One of the world’s most well-known cereal brands has been fined over half a million dollars after two workers suffered severe fractures in a workplace accident.
Kellogg’s Australia, which manufactures cereals such as Corn Flakes, Coco Pops and Crunchy Nut from its factory in Banksmeadow next to Sydney Airport, was last week fined $510,000 in the Industrial Court of NSW after pleading guilty to health and safety failings during an incident two years ago.
Bassam Ghosn and Hojin Lee were at the Kellogg’s plant on March 3, 2023 to repair a damaged bracket above a roller door to a loading dock.
Both men were employees of Chess, which had carried out engineering works for Kellog’s Australia for 40 years without incident.
But they were working on an elevated platform when a fork lift truck driver reversed into it, causing the platform to topple to the ground.
Both Mr Ghosn and Mr Lee were hurled out of the platform and fell four metres to the floor.
The two men suffered gruesome injuries. Mr Ghosn shattered his pelvis and broke his back, spending around 12 weeks in hospital.
Justice Jane Paingakulam observed that, in his victim impact statement, Mr Ghosn ‘powerfully articulated the life-changing effect of the accident upon him physically, emotionally, mentally and financially and the impact of those effects on his confidence, his relationships and his sense of purpose’.
Kellogg’s Australia manufactures cereals such as Corn Flakes, Coco Pops and Crunchy Nut from its factory in Banksmeadow next to Sydney airport (pictured)
Meanwhile, Mr Lee fractured his left hand and was unable to work for four months.
It emerged that the forklift truck driver had been told by security at the site that the loading dock was empty, according to a judgment published by the Industrial Court of NSW.
There were also no barriers or signage around the men who were working on the elevated platform.
A risk assessment for working at height also appeared to have been signed by both men; however, they both said that the signatures were not their own.
‘Kellogg is not aware of how Mr Ghosn and Mr Lee’s apparent signatures were found on the (risk assessment)’, the judgment noted.
They both also denied signing work permits, which were signed with signatures purporting to be theirs.
The court found that Kellogg’s had safety systems in place but did not adhere to them on the day.
‘The predominant failure giving rise to this offence was Kellogg’s lack of compliance with its well-documented safety systems,’ Justice Paingakulam found.
The court ultimately found that Kellogg’s had safety systems in place but did not adhere to them on the day (stock image)
‘The potential consequences of the risk materialising included death. There was more than one worker exposed to the risk.
‘The serious injuries suffered by Mr Ghosn and Mr Lee were a manifestation of the risk.’
Justice Paingakulam found that objective seriousness of the offence fell within the ‘mid-range’ and fined Kellogg’s $680,000 of a maximum possible offence of $1.9million.
It was reduced by 25 per cent to $510,000 due to Kellogg’s early guilty plea.
Justice Paingakulam observed that Kellogg’s had ten previous workplace convictions.
However, she found that the company was otherwise of ‘good character’ because the last of these offences occurred 25 years ago.
‘The steps which it took after the incident including extensive training of staff and implementation of safety equipment around the loading area demonstrate this,’ Justice Paingakulam noted.
Glen Wojcinski, Kellogg’s supply chain director for Australia and New Zealand, told the court the company did not take the health and safety failings lightly.
‘Mr Wojcinski, on behalf of Kellogg, acknowledged and expressed sincere regret for the incident and its impact on Mr Ghosn, Mr Lee and their families and friends,’ the court finding stated.
‘He also acknowledged and expressed regret for the impact of the incident on any workers at the site.’
Mr Wojcinski insisted that senior management at the company held extensive meetings following the incident and were ‘committed to ensuring an incident like this does not reoccur’.
‘Mr Wojcinski stated that, following the incident, he visited and spoke to Mr Ghosn at the hospital and enquired of both Mr Ghosn and Mr Lee’s wellbeing over several weeks,’ the judgment stated.
‘He also states that he was kept up to date on their ongoing wellbeing and recovery.’
NSW Minister for Work Health and Safety Sophie Cotsis said there was ‘zero-tolerance for putting worker safety at risk’.
‘SafeWork NSW is in the procees of establishing a new advisory council which aims to ensure that it hears and considers the diverse perspectives of workers, industry, experts, unions and injured workers,’ Ms Cotsis added.
‘Every worker has the right to go to work and return home safely to their loved ones at the end of the day.’
SafeWork Commissioner Janet Schorer added: ‘Being hit by moving plant or vehicles or injured when working with fixed machinery are preventable hazards we see across our State and across all industries.
‘Having an awareness and assessment of the risks, along with implementation of safe systems of work, is key to reducing the number of incidents related to moving plant.’
A spokesperson for Kellogg’s said that ‘the safety and wellbeing of our employees is our main priority’.
‘The business has provided ongoing support to the impacted contractors and their families and has fully cooperated with SafeWork NSW throughout their investigation,’ they added.
‘Kellanova has undertaken a comprehensive review of the incident and implemented safety measures, training, and education to ensure incidents are prevented in the future.’
