Construction company, boss avoid $400k fines over death
The family of a worker killed at the Adelaide desalination plant will get just $20,000 compensation, while his boss and the construction company will avoid paying $400,000 in fines.
A magistrate has called for a review of a legal loophole that allows bosses to get out of paying penalties through insurance.
Director Paolo Maione and his company Ferro Con were prosecuted for work safety breaches after 35-year-old rigger Brett Fritsch was killed when a beam slipped out of a soft sling at the desalination plant in July 2010.
Maione was ordered to pay Mr Fritsch’s family the maximum $20,000 compensation, and he and his company were each fined $200,000.
But the company is in liquidation and can’t pay.
And it has emerged that Maione will only have to fork out a $10,000 insurance policy excess, which may even be tax deductible.
The Magistrate said he was surprised it was possible to get insurance to cover criminal penalties imposed by the Industrial Court.
Such insurance was banned in New Zealand and illegal in Souyth Australia for even the least serious traffic offences.
He said Parliament should look at that.
The Construction union said it is a worrying development.
“It may be a cheaper option to go out and get insurance rather than having good, safe systems at work and good equipment,” union representative Aaron Cartledge said.
Maione was also ordered to publicly acknowledge his guilty – a move welcomed by Mr Fritsch’s family.
