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WorkSafe New Zealand v Southern Pallet Recycling Ltd [2022] NZDC 13609

Published 07 June 2023

Sentencing — failing to ensure health and safety of workers — Health and Safety and Work Act 2015, ss 36(1)(a), 48(1), 48(2)(c), 151 & 152-158 — Stumpmaster v WorkSafe New Zealand [2018] NZHC 2020 — Department of Labour v Hanham & Philp Contractors Ltd (2008) 6 NZELR 79 — WorkSafe New Zealand v Otago Polytech [2020] NZDC 11114 — WorkSafe New Zealand v Miller Foods Ltd t/a Remarkable Tortillas [2018] NZDC 4732 — WorkSafe New Zealand v Alliance Group Ltd [2018] NZDC 20916 — WorkSafe New Zealand v The Pallet Company (Hawke’s Bay) Ltd [2019] NZDC 18776 — Big Tuff Pallets Ltd v Department of Labour HC Auckland CRI-2008-404-000322, 5 February 2009 — Southern Pallet Recycling Ltd v WorkSafe New Zealand [2022] NZHC 1042. The defendant company was for sentence on a charge of failing to ensure the health and safety of its workers. One of the defendant's employees (the victim) was trying to clear debris when he accidentally activated a saw, severing his right hand at the wrist. The defendant had had the saw modified some years previously, by an agent that was not properly qualified to do so. The WorkSafe inspector found that the saw's guarding and safety features were unsafe. The victim's hand was able to be reattached, but its function was permanently impaired and the victim suffered major emotional harm. The Court ordered emotional harm reparations of $50,000 to the victim. In setting the fine, the Court observed that the hazard from the saw was obvious and that the defendant had not taken appropriate steps to mitigate the hazard, in spite of being warned at the time of purchase that the saw was unsafe. The Court assessed the defendant's culpability as being at the higher end of medium, and set the start point for fine at $450,000. In mitigation the defendant had pleaded guilty, was remorseful (as demonstrated by its efforts to improve workplace safety after the accident), had provided assistance to the victim after the accident, and had a clean prior record. The final fine was $283,500 to be paid over five years, along with costs of $7500 and consequential losses of $10,000. Judgment Date: 19 July 2022.