October - January 2020 - 2021
APRIL - MAY 2021
The next transport revolution 20 minute cities Housing market shake-up Challenges & opportunity In construction infrastructurenews.co.nz
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April - May 2021
so,WHAT DO I NEED TO KNOW? EQUIPMENT
CHANGES TO OUR GHS CLASSIFICATION SYSTEM TAKE EFFECT ON 30 APRIL 2021, DO YOU KNOW HOW THIS WILL AFFECT YOU? We provide accurate compliance advice and the means to manage and safely handle hazardous substances and dangerous goods in your workplace.
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RESPONSIBLE CARE NZ, YOUR ONE-STOP WORKPLACE CHEMICAL SAFETY EXPERTS
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April - May 2021
No better investment than chemical safety training
C
hemical suppliers and their customers continue to adjust to a Covid operational environment, struggling with inflexible, prescriptive regulation, rising compliance costs, diminishing resources and increasing public safety expectations. The ill-founded decision to replace the mandatory HSNO Approved Handlers with the general employer responsibility provisions of the 2015 Health and Safety at Work Act, is reflected in a growing number of significant workplace chemical incidents across the country, threatening people and our environment. Departing industry veterans with years of expertise and an ability to mentor new staff are warnings of a declining national capability. Combine this with increasing community concerns about their vulnerability to chemical exposure and damage to our fragile environment,. Chemical suppliers striving to cope with regulatory and operational challenges, ranging from Covid-19 disruptions, supply chain delays, the loss of experienced staff and frustration with unanswered queries to increasingly risk-averse officials, are understandably concerned. Ensuring staff are competent to safely manage the harmful chemicals essential to everyday life and now often present in increasing stockpiles, is an increasingly risky business.
A crucial factor is the loss of onsite chemical safety advice, due to replacing flawed but effective mandatory Approved Handler training with whatever employers now deem sufficient. The pragmatic, onsite Responsible Care NZ (RCNZ) Competent Chemical Handler certification is tailored to reflect chemical inventory and delivers results. It enables employers to meet and exceed their regulatory responsibility to ensure employees can not only safely handle chemicals, but also provide useful chemical safety advice, Practical, onsite advice
number of persons adversely affected by unwanted exposure to chemicals. Incomplete or sensationalised media reporting can irretrievably damage reputations with customers and suppliers, particularly if employers have not taken all practicable steps to safely manage their chemical inventory and operations. Incidentally, it has long been a mystery why a significant industrial issue triggers three separate investigations (company, emergency services and WorkSafe NZ), when one, energetic, multi-talented team could comprehensively investigate and report
Competent Chemical Handlers are in demand from competent chemical workers assumes even greater importance as the latest changes to our GHS chemical management system apply this month. RCNZ-trained Competent Chemical Handlers are increasingly in demand, commonly resulting from a site visit to assess chemical management performance throughout the product life cycle where feasible. Knowledgeable staff help avoid expensive and confusing compliance advice, often leading the effective response to chemical incidents, without requiring emergency services. Chemical incidents now guarantee media attention, especially highlighting the
their findings, which are then discussed with stakeholders and promulgated to learn from the event. When chemicals cause problems, employees, customers, WorkSafe NZ Inspectors, health protection officers and FENZ all benefit from the expertise and product information available 24/7 from 0800 CHEMCALL®, our industry’s unique chemical emergency advisory service. Supported by thousands of safety data sheets and site emergency plans, thanks to the collective expertise and local knowledge of our CHEMCALL® responders, their access to a company’s compliant site emergency plan can save
time, disruption and even lives. For non-compliant suppliers who are attracting attention from enforcement agencies, practical onsite advice helps lessen the load on a diminishing number of Compliance Certifiers, while helping to ensure site chemical safety measures remain effective. Further changes to our GHS chemical regime apply from 30 April 2021 and non-compliance will prove increasingly costly. To facilitate your transition, RCNZ updated industry codes of practice and GHS workplace educational material will be available shortly. Now is the time to schedule your RCNZ competent chemical handler course, conveniently delivered on your site, to upskill the last of your HSNO Approved Handlers (which impacts every business), accommodate Certified Handler requirements and successfully implement the GHS update.
Barry Dyer Chief Executive Responsible Care NZ safetynews.co.nz
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EQUIPMENT
A second major chemical incident in the same facility is yet another reminder that safe chemical management is not receiving the attention it deserves
April - May 2021
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Solid start to new urbanism
With housing demand insatiable, the economy stable, zoning workable, costs controllable, and the public more agreeable, there’s never really been a better time to be a property developer, says Director of New Zealand Mortgages & Securities, James Kellow currently financing in Auckland sold 80 percent of the units within two weeks of the consent being granted. Most of the residential projects you’re seeing pop up around the region comply within the new zoning rules. Without infringements means their consents go non-notified which again reduces the risk and ultimately costs. I believe Auckland Council will be forced to release more land sooner than forecast, partly due to the permitted density and height within urban areas often not being fulfilled by developers - hence the number of houses able to be built is not achieved. In many cases council planners are encouraging developers to maximise the density of these brownfield redevelopment projects, but that’s not what Kiwis are after. Generally, buyers don’t want to live in multi-storey apartments. They want their piece of grass and fewer neighbours. Hence, generally we’re seeing boutique low rise apartments at most. More common around Auckland, though, are attached townhouse developments with good amenity and proximity to public transport, meaning they can cut down on the carparking.
The cost of constructing vertical apartments often proves prohibitive. With townhouses, it’s largely horizontal construction and so it’s a lot more feasible from the outset. Not only does that mean less concrete and no elevators but building costs can be much better forecast and contained. Residential building companies involved in townhouse construction have got considerable experience now. Budget and time overruns are much fewer. That protects the developers’ margins and importantly keeps the purchase price down for buyers. Record low interest rates remain a key driver in Kiwis getting into property ownership. With the Reserve Bank reinstating loan-to-value ratios, the 20 percent deposit requirement for home buyers means over $200,000 upfront just to secure a ‘median priced’ existing property in Auckland. With new dwellings
exempt from the LVR restrictions, demand and supply for residential developments will continue to flourish as borrowing for a new build is more doable if serviceability can be proven. Auckland Council’s vision of a more compact city is finally starting to be realised at least in part – albeit not as intensive as planned or predicted. Developers are delivering products that reflect market demand, and once agitated Aucklanders now better accept a more intensive city. A few years back, most developers headed out to peripheral Auckland and built subdivisions, as it was the place of less resistance and cheaper. Now with the Unitary Plan working and NIMBYs all but resigned, developers are confidently turning their attention to the city’s existing neighbourhoods. We are now seeing plenty of quality transformation taking place.
James Kellow is a director of New Zealand Mortgages & Securities, a specialist property financier which has assisted with delivering nearly $2 billion of property developments. safetynews.co.nz
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RESIDENTIAL
D
espite four lockdowns in Auckland within the past 12 months, residential developers are seeing unprecedented sales, with well-designed and well-situated townhouses proving extremely popular in Auckland. Developers are discovering that councils are a lot more “can-do” when it comes to consenting. Bureaucratic barriers are at an all-time low. I suspect that is ultimately because they don’t want the government to take that authority away. Regardless, councils are now a lot more confident saying yes, helped by politicians and the public being more onboard. Not so long ago, developers wanting to build affordable housing were public enemy number one in most neighbourhoods. Now with the country’s housing shortage viewed as almost a national emergency, developers promising attractive and integrated projects are positively working with council staff and communities to deliver some great results. Auckland’s Unitary Plan, which promotes intensification and the release of land, is proving to be a major catalyst in more people throwing in their day jobs and turning their hand to property development. There’s serious money to be made if they can buy a full site for $2 million, take the house off it, fully presell and build 10 townhouses. They should be able to make at least a 20 percent profit. We’re happy to fund most of these developers 100 percent of the cost, because effectively the risk is almost zero. One townhouse development we are
April - May 2021
April - May 2021 3
Responsible Care offers chemical safety advice
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Good time to become a property developer for the right sector
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Electric vehicles poised for mass acceptance as majors enter the market
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Wellington leads the way in emissions control over the city of sails
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Time to plan space for micro-mobility to operate safely
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Komatsu introduces new performance standards
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Fonterra construction culture change bears fruit in safety and productivity
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The city at your door in 20 minutes could be become the vogue
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Schneider closes the gap in power systems management
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Checklist for worksite safety – basic repeats
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The Dog Safe Workplace offers tools and advice for canine encounters on the job
28
Goleman virtual safety training leads the way
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Workplace bullying a serious and complex problem
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Cement solution for more than half our used tyres
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Michelin leads the recycle tyre tech
38
Unlearning misguided muscle training keeps you pain free at home and work
40
Responsible Care steps in to keep your worksite chemical safe
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Benchmarking pay trends in New Zealand by One Staff
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Blended learning the way of the future from the Red Cross
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ACC works for construction safety and offers subsidies for expert advice
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Mixed bag of housing incentives no guarantee for success
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Construction industry recovery metrics from Deloittes
Published by Media Solutions Ltd PO Box 503, Whangaparaoa Auckland 0943 09 428 7456 Original material published online and in this magazine is copyright,
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but may be reproduced providing permission is obtained from the editor and acknowledgement given to Media Solutions. Opinions expressed are those of the authors and may not necessarily be those of Media Solutions Ltd. ISSN 2624-0572 (Print) ISSN safetynews 2624-0580 .co.nz(Online) infrastructurenews.co.nz propertyandbuild.com
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April - May 2021
Hard work gets results
Sponsored Article
T
he team was forged by three friends working in the industry who realised that the key thing stressed building managers, business owners and landlords needed was to make a single call and get a reliable and qualified support team that would cover any aspect of facilities management. The Rapid trio set down a business philosophy that “we will do what others can’t or won’t do “ and set
about assembling a highly trained, efficient and safety-conscious team of professionals who get the job done right, the first time. Today that service stretches from food manufacturers’ audit cleaning, all aspects of industrial cleaning, painting, building and floor safety management to anti-microbial and moss and mould treatments to prevent surface damage to roofs, ceilings, walls, floors and specialised equipment.
FACILITIES MANAGEMENT
The success of Rapid Facility Services is driven by a team that combines experience, commitment and a professional skillset that covers every aspect of facilities management with personal service
Having worked in the industry for many years, three friends, Paul Schoch, Robyn Schoch and Andrew Chan realised that by combining their skills, they could create a company unlike any other
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April - May 2021
Volkswagen goes electric with cheaper, more efficient batteries ENERGY
Better and cheaper batteries, improved range and reliability, and a fear of missing out on a sea change in the automotive industry are driving more and more manufacturers to up their electric car production
T
he industry leaders are fast approaching the production of a critical mass to be able to offer buyers a kind of “vehicular herd immunity” from over-priced, over hyped and under-performing new offerings. Volkswagen is in the midst of a major shift towards battery-powered cars and says that it wants to have six battery-cell factories operating in Europe by 2030. The Germany based group is by far the biggest automaker in Europe and the second biggest in the world, manufacturing over
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10 million cars per year. On average, Volkswagen says, it will drive down the cost of battery systems to significantly below $119 per kilowatt hour which “will finally make e-mobility affordable and the dominant drive technology.” “E-mobility has become core business for us,” Chief Executive Herbert Diess told those gathered for Volkswagen’s Power Day, which also featured the leaders of BP, Enel and Iberdrola in an effort to match some of the buzz of Tesla’s Battery Day last September. “Our transformation will
be fast, it will be unprecedented.” The company plans to build half a dozen battery-cell plants in Europe and expand infrastructure for charging electric vehicles globally, accelerating efforts to overtake competitor Tesla and speed up mass adoption of battery-powered cars. In what is one of the most ambitious programmes in the industry, Volkswagen says the European factories will have a joint production capacity of up to 240 gigawatt hours (GWh) a year, Volkswagen did not specifically say how much
the plan will cost but had released information last December that it planned to spend more than US$40 billion on e-mobility by 2025. Volkswagen is also working on a major expansion
ENERGY
April - May 2021
of charging infrastructure, a lack of which is still seen as a big barrier to the mass adoption of battery-powered cars. Via existing efforts and partnerships with oil major BP as well as top European utilities Enel and Iberdrola,
Volkswagen aims to operate about 18,000 public fastcharging points in Europe by 2025. In North America, Volkswagen targets 3,500 fast-charging points by the end of 2021. In China, the world’s largest car market,
the group aims for 17,000 by 2025. Volkswagen last year acquired more than a quarter of China based battery maker Guoxuan High-tech Co and has plans to sell more than two million electric vehicles a year by 2030.
Iconic brands which Volkswagen owns
Volkswagen unveiled plans to have a new unified prismatic battery cell from 2023, which will support cost cuts generated by the higher level of in-house cell production and could impact its current suppliers. Electric vehicle makers, including Tesla, are using cylindrical battery cells, which resemble flashlight batteries and are relatively inexpensive and easy to manufacture. Prismatic cells, which resemble a thin hardcover book, are housed in a rectangular metal case and are more expensive. Pouch cells, another alternative, are thinner and lighter, and resemble a flexible metal mailing envelope.
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April - May 2021
Wellington knocks the socks off the city of sails
As Auckland’s emissions are set to worsen, Wellington reports a 7 percent decrease in net emissions over the last 20 years, despite experiencing a 26 percent population increase
ENERGY
W
ellington’s use of electric vehicle (EV) chargers has tripled in the last six months, and almost 11,000 Wellingtonians are now members of car share schemes. “Combined, Mevo and Cityhop have 100 cars, some of which are hybrid or electric, and Council provides around 30 car parks for these vehicles with more planned,” says Mayor Andy Foster. A 2020 survey of Wellington car share members suggests that every car share vehicle replaces up to 11 private vehicles. “This is such a positive part of our collective response to reducing transport emissions which make up around 35 percent of our footprint. Decarbonising our transport fleet is also a critical part of reducing overall emissions,” says Mayor Foster. “In Wellington, electric vehicles and car share services combine with New Zealand’s highest level of walking, cycling and public transport use, made possible by our compact city urban form. Wellington’s recently released City Greenhouse Gas Inventory shows over the last 20 years an overall decrease of 7 percent in net emissions, even as our population has increased by 26 percent during that time. “A reduction of 7 percent over two decades is a 10
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step in the right direction, especially considering the increases in GDP and population in the same timeframe. We continue to be committed to climate action to achieve the city’s targets, a goal supported by the 92 percent of Wellingtonians surveyed who prioritised climate change action.” More EV chargers driving the switch to electric “Electric car owners need confidence that there are places to recharge, and Council has supported the installation of 34 charging stations,” says Foster.
