Rise in injuries feared as workers return to projects

By Dan Nakaso
Advertiser Staff Writer

Construction workers idled for seven weeks by O'ahu's concrete strike returned this week to a backlog of work, leading state safety officials and insurance companies to warn of rising injuries and workers compensation claims. Jeff Widener • The Honolulu Advertiser

Even before the strike shut down construction projects across O'ahu, officials were predicting an increase in construction injuries and workers compensation claims over the next few years as Hawai'i gears up for a building boom.

Now, with rusty construction workers being encouraged to work overtime to finish overdue projects, "you have all of the elements for a perfect storm," said Bob Dove, CEO and president of HEMIC, Hawai'i's largest primary writer of workers compensation policies.

"We were already concerned before the strike," Dove said. "This cement strike kind of exacerbates this issue as people play catch up. It takes what is becoming an overheated construction industry and adds more fuel. ... fatigue, more overtime, a tight labor market. These guys haven't worked for a while, and suddenly they're being asked to work significantly harder. It's an unfortunate convergence of timing."

An increase in injuries could mean higher insurance rates for construction companies that file workers compensation claims, Dove said. But even companies that have no claims could see an increase in rates if the construction industry overall has a rise in claims, he added.

"The effects would be that in the future contractors would have a more difficult time getting workers compensation coverage," he said. "But all companies in the same class — say, the construction industry — are impacted by the experience of the whole class."

Idle construction crews began returning to work Monday after members of the Hawai'i Teamsters and Allied Workers, Local 996, settled their strike against Hawaiian Cement.

Much of O'ahu's construction industry remains on hold, however, as Teamsters continue their 49-day-old strike against Hawai'i's largest concrete company, Ameron Hawaii.

Before the strike began on Feb. 6, state inspectors were citing more construction job sites for "fall hazards," such as workers not wearing hard hats or not properly harnessed.

State officials have not added up the citations. But the jump seems to coincide with newer workers being hired to fulfill increased demand, said Jennifer Shishido, administrator for the Hawai'i' Occupational Safety and Health Division.

The increase in citations comes on top of a tendency for Hawai'i construction workers to stay on the job even when injured, Shishido said.

"When you just come off of a period where the construction industry has been very, very depressed, then workers want to enjoy the good times," Shishido said. "They traditionally work hurt. They've got a pain or ache or laceration or even stitches, and they want to come to work no matter what. They want to show what a good worker they are. ... But when they do finally get hurt to the point that they have to stay home, it's a bad one."

Hawai'i employers pay $3.48 in workers compensation coverage per $100 of payroll expenses, putting the state third in the nation for coverage costs, behind California and Florida.

Workers compensation cases dropped in Hawai'i from 61,353 in 1994 to 43,465 in 2002. But the cost per case has jumped from $5,534 in 1995 to $6,162 in 2002.

"We're really putting a strain on our workers compensation system," said James Hardway of the state Department of Labor and Industrial Relations. "It's not good for our economy."

Gary Wiseman, president of the Associated Builders and Contractors, called the concerns about rising claims "a negative thing that affects the bottom line. ... We're talking about it, definitely."

But Ron Taketa, financial secretary and business representative for the Hawaii Carpenters Union, has faith in the experience of Hawai'i's construction workers and the companies they work for.

"Our members and contractors have been through slowdowns before, and times when we've had to work extra hard to meet deadlines," Taketa said of the state's largest trade organization.

"Our companies have been good about not working members to the point where they're unsafe," Taketa said. "They acknowledge the benefit of keeping employees healthy and productive. Our contractors and members are professionals, and we expect to come out of this looking good."

But Dove of HEMIC still hopes construction companies reemphasize basic safety training as work crews return to job sites.

"I know they have a lot of work to do," he said. "But they have to ease the guys back in. If you've got guys working double shifts or seven days a week, there will be economic consequences."

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.