Just before implementation! Are you prepared for the 2024 problem in the construction industry with "work style reform"?
"Work style reform" accelerated rapidly during the COVID-19 pandemic through initiatives like remote work and staggered commuting. Meanwhile, the construction industry has long faced issues with chronic long working hours driven by labor shortages. This article outlines the current state of "work style reform" and the "2024 problem" in the construction industry, as well as government responses.
What is the 2024 problem in the construction industry?
Starting April 1, 2024, caps on overtime work with penal regulations will also apply to the construction industry, setting the general limit for overtime at 45 hours per month and 360 hours per year. The various challenges that arise from this, notably labor shortages, constitute the so-called "2024 problem".
In the construction industry, labor shortages, an aging workforce, and long working hours have been persistent challenges for years. While caps on overtime work with penalties went into effect for other industries in April 2019, the construction sector was granted a five-year grace period given the circumstances.
The national government's "Program for Accelerating Work Style Reforms in the Construction Industry"
To break through this situation, the "Construction Industry Work Style Reform Acceleration Program" was formulated.
The measures are:
- Initiatives to Correct Long Working Hours
- Initiatives for Salaries and Social Insurance
- Initiatives to Improve Productivity
They are broadly divided into three categories.
Let's take a closer look at each initiative.
1. Initiatives for Correcting Long Working Hours
- Prioritizing the implementation of a 2-day weekend in public works
- To ensure the implementation of the 2-day weekend system for public works and secure smooth construction, labor costs will be adjusted, and the adjustment rates for common temporary expenses and site management expenses will be revised.
- Actively recognizing companies that have achieved a 5-day workweek and those promoting the advancement of women in the workplace
- Visualizing exemplary job sites that serve as role models
- Formulation of the "Guidelines for Setting Appropriate Construction Periods" and Promotion of Related Initiatives
2. Initiatives regarding compensation and social insurance
- Requested ordering organizations and construction industry associations to utilize labor unit prices and ensure wage levels
- Establishing a performance evaluation system to ensure salaries align with skills and experience
- Promotion of the Retirement Mutual Aid System for the Construction Industry
- Requesting project owners to restrict orders, including to subcontractors, exclusively to companies enrolled in social insurance.
- Establishing a system to deny construction business licenses and renewals for contractors not enrolled in social insurance
3. Initiatives to Improve Productivity
- Supporting construction companies committed to improving productivity
- Streamlining operations by digitizing procedures
- Promoting the efficient use of limited human resources and materials, including exploring ways to streamline technical personnel placement requirements.
- Exploring measures to reduce the number of subcontractor tiers to improve the multi-tiered subcontracting structure
How Act-One Yamaichi Can Help You
While various initiatives are being implemented nationwide, at Act-One Yamaichi, we aim to contribute to the "work style reform" of the construction industry through the following efforts.
Proposing the ideal equipment for your site
As scaffolding professionals, we provide timely information on what scaffolding materials are needed and when, helping to reduce the workload for sales and site representatives at construction and scaffolding rental companies.
Holding equipment presentation meetings at our company
We regularly host equipment briefing sessions, providing opportunities for customers to touch, assemble, and experience our equipment firsthand. By helping our customers gain a deeper understanding of our products, we aim to ensure safe and comfortable on-site operations.
Shadowing sales activities at a construction equipment rental company
As a wholesale rental company, we accompany construction and scaffolding rental companies on their sales calls and support their rental equipment procurement operations.
While national and local governments are advancing various initiatives, "work style reform" in the construction industry has only just begun. As a wholesale rental company, we feel there is still much more we can do to be of service. Please feel free to contact us whenever you have any needs or concerns regarding construction equipment and materials.
*The photos shown are for illustrative purposes only.
*All content and cases are based on Japan.