Work conditions on the set of King Kong were "unacceptable", a damning Occupational Safety and Health (OSH) report says.
OSH investigated the King Kong set in the Wellington suburb of Miramar after 21kg of scaffolding fell on two workers on October 14, 2004.
Steve McNicol and Byron Sparrow were taken to hospital with lacerations, and one also suffered concussion and a broken shoulder blade in the accident.
Labour Department health and safety chief adviser Mike Cosman said they were lucky not to be killed.
The production company Big Primate, which is owned by Universal City Studios in California, was not prosecuted.
The more seriously injured worker said he wanted changes to set practices, rather than holding someone accountable.
Crew told investigators they had worked up to 25 hours in the lead-up to the accident.
One international crew member said conditions were the "worst" he had seen.
"I personally had the objective of coming out of the employment period in one piece," the crew member said.
Big Primate would not comment other than to say it had co-operated fully with the investigation.
OSH's report also raised concerns about the lack of a solvent spray booth on set -- a requirement under the Health and Safety in Employment Act.
Mr Cosman said that while there was still room for improvement, the department was satisfied with safety levels overall, and he did not believe the industry was "in crisis".
A spokeswoman for Jackson said he would not be commenting on the OSH report.
Ross Wilson, president of the New Zealand Council of Trade Unions (CTU), said: "New Zealanders need to stop viewing Peter Jackson through rose-tinted spectacles."
"This is an American-owned production company organising the work in New Zealand, and the company and Jackson need to take proactive steps to ensure the safety of the workers on their set."
Mr Wilson said he was not looking for a confrontation with Jackson, but a more cooperative approach.
He said: "Workers in the film industry need to recognise the value of organising collectively as real unions to improve their conditions at work -- and film set management should listen seriously to them."
- NZPA
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