The installations around the city is part of a two-year pilot between Wellington City Council, Energy Efficiency and Conservation Authority (EECA) and ChargeNet NZ, to assess the viability for slow charging in the residential streets of Wellington. Councillor Tamatha Paul, the Climate Change Portfolio Lead, says the EV chargers are a key part of the programme to reduce Wellington’s carbon emissions by half over the next ten years. “Vehicle travel makes up 35 percent of Wellington’s
gross emissions. Electric vehicles emit 80 percent less carbon dioxide than equivalent fuel powered cars,” says Councillor Paul. The success of the pilot programme will depend on sufficient usage of the charging stations now running, which will mean more installations in the future. Areas with few on-street parking spaces have been prioritised in the programme to encourage residents to replace their petrol cars with electric. Sustainability Manager Tom Pettit says that while EVs can be charged easily
April - May 2021
Ahead of the game
at home using a three pin plug, this is not so easy for residents with no off-street parking. Wellington City Council was the first to introduce the initiative in 2018, and has had good uptake in areas the chargers are installed, adds Tom. “This project is based on an international model in world-leading EV friendly cities, and is just one component Council has in place to support the city’s contribution to reducing the impacts of climate change and reach our goal of a low carbon capital city.” For these residents, not having access to a charger nearby can be a common barrier to making the switch. Inner city resident Josh Wright recently bought his first EV following the installation of a charger on Austin Street, Mount Victoria.
consulting on a climate-friendly spatial plan implementation of a residential food waste trial. Councillor Tamatha Paul, Climate Change Portfolio Lead supports these initiatives and increased funding long term, but wants to see a faster rate of change in the future. “While a reduction of 7 percent means we are heading in the right direction it’s nowhere near fast enough. Hopefully now the Climate Change Commission has put out their draft advice, action by Council, residents and Wellington-based businesses and organisations will accelerate. “In the Long-term Plan we’re proposing an additional $27 million over ten years to fully fund our Te Atakura – First to Zero implementation plan to help the city achieve its net zero by 2050 goal. We also have significant funds earmarked for increasing our cycleway network, and building healthy streets and public transport options through Let’s Get Welling-
ton Moving.” Manager Climate Change Response, Alison Howard says the Climate Change Commission’s draft advice to central government reinforces local government’s important role in getting us to net zero. “Much of their initial advice aligns with what we’re already doing or planning to do in terms of transport, buildings and waste management. We are preparing a submission to the Climate Change Commission that will reiterate the work we have to do to ensure our city is thriving in 2030 and beyond. “But we can’t do this on our own – we need the support of our entire community to become a net zero carbon city by 2050. Systematic transformation by both the public and private sectors coupled with individual behaviour changes are needed to achieve net zero emissions – one without the other will not get the necessary scale of change at the necessary pace.”
ENERGY
New Zealand declared a climate emergency in December last year, however it has been 18 months since Wellington City Council declared its own climate and ecological emergency, putting protection of the environment and climate change action front and centre of its decision-making. Council’s core business involves supporting low carbon transport, waste minimisation, native reforestation and protecting infrastructure from the threats caused by climate change. Recent Council initiatives include: - near completion of the cycling/ walking path of the Great Harbour Way/Te Ara Tupua, from Oriental Bay to the Miramar cutting - installation of six fast and 28 slow EV chargers around Wellington - parking policy amendments to increase room for healthy streets - doubling the number of residential energy audits per year - prioritising sustainability in our procurement strategy
“These chargers are a game changer for people like me who are keen to make the change, but who have no off-street parking,” says Josh. How it works and EV etiquette: - Each EV charging unit can charge two cars at the same time and the adjacent parks will be reserved for electric vehicles only. - Chargers require a Type 2 cable and charge at 7.4 kW (about four times faster than a typical 3-pin domestic power socket). Users will need to register with ChargeNet to open an account. - Users pay for the electricity they consume and will receive a text message encouraging them to move on when the charging is complete, to free up the space for others. To see locations of the chargers, see this interactive map. safetynews.co.nz
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April-May 2021
Grass roots T transport changes
TRANSPORT
The growing use of micromobility in association with public transport/ transit could increase patronage in New Zealand by up to nine percent within a decade according to a Waka Kotahi NZ Transport Agency report
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he introduction of small, electrically powered transport devices has gained momentum in recent years, to the point where transport planning practitioners, urban designers, and design professionals are interested in how significant the future impact of micromobility could be in the way people choose to travel. The compilation of the report was hampered by a lack of detailed collected data, leading to a conclusion that “the current state of data on micromobility use is not yet adequate to inform transport planning and project evaluation.” There is a need to develop and implement a strategy for collecting data in relation to privately owned micromobility, the report says. The research focused on filling the gap in information on the forecast mode shift from private cars to micromobility for short trips, and the initiatives that can be taken to encourage or remove barriers to this mode change. Similarly, it examines the potential for micromobility (particularly shared micromobility) to enhance the use of public transport by providing quicker and more convenient ‘first/last mile’ connections. The project has the specific purpose of providing guidance to transport planning practitioners on how to incorporate micromobility growth forecasts into project evaluation. The number of people
using shared or separated infrastructure is forecast to increase by three to eight times, which will have a significant impact on project evaluation. Overall, micromobility mode share is expected to be between 3 percent and 11 percent by 2030, depending on the following six context factors: • proximity of routes to ‘attractive’ destinations • quality and safety of route infrastructure • attractiveness of mode alternatives • maturity of network/ transport culture • amenity and aesthetic value of routes • socio-economic factors. Literature review A review was undertaken of available research on micromobility from around the world, including both formal academic literature and industry-driven research. The review considered research and literature on: • micromobility modes (available modes and their relevance for this research) • models for micromobility use (shared models, mobility as a service [MaaS], private ownership) • mode shift to micromobility (scale of mode shift and influencing factors; trip purposes and distances for micromobility trips; impact on public transport) • impacts of micromobility (known impacts of micromobility use on health and safety, accessibility and socio-economic equity, and the environment). The literature review high-
TRANSPORT
April-May 2021
lighted substantial gaps across the latter two areas, especially in relation to the likely scale and nature of mode shift to micromobility. The proposed Waka Kotahi Accessible Streets Regulatory Package and the Society of Automotive Engineers’ micromobility mode definitions framework were used as a basis for determining that, of all the micromobility modes identified by the literature review, e- scooters, e-bikes and e-accessible devices (devices whose core purpose is supporting mobility, such as mobility scooters) were the modes of significant relevance to the New Zealand context. New Zealand data review A review was undertaken of data that is being, or is planned to be, collected on micromobility use in New Zealand. This review considered data, and gaps in available data, across five main categories: • survey counts (mode
Likely effects on public transport and private vehicle use in a first/last mile capacity Location
Public Transport Micromobility Availability Availability
Private Vehicle Use
Public Transport Patronage
CBD/fringe (~5 km radius)
High
High
2% Decrease
6% Increase
CBD/fringe (~5 km radius)
High
Low
1.5% Decrease
3% Increase
Suburban
High
High
1% Decrease
9% Increase
Suburban
High
Low
0.5% Decrease
6% Increase
Suburban
Low
None
0.5% Decrease
7% Increase
share for micromobility modes) • trip data (micromobility trip numbers, purposes and lengths) • sales data (rate of micromobility device ownership and sales trends) • injury statistics (micromobility injury statistics, including causes) • expressed interest (desire to shift to a micromobility mode, and perceived barriers thereof). Gaps were identified
across all five areas, with the quality of data available varying significantly by region, and often lacking in detail such as trip purpose and demographics. Further analysis of Accident Compensation Corporation (ACC) injury data for micromobility is also required, as current understanding of injury rates, causes and trends is limited. Overall, the data review highlighted the lack of a consistent national data
collection methodology, and the need for a national strategy for collecting data on micromobility use. Transport modelling The literature and data reviews identified the lack of quantitative information available on the likely uptake of micromobility modes, as well as on the likely impact this will have on the use of other modes, including walking, cycling, cars and public transport. safetynews.co.nz
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TRANSPORT
April-May 2021 The aim of the modelling section of the research was to take the first steps towards filling the data gap, with a focus on the New Zealand context. Two different use cases of micromobility were considered as part of the modelling process – ‘end-to-end’ trips, where a micromobility mode was used for the full length of the trip, and multi-modal ‘first/last mile’ trips, where micromobility is used for the beginning and/or end section of a journey to facilitate connections with public transport. The Auckland Macro-Strategic Model (MSM) and the Auckland Strategic Active Modes Model (SAMM), both developed by the Auckland Forecasting Centre, were chosen as a base for this work because of their suitability and complexity, and their inclusion of a broad variety of geographies, densities and landuse types. 2028 was used as the forecast year. The MSM was used to model the potential increase in public transport if micromobility was used to
Ranges for the likely mode share for e-bikes and e-scooters for end-to-end trips E-scooter uptake
E-bike uptake
E-scooter mode share
E-bike mode share
High
Medium
1.6-5.7% of all trips
4.9-5.1% of all trips
Major city fringe (~5 km radius)
Medium
High
1.0-3.4% of all trips
7.7-8.1% of all trips
Major city suburban
Medium
Medium
1.0-3.4% of all trips
4.9-5.1% of all trips
Regional city CBD/fringe
Medium
Medium
1.0-3.4% of all trips
4.9-5.1% of all trips
Regional city suburban
Low
Low
0.3-1.2% of all trips
1.8-2.0% of all trips
Location Major city CBD
facilitate connections with public transport services. Micromobility use was modelled here by proxy, through the use of an increased assumed ‘walking’ speed to represent a composite of some walking and some micromobility. The reference trip profiles (no micromobility use) from both the MSM and the SAMM were then used to model the ‘market’ for end-to-end trips that could potentially shift to a micromobility mode. A set
of assumptions was then applied to this ‘market’ of trips to identify likely ranges for mode shift. Impact evaluation The Transport Outcomes Framework states that the core purpose of New Zealand’s transport system is ‘to improve people’s wellbeing, and the liveability of places’ by contributing to five key outcomes: inclusive access; healthy and safe people; environmental sustainability; economic
prosperity; and resilience and security. An impact evaluation was carried out to assess the potential impacts of an increased micromobility mode share in New Zealand in relation to each of these five key outcomes. The evaluation also sought to identify appropriate interventions that: • mitigate those impacts where they conflict with one or more of the five wellbeing outcomes, or • ensure and amplify those impacts where they align with one or more of the five wellbeing outcomes. As a result of the evaluation, 38 impacts were identified, with ‘inclusive access’ and ‘healthy and safe people’ emerging as the areas of greatest concern. Twenty-one interventions have been proposed to address these impacts. These include, but are not limited to, infrastructure interventions, regulatory/legislative interventions, funding interventions, education/awareness-based interventions, operational interventions, and collaboration/partnership-based interventions. Read the full report here
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April - May 2021
AC Filter - an engineered solution protecting worker health
Sponsored Article
T
he AC Filter cabin overpressure and filtration story began more than 30 years ago in The Netherlands and it has proven its durability and value. Fillflex manufactures, supplies and maintains AC Filter systems for any cab, on equipment of any type and size. “Our technology has often been copied, but there is only one genuine ACFilter product range,” says Fillflex
New Zealand managing director Bill Hackshaw. “The system optimises your equipment’s in-cab operating environment to protect both the health of the operator, and the existing heating, cooling and electronic systems in place. AC Filter complies with standards CROW132 and NEN4444.” Filters are certified, and available for all applications, including asbestos, respirable crystalline silica,
pollen, spores, hydrocarbon aerosols and gases that are harmful to humans. Parts and filters are of the highest quality, carrying the European CE Quality Mark. The system has a standard AOC (Advanced Overpressure Control) unit fitted in cab, with an optional PPM (Particles Per Million) readout function for hydrocarbons. The system is designed to maintain a pre-set value of 120pa in the cabin.
