One of the most renowned cereal companies globally has been fined over $500,000 following an incident where two employees sustained serious fractures in a workplace accident.
Kellogg’s Australia, the producer of cereals including Corn Flakes, Coco Pops, and Crunchy Nut from its Banksmeadow facility near Sydney Airport, faced a $510,000 penalty in the Industrial Court of NSW last week. This came after they admitted to breaches in health and safety linked to an event from two years prior.
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 noted that Mr. Ghosn, in his victim impact statement, ‘compellingly expressed how the accident drastically altered his physical, emotional, mental, and financial well-being, as well as its effects on his self-esteem, relationships, and life goals’.
Kellogg’s Australia produces cereals such as Corn Flakes, Coco Pops, and Crunchy Nut at their Banksmeadow facility, located adjacent to Sydney airport (pictured).
Meanwhile, Mr Lee fractured his left hand and was unable to work for four months.
It was revealed that the forklift driver had been informed by security that the loading dock was clear, based on a judgment released by the Industrial Court of NSW.
There were also no barriers or signage around the men who were working on the elevated platform.
There was also a risk assessment concerning working at height that appeared to carry signatures from both individuals; however, both claimed the signatures were not theirs.
‘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.’
Daily Mail contacted SafeWork NSW and Kellogg’s for further comment.
