Jane Finlayson, EMA Head of Manufacturing

Harm in New Zealand manufacturing is unacceptably high and urgent action is needed.

The good news is that through a recent partnership between the Accident Compensation Corporation (ACC) and the Employers and Manufacturers Association (EMA), help is on the way.

ACC claims costs for the manufacturing sector have skyrocketed, exceeding $165 million annually, with weekly compensation costs doubling from $51 million to $109 million between 2015 and 2024.

Health and safety regulator WorkSafe estimates that chronic harm results in a staggering loss of 5,000 disability-adjusted life years each year, contributing to an economic burden of approximately $1.23 billion.

The breakdown of this burden is alarming: 27% of injuries stem from musculoskeletal disorders, 17% from mental health issues, 16% from cancers, and 15% from respiratory problems.

In a significant stride towards addressing this harm, ACC appointed the EMA to lead a by industry for industry project to create a harm reduction action plan.  The EMA stood up Project Whakahaumaru, which translates to ‘safeguard’ or ‘protect’, and gathered the perspectives of around  200 stakeholders from the manufacturing sector, health and safety professionals, and WorkSafe via focus groups, one-to-one interviews, co-designed workshops and surveys.

EMA Head of Manufacturing Jane Finlayson says the recently released results of this discovery phase have been sobering.

“We embarked on this journey to safeguard our industry, and the findings highlight a pressing need for change,” Finlayson says.

“Injuries are not just numbers; they represent lives affected, families impacted, and potential futures altered.

“We cannot ignore the implications of these injuries – not only for the workers but for businesses and the economy as a whole.

“These figures are a call to action.”

Over the past year, the EMA has worked with stakeholders across the sector to develop the Project Whakahaumaru Harm Reduction Action Plan, which it believes can foster change.

Finlayson says this multi-pronged approach is desperately needed. 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 coordinated safety measures.

Small to medium businesses experience the highest incidence of injury claims in the sector. Additionally, certain demographic groups face significantly higher risks. Older workers (60+) account for a much higher share of the lifetime costs of harm and younger workers (under 25) are also at heightened risk.

For staff, 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 and generational and cultural divides have been identified as problems.

“We see that Māori and Pacific people are disproportionately affected by workplace harm. This is unacceptable, and we must address these disparities head-on,” says Finlayson.

“Our commitment to a ‘by industry for industry’ approach is crucial as we work to reduce harm in manufacturing.”

To tackle these challenges, Project Whakahaumaru focused on evidence-based interventions to develop the Harm Reduction Action Plan. It sought perspectives from a wide audience, through virtual workshops, interviews, and digital surveys. HS 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,” Finlayson says.

“This isn’t just about compliance; it’s about fostering a culture that prioritises the health and safety of every worker.”

The Harm Reduction Action Plan includes the appointment of a kaiwhakatere (navigator) to oversee the implementation of this strategy.

The navigator will play a crucial role in resourcing and supporting sector partners, enhancing collaboration, and ensuring that safety initiatives are effectively communicated and executed.

Key interventions planned 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 well-being of our workers, we can drive significant improvements in safety and productivity,” Finlayson says.

“The ultimate goal of Project Whakahaumaru is to create a manufacturing industry that values and protects its workforce while enhancing overall productivity.

“By investing in our people and fostering collaboration, we can create a safer and more sustainable future for manufacturing in New Zealand.”

Next steps involve securing investment funding from ACC to progress to the next phase of Project Whakahaumaru, resourcing the navigator, and moving the Harm Reduction Action Plan from conception to implementation.

“It’s essential that we act quickly and decisively,” Finlayson says. “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.

“Together, we can make a difference. This initiative represents a turning point for the manufacturing sector, and I urge every business leader to engage with this process.

“Let’s ensure that we are not only talking about safety but taking the necessary steps to create a culture that prioritises the well-being of our workforce.”

To support manufacturers to better understand the current levels of harm and how their business is performing relative to others,  the EMA is now hosting an online dashboard that collates reported accidents and groups them by manufacturing sub-sector.

The information is anonymised, but it will allow businesses to map, track and benchmark their rates of harm to better understand the risk factors in their sector and how they measure up.

The Harm Reduction Action Plan and dashboard can be found at ema.co.nz/manufacturing.

The EMA is hosting a webinar on Thursday, 21 November, to discuss the findings and next steps. If you want to know more, visit learn.ema.co.nz.