The system operates automatically when the vehicle is started to check for the status of the filters in the unit and the quality of the air pressure. If the pressure drops below 100pa the display will blink and an acoustic alarm will sound. www.brolube.com View the case study here
Cabin Overpressure & Filtration
We have a new brand, but the same tried and proven product with the same dedication to service
Contact: Bill Hackshaw 021 232 0088 billh@brolube.co.nz www.brolube.com safetynews.co.nz
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HEALTH & SAFETY
Control the risk to your machine operators and truck drivers from fine dust, hydrocarbons and other harmful airborne contaminants
April - May 2021
SPECIAL REPORT
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omatsu’s advanced Tier 4 engine and hydraulic control technology improves operational efficiency and lowers fuel consumption by up to seven percent, according to Garth Dixon, Komatsu New Zealand’s Sales Manager. “As with all our products, it has been designed in line with Komatsu Harmony principles, resulting in a fully integrated machine to produce an efficient, reliable system,” he says. “Komatsu designs and manufactures all major components, including engines, pumps, valves, motors and cylinders. This optimises machine performance, and maximise production while minimising fuel consumption.” As with others in Komatsu’s Dash 11 range, the PC210LC-11 is fitted with a number of unique features that contribute to reduced fuel consumption and allow the engine to operate at the most efficient speed. These include: • Low speed matching, which provides higher flow output at a lower engine RPM through the use of larger displacement hydraulic pumps. This feature also provides better pick up and response to hydraulic flow demand and provides fuel savings in all duty cycles. • Variable speed matching, an engine-pump matching control that matches engine speed to hydraulic flow requirements. It keeps engine speed high when large pump delivery is required and reduces engine speed in light duty operations to save fuel. • Six working modes including a Fine Control mode, Breaker mode and Economy and Power modes for Attachments. • A reduction in auto deceleration speed to low idle
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New standards in performance The 23-tonne class Komatsu PC210LC-11 Excavator delivers increased performance, operating efficiency and productivity, while significantly reducing fuel consumption compared with predecessor models speed. The PC210-11’s advanced Tier 4 engine technology delivers reductions in NOx and PM emissions by up to 90 percent compared with the Tier 3 engines in the previous Dash 8 range, says Dixon. Additional improvements that contribute to fuel efficiency – and which are standard across Komatsu’s Dash 11 excavator range – include an economy working mode for attachments, an “ECO-guidance” function which provides data and recommendations to the operator for fuel saving operations, and auto idle shutdown to reduce excessive idle time. Safety and operator comfort have also been upgraded. “As with all our
Dash 11 excavators, it has an upgraded, fully compliant ROPS cab and includes a new high back air suspension operator seat with lumbar support,” Dixon says.. “The new cab also incorporates console mounted arm rests with a tool-less height adjustment so that operators can easily change the arm rest position in relation to both the seat and the joysticks for better ergonomics.” Safety is further improved with the lock lever auto lock function to prevent unintentional movement. “If the operator has accidentally activated a control during start-up, the machine recognises this and automatically applies the hydraulic lock so that no uncontrolled movement occurs,” Dixon
says. Quick hitch and hammer piping is standard on the PC210LC-11, as is an additional service valve for easy set-up of a proportionally controlled second auxiliary line. Attachment tool management is also available through the monitor panel, enabling an operator to name and set the flows for up to 10 attachments for easy selection when changing out attachments on the jobsite. “The PC210LC-11 also includes the latest developments in our KOMTRAX telematics-based remote monitoring system, ensuring unrivalled visibility into all critical machine and operational parameters,” Dixon says.
$10,000
Komatsu voucher
or 10,000 Airpoints Dollars™ when you purchase a Komatsu PC200LC-8MO or PC210LC-11 Excavator.^ + 3 months deferred payment and 2.39% finance rate.*
0800 556 2878 | komatsu.co.nz Buy Parts Online
Applies to New Zealand Only *Terms and Conditions apply and can be viewed on bit.ly/3bSI9XX *product images for illustration purposes only”. Applies to Komatsu PC200LC-8MO or PC210LC-11 only.
April-May 2021
Components of an effective project culture Following two construction site fatalities in 2009, Fonterra wanted to understand how it could avoid future incidents and develop cultural model to achieve success
MANAGEMENT
Components of the Manuka Project - A daily joint meeting involving all trades to review the day's activities, risks, dependencies and opportunities for collaborative working - Providing meal options on site to encourage shared lunches and increase cross-trade communication - Specialist health services onsite, including a nurse providing regular health checks and workplace support services to assist with mental health or other employee issues (eg. specialists providing support for family or financial issues)
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- Onsite training opportunities, including specialist supervisor training on conflict resolution and communication - Reinforcing cultural values around the site (for example Project Manuka branding and information) and promoting rewards and recognitions (for example:. free lunch to reinforce positive or exemplary behaviour) - The introduction of simple measures, including regular cleaning of site toilets, to make staff feel more valued.
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o improve health and safety at its worksites, the company needed to create an environment that was both physically and psychologically safe. Central to this was changing the culture at its construction sites. The company developed a robust, yet innovative, approach to site culture, worker welfare and project efficiency. To find out the cause of health and safety incidents on its sites, Fonterra embedded a researcher with different working crews in 2009. The company discovered that its leadership decisions were having a direct impact on site safety. The researcher observed staff taking risks and cutting corners. Although construction typically requires a linear way of thinking, Fonterra discovered that cultural change requires a trial-and-error approach. For this method to work, Fonterra needed to become an environment where people feel safe to talk about what's not working. Leaders listened and learned from their staff to understand their needs and what approaches might work on future projects. Improving site culture is based on the theory that a quarter of a project's success is driven by the effectiveness of the design, another quarter by the effectiveness of systems and processes and the remaining 50 percent driven by the effectiveness of the project's culture. To help track its progress to transformational change Fonterra developed a cultural model: - Generative: positive behaviour and safe culture is reinforced by all staff - Proactive: senior leaders
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April-May 2021
look to actively address culture issues - Calculative: rules and compliance procedures are put in place to minimise risk - Reactive: measures are taken to address issues as they arise - Pathological: little care or effort is taken to address issues Project Manuka’s Community of People Fonterra launched its Community of People programme at the Project Manuka site with an investment of $500,000 – half a percent of its $100m site upgrade to two Hawera milk processing plants. While the approach was developed with improved health and safety in mind, Fonterra achieved better project outcomes as a by-product of improving its culture. By focusing on worker well-being and creating an environment where employees from different trades can meet and socialise, the team became more collabo-
rative and efficient. These changes not only made Fonterra’s employees and contractors safer and healthier, but also made its projects more successful. "Health and Safety was promoted by Fonterra by turning it into a Trojan horse for improving productivity through better planning and collaboration, " says Juergen Link, General Manager Assets and Capital Projects. This transformational change has benefitted clients, contractors, and employees. Since launching its approach in 2009, Fonterra has experienced a 93 percent decrease in injuries and incidents on its major construction sites, which would have previously resulted in lost time on projects. "Absolutely without a doubt, the village/family environment is a big success in creating culture change, attitudes towards health and safety and that management do actually care," - says Fonterra Health and
Safety Coordinator Mike Longstaff. Toolbox meetings, involving detailed planning between different trades, has allowed Fonterra to move from a slower, sequential method of working to a faster and more dynamic approach. Contractors have developed positive relationships with Fonterra and see the benefits of the training their supervisors and front-line staff have received. "Project Manuka's Community of People Programme made it possible for the team to work through the incredible stressors of a pandemic. “Resources had been implemented to support the mental health and wellbeing of the staff, which gave the team the tools and motivation to continue during even the most stressful times and conditions," says Craig Waghorn, Apollo Projects Director and Chief Executive. Project outcomes are better, more successful and
more consistent, according to Andrew Grafas, Tetra Pak Processing Key Account Manager. "We still have the usual challenges, but we collaborate better, solve complex problems, work across boundaries and are more respectful of each other. "It has enabled us to develop better eco-systems for our projects, pushed us into new ways of thinking and made it easier for us to listen to each other." As a result of the many benefits available to staff – including improvements to their health, social and cultural wellbeing – workers are incentivised to work harder and ensure they remain on the project. The work site, "is like Disneyland" says one scaffolding supervisor. His team works harder and takes more pride in their work, he says, because they enjoy where they're working. Learn more about the Fonterra approach: read the how-to guide. safetynews.co.nz
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CITIES
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he concept is based on the idea that everything a person needs, from health facilities and schools to shopping centres and community gardens, are available within 20 minutes of their home. It makes for a beneficial lifestyle model that will more than likely be in high demand for some time to come. “People are going to want to work and play closer to where they live, rather than getting on a train to go into the CBD,” Buchan’s Group Managing Principal Bruce Shaw notes. “New mixed-use developments will have to cater for this, pre-empting the rapid progression of the decentralised workplace, as people continue to work from home.” Buchan’s M-City is one such development, eschewing the traditional onebuilding-does-it-all typology in favour of a cluster that boasts three 12-storey residential towers, a retail precinct, hotel, entertainment complex, hospitality offerings and an eight-storey office building. Buchan is hoping M-City will act as the catalyst for the planning of similar developments in the region. And as a model of mixeduse development, it shows just how viable and impactful the typology is when good design is maximised to platform suburban growth areas, the company says. In serving as a benchmark for future developments of this scale, M-City also champions the benefits of living local. Occupying an impressive 35,000 square metres development has reinvigorated the outer Melbourne suburb of Clayton. Shaw and the project 20
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Total living within easy reach The past year has drawn attention to the rise of 20-minute cities as people contend with strict Covid-19 restrictions
team, including Director and Principal Peter Lourey and Associate John Watson, didn’t want M-City to appear as though a singular DNA runs through all the all the architecture. So each building has its own distinct identity that in turn creates a captivating streetscape, not unlike any major metropolitan area. Buildings vary from linear to curved, while the hotel punctuates the overall development with a softly undulating facade emblazoned in bronze. Importantly, there is still visual cohesion throughout, as well as a physical connection via a podium level. The buildings’ different functions are instantly
recognisable, but elements from each tie them together, so they’re not as disparate as to be completely unrelated. This balance between separation and integration was implemented in the master planning process, enabling precincts to harmonise with each other, without detracting from a building’s character or residents’ sense of home. “There’s so much talk around how important remaining local will be moving forward and this project allows for that to happen,” says Watson. “Monash University is a stone’s throw away, you’ve got A-grade office space on site, high quality apart-
ments, there’s amenity in the retail and hospitality offerings and if your family comes to visit they can stay in the hotel. It’s possible to create a community out of developments like this.” M-City’s ambitious scale and complex programme ensure it succeeds on the macro level, while thoughtfully delineated public and private realms guarantee the design remains steadfastly human-centric at the micro. The increased density of large developments like this one combats suburban sprawl, essentially re-designing the way people live and function as a progressive society, the company says.
Mataura Valley Milk seals its success
April - May 2021
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ow the company’s milk production plant is an impressive accomplishment that comfortably justifies its early ambition. Mataura Valley Milk is now benchmarking innovation and performance for other milk plants. Situated north of Gore at the bottom of the South Island, the state-of-the-art facility was delivered ontime and within budget, an impressive achievement for
a greenfield project. “To achieve our goal, we knew that choosing only the best people, partners, and infrastructure was crucial,” says Brent Robinson, Mataura Valley Milk’s Projects Manager. “We’re able to track and trace every ingredient on its journey from the farm and through the facility. “This track-and-trace approach provides complete transparency and trust for our suppliers and customers.
“This visibility also contributes to our innovation programme and delivers great value in terms of R&D and process efficiencies. Data can’t be useful without precision and the Schneider solution gives us all the connectivity and accuracy we need. “The EcoStruxure solution delivers connectivity to all our business layers. It proves itself to us every day as we interrogate data in the MES. We’re able to
fault find and resolve issues immediately, receive alerts on any irregular findings throughout the plant, test and introduce process efficiencies quickly, and positively affect our final product.” says Robinson. A connected and scalable backbone that enables Mataura Valley Milk to seize market opportunities, secure in the quality of its product and the reliability of its infrastructure.
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Building the world’s best nutritional business is the ambitious goal that New Zealand dairy company Mataura Valley Milk set out to achieve in August 2016
April - May 2021
The challenge managing power systems
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Power systems management is one of the key issues facing industry as devices near the end of their supported life, says Steve Hodder
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any companies have insufficient expertise to manage in house or external systems, new technologies and process adoption and multi-source generation. They are faced with the complexities of power management, including a mix of modern and legacy equipment and limited system visibility. Between 10 percent and 15 percent of devices are nearing the end of their supported life, with implications for budgets, maybe already stretched by insufficient use of energy, and asset longevity which is in turn
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affected by power quality and installation. The good news is there is extensive capacity and innovation in New Zealand infrastructure and technology to upgrade power systems management and de-risk systems for the bottom line, customer service and human health and safety. There are four key trends currently facing the industry which works in and around power systems. 1) Observe the macro trends A major one is people, with an aging work force meaning half the experi-
enced people in the industry are due to retire sometime in the next 10 years. Industry needs to invest, to build the talent pipeline and ensure the legacy continues. This trend is followed closely by renewing legacy products (hardware). Assets installed in the 1960’s, 1970’s and 1980’s are coming to the end of their useful life and need to be replaced. Then digitisation. There is unprecedented computing power storage and intelligence, with mobility, cloud and analytics combining to create an extraordinary
degree of control, insight and remote management capacity. Finally, the trend of cybersecurity overarches over all of these, with utilities needing to continually invest in and update cyber-security solutions. 2) Invest in self-healing networks This can be thought of as “adding intelligence to the grid”; smart RMUs (ring main units) can be used to accelerate grid digitisation, a modular platform of hardware and firmware which provide a single solution for control and monitoring of the distribution network. These smart RMUs are a standard product and widely available; that they don’t have to be individually designed saves time and cost and the solution can be implemented quickly. Utilities which have invested in smart RMUs are experiencing a reduction
April - May 2021
3) EcoStruxure is an architecture which integrates and streamlines Think of it as turning data into action. It is one architecture serving four end markets (Building, Data Centre, Industry, Infrastructure) with six domains of expertise (Buildings, Power, IT, Machine, Plant, Grid). Within this structure there are connected products, edge control, apps and analytics – which, much like the self-healing networks, are adaptable to the needs and quirks of individual businesses and divisions. The purpose of connected products within EcoStuxure Grid is to “close the gap” (connect > collect > analyse > take action) by connecting everywhere, collecting or capturing critical data at every level, from sensor to cloud, converting data into meaningful analytics, and driving action through real-time information and
business logic. Examples are real-time alarming to mobile devices and long-term trending of thermal data to detect slow deterioration; and real-time instantaneous temperature measurement via a dedicated thermal connection application on a smartphone or tablet (Asset Connect independently; or Asset Adviser, monitored by Schneider directly). Humidity sensors allow continuous monitoring of temperature for environmental/condensation management. Customers, in particular grid owners, are finding this real-time data invaluable to protect assets and conduct ongoing predictive mainte-
nance. Good data enables good decision making. 4) Connected services are at the heart of effective modern power system management Proper interconnection allows businesses to proactively and efficiently manage their operations on a day-to-day basis, with remote monitoring and diagnoses of problems for corrective action, and different levels of support as required. The installation of base services can overlay and support legacy products without the need for costly full replacement, therefore lengthening the life of existing products. For many
businesses, the model of plan > install > operate > optimise > renew is feasible and a great way to manage capex and opex at a time when budgets and revenue projections might be under pressure or uncertain. Similarly, efficient asset management is crucial, and predictive maintenance can help to reduce downtime. 24/7 connectivity should be a standard feature of modern power systems, providing real-time data in all systems at all times to make better informed decisions. In particular, the technology around protection has leapt forward in recent years, with proven design and experienced being combined with internal arc protection to enhance the protection of people and equipment.
