Overview
Incident Details
On 9 November 2020, Resource Recovery Solutions (RRS) faced unprecedented consequences in the Magistrates Court, receiving a staggering $564,000 fine, the largest ever imposed in Western Australia for a workplace safety breach. This penalty followed a serious incident at RRS’s waste recycling facility, where a worker had his arm amputated while attempting to clear debris from a moving, unguarded conveyor belt.
Legal Proceedings
Gross Negligence Conviction
In July of the same year, RRS became the first company to be convicted of contravening its duty under the Occupational Safety and Health (OSH) Act in circumstances of gross negligence. The Magistrate found RRS guilty due to the absence of guarding around the crush points of its conveyor belts and the lack of isolation or lock-out procedures for handling blockages. Workers were reportedly “left to their own devices” to address these issues.
Prior Safety Incidents
This incident marked RRS’s third serious safety incident in three years. The absence of guarding on conveyor belts had been flagged by WorkSafe inspectors in 2013 during an investigation into the death of a labour-hire worker. The second incident involved a worker’s arm being broken in 2015, leading to an improvement notice from WorkSafe, which RRS did not fully comply with.
Director’s Charges
RRS’s director faces charges of gross negligence, with the case still pending. If convicted, this would be the first instance in Western Australia of an individual potentially facing a jail sentence in relation to a workplace accident.
Legal Implications
Record-Setting Fine
The $564,000 fine imposed on RRS sets a precedent, demonstrating that regulators are willing to pursue and penalize companies for serious safety incidents. This case underscores the gravity of safety obligations and the potential financial repercussions for businesses that fail to prioritize workplace safety.
Increased Penalties and Individual Liability
With the increased penalties under the OSH Act, and the pending introduction of the Work Health and Safety (WHS) Act, companies facing gross negligence charges may encounter substantial financial consequences. The case of a plumbing company charged with gross negligence after a worker drowned in 2018 illustrates the heightened penalties, with a potential maximum penalty of $2.7 million.
Business Recommendations
This case emphasizes the critical need for businesses to prioritize safety management systems and adhere to new requirements under the upcoming WHS Act. The financial and reputational implications of workplace accidents and legal consequences underscore the importance of proactive self-auditing and seeking expert advice to ensure compliance with evolving safety regulations.
Conclusion
The RRS case serves as a stark reminder of the far-reaching consequences businesses face when safety obligations are not met. The record-setting fine and potential jail sentence for the director underscores the increasing severity of penalties. This case study highlights the imperative for businesses to adopt comprehensive safety measures, conduct regular self-audits, and stay informed about evolving safety regulations to mitigate risks and ensure the well-being of their workers.