Court fines company director $100K for fatality

A company director and his firm have each been convicted and fined $100,000 after a worker’s death in August 2006.

It is the first time a company director has been convicted under the Occupational Health and Safety Act 2004, and the highest penalty ever imposed on an individual under the Act.

Judge Liz Gaynor said Manumatic Industries and its Director, Stanley Guthrie, were “utterly negligent” in failing to have appropriate safety systems in place.

Frank Grima of Watsonia North died from head injuries when a co-worker inadvertently started a nearby machine that bent pipes for vehicle exhaust systems.

Guthrie had directed Grima to make several drip trays to put under the machine to catch leaking oil.

Judge Gaynor said Guthrie and the company had a “grave dereliction” in their obligations, and that Grima may not have died if the machine was properly guarded.

The court was told:

• a laser light curtain which would have prevented the machine from starting while Grima was near it was not correctly positioned;
• there was no system to ensure the machine could not be started if people were working near it; and
• there was no system to warn nearby employees when the machine might start.

The heavy fine was given even though the company and Guthrie each pleaded guilty, showed remorse and installed further safety improvements after the incident.

WorkSafe Victoria's Executive Director, John Merritt, said today’s sentencing reinforced the need for company directors to take active steps to ensure their workplaces were safe.

“This case should send a strong and clear message to the thousands of directors in Victoria who have a day-to-day responsibility for safety in the workplaces and the sites they control,” he said.