Steve Hodder is general manager of power systems for Schneider Electric New Zealand safetynews.co.nz
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in the duration of potential power outages and have more efficient monitoring and control of predictability. This means faults can be located and isolated faster, while unaffected areas in the network can be re-energised more quickly – in seconds, not hours.
April - May 2021
Repetition key to remembering important safety points There are a frightening number of easily preventable manufacturing workplace hazards with the potential to cause incidents or injuries
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oing over important workplace safety topics will really help to reinforce the message. It is a key reason for companies to host regular safety meetings to discuss manufacturing safety topics and tips. When you are working with a tool day in and day out or doing the same repetitive task over and over again, it’s easy to get complacent and forget about basic manufacturing safety tips. Workers need to be reminded of the most common-sense safety and awareness issues—like
keeping hands away from sharp edges. Because these topics can often be boring or dry, it’s easy to lose employees’ interest—which means your important message is less likely to be received. To keep workers engaged, try incorporating videos, playing a game, breaking into teams for a project or experiment, and encouraging group discussions. There is no shortage of topics available for you to cover, but not all of these subjects will apply for every type of manufacturing. Customise your list of manufacturing safety topics
depending on the industry and the type of hazards your workers are likely to face. What should safety managers cover in terms of workplace safety tips and topics? What points can you talk to employees about, often over again and again, that will drive home important health and safety topics for work, yet keep employees engaged and informed? Equipment use, safety, and maintenance • How and why to keep machine guards in place • Machine operation and
safety • Equipment training and certification • Inspections and routine maintenance • The importance of safe and efficient workspaces Personal protective equipment (PPE) • Different types, purposes, and applications of PPE • How to wear and use PPE properly • Maintaining PPE, and when to repair or replace • Safe disposal of PPE Hazard communication • The dangers of chemical leaks or exposure • Proper labelling procedures • What to do in the event of a hazardous materials incident • Maintaining a library of material safety data sheets (MSDS) Fall protection • How to prevent one of the most common workplace injuries • Falls can happen from heights or ground level • Identifying potential fall risks and risk factors • Integrating fall protection Fire prevention and preparedness • Identifying potential fire hazards • Reducing fire risk • Fire extinguisher training • Escape routes, plans,
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April - May 2021
and responsibilities • Reporting violations and hazards Hazardous waste management • Current hazardous waste regulations, and updates • Disposal protocol for hazardous waste • Best practices for handling hazardous waste • Storage, labelling and inspection Hand safety Cuts and lacerations are among the most common, as well as one of the most readily preventable types of workplace injury, and hands are a worker’s number one tool, so hand safety tips definitely deserve their own section. If you’re planning a hand safety toolbox talk, you can promote and encourage hand safety by discussing these hand safety tips in the workplace: • Choosing the right tool for the job
• Hand safety awareness activities • Checking equipment before starting a job • Proper storage of sharp tools and objects • Safe use of tools or equipment with moving parts • Hand attire—when it’s best to remove jewellery or wear gloves • Staying alert and focused at work • Keep workspaces tidy and organized safetynews.co.nz
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April - May 2021
A wagging tail does not always mean they are happy to see you TRAINING
Dogs can pose a real challenge to those whose job requires them to enter properties, or to workmates if you take your “best friend” to a worksite Advice in a nutshell • Never assume that the dog is friendly or comfortable around strangers • Do not approach the dog or the vehicle it may be in • Watch the dog’s behaviour. Is it showing signs of stress? Is it frightened, uncomfortable or is it relaxed and friendly? • A wagging tail does not always mean that a dog is happy – it shows that a dog
is interacting with something • Do not always believe the owners when they say the dog is fine • Rolling on to their back does not always mean the dog wants their tummy tickled. Depending on what the rest of the dog’s body language is doing, this can be their way of saying ‘I am not a threat please don’t hurt me’ • Ignore the dog
All dogs can bite Listen to the dog Don't judge the breed
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nyone on a property where dogs may be present should know about canine body language. The Dog Safe Workplace gives tools and advice to educate staff on smart behaviour when it comes to canine interaction. “Look at the whole body of the dog not just the tail. Every part of the dogs body is saying something to you,” says Dog Safe Workplace director Jo Clough. “Delivery personnel, for example, tend to think that because a dog’s owner is home, they are safer because the owner knows their dog’s behaviour. One postie in Australia told me that because the dog was running up to him he assumed it was friendly. The owner watched the incident occurred and then said, “he’s never done that before”, which seems to be a very common statement from dog owners when their dog bites someone”. “In fact, many dogs can become more protective if family members are around - and many owners don’t understand what their dog is saying,” says Clough. “I have people say to me all the time that they have had dogs all their life so they know dogs. They may know their dog; but each dog is different. I have had electricity all my life but I still don’t know how it works,” laughs Clough. “Dogs are fantastic at reading our body language but we are not so good at reading theirs.” The Dog Safe programme advises on how to recognise danger and agitation, how to identify subtle warning signs and the best steps to take to remain safe. A recent ACC report says that many industries saw a leap in the number of
April - May 2021
Number of dog incidents by year
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Nationwide, inhouse, online
reported bites that their workers experienced. Dog bites cost New Zealanders over $5.6 million in 2020. “With the Covid-19 lockdown and the inability for people to move around I expected to see a large decrease in dog bites, especially in industry. Unfortunately, that was not the case,” says Clough. “Every year we commission a report from ACC comparing dog bites by age, gender, location and industry. As an example the food delivery industry reported a massive increase of 325%. Postal services went up by 30% and courier pickup and delivery services by 16%. Most bites occurred to people aged between 25 and 29. Auckland, Waikato and Canterbury reported the most bites. “Our frontline staff complete over 10,000 home visits a year,” says Department of Corrections Senior
Analyst Bex Elliott. “The course provided by the Dog Safe Workplace is completed by all frontline staff on an annual basis to ensure they are confident when they arrive at a residence where there are dogs present.,” Sky Television Health, Safety and Wellbeing Manager Brodie Cornelius agrees. “The course is an important part of our health and safety strategy and home visit policy and assists in keeping our valuable frontline people safe.” “The team at Dog Safe Work Place gave our people the ability to identify dogs onsite, understand dog behaviour and the skills to avoid being bitten while performing our work. “We have seen a decrease in dog related incidents and having been a client since 2016 we will continue to work with them to reduce risk,” he says.
Dogs on the work site Many construction companies have banned dogs for Health & Safety reasons. If you are the PCBU (Person Conducting a Business or Undertaking) you can be held personally liable and the fines can be up to $600,000 “Many people assume that because your dog is used to being on a worksite that they are going to be happy to interact with others. This is not always true,” says Clough. If you are permitted to bring your dog to a work site, ask everyone to stay away from your dog and vehicle. “This may sound excessive but if your dog does bite someone then you risk having to have your dog euthanised, says Clough. Joanna Clough +64 274 737 244 jo@dogsafeworkplace.com
As the owner of the dog you are responsible for its actions and you have to ensure that it does not adversely affect the health and safety of other persons “Depending on what is happening around them your usually happy-golucky mate can turn into nervous or frightened dog and make them react in a different manner,” says Clough “It could be as simple as another dog on site, someone carrying an item the dog is not familiar with, a loud noise or a strange vehicle. Potentially they could bite or become aggressive.” “Our advice to anyone entering a property where dogs are present is to ignore the dog. Interacting with a dog can increase your chance of being bitten”. dogsafeworkplace.com Facebook Instagram safetynews.co.nz
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April - May 2021
Training doesn't have to be ‘on the job’ to be hands-on
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Your employees can virtually practice a variety of medium-high risk tasks before they’ve even walked onto your work-site
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irtual Reality Learning Experiences by Goleman (Virtual Reality Training - VRT) is digital simulation of realistic situations for training purposes. This state-of-the-art technology enables you to train and induct your teams safely and cost-effectively. The Virtual Reality Learning Experiences that Goleman offers includes Confined Space, Fire Safety, Excavator Safety, Hazard Detection, Site Induction, Manual Handling and Chainsaw Safety. VR Training Benefits · Lower contractor & staff onboarding costs · Increased engagement of trainees · Reduction in workplace accidents resulting in less down-time · 4 x faster than classroom learning · Saves your company money Award-winning solutions recognised for innovation in safety training Winners Advance Qld Ignite Fund Award 2020 QODE Brisbane – Top 5 Finalists 2020 Contact us today to organise a free 30 day trial on 0508 Goleman or learn more on our website: www.goleman.co.nz 28
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The Lesson - Be Susan. Don’t be Peter.
Peter approaches the training room and sees expectant faces look his way through the glass. Legs jiggle. Eyes dart around the room. Some of the trainees sit with slumped shoulders. Everyone knows the next several hours are going to be tedious. “I have to resist the urge to groan outwardly on these days,” Peter tells us. It’s Monday, the busiest day of the week on-site for Peter and his team, and this Monday, they’ve got the added pressure of a site safety induction to get through. Peter acknowledges that these sessions are important. “Crucial really,” says Peter. “But they’re also boring for everyone involved. They take far too long and there’s too much paperwork and I wonder how much of it they retain as they listen to me drone on and on for hours.” Not as much as they should, Peter admits to us, explaining that costly mistakes still happen. Accidents still happen. “There’s just too much down time with the whole process,” says Peter. Contrast Peter’s experience with Susan’s. Susan has a busy day ahead of her
too and a site to keep running. But she’s not concerned about her safety induction session. She’ll spend 30 minutes outlining how the site induction will be done and showing them how to use their Virtual Training Experience equipment. “They’ll work through the induction modules on their own – experiencing simulated working conditions as they do,” says Susan. Virtual Reality Training does an excellent job of simulating the work environment and Susan’s noticed a sharp increase in the retention of knowledge since the company started inducting people to the site this way. “I’ll pop in and out during the hours it will take them to complete the induction to check on their progress and then have lunch delivered so we can go over their results and any questions they have together,” explains Susan. But the Virtual Reality Experience will also show the inductees where they went wrong as they complete the simulated exercises. Susan says she’ll have the new recruits prepared for working on site in no time and, she says, “I’m confident they’ll be doing so safely.”
April - May 2021
MANAGEMENT
Workplace harassment a complex and serious problem The Ministry of Business, Innovation and Enterprise is studying responses to its paper on workplace bullying
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he paper outlined what is known about the nature and extent of all forms of bullying and harassment at work in New Zealand and looked at how well regulatory systems are preventing and responding to the issues. The report claims that “available research suggests that New Zealand has higher rates of bullying than comparative countries” with some sources suggesting as many as one in five workers may be affected each year. Women and minorities experience the highest levels of bullying and harassment at work. Māori report a higher incidence than Europeans (12.7 percent compared to 10.8 percent). Migrants, trans and non-binary New Zealanders and people with disabilities are also at relatively higher risk of bullying and harassment in the workplace. Industries with the highest reported bullying and harassment rates were health care and social assistance
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(18.8 percent), public administration (18.1 percent), and education and training (14.6 percent), according to a StatsNZ 2018 survey. At the system level, it appears there is scope for clearer and more visible leadership for the prevention of harm arising from bullying and harassment at work. Good practice in addressing workplace bullying and harassment is the right combination of clear guidelines for managers and staff, a culture of respect for colleagues and staff, and a set of workplace procedures to deal with issues as they arise. The paper suggests that workplaces in New Zealand often have one or two of these elements, but rarely have all three. Even more rarely do businesses use incidents of workplace stress or conflict to develop their systems and ensure that managers and staff know how to identify and effectively address workplace bullying and
harassment. When an individual experiences bullying and harassment at work, the impacts often go beyond the work environment, the paper notes. It can also impact their wellbeing in a broader sense through health issues, ranging from anxiety and self-esteem concerns, to stress, depression, post-traumatic stress disorder and suicide attempts. These can limit an individual’s ability to remain in paid work or participate in society. Modify the culture Under the Health and Safety at Work Act (HSWA) businesses have a primary duty to do what is reasonably practicable to ensure the health and safety of workers and others is not put at risk by their work. This means that businesses should have a focus on eliminating or minimising the risk from bullying and harassment at work. This should include risk assess-
ments and management practices to identify factors that may give rise to bullying and harassment, and consideration of how identified risks should be managed. One of the most effective ways to minimise such risks is to review, and modify if necessary, the culture within an organisation. This involves businesses taking a proactive role in identifying potential cultural factors that may give rise to bullying and harassment at work and putting appropriate controls in place to minimise the risks. As the regulator of the HSWA, WorkSafe provides a range of guidance on its website to support businesses with risk assessment and management practices to minimise the likelihood of bullying. An important element that weaves through the process is the need for clear information, training and instruction on identifying bullying and harassment and best practices to pre-
April - May 2021
Safety industry pioneer Safety Nets NZ has developed national standards in association with WorkSafe NZ, ensuring risk from falls is minimised for your construction workforce.
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• New Zealand owned and operated • Nationwide network of local installers • Dedicated to building site safety North Island 0800 NETSNZ (638 769) South Island 0800 NETS4U (638 748)
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vent and respond to it. A relatively high proportion of businesses report that they have risk management practices and/or processes to manage risks to mental health (including bullying and stress) in
place. There are several organisations that provide targeted training and support for New Zealand businesses to help them meet their obligations. The continuing high
prevalence of bullying and harassment at work despite this suggests having a policy in place may not be enough, and that businesses may not be adequately focusing on, or properly identifying and assessing,
risks from bullying and harassment at work, the paper suggests. Defining bullying and harassment Bullying and harassment can be a difficult issue to raise, particularly as workers may be concerned that it could impact their future employment. Sexual harassment can be particularly difficult to raise due to its traumatic nature. In many cases affected parties will choose to leave rather than raise the issue. MBIE cites stakeholder and helpline feedback which suggest that there is still a lot of confusion on what is considered bullying and harassment and what to do when it occurs. Under the Employment Relations Act, employers are required to respond to and address complaints safetynews.co.nz
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April - May 2021 regarding bullying and harassment at work as part of their duty of good faith and to provide a safe workplace. When a concern or complaint is raised, the response taken should be impartial, fair to all parties, guided by the rules of natural justice, and take into account the nature of the issue and wishes of the person who raised it.
