The defence contractor behind the famous Bushmaster and Hawkei protected mobility vehicles has been fined $450,000 over the death of a painter at its North Bendigo factory.
Joe Kane, 50, had been with Thales Australia for 11 years and was about to move a subframe of a two-door Hawkei vehicle when it fell from its fixings and killed him on the morning of July 2, 2020.
The Bushmaster and its lighter version, the Hawkei, have found global recognition as Ukraine uses them in its war against Russia.
'No penalty can mitigate the loss'
This morning magistrate Trieu Huynh sentenced Thales Australia in a Bendigo court after it pleaded guilty last month to one count of not providing and maintaining a safe system of work.
"It goes without saying that the impact on Mr Kane's loved ones has been immeasurable. The victim impact statements were difficult to read but measured and brave," he told the court.
"I'm also very cognisant that whatever penalty imposed will likely be considered inadequate, and I appreciate that any penalty cannot mitigate the loss of a clearly beloved father, son, partner, brother and friend."
The maximum penalty for the charge of failing to provide and maintain a safe system of work is $1.5 million.
Magistrate Huynh told the court if Thales Australia had not pleaded guilty he would have fined it $600,000.
Court hears risk of death 'bordering on unlikely'
The magistrate told the court he accepted that Thales had put in new engineering controls following an expert report into its paint positioners, including tethering remotes so workers would not be near the positioner when loading and unloading.
"In my view the risk assessment's categorisation of the likelihood of the risk eventuating being rare was dated and did not reflect the changed circumstance at the time of the incident, and indeed shop 53's configuration in February 2020."
Magistrate Huynh said it was an overstatement for the prosecution to submit that the likelihood of the subframe falling from the paint positioners as "not remote".
"It's my view that the likelihood of the consequence of that risk eventuating, taking into account the changed circumstances, could instead be properly considered as bordering on remote or bordering on unlikely to occur," he said.
The court heard that minutes of various safety meetings showed Thales knew that loading and unloading paint positioners was "difficult", and that Thales knew there was a risk.
Thales Australia said it had updated safety operating procedures and put new controls in place since the accident.
It said it took its health and safety obligations "extremely seriously" and was committed to applying best practices when it came to the safety of its workers.
"Thales is deeply sorry for the loss of Joe Kane," a spokesperson said on Friday morning.
"Joe was a highly valued member of our team and his loss has been felt not just in Bendigo but right across the company.
"By its plea of guilty, Thales has displayed its remorse and acceptance of the seriousness of the offence."
Colleague unbolted subframe from fixings
National workplace safety regulator Comcare laid charges against Thales Australia in August last year.
The court heard last month that Mr Kane's death happened when an unsecured subframe for a two-door Hawkei and base plate, weighing almost a tonne, fell on him in the facility's paint shop because safety operating protocols were not known or good enough.
The court heard Mr Kane had gone to get a forklift so they could move the subframe.
In the meantime, another worker undid the bolts holding the subframe to the paint positioner and placed it upright in the positioner, before moving on to another subframe.
The court was told moments later the other worker heard "a loud bang" and saw Mr Kane on the ground underneath the subframe.
New contract secures workforce
A fortnight ago, the federal government announced it was spending $160 million so Thales Australia could build 78 Bushmaster military vehicles for the Army over the next 18 months.
The Bendigo factory has already built 1,200 Bushmaster and 1,100 Hawkei protected mobility vehicles.
Thales is likely to bid for a tender to retrofit the Bushmaster with missiles, after the Defence Strategy Review released by the government last month recommended Australia focus on long-range strike capabilities.
"I know for a fact, one of the tenders will be a Strikemaster option, which is a Bushmaster produced here at Thales Bendigo equipped with naval strike missiles that we are equipping our destroyers and frigates with," Minister for Defence Industry Pat Conroy said.
"That project is being brought forward and given extra resources given the importance of long-range strikes for the Australian Army.
"I have to be very careful because while we don't have a live tender, at some stage there will be a live tender and I'm sure Thales will be part of a bid, but the sort of capability produced at Thales Bendigo will be carefully examined."
Australia has provided Ukraine with 90 Bushmasters to help in its efforts and now it wants the light-protected mobility vehicle, the Hawkei.