20 The observation by Hill J in WorkCover Authority of New South Wales (Inspector Egan) v Atco Controls Pty Limited (1998) 82 IR 80 at 85 is apposite:
This case is yet another illustration of the need for employers to exercise abundant caution, maintain constant vigilance and take all practicable precautions to ensure safety in the workplace. It is essential that the approach should be a pro-active and not a re-active one; employers should be on the offensive to search for, detect and eliminate, so far as is reasonably practicable, any possible areas of risk to safety, health and welfare which may exist or occur from time to time in the workplace.
21 Had the defendant comprehended the presence of the risk, as it should have, it could have taken relatively simple steps to avoid the risk. This is demonstrated by the measures taken following the incident. The pond no longer exists and the area has been excavated and a dish drain created so that no water can accumulate in the area. A pump has also been installed. The method of cooling the tyres is now done by means of cone sprays operated by remote control. The defendant now provides instruction and training in relation to the risks of water on hot slag and a new procedure has been implemented requiring buckets to be checked for water prior to digging.
22 In Rodney Morrison v Powercoal Pty Ltd [2003] NSWIRComm 416 the Full Bench held:
[32] In assessing the gravity of the offence the focus, therefore, must be on the risk and, viewing it objectively, the seriousness of the act or omission that gave rise to the risk. In other words, the consequence of an accident will not, of itself dictate the seriousness of the offence or the amount of penalty. However, the occurrence of death or serious injury may well manifest the degree of seriousness of the risk to health and safety to which persons may have been subjected: Hannah v Wonar Pty Ltd (unreported), Fisher CJ, Glynn and Cullen JJ, CT 90/1214, 30 June 1992 at 9); Tyler v Sydney Electricity (1993) 47 IR at 5; Independent Cargo and Wool Services Pty Ltd v Mingare (unreported, New South Wales Industrial Court, CT92/1041, 10 March 1994 at 4); Watson v Southern Asphalters Pty. Ltd (1996) 83 IR 446 at 456; Lawrenson Diecasting Pty Ltd v WorkCover Authority of New South Wales (Inspector Ch'ng) (1999) 90 IR 464.
[33] Thus it may be the case that an employer prosecuted under s.15 of the Act was aware of a serious risk to the health and safety of its employees but took no action to eliminate the risk, notwithstanding that simple and straightforward remedial steps were available. The gravity of such an offence, despite the fact no one was injured and having regard to relevant subjective factors, might be assessed at the high end of the range of penalty available to be imposed on the offender. On the other hand, another employer may have had a good safety record, a safe system of work in place, provided a high level of training, instruction and supervision but through a combination of inadvertence on the part of an employee and a momentary lapse in supervision, a fatality occurs. The assessment of the objective seriousness of the offence could conceivably be at a level lower than that applied to the first employer and, having regard also to subjective considerations, might attract a lower penalty. Importantly, however, in the latter example, the occurrence of death may indicate that the risk to which the deceased employee was exposed despite the employer's demonstrable commitment to providing a safe workplace, represented a serious detriment to safety deserving of a higher penalty than otherwise might be the case.
23 In this case I am satisfied that the defendant had a "demonstrable commitment to providing a safe workplace". However, there was a very serious risk present as manifested by the injuries to Mr Sinclair and the damage to the loader that demanded the utmost care and attention in the form of a safe system of work and adequate instruction and supervision for those employees within the danger zone. This is where there was a significant lapse on the part of the defendant.
24 In relation to specific deterrence, I accept the defendant's submission that this is not a case which calls for the imposition of some additional specific punishment aimed at deterring the defendant from further offending against the Act and/or for the purpose of compelling the company's attention to occupational health and safety issues so that persons are not exposed to risks to their health and safety. The defendant has a relatively good record in a dangerous business and has taken appropriate steps to avoid a re-occurrence of the offence. It follows that specific deterrence is not a factor that should play a significant role in determination of the penalty to be imposed.
25 In Capral Aluminium Limited v WorkCover Authority of New South Wales (2000) 49 NSWLR 610; 99 IR 29 the Full Bench recognised that in the industrial context, it would be rare that a sentencing court need not impose a sentence that includes an element of general deterrence. I consider it is appropriate to include an element in the penalty to deter others from committing a similar offence.
26 The circumstances of the offender, or the subjective factors, must be taken into account in determining an appropriate penalty. In this regard, the defendant entered its plea of guilty at the earliest possible time and is entitled to a discount on sentence for the utilitarian value of that early plea: R v Thompson; R v Houlton (2000) 49 NSWLR 383.
27 Further, a plea of guilty may attract a greater degree of leniency where the court is satisfied that the plea of guilty reflects contrition on the part of a defendant: Winchester (1992) 50 A Crim R 345 at 350 per Hunt CJ at CL. Whilst there is an obligation on employers to assist and co-operate in rehabilitation (see State Rail Authority of NSW v The Honourable Justice Bauer and Others (1994) 55 IR 263), it was the case here that the defendant provided an extensive rehabilitation and retraining program for Mr. Sinclair with the defendant bearing the cost of training and licences. Mr Sinclair has returned to full time work with the defendant as a truck driver.
28 The defendant has also involved the making of an ex gratia payment of $2,570 (net of tax) to Mr. Sinclair and has expressed contrition. The defendant has co-operated with the WorkCover Authority throughout its investigations of the subject incident.
29 Following the incident the defendant carried out a detailed investigation and review of its occupational health and safety systems, operating procedures and work methods. In particular, the following steps have been undertaken:
(a) the pond has been removed by grading the slag pit area and creating a dish drain which allows water to drain away rather than pond in the area adjacent to the pits;
(b) the dish drain is the subject of periodic maintenance to ensure that there is no risk of a pond re-forming;
(c) an extra pump has been installed to ensure that water flowing into the dish drain is pumped away;
(d) overhead cone sprays have been installed in the slag pit area to enable operators to cool the tyres of the front end loaders;
(e) work procedures have been amended to include "critical procedure" management - the critical procedures identified as specifically relevant to the subject incident are:
(i) compulsory inspection of the slag pits for the presence of water at the commencement for each shift; and
(ii) compulsory inspection of loader buckets prior to the commencement of digging to ensure that there has been no inadvertent capture or build up of water that could give rise to an explosion when digging commences.
(f) the company's audit system has been upgraded to include regular auditing of the "critical procedures" management system.
30 The defendant has two prior OHS Act convictions. Accordingly, the penalty to be imposed must be assessed against a maximum penalty of $825,000: s 51A; Rodney Morrison v Powercoal Pty Ltd [2003] NSWIRComm 416. However, I do not consider the fact that the defendant has a previous conviction shows a need to impose condign punishment: Veen v The Queen (1979) 143 CLR 458 at 477. Notwithstanding the previous convictions I note the defendant has been in operation since 1989 in what is a dangerous industry. Further, the defendant has demonstrated a strong commitment to occupational health and safety and it is appropriate that I take these considerations into account.
31 I consider an appropriate penalty in this case is $150,000. That amount is discounted by 25 per cent for the early guilty plea and by a further 10 per cent for other subjective factors resulting in a fine of $97,500. The defendant will pay a moiety to the prosecutor.
32 The Court makes the following orders:
1) The offence is proven and a verdict of guilty is entered.
2) The defendant is convicted of the offence as charged.
3) The defendant is fined an amount of $97,500 with a moiety of one-third of that amount to the prosecutor.
4) The defendant shall pay the prosecutor's cost of the proceedings in an amount as agreed or, if agreement cannot be reached, leave is granted to either party to approach the Court for final orders as to costs.
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