MANAGEMENT
Procedural error and good faith Businesses tell MBIE they understand the importance of working through the ‘good faith steps’, but find
the requirements difficult to understand and are aware that if they make a procedural error it may become grounds for a personal grievance. MBIE mentions concerns from employees that rather than a focus on resolution, the issue is often responded to as a legal matter, with investigations focussed on protecting the business. Employees are also concerned around the quality and impartiality of independent/private investigators. If the business does not appropriately respond to an issue raised about bullying
or harassment at work, many workers will simply change jobs. However, if they wish to seek a further response, there are various options a person may take. Often workers are referred to the employment relations system. This system includes the following stages for escalating an issue. Mediation The focus of mediation is to help the parties resolve the problem. It is voluntary, impartial and confidential. Mediation services are available to anyone in a work related relationship
including contractors. The papers reports concerns regarding access delays, the impact and qualification of external representatives, parties feeling pressured into accepting settlement agreements, and the use of non-disclosure clauses in settlement agreements. A common concern was that mediation services are not currently seen as providing low-level resolution services, but viewed as a formal and adversarial process, generally involving lawyers, and focused on negotiating settlements.
Good practice and sound responses Good practice suggests that there needs to be a strong focus on both preventing bullying and harassment from happening in the workplace in the first place and in developing effective systems to respond to incidents that occur. A focus on prevention alone isn’t going to prevent all instances of bullying and harassment in the workplace. Having a good practice for responding to issues is also vital. Good practice for prevention
Good practice for responding
• Provides clear leadership in the health and safety system for the prevention of harm from psychosocial risks • Provides clear evidence-based guidance on how to prevent bullying and harassment • A whole-of-government approach to addressing psychosocial risks at work
• Shaped to allow for and encourage early intervention and early resolution to problems • Fit-for-purpose enforcement tools in place and used • Process and options are clearly defined and widely understood
• A healthy and respectful workplace culture where bullying and harassment is not tolerated • Capable management – in particular, managers and human resources being brained to spot problematic behaviour, and deal with it, early • Strong leadership – role modelling positive behaviours and setting the ‘tone from the top’ • Diversity and inclusion built into businesses • Proper resourcing levels and support, including appropriate staffing levels and clearly defined roles
• Evidence-based policies and procedures in place to manage bullying and harassment • Managers and human resources are appropriately trained to use these policies • Ensuring all staff are aware of the policies and procedures and what to do if they experience or witness bullying • Enough flexibility in response options to appropriately deal with different circumstances or kinds of harassment • Provide support to individuals who are experiencing bullying and harassment or have been accused of bullying and harassment • Processes in place to spot bullying or harassment
• Can identify bullying behaviour and distinguish between bullying and appropriate behaviour (eg, reasonable management action can sometimes be seen as bullying) Individuals • Know how and when it is appropriate to respond to low-level incidents (as victim and as bystander), and have the confidence and support of their organisation to do so
• Awareness of policies and procedures, and where to go for information and support • Effective bystander behaviour (‘active bystanding’ includes report, call out, check in and defuse steps)
System
Business
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Lodging a statement of problem with the ERA The Employment Relations Authority (ERA) is an investigative body with the role of resolving employment issues. Only employees (including homeworkers and persons intending to work) are able to seek a determination from the ERA. Sexual and racial harassment are identified in the Employment Relations Act as grounds for a personal grievance. While bullying is not specifically referred to in the Employment Relations Act, a failure to appropriately respond to, and address, complaints of bullying has been determined to be a breach of the employer’s obligations and therefore grounds for a personal grievance. MBIE raised concerns
regarding the requirement that an employee must raise a personal grievance with their employer within 90 days of the alleged action, the appropriateness of cross-examination for bullying and harassment and the amounts of compensation awarded.
Challenging an ERA determination in the Employment Court If a party does not agree with a written determination of the ERA, they can have the matter considered by the Employment Court. Concerns have been raised regarding the risk of
re-traumatisation when a person is required to repeat their experience of traumatic events if they do escalate the issue through all these stages. WorkSafe New Zealand Alternatively (or in addition), depending on the
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MANAGEMENT
April - May 2021
April - May 2021
MANAGEMENT
nature and seriousness of the issue, a worker may be able to take their issue to WorkSafe New Zealand as a health and safety concern. WorkSafe has a high threshold before it will intervene in cases of alleged bullying at work. A decision to refer a case to investigation requires a specialist medical diagnosis of a serious mental health condition and a link to bullying at work as the cause. The Human Rights Commission New Zealand The Human Rights Act does not deal with bullying or harassment of a general nature but protects people from being bullied or harassed based on a characteristic covered by the Act (such as a disability or sexual orientation). The issue will first be considered by a free, confidential and impartial dispute resolution service. If it is not resolved, the individual can then take their case to the Human Rights Review Tribunal or the Ombudsman. Other alternatives In some circumstances a person may be able to take their issue to the police. The bullying or harassment may be a criminal offence under the Crimes Act if sexual or physical harm occurred, or harassment under the Harassment Act. If the bullying or harassment included serious or harmful repeated communications, it may be covered by the Harmful Digital Communications Act. The Accident Compensation Scheme only covers mental health conditions in limited circumstances (eg, mental injuries due to criminal sexual acts). People who experience mental injury instead generally receive treatment under 34
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Sexual harrassment widely under reported
Sexual harassment fits within broader patterns of bullying and harassment, but also has its own distinct characteristics and impacts. Sexual harassment represents a unique abuse of power at work. Key characteristics of sexual harassment are: • It is unwelcome or offensive sexual behaviour • It is repeated or serious enough to have a harmful effect, or carries an express or implied threat or promise of differential treatment • The intentions of the perpetrator are irrelevant to whether harm actually occurred. The reports says that the limited data the public health system and may be eligible for financial support under the welfare system. For a more in-depth discussion of these topics go to mbie.govt.nz/ bullying-and-harassment-at-work
sources available suggest that sexual harassment at work is a widespread issue in New Zealand. The full extent of the issue is unknown – as with family violence and sexual violence, sexual harassment is believed to be considerably underreported. If an incident of sexual harassment occurs at work, it may be necessary to think about responses in a different way to other forms of bullying and harassment, the report suggests, citing a variety of reasons, including social norms and workplace power imbalances deterring victims and bystanders from taking action and the need to avoid re-traumatisation of victims.
April - May 2021
How sustainable is your spill response?
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offers significant time and cost savings that will keep the financially minded just as happy. Because SpillFix® is super-absorbent, able to absorb between 2.5 - 3 times its weight in a wide range of liquid chemicals (including oils, fuels, paints, solvents and more), users need to use less absorbent material to clean up a spill. This saves time and ultimately means lower cost of disposal.
For those with responsibility for the purse strings these savings are very appealing. Recently, we compared the effort and cost associated with a 200L of oil spill when using SpillFix® vs Zeolite “Kitty Litter”. The results speak for themselves, 63% less product by weight was needed to clean up the spill. It took 39% less time and because less absorbent was needed, the waste dis-
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MANAGEMENT
If your company is looking to improve its environmental credentials, a good place to start is by upgrading your spill response material to SpillFix®
April-May 2021
A major step in the right direction for used tyres Golden Bay Cement has spent $25 million in a project to use shredded tyres in the cement manufacturing process, saving from landfill about half of the 6.3 million used tyres New Zealand generates each year
WASTE MANAGEMENT
M
inister for the Environment David Parker called the project a win, win, win at the opening ceremony in March. The government provided $16 million of the project cost. “This innovative project . . . reduces a significant waste problem, reuses a valuable resource, and reduces carbon emissions by about
13,000 tonnes a year,” he says. Fletcher Building Chief Executive Officer Ross Taylor calls it a landmark sustainability project for manufacturing in New Zealand. Golden Bay Cement is a Fletcher Building subsidiary. “There are no other large industries in New Zealand that can readily or cleanly
Tightly controlled emissions Cement is a fine grey powder largely made from limestone and typically used to bind or harden materials together. Concrete is made from cement, aggregates (crushed stone/gravel) and water. Portland Cement is the most common type of cement used around the world and is made by heating finely ground raw materials, typically clays and limestone, to extremely high temperatures in a cement kiln. After being heated to extremely high temperatures, these materials form small balls called “clinker”, which are very finely ground with gypsum and limestone to produce Portland Cement. Because the tyres at Golden Bay are combusted at very high temperatures, they are completely consumed; the rubber, metal and any ash are combined into the cement. There will be no black smoke or physical waste. The gases released are essentially the same as for coal: carbon dioxide and water with minor amounts of carbon monoxide and other gases and trace quantities of heavy metals. About two thirds of the carbon emissions are released by the raw materials as they are converted into Calcium Oxide, the active ingredient of Portland Cement. Thirty percent of carbon emissions come from the fuels (coal, biomass and tyres) used to heat the cement kiln to the very high temperatures needed for this process. The remaining carbon emissions come from electricity generation. 36
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consume the volume of waste tyres as can our Portland cement plant. “Climate change is an urgent, global priority. The building and materials sector has an important role to play by changing the way that it designs, builds, sources, and manufactures the building materials used in the construction process. “We are serious about transforming our business around sustainability to do our part in creating a sustainable future and reducing our carbon emissions.” Fletcher Building has a verified science-based target to reduce its emissions by 30 percent by 2030.
“Using end-of-life tyres in cement manufacturing helps to solve a significant waste problem in New Zealand as well as improve the sustainability of a key building material. The commissioning of the process also provides a significant commercial and competitive win for the company. Tyres are combusted at around 1,400°C and the rubber, metal and any ash are combined into the cement. It reduces the company’s yearly use of coal for its kilns by 15 percent and the use of iron sands by 5,000 tonnes. Golden Bay is the only
April-May 2021 local cement manufacturer and supplies about 50 percent of the market. “Local manufacturing must compete fiercely with imports, and this investment allows us to continue doing just that. At the same time, we are providing local jobs and supply chain security for the domestic building, infrastructure, and construction industries,”
Taylor says. “Our cement already has around 20 percent lower emissions than imported cement and using tyres is part of the decarbonisation plan to reduce its footprint even further. It will also reduce our need for natural raw materials like iron sands,” says Taylor. www.goldenbay.co.nz
WASTE MANAGEMENT
Michelin leading the way to disrupt tyre industry Michelin is investing in working with the recycling industry to encourage recovery and reuse of end-of-life tyres
T
he group in France is one of the founding members and shareholders of Aliapur, which has been collecting and processing end-of-life tyres for 14 years. In 2017, Michelin acquired Lehigh Technologies, a US company specialising in the design and production of micronized, rubber powders (MRP) derived from recycled end-of-life tyres and other rubber-based industrial products. Last year, through its partnership with the Swedish company Enviro, Michelin confirmed its commitment to a circular economy by making pyrolysis technology available on a larger
scale and announcing the construction of its first plant to process end-of-life mining tyres in Chile. The technology, patented by Enviro, transforms endof-life tyres into high-quality raw materials which can be reused in the manufacture of new products. Michelin is providing a brand new end-to-end recycling solution that consists of collecting endof-life tyres from mining customer sites, transporting them to the plant to be cut and then pyrolysed and, ultimately, reusing the pyrolysis products in a variety of applications, including the manufacture of new mining tyres.
