andinsurance coverage), and better overall working conditions, which may translate tohigher productivity. These costs and benefits are not easily quantifiable. One thingis clear however: the costs are largely borne by the enterprises, while the benefitsare shared by the companies themselves, but also by the individuals due toimproved quality of life, as well as by the state and insurance companies due toimproved health and lower accident rates.5.3. The Enterprise View: Productivity, ICT and Business GrowthAt the enterprise level, the innovative firms that manage to achievesustainable growth in labor and total factor productivity, by restructuring theirproduction processes and overall work patterns and modernized their operations,which will permit them to have lower per unit costs of production and other non–cost characteristics, compared with other domestic, EU and international firms, willbe able to strengthen their competitive position. Such productivity growth maymake it possible to finance a firm’s expansion plans. But it also offers thepossibility to a firm to sustain real wage increases. The ICT revolution and theemergence of the knowledge economy have shifted the demand for labor towardsskills suitable for the new technologies. 28 Knowledge-intensive sectors have beendriving employment creation in Cyprus in recent years, but productivity28 See a recent study by the Cyprus Authority for Development of Human Resources.Projections of Employment in Cyprus—2000-2010, (February 2003). (in Greek)..215