A recent decision of the Victorian Magistrates' Court is a timely reminder to all employers that notwithstanding current financial pressures, workplace safety must take precedence. The decision further demonstrates that harsh penalties can still apply in the absence of an injury.
Case background
Transport and logistics company, Laverton Transport Pty Ltd (Laverton Transport), was recently fined $30,000 for breaches of the Occupational Health and Safety Act 2004 (Act) in relation to unsafe operation of forklifts.
In early 2007 Laverton Transport had entered into an agreement to transport pine logs into shipping containers for transportation to China, a service that had never previously been provided by any Victorian logistics company.
To perform the work, Laverton Transport leased forklifts onto which they welded self-produced metal tyne extensions to facilitate the pick up and transportation of the logs into the containers. The tyne extensions were not checked by an engineer and no testing was conducted by Laverton Transport to ascertain the strength, capability or safety of the devices. Laverton Transport adopted their own operating procedures for conducting the work based on their assumptions as to the capability of the modified forklifts.
In June 2007 service technicians from the forklift leasing company attended the site where the forklifts were being operated and observed that the tyne extensions often buckled, bent, tore and broke off during use. As a result, the leasing company instructed that the modified forklifts were not to be operated and placed "do not operate" stickers on the forklifts. Despite this, Laverton Transport continued operating the forklifts in this manner.
WorkSafe Victoria inspectors attended the site in July 2007. Despite Laverton Transport improving their unsafe work practices within two weeks of the inspectors' visit, Magistrate Angela Bolger found that the company had failed to provide and maintain, so far as was practicable, a safe working environment and had failed to ensure that its actions did not expose members of the public to health and safety risks.
Laverton Transport in this case was fined $30,000 for the breaches. However, employers should note that since July 2007 the maximum penalties that can be imposed for breaches of the Act are $943,290 for companies and $188,658 for individuals. Criminal penalties for breaches of the Act can also apply although none were imposed in this instance.
How to protect your business
Especially in tough economic times employers cannot afford to cut corners, as high penalties will apply where such measures are implemented at the expense of the safety of both employees and members of the public.
It is important that employers remain diligent in maintaining an active role in the policing of safe working practices. This can include, for example, by implementing and training employees on policies and procedures that promote safe work practices.