Located in Chile’s Antofagasta region, the new plant will be able to recycle 30,000 tons of earthmover tyres a year, or nearly 60 percent of such tyres scrapped every year nationwide. More than $30 million will be invested in building Michelin’s first new-generation end-of-life tyre processing plant. Work will begin this year, with production scheduled to get underway in 2023. The recycling plant will support the circular economy with innovative recycling processes. Scrap tyres will be collected directly from customer premises, then transported to the
Lehigh Technologies designs and produces highly engineered recycled MRP, a high-performance, long-lasting, lowcost material that can replace other nonrenewable raw materials commonly used in the manufacture of tyres, plastics, asphalt and construction materials plant to be cut up and recycled. Enviro’s technology, which produces new, high-quality reusable materials like carbon black, pyrolysis oil, gas and steel, will enable everything in an end-of-life tyre to be recovered for reuse. Current plans call for 90 percent of the recovered materials to be reused in a variety of rubber-based products, such as tyres, conveyor belts and anti-vibration products. The remaining 10 percent will be reused directly by the plant to generate its own-use heat and power. safetynews.co.nz
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April - May 2021
The great unlearning Safety News and AsiaPacific Infrastucture publisher Mike Bishara accepts an invitation from Optimum Training to join a four-hour safety training session
TRAINING
I
harboured a fervent hope that 25 years of development and refinement of Wayne Milicich’s injury prevention model might contain a few surprises. The prospect of four hours in what I suspected could be a moralising lecture about how to lift a box was not enthralling. I could see, as we shuffled into the training centre, that the rest of the class felt the same, with a range of resigned, bored and cynical faces. We were wrong. Boy, were we wrong. Participants soon learned “it was all about them” and their individual quality of life. And how 30 seconds after the training would break the harmful muscle memory that had taken over the way we did things. “The programme is about unlearning what we learned between the ages of about eight to 13 years old and restoring all the movement patterns that we learned naturally during the first five to eight years of our life,” says Milicich. For example, children all demonstrate best balance, unlike most adults. About 80 percent of the adult population “half breathe” from the apical area of the lungs as opposed to the diaphragm and lower lobes of the lungs, according to Milicich. “Children all naturally breathe from their belly, diaphragm, unless they are stressed.” The most hardened cynics in our group quickly became engaged in the programme through a series of 38
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Click here for more information
Optimum Training manager Dwane Stewart with an eager team of learners practical truths, illustrated by a range of interactions, sometimes with a workmate. We emerged half a working day later wondering who to sue for the preventable harm I have inflicted by following instructions. Life quality did not require lifetime dedication, just a reordering of basic instincts and tossing out a few myths. For our group, the quality of life had become anchored forever around balance and the 70/30 weight split between heels and toes. We were converts to breathing out like weightlifters, sticking out our butts and letting tummies and abdominals do their thing - we discarded posture misinformation and stress and replaced it with comfort, a safe and secure back and no pain. Optimum’s programme is of suggested solutions, not imperatives. “When we do this training, it is to benefit the individual. The company
clips the ticket and gets a benefit only when the individual benefits.” “You cannot stand on a platform and tell people they are wrong. When a person’s belief is challenged, they will do anything to defend that truth as it is what they believe and know and have lived by. The only way to expose the false belief is to lead someone to find the truth for themselves. In most cases following instilled poor habits is akin to
tapping yourself lightly on the head with a hammer for years. Do it enough times and you will end up permanently damaged. You cannot separate work safety and whanau safety – they are two sides of the same coin, according to Milicich. Health and safety at home and work are just a component of our life quality. Not something that is separated out with its own rules to be applied at specific times and locations. To a person, we emerged
70/30 balance is at the core of a quality of life
ready to retrain our misguided muscle memory with the 30-secondsa-day-worth of drills to reprogramme our muscle memory that had taken us just four hours to master. “The training empowers people to work out the truth for themselves and trust themselves. You are the only person who can determine what works best for you. Trust yourself to make a good call,” says Milicich. With no pen, paper or tables in the room, this programme is “pure adult facilitation of kinesthetic learning followed by cognitive understanding. It is simple to restore what was once in the muscle memory when we were five to eight years old. The original neural pathways just open up again,” he says. We learned and now retain what we learned. “Stress is recognized as a major cause of MSD and auto-immune disease. We help people understand how their body manifests stress and equip them with the understanding and tools to manage themselves during stressful times,” says Milicich. Optimum’s facilitation process has four specific steps. When applied correctly to the session, most often the learner has no idea of what
has happened, but they do recognise that their life has changed for the better. Our session began with participation exercises which showed the overriding importance of balance. The 70/30 rationale was enough to consign to the bin, along with a flurry of other medical myths, the long-held and totally wrong “bend your knees and keep your back straight” doctrine. It soon became apparent why Optimum’s quality of life programme is used by many of the country’s most astute corporations in an age where time “off the floor” is critical to the bottom line and many companies look only to tick the boxes of compliance. The benefits are equally cost effective, available and absorbed by SMEs. My class had only nine other participants so having a cast of thousands is not essential – or even recommended. “Move Smart Think Smart is about addressing the underlying causes of muscle and joint pain that occur as we interact with inert objects both at work and at home. Home injuries affect the workplace. Workplace injuries affect the home and family,” says Milicich. “Either way the quality
of life of a person is compromised. The traditional medical model calls the problem ‘nonspecific back pain and occupational overuse’. In fact, the pain is about inadvertent personal misuse of the body -- it is very specific.” The bio-medical model reckons back pain is normal. “No, it is not normal,” says Milicich. “It is common, and the medical model is unwittingly part of the problem. “Good posture” is nothing more than an old wives’ tale based on the military model of control and it is still believed today. A teacher tells children to sit up straight as a means of controlling the class. It is now portrayed as good posture. “The medical field is littered with information and advice that was eventually proven wrong and retracted. Some of our western cultural beliefs are based in nothing more than decades or centuries old beliefs and mores. The sad thing is that more than 80 percent of MSD's are inadvertently and unwittingly self-inflicted. People hurt themselves as they interact with inert objects, and they don't even realise it, says Milicich. “The only way a box can hurt someone is if it is flying
through the air and strikes them. Or if it is moving on a conveyor and they put their hand where they should not. A spade and the ground are both inert. To suffer pain while digging a hole is the person hurting themselves as they interact with the spade and ground. The pain is a direct result of poor skills and technique of movement -- self-inflicted pain. Most people blame something or someone for this self-inflicted injury. At that point, only the symptom can be addressed with drugs and therapy. The problem returns as they repeat their old thinking and poor technique once the symptom has eased. “No one deliberately hurts themselves. Given the opportunity, everyone makes the right choice,” says Milicich. To a person, everyone was engaged for the full duration of training, always relevant, interesting, practical and beneficial to each person. We felt equipped and empowered to take back responsibility for ourselves. I personally still muse over and apply the learnings. My years of knee pain has gone.
30-second daily drills to re-programme muscle memory
Wayne Milicich 07 8583040 027 291 1829 www.otl.nz Representatives NZ wide safetynews.co.nz
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TRAINING
April - May 2021
April - May 2021
CHEMICALS
W
hile 130,000 businesses are reportedly captured by the Hazardous Substances and Major Hazard Facilities regulations, the official mantra of “600-900 persons seriously harmed each year by unwanted exposure to chemicals in their workplace” presumably applies to all of the country’s 530,000 workplaces. Downgrading the flawed but effective HSNO Certified Handler requirement has inadvertently undermined an invaluable capability. The action deprived businesses, particularly SMEs, of an immediate and recognisable source of workplace chemical safety and compliance advice -- a safe chemical handling capability and emergency response knowledge – critical when a chemical incident occurs. PCBUs and SMEs must now devise their own solutions to ensure employees are competent to safely handle the chemicals with which they work.
So where to from here? Responsible Care is a global voluntary chemical industry initiative developed autonomously by the chemical industry for the chemical industry. Chemical suppliers continue to help customers achieve workplace chemical safety aspirations through product stewardship initiatives. To help solve the in-house chemical compliance dilemma in New Zealand, Responsible Care NZ (www. responsiblecarenz.com) delivers specialist and cost-effective Certified Handler standard training, complete with a certificate. Internationally, chemical industry leaders are moving away from relying on 40
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Chemical industry leads by example
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The chemical industry continues to lead by example, helping to ensure essential chemicals encountered at work and at home are safely managed - safeguarding employees, communities and our environment lagging indicators of safety performance in favour of identifying safer work practices and workplaces, by responding to workers’ suggestions about improvements. WorkSafe NZ has warned against business operators falling victim to uninformed and always expensive ‘consultants’. Responsible Care NZ site compliance assessments are non-threatening, effectively capturing and assessing chemical safety performance in a variety of workplaces. Conscientious business operators can add value by sourcing accurate, cost-effective workplace chemical safety advice and compliance tools from their suppliers, industry partners and Responsible Care NZ. The core problem Hundreds of business operators turned out for a free Responsible Care NZ compliance workshop, eager for accurate and practical advice, indicating an unsatisfied demand for assistance and education. Attendance highlighted the need to provide SMEs and others with the ability to access, correctly interpret and successfully implement complex regulations with clear and concise compliance advice. Inviting enquirers to “read the regulations” is falling
well short of the industry educational expectations arising from WorkSafe’s Statement of Intent 2016-2020. A proven strategy is government agencies collaborating with proactive industry associations to best achieve workplace safety aspirations. The problem is that SMEs rarely join associations. However they all obtain their chemical requirements from suppliers and can benefit from product stewardship advice and cost-effective industry compliance initiatives. Responsible Care NZ extols less regulation in favour of enabling business operators to be increasingly self-sufficient, using cost-effective products and services such as site compliance assessments and specialist training. The focus is keeping people safe around the chemicals we encounter every day, by once again adding value to businesses. Proven, collaborative and cost-effective initiatives to raise awareness and improve workplace chemical safety performance include: • Joint agency and industry-focused local compliance workshops at times convenient to SME operators. • WorkSafe NZ inspectors distributing free copies of user-friendly ‘compliance
tools’ such as the Storage of Hazardous Substances HSNO Approved Code of Practice and posters explaining GHS pictogrammes • Supporting industry initiatives such as product stewardship • Referencing industry ‘compliance tools’ • Upskilling workplace inspectors in chemical safety. • Encouraging ‘no blame’ reporting of incidents • Acknowledging successful, proactive industry compliance initiatives • Restoring the status of Approved Industry Codes of Practice A refreshed and energized government strategy for improving workplace chemical safety is both welcome and essential if we are to significantly improve sub-standard performance and learn from our successes and shortfalls. Expanding mutually beneficial government- industry partnerships helping business operators ‘do the right thing’ with minimal fuss and expense should be ‘a no brainer’. Chemical suppliers are ‘Impatient optimists’. They know we can all collectively do better through continuous improvement. +64 4 499 4311 info@responsiblecarenz.com www.responsiblecarenz.com
April - May 2021
WALK AND
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No worries about penalties – just accurate compliance advice to enable the safe management and handling of hazardous substances and dangerous goods in your workplace.
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Yearbook 2021
Trends of New Zealand’s core industrial and commercial Sector
Sponsored Article
For blue collar workers looking to increase their hourly rate, gaining higher qualifications may not be the answer. Experience, tenure, location and tradespecific training are all more likely to contribute to a higher wage - as is gender
WAGES
T
his result comes from OneStaff’s comprehensive What’s My Rate? New Zealand Industrial and Trades Wage Report 2021 which analysed key trends in Construction & Infrastructure, Engineering, Manufacturing, Production & Logistics, Trades & Services and Commercial & Hospitality. The report surveyed over 6,000 participants from across the country, and revealed that: 1. There is little difference in median pay between different generations. 2. Companies place a higher value on highly experienced people and fresh talent, and less on those somewhere in between. 3. Those with trade-specific training tend to outearn those with almost any other qualification, including Masters degrees. 4. The gender pay gap between men and women has widened since last year - from 17% to 18%. 5. NZ’s biggest cities are not always the place to be to earn more money - in fact, Northlanders earn the highest average wages. 6. No respondent group felt that their wage was fair, with the average worker thinking they should earn $4 per hour more.
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The Gender Pay Gap Each year OneStaff’s research uncovers the evolving trends of women in NZ’s blue collar industries. This year, researchers noted that while the overall representation of women in their survey grew from last year (now nearly 28% of workers in this area identify as female), the gap in pay widened. This disparity is at its worst in the Engineering sector, where there exists a 46% gap between men and women respondents. At the other end, median pay is at its closest in Commercial & Hospitality, where men earn only 4.5% more.
Pay not the only problem to be addressed One of the startling realisations from OneStaff’s research is that there is a major sick leave problem in the surveyed sectors. Respondents were asked how likely they are to take sick leave if they felt ill, and a third said they weren’t sure. Nearly a quarter more said they knew they wouldn’t - meaning over half of all Kiwi workers are likely to come to work even if they aren’t well. The survey also broke down this data to see which groups were more or less likely to take sick leave. Whether male or female,
young or older, the results were the same. Respondents said that they felt there just wasn’t enough staff for them to justify taking leave, while many more said there was too much work on. Given we’re living in the highly health-conscious COVID-19 era, this should be a wake-up call for managers around the country to investigate their companies and determine just how willing their staff are to stay at home when ill. They may need to make significant changes, for the good - and safety - of their workplace. For more detailed insights, download the latest What’s My Rate? report for free
April - May 2021
Blended learning Save time with the Red Cross blended pre-course learning approach
TRAINING
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he NZ Red Cross First Aid App now provides you with pre-course learning, which goes towards successful completion of an NZQA accredited first aid certificate. With guided interactive learning, including videos and animations, use the app to learn and understand the basics of first aid. Complete the app learning by fully reading the ‘Learn’ section and successfully completing the app tests. Unlock badges along the way to record your achievements. Learn at a time and location that is convenient for you and reduce time spent away from work. Once you have completed
your pre-course learning, book your skills workshop to complete your training. Face-to-face workshops Attend the practical skills workshop with a NZ Red Cross instructor to gain your certification. - Learn how to apply DRSABCD - Practise CPR on adult, child and infant manikins - Hands-on scenarios - Learn how to use an AED - Practical assessments E-learning options All the app badges must be unlocked prior to attending the skills workshop. Bring your phone or tablet to verify your achievement. • Unit Standards 6402,
6401 and 6400 (equivalent to comprehensive first aid) Workplace First Aid app pre course learning + 8 hours skills workshop • Unit Standards 6402 and 6401 (equivalent to essential first aid) Practical First Aid app pre course learning + 4 hours skills workshop • First aid revalidation: Workplace Revalidation app pre course learning + 4 hours skills workshop
What is E-learning? E-learning enables learners to gain knowledge across several learning platforms. Some of the content and interactions are accessed on mobile devices such as smartphones and tablets. E-learners can then use this technology in their own time and place and at their own speed – anywhere and anytime. Is E-learning a recognised learning pathway? Yes it is. Research shows that people use mobile devices more frequently today than personal computers, using their devices to access the internet for information as and
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when required. Mobile devices using apps often do not require access to the internet as the learning content is stored within the device. There are numerous published papers that support the view that learning within this mobile environment is well controlled, ensuring the learner has access to accurate information. There is also evidence that the learner feels more confident in their own environment working at their own pace. The app provides emergency information in a succinct and easy-to-use format as well as being a useful first aid learning tool.
