Published 17 April 2019
WorkSafe prosecution — sentencing — Person Conducting a Business or Undertaking (PCBU) failing to ensure health and safety — finger tip amputation — Health and Safety at Work Act 2015, ss 2(c), 36(1)(a), 48(1) — Department of Labour v Hanham & Philp Contractors Ltd (2008) 6 NZELR 79 — Worksafe New Zealand v Rangiora Carpets [2017] NZDC 22587. The defendant pleaded guilty to one charge; it had as a PCBU failed to ensure, so far as reasonably practicable, the health and safety of workers. The victim, a casual employee of the defendant, was instructed to use the punch press to make tray clips. The machine jammed and, in an attempt to free the machine, the victim put his right hand into the outlet chute. Unfortunately, his stomach inadvertently touched the machine controls and caused the ram of the machine to amputate the tips of his right forefinger, index finger, ring finger and thumb. The accident had a significant impact on the victim, as he lost his pinch grip, which meant he could no longer do many normal tasks. The defendant's conduct departed from industry standards. The defendant had not identified the risk presented by the hazard of accessible moving parts on the press. The press was not on a defendant’s hazard register; the defendant had carried out monthly machinery checks but the press was not included as it was used infrequently. The interlock guard was also insufficient as workers were able to fit their hands through the opening of the guard near the shoot and access moving parts. In assessing the reparations, the Judge reached a figure of $35,000. The Judge acknowledged that the defendant had paid the victim $25,000, so the defendants were ordered to pay $10,000, as well as $18,677.70 for consequential loss in relation to ACC. In assessing the fine, the Judge believed a starting point of $400,000 appropriately reflected the company's culpability. The Judge then applied a 30 percent reduction for the mitigating factors present; namely the amount of reparation paid, the lack of previous convictions, a previously favourable safety record, cooperation, and remedial action. The Judge also gave a full discount for the early guilty plea, resulting in a fine of $210,000. The Court then considered the financial position of the company and, after consulting two experts, the Judge reduced the fine to $180,000. The final order was a fine of $180,000, $10,000 for emotional harm reparation and $18,677.70 for reparations for consequential loss. The Judge also ordered the defendants to pay costs of $2500. Judgment Date: 27 February 2018.
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