Fines Hit Record Levels

Fines Hit Record Levels

Victorian prosecutions gather momentum as nearly 108 entities and 21 individuals were fined a record amount in the 2015-16 period for breaching OHS/WHS laws. WorkSafe figures revealed restitution in the amount of $6.2M was ordered by the Victorian courts. Moreover, the Safety Institute of Australia Ltd (SIA) disclosed, almost 40 of these were from the construction industry; including:

• Frankipile Australia and Vibro-pile Australia, which were each convicted and fined $750,000 over the death of a worker who fell more than 40 metres when the mast of a piling rig collapsed at Southbank in 2011;
• Thiess Services Pty Ltd, which was convicted and fined a total of $600,000 following two incidents involving an overloaded barge working on the Patterson River. One of the incidents involved the barge capsizing, throwing three workers into the water and trapping one in the excavator in the water, seriously injuring him;
• Bilic Homes, which was convicted and fined $300,000 over an incident in which a carpenter died after being crushed by a brick wall on a construction site at Brighton East in 2014; and
• Aussie Signs, which was convicted and fined $250,000 over its involvement in the attachment of a timber hoarding to a wall which increased the risk of the wall collapsing at Carlton. The wall collapsed and killed three people in 2013.

A significant number of businesses in the manufacturing sector were also prosecuted, and these included:

• Conveyor belt manufacturer Veyance Belting Pty Ltd, which was fined $90,000 over an incident in 2014 in which an employee suffered serious arm injuries when he became caught in machinery beneath a moving conveyor belt;
• Caravan manufacturer Jurgens Australia Pty Ltd, which was convicted and fined $80,000 over an incident in 2014 in which an employee had two fingers severed while using an unguarded router; and
• Chicken processor Turi Foods Pty Ltd, which was convicted and fined $60,000 over an incident in 2014 where an employee suffered serious hand and arm injuries when she became caught in a giblet processor.

In other significant cases, Cool Dynamics Refrigeration Pty Ltd was convicted and fined a total of $285,000 over an incident in 2011 in which an employee died when the van he was about to enter exploded; and Essendon Football Club was convicted and fined a total of $200,000 over its 2011-13 supplements program that put the health and safety of its players at risk.

The SIA went on to say; last year, 21 individuals were also found guilty of fraudulently obtaining workers’ compensation payments and were ordered to pay fines and restitution of more than $620,000.

Victorian Minister for Finance, Robin Scott, said health and safety had to be everyone’s priority in order to prevent workplace tragedies.

“No worker should have to suffer the pain of being injured at work, and no family should ever have to suffer the anguish of knowing their loved one did not get home safely at the end of the day,” Scott said.

“While a court outcome can provide a measure of comfort to the victim or their family, it cannot take away the pain caused by a serious injury or losing a loved one in a workplace incident.”

WorkSafe Victoria chief executive, Clare Amies, said the record amount of fines imposed by the courts in 2015-16 was a reminder to businesses and individuals of the significant penalties they faced if they did not comply with their health and safety obligations.

“WorkSafe is committed to improving workplace health and safety and, if it is found that employers have failed to provide a safe working environment for their workers, they can expect to face large fines and significant damage to their reputation,” Amies said.

“Last year, WorkSafe provided almost $1.9 billion in support and benefits to injured workers while managing more than 90,000 claims, and the community has an expectation that we are monitoring this carefully to ensure injured workers are getting the correct benefits.

“Prosecutions are an important deterrent to help protect honest workers and the employers who fund the workers’ compensation scheme.”

Clearly, the number of prosecutions and the extent to which financial penalties are being applied has increased in Victoria. Precedence affords judges in other states the luxury of expanding the application of the law and the associated financial penalties (up to the legislated maximum). Furthermore, and as I’ve previously stated, an accident or incident is not a pre-requisite to a successful conviction, prosecution, and subsequent fine.

Remember, everyone has a responsibility to make the workplace as safe as possible – it’s as simple as identifying the hazards and risks, and assessing those hazards and risks via a risk assessment to ensure no one is exposed to harm.