Available Courses • App - Essential First Aid: Complete your precourse learning using the First Aid and Emergency App followed by a 4-hour classroom session • Online - Essential First Aid: Complete your online pre-course learning followed by a 4-hour classroom session. • App - Comprehensive First Aid: Complete your pre-course learning using the First Aid and Emergency App followed by an 8-hour classroom session. • Online - Comprehensive First Aid: Complete your online pre-course learning followed by an 8-hour classroom session. • App - First Aid Revalidation: Complete your precourse learning using the First Aid and Emergency App followed by a 4-hour classroom session • Online - First Aid Revalidation: Complete your online pre-course learning followed by a 4-hour classroom session. redcross.org.nz/ corporate-bookings/ blended_learning
Yearbook 2021
FETS (Fire and Emergency Training Solutions Ltd) is your workplace safety partner. We are in business solely to help you keep your team safe from harm through education and training. We are flexible and can adapt quickly to your requirements. We focus on three main areas: Avoiding accidents in the workplace and at home by educating your team in safe practices for: • Confined Space Entry
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Both as a business or a team member in the workplace: • Preparedness training for your emergencies • Risk Assessment • Training material tailored to your organisation • Nationwide delivery of training • Consultancy for emergency response / evacuation plans
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Contact us Ph: 04 939 2669 45 www.fets.co.nz safetynews.co.nz
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WORKPLACE FIRST AID
Be proactive
April - May 2021
MANAGEMENT
ACC tackles S hidden cost of building boom Jono is is part of the hidden cost of New Zealand’s building boom - one of the 48,650 injured construction workers that ACC supported last year at a cost of $153 million
“Your body is your business and if your body is stuffed you can’t run your business,” says Jono van Echten. ACC helped him get back to work and he now thinks twice about the risks of the job and encourages his work mates to do the same. 46
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caffolder Jono had suffered through 10 years of back injuries before his back gave way while doing a simple load of laundry just before last year’s Level 4 lockdown. “I couldn’t feel my legs and I thought I was paralysed. I thought, this might be it. I was scared because I have a four-year-old son,” he says. "Scaffolding is a bit rough on the body. It’s heavy equipment, but we lift and carry with good techniques. Doing it all day, six days a week, you need to do it right. Sometimes a slip, or being off-balance, means you get a tweak or a strain. It’s common on a building site or lugging up a hill.” "I think we condition and harden ourselves, but at the same time it’s the things you don’t expect that may do you in. In my case lifting a laundry basket." Injury claims have risen 7.5 percent in the past five years while costs have surged almost 38 percent. In that time, 29 people died on building sites, making them the deadliest workplaces after agriculture, forestry and fishing. There were 39,881 new homes consented in the 12 months ended 31 January – up 32 percent from five years ago and just 144 fewer than the record set in 1974, according to Stats NZ. Construction jobs rose by 21,000 to 278,300 last year, based on the Household Labour Force Survey. Jono, who says his back is still “niggly”, now works as a scaffold inspector for Workzone Scaffolds in Lower Hutt, part of NZ Scaffolds. His back injuries have forced him to listen to his body. He’s taken up ocean swimming, yoga, stretching. He’s trying to eat better. “When I first came into
the game there was a big macho culture. But it only takes one injury to stuff you up really bad. You’ve only got one body, you’ve got to look after it,” the 33-yearold says. The high injury rate is a key reason why ACC has just entered a new partnership with Construction Health and Safety New Zealand (CHASNZ), an industry-backed charitable trust dedicated to improving health and safety in the construction industry. The $3.5 million investment for the first two years of a five-year partnership will allow CHASNZ to ramp up health promotion and protection initiatives, to reduce the harm caused by occupational illness and injury in construction. “Many of the injuries are preventable,” says Virginia Burton-Konia, ACC Injury Prevention Manager – Workplace Safety. “Partnering with CHASNZ enables the construction sector to make workplaces significantly safer. Workers and their whānau benefit from fewer injuries and fatalities and businesses benefit from increased productivity and enhanced reputations as being businesses that care for their people.” Chris Alderson, chief executive of CHASNZ says the partnership aims to create a step change in health and safety culture and performance over the next five years. “We want all construction workers to go home safe and well at the end of every day and we’re working with industry to identify and provide guidance on best practice health and safety.” Some 70 percent of claims from scaffolders are for sprains and strains – injured shoulders, backs, knees
April - May 2021 and ankles. Workzone Scaffolds has developed a health & safety ‘toolbox’ as part of increased efforts to keep their workers in good shape mentally and physically. Parent company NZ Scaffolding Group is part of a new taskforce looking at
muscular-skeletal injuries among scaffolders that involves CHASNZ, WorkSafe, ACC and Scaffolding, Access and Rigging New Zealand (SARNZ). The taskforce hopes to develop a template that can be used across the construction sector.
An ACC subsidy helps SMEs in construction and manufacturing gain access to qualified health and safety professionals through the HASANZ register
K
ey Commercial Interiors Director Kevan Brown says meeting health and safety requirements while running his busy commercial interiors business was no easy task. “Health and safety is important to me because it keeps all our staff and contractors safe,” Kevan says. “It also positions us well with clients – they want assurance that their main contractor has health and safety sorted on site.” Kevan says he tried a number of approaches to improve the company’s health and safety systems. “But the bottom-line was, whatever we looked at doing, it always came back to me as the person in charge to make the final decision. And with no formal health and safety training, I struggled with knowing if it was the right thing to do.” He made contact with Margaret van Schaik, who is on the HASANZ Register of verified health and safety professionals. “The first thing Margaret did was get our documentation up to standard. Then she helped us work with
our contractors to make sure their documentation was legal and met clients’ requirements. That was a huge challenge.” Margaret then looked at pragmatic ways to integrate health and safety into everyday operations, to make it easier for people to do what they needed to do. For example, she suggested the company adopt a low-cost app to streamline onsite documentation. “In the past documents often got lost on site. Now the information is on everyone’s phone, in their pocket.” Kevan says having a professional advise him on good practice has been a huge relief. “Under the new legislation, we all have new responsibilities. Margaret has helped me sort that out, which has been a huge relief and has taken a lot of pressure off me.” “It’s helping to keep our staff and contractors safe on site. And it’s providing peace of mind for our clients.” Find out about ACC subsidies at hasanz.org.nz safetynews.co.nz
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MANAGEMENT
Good advice gives contractor peace of mind
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Yearbook 2021
Policy changes tackle housing crisis $3.8 billion towards new houses, a crack down on investors and more assistance for first home buyers were big items in the Government’s latest housing announcement, but did they get it right? Policies summary
RESIDENTIAL
• $3.8 billion fund to accelerate housing supply in the short to medium term • More accessible First Home Grants and Loans with increased income caps and higher house price caps in targeted areas • Bright-line test doubled to 10 years with an exemption for new builds • Interest deductibility removed for future investors and phased out on existing residential investments • Kāinga Ora to borrow $2 billion extra to scale up at pace land acquisition to boost housing supply
T
he Government hopes these measures will increase the supply of houses and remove incentives for speculators, aiming to deliver a more sustainable housing market. “This is a package of both urgent and long-term measures that will increase housing supply, relieve pressure on the market and make it easier for first-home buyers,” says Prime Minister Jacinda Ardern. “There is no silver bullet, but combined all of these measures will start to make a difference.” The new housing package includes: • $3.8 billion fund to accelerate housing supply in the short to medium term • More accessible First Home Grants and Loans with increased income caps and higher house price caps in targeted areas • Bright-line test doubled 50
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to 10 years with an exemption for new builds • Interest deductibility removed for future investors and phased out on existing residential investments • Kāinga Ora to borrow $2 billion extra to scale up at pace land acquisition to boost housing supply $3.8 billion housing acceleration fund The Government estimates the Housing Acceleration Fund will help green light tens of thousands of house builds in the short to medium term. “Investment in infrastructure has been identified as one of the key actions the Government can take to increase the supply of housing in the short term,” says Housing Minister Megan Woods. “This fund will jump-start housing developments by funding the necessary services, like roads and
pipes to homes, which are currently holding up development. “The Government will also assist Kāinga Ora to borrow an additional $2 billion that will assist in bringing a range of development forward through strategic land purchases.” Infrastructure New Zealand says the new $3.8 billion Housing Acceleration Fund will help address short to medium term infrastructure barriers to housing, but only if it is integrated with a visible, committed and sequenced pipeline of projects that encourages industry to invest, scale up and lift construction sector productivity. “There is a risk that new investment starts competing with existing commitments to the NZ Upgrade programme, shovel ready projects, rising three waters commitments and other critical initiatives,” says
Infrastructure New Zealand Policy Director Hamish Glenn. “To avoid competing for the same fixed pool of labour and other resources, it is extremely important that visibility of the forward work programme is improved. “Designers, architects, contractors, subbies and the raft of other critical service providers who take each project from idea to reality need to understand what’s coming up not just in the next 6 months, but over 3-5 years and beyond if they are to invest in the systems, skills and capacity to meet a growing workload. “For this reason, it was also very positive to see that the Government will boost apprenticeships. “But the sector still needs better clarity of when projects will be brought to market and confidence that timeframes and priorities will be predictable.
Yearbook 2021
A helping hand for first home buyers Property investors currently make up the biggest share of buyers in the market. Finance Minister Grant Robertson says it’s essential the Government takes steps to curb rampant speculation. “Extending National’s bright-line test and removing interest deduction loopholes for investors will dampen speculative demand and tilt the balance towards first home buyers,” he says. The bright-line test extension means any capital gains on a residential property that is not a family home will be taxed if the property is sold within 10 years of purchase. The Government has also made changes to the Home Start subsidy scheme, which enables qualifying first-home buyers under certain income caps to receive a grant to purchase property under set regional price caps. Income caps to get financial assistance will be lifted from $85,000 to $95,000 for single buyers, and from $130,000 to $150,000 for two or more buyers. Changes to regional price caps on new build and
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“Project sequencing which avoids market participants from competing for the same pool of labour and which encourages companies to invest in training and productivity is critical, as is progress on getting skills which can’t be sourced locally into the country. “New Zealand’s infrastructure and construction sector can meet the challenge, but can meet it faster and more affordably with a clearer sightline of the programme ahead,” Glenn says.
Regional Price Cap Changes Location
New Build
Existing Build
Auckland
$700,000 +$50,000
$600,000 +$25,000
Queenstown Lakes
$650,000 No change
$600,000 No change
Wellington City, Hutt City, Upper Hutt City, Porirua City, Kāpiti Coast District
$550,000 +$100,000
$500,000 +$50,000
Nelson City, Tasman District, Tauranga City, Western Bay of Plenty District, Hamilton City
$550,000 +$50,000
$500,000 +$25,000
Christchurch City, Selwyn District, Waimakariri District
$550,000 No change
$500,000 No change
Waipā District, Hastings District, Napier City
$500,000 +$100,000
$400,000 +$125,000
Waikato District, Dunedin City
$500,000 +$50,000
$400,000 +$25,000
Rest of New Zealand
$500,000 No change
$400,000 No change
existing properties will also reflect the increased price of housing. (See table opposite) “This package of measures will help first home buyers into the market and boost activity,” Megan Woods says. From 1 April, both the income and house price
thresholds will be lifted, making more first-home buyers eligible for Home Start. Century 21, along with REINZ, have long been calling for the Home Start grant to be updated and made fit for purpose. “As the market rocketed, we saw fewer and fewer
properties and first-home buyers qualify, which was killing the Kiwi homeownership dream for many,” says Century 21 New Zealand owner Derryn Mayne. “Eligibility in Auckland in particular, became almost impossible.” In the 12 months to February, Auckland’s median safetynews.co.nz
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RESIDENTIAL
Yearbook 2021 house price increased by 24.3% to $1,100,000. Yet for first-home buyers in Auckland to qualify for Home Start they needed to buy an existing property for $600,000 or less, or $650,000 for a new build. Last year REINZ revealed that only 12% of Auckland properties sold were below the Home Start price cap threshold. That number would’ve only reduced since. “In many ways the market has run away from firsthome buyers. While these adjustments to Home Start won’t be enough for some people, it’s definitely a step in the right direction and will undoubtedly enable
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more young Kiwis on the property ladder,” says Mayne. It is worth noting that price caps in Queenstown-Lakes, Waimakariri District, Selwyn District, Christchurch City and ‘the rest of New Zealand’ will all remain unchanged. Currently, only 12% of properties sold in the Queenstown-Lakes District fall below the $650,000 threshold and only 11% fall below the $550,000 threshold in Selwyn District, according to REINZ. What will change for investors CoreLogic Senior Research Analyst Kelvin
Davidson sees the most significant measure being the removal of interest deductibility. The new policy stops investors from offsetting mortgage interest against tax. This applies to new investors immediately, and will be phased over the next four years for existing landlords. New-builds will be exempt from this tax change, however. The Government says this change will “remove the advantage investors have over first home buyers.” Their aim is to reduce investor demand for debt-driven residential property investment over “more fully taxed and more productive
investments.” Davidson says there is no doubt this will deter some would-be new investors and could cause some existing investors to sell. “It certainly helps to improve financial stability, by ensuring that investors put in more equity in order to keep interest costs low – that may benefit experienced investors at the expense of newer landlords, and could see the ownership of rental properties slowly become more concentrated.” Despite the crackdown on investors, Davidson says there weren’t any obvious ‘carrots’ for investors to divert money towards other asset classes – e.g. such as tax breaks for extra deposits into KiwiSaver funds. There was also no mention of any possible restrictions on interest-only lending (and maybe caps on debt to income ratios) for investors, but are in the pipeline from the Reserve Bank in May. These changes to took REINZ by surprise. Acting Chief Executive Wendy Alexander says this will completely change the financial dynamics of investing in residential property. “Currently you can use the interest deductions as a legitimate property cost, however, this will no longer be allowed from 1 October this year. “In our view, people are likely to already be wary about investing in rental property given the changes to the RTA and the prior removal of ring fencing, however, this is likely to exacerbate concerns around investing in rental property and may see investors considering whether they can get better returns elsewhere. “Many landlords are likely to increase their rent in the
coming years as they look to offset the costs, thereby making rentals even more unaffordable than they are currently and making it even harder for renters to save a deposit for their own property. “There is also a chance that a handful of unscrupulous landlords might look to even profit from the situation.” What more could the Government have done? “Extending the bright-line test will not be a magic bullet in terms of solving New Zealand’s housing affordability issues, nor will it do anything to increase the supply of houses,” says Alexander. “In actual fact, what it’s likely to lead to is residential property investors holding on to their properties for even longer in order to avoid paying tax, thereby further reducing the total pool of properties available in the market. “New Zealand has had an issue with a shortage of housing for a number of years now. What we need is
to be able to build at scale and speed in an affordable manner, and in locations that are important to Kiwis e.g. close to transport hubs and amenities such as cafes and restaurants.” Property Council New Zealand Chief Executive Leonie Freeman agrees that supply is the main issue. She says the brightline test extension may signal a decline in ‘flipping’ houses, but it does little to address the cause of the crisis – which is there aren’t enough houses for Kiwis in need. “The Government has pulled just one lever in the vast dashboard of push buttons they have at their disposal, but they have failed to address the issue of supply. “Instead, they have fallen back on the previously disbanded idea of a tax on capital gains – which is effectively what the brightline test will be – a tax on capital gains that will increase costs but do little to provide homes for everyday Kiwis. “While we’re pleased to
see moves to incentivise Councils and the Crown to free up more land in the form of a $3.8 billion Housing Acceleration Fund, it remains unclear how and when the Government plans on getting these funds to those who actually build and develop housing,” says Freeman. The Property Council is calling on government to prioritise other measures to address the housing crisis and clarify their intentions to ensure industry and policy makers are working in concert, including: 1) Urgent Resource Management reform to simplify the planning and consenting system, freeing up land to building houses more efficiently and reducing the costs of housing right across the housing continuum. 2) Considering interim measures to speed up supply, using the fast-tracking legislation more generously or adopting a similar approach to that taken in Christchurch post-quakes. 3) Clarifying whether Build-to-Rent housing will
be included in interest deductibility and brightline issues. Build-to-Rent housing will need to play a greater role in the rental solution and cannot afford to be scuttled before it’s truly got off the ground. “Investing more into speeding up developments is welcome news, but such investment needs to get into the hands of builders and developers sooner rather than later. This, coupled with using the Resource Management fast-tracking legislation and embracing the potential of Build-to-Rent housing would speed up the construction of housing in New Zealand. “Solving the housing crisis is not a matter of pulling one or two levers and expecting a wave of change. Development and construction take time, the development pipeline can take decades. The only way to guarantee success is if government and industry come together to utilise our collective experience to address each issue in harmony”, says Freeman. safetynews.co.nz
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Yearbook 2021
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April - May 2021
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TRAINING
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April-May 2021
Picking up the pieces
CONSTRUCTION
A strong infrastructure-related construction sector is essential to delivering New Zealand’s infrastructure pipeline
The impact of COVID-19 has made 2020 the most turbulent year in recent history for the infrastructure-related construction sector. Measures aimed to slow the spread of the virus resulted in an unprecedented decline in construction activity. The restrictions associated with Alert Levels Three and Four had an immediate impact on the Sector and exacerbated existing challenges. Construction activity declined by 27 percent over Q2 2020 as the Sector felt
T
he New Zealand Infrastructure Commission (Te Waihanga) commissioned Deloitte to undertake a COVID-19 recovery study of the infrastructure-related construction sector The study says a strong infrastructure-related construction sector is essential to delivering New Zealand’s infrastructure pipeline. A strong sector will be essential to the COVID-19 recovery, ranking amongst the top in its ability to boost economic activity and create jobs. The sector is a major contributor to economic activity in New Zealand, accounting for 6.9 percent of GDP and 10 percent of total full-time equivalent jobs in 2019. The outlook for the sector was relatively positive prior to COVID-19. In the MBIE 2019 National Construction Pipeline forecast, horizontal
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the effect of lockdowns and restrictions. While the sector had the highest proportion of supported jobs from the wage subsidy, productivity, an already well-known issue in the Sector, dropped to its lowest levels in 10 years. Liquidations have also been well below historic averages. The sector may, however, see an uptick in insolvency activity as the wage subsidy and other government support is wound up, albeit with a lag.
