Construction Sector Action Plan 2010-2013
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3. Sector Profile
3.1 About the sector
The construction sector covers businesses and workers engaged in the construction of buildings and structures. It includes alterations, reconstruction, installation, maintenance and repairs, demolition, civil construction and land preparation.
Operationally, it is easiest to understand the sector as made up of four broad subsector groups:
- Residential construction.
- Non-residential commercial construction.
- Non-residential civil construction.
- Trades – covering tradespeople/businesses who regularly do construction work, such as carpenters, plumbers and so on, and who may work in any or all of the above sectors. (It is not the same as the trades occupational group.)
Approximately 180,000 people work in New Zealand’s construction sector, making it the country’s sixth biggest industry (employing 8.1% of the total New Zealand workforce).[2] It contributes approximately 6% annually to New Zealand’s GDP (about the same as the agricultural sector). Regionally, most construction activity is in the main metropolitan centres.
The construction workforce is predominantly male, at 86.7% of sector employment. It has a younger profile than other high-hazard sectors. The proportion of young workers age 15–24, at 17.9%, is higher than for all industries (15.9%).[3] The sector has a higher proportion of Māori workers than average. The 2009 Report of the Building and Construction Sector Productivity Taskforce (the Building Taskforce report) noted that 66% Māori employment growth between March 2003 to March 2008 was in the construction sector.
The construction sector is labour-intensive and engages a higher number than average of workers on contracts for services, reflecting the high proportion of tradespeople. It also indicates the high use of labour-only contracting, which can result in fewer training opportunities for less-skilled workers. Construction workers are significantly more likely to work longer hours (41–60 hours per week) and correspondingly less likely to work part-time (less than 30 hours).
The Building Taskforce report noted a decline in average trade skill levels, with less experienced new entrants and a legacy skills gap. The report also noted a shortage of management and leadership skills. The construction sector also has a high percentage of employees with low literacy and numeracy.
Several organisations in New Zealand help promote improvements in health and safety practice in the construction sector through specialised training and accreditation schemes. Two of these, Site Safe and Operate Safe, have recently been working together and have introduced a co-branded induction card.
The construction sector has a higher than average number of small or medium-sized businesses. It has traditionally been quite fragmented, with many associations representing different trades and activities. Work with the sector is focused strategically on forming a Construction Safety Council. This has recently been formed and is a key contributor and owner of this Action Plan.
3.2 What injuries are occurring?
3.2.1 Comparative data with other sectors
The fatal injury rate for the construction sector is almost triple the average for all sectors (see Figure 1), and in 2008, it made the largest contribution to work-related fatalities (34%)[4] of any sector.
Figure 1[5]
Figure 1: ACC claims for work-related fatal injury by industry sector, averaged 2002–2008, for those sectors with 100,000 or more FTEs
Source: Statistics NZ, Injury Statistics - Work-related Claims: 2009 (Reported 31 March 2010).
Between 2002 and 2008, the construction sector had the third highest incidence rate of serious injury[6] among sectors with 100,000 or more FTEs.
Figure 2: ACC work-related injury claims involving entitlement payments by industry sector, averaged 2002–2008, for those sectors with 100,000 or more FTEs
Source: Statistics NZ, Injury Statistics – Work-related Claims: 2009 (Reported 31 March 2010).
3.2.2 Fatalities
Since 2002, the construction sector fatal incidence rate has almost quadrupled. To gauge an overall trend, a 3-year moving average has been applied. As can be seen in Figure 3, the line is trending upwards and is significantly higher compared to the overall rate across all sectors.
Figure 3: ACC claims for fatal work-related injury per 100,000 FTEs
Source: Statistics NZ, Injury Statistics – Work-related Claims: 2009 (Reported 31 March 2010).
Falls from heights, being hit by falling objects and being hit by a moving object are the three biggest causes of construction workers sustaining fatal injuries (making up 63% of the fatal accidents notified to Department of Labour – see Figure 4).
Figure 4: The leading causes of fatal injuries in the construction sector
Source: Department of Labour fatality data, averaged 2006–2009.
3.2.3 Non-fatal serious injuries
From 2004–2007, the rate of serious injuries has trended downwards, although the incidence rate increased by 15% in 2008. When a 3-year moving average trend line is applied, it shows that the incidence rate is slightly tracking downwards (see Figure 5).
Figure 5: ACC work-related injury claims involving entitlement payments per 1,000 FTEs
Source: Statistics NZ, Injury Statistics – Work-related Claims: 2009 (Reported 31 March 2010).
There are around 600 serious harms notified to the Department each year for the construction sector, comprising around 11% of all serious harm notifications.
The most common cause of serious harm injury is slips, trips and falls from height[7] at 34% of all notifications from this sector (see Figure 6):
- 43% of the falls were from ladders, mobile ramps and stairways, and scaffolding.
- 21% were from buildings and other structures.
Figure 6: Top 10 causes of serious harm injuries notified to the Department of Labour by the construction sector
Source: Department of Labour serious harm data, averaged 2006–2009.
3.3 What are the significant hazards?
ACC commissioned the Centre for Human Factors and Ergonomics (CoHFE) at Massey University to conduct some preliminary analysis of ACC injury claims over 2 years to identify common characteristics, particularly correlations with work performed by construction sector.
CoHFE produced two reports that give an indication of some of the headline characteristics; however, further analysis would help to refine this research.
These reports identified the following:
Claimant demographic
- Claims were highest in residential construction.
- There was an early age peak in reports by males at aged 20–24.
- There were claims peaks in some of the winter months.
Injury types
- As a single ‘location’, injuries to the lower back/spine had the highest report numbers, but combined results for ‘a body area’ showed upper limbs had the most reports.
- 92% of the claims were from non-accredited employers (i.e. not on the Workplace Safety Management Practices (WSMP) scheme).
- Most musculoskeletal injuries involved lifting activity.
- Laceration injuries were mainly sustained from cutting, nails or sawing. Laceration injuries were most common in the 25–34 and 15–24 age groups.
- Fractures of arms, hands or chest were largely caused by slip or fall activity, with notable involvement of ladders, roofs or scaffold.
- There were a small number of incidences of ‘foreign body in eye’, but high compensation claims, with notable mention of wood and sawing.
- There were instances of industrial deafness related to tools and machinery, sawing and repetitive tasks.
Serious claims
- Delivery of materials to and around sites (lifting, loading).
- Work involving preparation, installation and destruction (leading to missteps, unforeseen events).
- Working from height (involving falls, equipment such as ladders).
- Use of hand tools (loss of control events).
[2] Statistics NZ Household Labour Force Survey: December 2010 Quarter.
[3] Additional age profile data:
- Proportion of workers 35–54 is 47.5% – slightly higher than the average for all industries of 46.4%.
- Proportion of workers over 55 is 15.1% – lower than the average for all industries of 18.4%.
[4] This is based on the incidence rates being aggregated for ANZSIC Level 1 industry classification units. Comparisons would differ if the Agriculture, Forestry and Fishing category unit was split at the Level 2 classification.
[5] The list of sectors was limited to those with 100,000 or more because this provided those sectors that contribute the most to the New Zealand work toll. FTEs = full-time equivalent employees.
[6] ‘Serious injury’ is defined as ACC claims involving entitlement payments (these include death, weekly compensation and rehabilitation payments).
[7] What constitutes a fall/working at height? - Proposal: Any work that involves people being in a position from which they could fall and injure themselves.
