We embarked on this journey to safeguard our industry and reduce the social and economic impacts created when someone is harmed.
Thankfully, serious injury claims are few, but they still cause a large burden both for employees and ACC. The vast majority of the manufacturing injury claims are for strains and sprains caused by work and workload.
With costs escalating, the value of ACC claims has skyrocketed over recent years, exceeding $165m annually, with weekly compensation costs doubling from $51m to $109m between 2015 and 2024.
Health and safety regulator WorkSafe estimates chronic or gradual harm results in the loss of 5000 disability-adjusted life years each year, contributing to an economic burden of approximately $1.23 billion.
Manufacturers recognise injuries are not just numbers; they represent lives affected, families impacted, and potential futures altered. On top of that, the impact and costs for businesses can be very high.
As a result, engagement from the sector has been outstanding in developing the harm reduction action plan, demonstrating a strong commitment to improving workplace safety.
However, it’s clear more focus and co-ordination is required to accelerate harm reduction efforts and ensure more effective return-to-work practices.
The benefits of reducing harm are far-reaching: a safer and more productive workforce, reduced pressure on the healthcare system, and a stronger, more sustainable manufacturing sector for everyone involved.
Despite the manufacturing sector comprising 10% of New Zealand’s workforce – approximately 227,000 employees – it has lagged behind other industries such as construction and agriculture in adopting co-ordinated safety measures that reduce harm.
During the research for our report to ACC, we found small to medium-sized businesses experience the highest incidence of injury claims in the sector. Additionally, certain demographic groups face significantly higher risks. Older workers (60-plus) account for a much higher share of the lifetime costs of harm, and younger workers (under 25) are also at heightened risk.
The data show Māori and Pacific people are disproportionately affected by workplace harm and the action plan includes partnering with a range of relevant organisations to find appropriate solutions.
For workers, factors such as lack of training, poor communication, and actions only taking place after incidents occur have been major concerns.
For business owners, complex regulations, as well as generational and cultural divides, have been identified as problems.
Our commitment to a “by industry, for industry” approach is crucial as we work to reduce harm in manufacturing.
We sought perspectives from a wide audience through virtual workshops, interviews and digital surveys. Health and safety practitioners, WorkSafe inspectors, academics, business association members, trade unions and Māori and Pacific groups all contributed.
We’re looking to leverage advances in technology, workplace design and leadership development to create safer working environments.
This isn’t just about compliance, it’s about fostering a culture that prioritises the health and safety of every worker, which in turn safeguards businesses’ ability to remain productive.
Key interventions recommended for action include improving workplace culture and leadership, providing access to health and safety best practices, and promoting what ACC calls “effective recovery at work”. This latter intervention is based on research that shows the sooner an injured person gets back to work and everyday life, the better it is for their health, wellbeing and recovery.
By prioritising the physical and mental wellbeing of our workers, we can drive significant improvements in safety and productivity.
Next steps involve moving the harm reduction action plan from conception to implementation. It’s essential we act quickly and decisively. This is a critical moment for our industry, and we have the opportunity to turn these findings into actionable solutions that will benefit our workers and our economy.
For the action plan to effectively deliver on harm reduction in manufacturing, investment from ACC will help catalyse the action, a kaiwhakatere or facilitator should be established to drive the project, and it will need to be carefully measured and monitored.
This initiative focuses on the areas where we can make a difference in reducing harm in manufacturing. It ensures we are not only talking about safety, but taking the necessary steps to create a culture that prioritises the wellbeing of our workforce in the areas where harm is most likely to happen.