infrastructure was forecast to increase gradually from $7.6 billion in 2018 to a peak of $8.3 billion in 2024. Similarly, the immediate demand for vertical infrastructure was expected to be strong and reach a peak of $9 billion in 2021, before declining to $7.2 billion in 2024. There are promising signs the sector is on a road to recovery. The sector bounced back in Q3 2020, with a quarterly change in GDP relative to the previous year of five percent in horizontal construction and minus seven percent in vertical construction. Businesses operating in the sector also bounced back after Q2 and Q3 2020 and are now performing well relative to pre-COVID levels. For example, the reports says, in assessing the movements in the NZX for
Based on historic trends, this insolvency catch-up in 2021 could be approximately 13 percent higher relative to 2019. Access to appropriate skills and low relative productivity have hampered historical output, along with increasing cost of materials and local council funding challenges. The cyclical nature of government infrastructure investment has also made it difficult for the sector to plan and invest, the study shows.
companies in the sector, both enterprise values and enterprise multiples show a positive change in November 2020 relative to November 2019. Sector confidence is also improving. The ANZ commercial construction indicator moved from -32 in August 2020 to 12.5 in November 2020, still some way below the February 2020 level of 26, but well above overall business confidence. Leading indicators, such as steel and ready-mix concrete volumes, are also strong. Spare capacity in the steel sector is expected to be back at pre-COVID levels by December 2021 and ready-mix concrete volumes are rebounding strongly; already back at pre-COVID levels in Q3 2020. Overall, employment weakness is expected in
the coming months as the wage subsidy rolls off. The impact on employment will differ across the lifecycle of a construction project. Based on stakeholder interviews, we expect architects and engineers to be initially affected, while workers further along in the building will be better protected by a pre-COVID pipeline of work in the near future. Respondents to the Deloitte survey reported disruptions to their supply chains, citing challenges with importing and distributing materials, availability of skilled resources, and the lack of certainty around the timing of future projects. Access to appropriate skills and low relative productivity have hampered historical output, along with increasing cost of materials and local council funding challenges.
April-May 2021
Vertical sector bears the brunt Indicator
Horizontal Sector
Vertical Sector
GDP change from Q2 2020 relative to Q2 2019
16% drop
29% drop
GDP change from Q3 2020 relative to Q3 2019
5% increase
7% drop
A decline of more than 10 percent in turnover in Q3 2020
16% of respondents
36% of respondents
12.6% drop
14.6% drop
Underutilisation (Sep 2020 and Sep 2019)
+0.7% (4.1% to 4.8%)
+0.9% (3.5% to 4.4%)
Projects delayed or stalled in Q2 2020
71% of respondents
79% of respondents
Price discounting behaviour in Q2 and Q3 2020
44% of respondents
62% of respondents
Decline in business capital investment due to COVID-19
44% of respondents
50% of respondents
Decline in training investment budgets due to COVID-19
50% of respondents
45% of respondents
Decline of more than 5 percent in Q3 in the value of 12-month forward order book relative to pre COVID-19 levels
37% of respondents
50% of respondents
Decline in more than 5 percent in business activity in Q3 relative to pre COVID-19 levels
21% of respondents
38% of respondents
Hours worked - change from Q1 to Q2 2020
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CONSTRUCTION
The cyclical nature of government infrastructure investment has also made it difficult for the sector to plan and invest, the study shows. This means that the final impact it has on economic output is greater than the initial injection of spending. A weak sector will struggle to deliver the infrastructure required. The outlook for the sector was relatively positive prior to COVID-19. In the Ministry of Business, Innovation and Employment’s (MBIE) 2019 National Construction Pipeline forecast, horizontal infrastructure was forecast to increase gradually from $7.6 billion in 2018 to a peak of $8.3 billion in 2024. Similarly, the immediate demand for vertical infrastructure was expected to be strong and reach a peak of $9 billion in 2021, before declining to $7.2 billion in 2024. The impact on revenue was more severe for those in the vertical construction sector. Over a third of our survey respondents operating in vertical construction expected turnover to decline by 10 percent to 20 percent in Q3 2020. The peak bodies interviewed noted that firms operating with a heavy reliance on local government, or vertical construction for the retail/tourism/travel sectors, were likely to be hardest hit. Further impacting firms’ finances was a perceived increase in price discounting in order to secure work. During Q2 and Q3 2020 the majority of businesses surveyed indicated they observed price discounting behaviour to secure work (62 percent in vertical construction and 44 percent in horizontal construction).
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CONSTRUCTION
April-May 2021 Reflecting this backdrop, the majority of survey respondents confirmed projects had been delayed or stalled. The impact of COVID-19 restrictions on the sector caused significant delays in many construction projects and flow-on consequences for subcontractor’s plans and workflow. Local authorities as key spenders on infrastructure experienced additional funding challenges, driving reductions or deferrals in expenditure. Many local authorities were impacted by a fall in revenue as a result of the economic downturn. These additional funding uncertainties and constraints have been cited in interviews as contributing to delays or cancellations in projects and/or maintenance activities. Firms have responded to reduced work and higher pipeline uncertainty by decreasing hours and more than 40 percent of businesses surveyed expected to decrease business capital investment and training budgets. The impact of the pandemic on the Sector is far from over and will persist into the future, but we expect the sector to bounce back faster relative to the Global Financial Crisis (GFC). It took the sector five years to recover from the GFC. We expect the rebound to be faster because the impact on the sector during the COVID-19 pandemic is being more driven by restrictions, rather than underlying demand and supply structure issues. There are four key factors that will impact recovery: - Regulation. The lifting of travel, physical distancing and gathering restrictions marked the start of in58
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frastructure-related construction recovery. Future changes to regulations will continue to influence recovery. - Public demand. Stimulus will underpin the recovery of public infrastructure-related construction sector demand. - Private demand. Slowing population growth and reduced economic activity result in less demand for new infrastructure and uncertainty further dampens investment. - Supply. Integral to recovery is the financial health and operation of infrastructure-related providers across the lifecycle of an infrastructure project. Access to credit and cashflow is a key aspect to recovery. The recovery of each sub-sector will be different. The study says the demand outlook over the next five years in horizontal construction to exceed the 2019 National Construction Pipeline forecast. Delivery of this pipeline may be constrained by the capacity of the sector to
deliver, particularly in key sub-sectors that are receiving the bulk of stimulus funding, and the ability of the sector to access required skills and labour. The demand outlook for vertical construction has been impacted more severely by COVID-19. We expect a dramatic drop in activity relative to the 2019 forecast before a recovery back to previously anticipated levels in 2025. Stimulus initiatives will provide some support to vertical construction but are unlikely to make-up the shortfall in demand associated with the cancellation of private sector developments. The demand outlook suggests capacity in horizontal construction may be constrained, while there is likely to be excess capacity in vertical construction. Survey respondents indicated 52 percent of horizontal and 33 percent of vertical firms can increase capacity by 10 percent to meet demand if there is an increase in volumes of
work. Only eight percent of horizontal firms can increase capacity by 30 percent and 14 percent of vertical firms. This indicates that the sector likely has the ability to sufficiently increase capacity to respond to the increase in demand for horizontal construction. The excess capacity in vertical construction likely presents a risk that capability and capacity could be lost over the coming years, potentially creating a challenge in the future. The findings of the report suggest challenges amplified by COVID-19 need to be considered as part of an action plan to capitalise on the opportunity that the current infrastructure stimulus presents for the recovery of the economy, and the sector itself. COVID-19 presents the opportunity to redefine the way we plan, pay for, and build infrastructure over the next three decades, the report concludes. Read the full report here
April-May 2021
Key themes, challenges and opportunities
Challenges prior to COVID: • A lack of a ‘single source of the truth’ • Tendencies for signalled projects/activity to be delayed • The influence of the electoral cycle on the direction of infrastructure activity, particularly for flagship projects How COVID amplified this challenge: • One of the greatest concerns many survey respondents shared was the disruption of forward work and the associated uncertainty in the longer-term pipeline • Projects delayed as a result of COVID-19 Opportunities to address this challenge: • Improving the robustness of project selection • Ensuring the pipeline addresses the project lifecycle and all sub- sectors • Achieving appropriate project mix • Collaboration across purchasing and delivery agencies • Identifying and progressing projects that support the widest range of firms Improve procurement Procurement processes are adding cost and delay, contributing to a new ‘race to the bottom’ on pricing in response to COVID-19 uncertainty. Challenges prior to COVID: • Purchasing entities do not always appropriately consider whole-of-life costs • Inefficient procurement processes • Procurement processes do not always allocate risks to the party best positioned to manage them How COVID amplified this problem: • Survey respondents indicated that they have seen price discounting as a result of COVID-19 • Margins for sub-contractors were harder hit than head contractors Opportunities to address this challenge: • Consistent and expedited procurement processes to help reduce costs and get work to market faster • Increased use of collaborative models • Providing clear and robust plans to procure the work • Consider the ongoing impact of COVID-19 when allocating risks
Local government funding Local authorities are key spenders on infrastructure; however, funding challenges are driving reductions or deferrals in expenditure. Challenges prior to COVID: • Existing funding challenges related to; maintaining services in areas with declining populations, a requirement for higher asset performance, and replacing assets that are at the end of their useful life How COVID amplified this problem: • COVID-19 has impacted some local government’s revenue streams and are contributing to delays and cancellations in projects and/or maintenance activities
CONSTRUCTION
Pipeline Certainty Pipeline uncertainty is a key driver of low confidence. The pipeline needs to be complete (have the appropriate mix of projects), certain (forecast spend, and timing is accurate) and strategically robust (projects are aligned and represent value for money).
Opportunities to address this challenge: • Available funds either need to be used more judiciously to ensure maximum benefit, or alternative sources of funding needs to be sought • Improve asset management capability • Recognise the important role of maintenance activities Workforce and skills Border closures are constraining access to talent that was already in demand. There is a shortage of workready employees and limited ways to transition working adults to the Sector in order to retain jobs. Challenges prior to COVID: • The range of skills needed are not home-grown, nor in abundant supply • The country’s immigration and visa processing systems can be time- consuming and opaque when seeking to obtain border exemptions • Developing people with the right knowledge and skills takes time How COVID amplified this problem: • With the overseas workforce drying up, local firms are finding it increasingly difficult to source the right people • There is a ready supply of potential labour within the market as a result of redundancies in other sectors, however, a mechanism is required to support the transition of these workers • Demand for skills is not limited to New Zealand. Other countries are competing for the same talent Opportunities to address this challenge: • Streamlining and clarifying border exemptions • Targeted micro-courses aimed at transitioning workers into infrastructure-related construction
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