Reforming health and safety legislation - more than minor tweaks needed - Paul Jarvie

Are NZ's health and safety regualtions due for reform? Photo / NZME

Opinion

By Paul Jarvie, manager of Employment Relations and Safety, Employers and Manufacturers Association (EMA)

Prior to the 2023 election, the Act party campaigned on a promise to “reform” New Zealand’s health and safety laws. It sounded like a quick and easy job - a few tweaks here and there, and it would all be done and dusted.

In 2024, the new Minister of Workplace Relations and Safety, and Act deputy leader, Brooke van Velden went on a roadshow around the country to hear directly from workers, frontline staff and employers on the proposed changes.

However, the feedback she received indicated that a simple law reform was not going to address all the concerns raised. Many of these focused on the outdated regulations, the lack of a coherent national action plan, and the lack of oversight and governance.

The cost to New Zealand of workplace injuries is estimated to be around $4.9 billion per annum and growing. The number of injuries has only just started to show a modest decline, while workplace fatalities are tragically high. And businesses do need to accept some of the blame for these alarming statistics.

Many industry associations and health and safety bodies, including the EMA, got together to prepare a united summary for the minister’s consideration. These showed that, while the Health and Safety at Work Act (HSWA) was still fit for purpose, it does require major tweaks.

There is a large amount of work needed to bring the WorkSafe guidance material up to standard. This will require major rewrites, reviews and in some cases picking up on work that was started but for some reason stopped (such as the plant and structures regulations). It will also require major resources from MBIE at a time when staff and budgets are tight.

The EMA conducted two surveys of its members, a webinar and online survey, which received more than 500 responses.

One of the key areas of concern was the health and safety guidelines for worksites in which multiple employers have over lapping duties, known as multi PCBU worksites (PCBUs are “persons conducting a business or undertaking”). A common scenario, especially in construction and manufacturing, multi PCBU worksites involve work locations where two or more businesses are operating together or alongside each other, often part of a contracting chain.

Many EMA members felt that there was a lack of clear guidance for these sites, and that some of the larger companies were attempting to contract out their responsibilities.

In addition, some employers expressed concern at the cost of acquiring and using health and safety pre-qualification systems to ensure contractors on multi PCBU sites stay compliant.

The cost to comply with vague legislation posed significant strain on small to medium employers, while the practice of risk assessment and risk management was poorly understood with a lack of useful guidance material. Mental health conditions and wellbeing, including psychological risks, also featured strongly in the feedback we received from EMA members.

Those who were company directors felt overwhelmed with the scope of their duties, not knowing where to start and stop. In general, EMA members called for better guidance and a more level playing field.

Finally, it was noted that New Zealand has fewer health and safety inspectors per workers compared to other countries of comparable size and maturity. The International Labour Organisation recommends one inspector for every 10,000 workers. If we applied that ratio to New Zealand, we would require 242 inspectors. Currently we have 170 inspectors, or one inspector per 14,482 workers.

NZ needs safer and healthier workplaces, with assistance from a modern regulator, one that is equipped to help and find solutions in conjunction with business and workers. And we need to create a safe workplace for the next generation, so that the same mistakes and oversights are not made over and over again. Repeating the same thing with the same resources, and expecting different results, is never going to work.

If we achieve safer working environments, then productivity and wellbeing improve. The national harm burden of $4.9 billion will be reduced, with monies spent in other areas of more urgent need.

The minister wants to reform health and safety legislation. This is her chance to deliver it, working in conjunction with committed and determined health and safety practitioners, employers, and workers. These opportunities do not come around that often - the time is right, let’s make a difference.