ENFORCEABLE UNDERTAKING

Part 11, Work Health and Safety Act 2011

The commitments in this undertaking are offered to the Regulator by

The Mulgrave Central Mill Company Limited

(the person)

ABN 14 009 657 032

COMMENCEMENT OF UNDERTAKING

This enforceable undertaking is given on the day and date that it is accepted and signed by the Regulator. The undertaking and its enforceable terms will commence to operate as a legally binding commitment on the part of the person from the date it is given.

DEFINITIONS

Mulgrave means The Mulgrave Central Mill Company Limited ABN 14 009 657 032.

OIR means Office of Office of Industrial Relations.

person means an individual who or a legal entity which has a duty under the Work Health and Safety Act 2011 and can give a written undertaking. The term includes individuals, each partner in a partnership, corporations, individuals or corporations as trustees of trusts, statutory corporations, public authorities, the State of Queensland, the Commonwealth of Australia and other Australian states and territories.

Regulator means the Deputy Director-General, Office of Industrial Relations, Queensland Treasury, being the person appointed by the Governor in Council as regulator under Schedule 2, Part 1 of the Work Health and Safety Act 2011.

WHS Act means the Work Health and Safety Act 2011.

WHS undertaking or undertaking or enforceable undertaking means a written undertaking given under Part 11 of the Work Health and Safety Act 2011 by a person in connection with a matter relating to a contravention or alleged contravention by the person of the Work Health and Safety Act 2011 and includes all of the contents of that document including the general information, general and enforceable terms.

PRIVACY STATEMENT

The Office of Industrial Relations respects your privacy and is committed to protecting personal information. The information provided in this document is for the purpose of an undertaking given to the regulator under Part 11 of the Work Health and Safety Act 2011 . This information will be managed within the requirements of the current state government privacy regime.

OIR may publish the undertaking and information contained in it for purposes identified in the undertaking or for other appropriate purposes in publications such as newspapers and on its website. OIR may be required to disclose personal information to other agencies such as the Queensland Police Service and WorkCover in accordance with enforcement activities that may be conducted as part of an investigation.

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SECTION 1: GENERAL INFORMATION

1.1 Details of the person proposing the undertaking

Nominated person: Brendan Slattery

Street address: 47 Gordon Street, Gordonvale, Queensland, 4865

PO Box 21, Gordonvale, Queensland, 4865 Mailing address:

Telephone: +61 7 4043 3333

brendanslattery@msfsugar.com.au Email address:

Legal structure: Australian public company, limited by shares (unlisted).

Sugar mill Type of business:

Commencement date: 1893

Workers: Full time:

Part time:

Casual:

103 Wages 20 Staff

0

108 Seasonal Employees (Typically from June to Nov)

Products and services: Mulgrave collects, transports and processes sugar cane at the Mulgrave Mill to produce raw sugar. Mulgrave's business also includes operation of maintenance of a cane railway network which comprises hundreds of kilometres of rail track and 114 rail bridges.

Comments: The Mulgrave Mill is a long established business which commenced operations in 1896. Up until 2008, Mulgrave Mill was owned and operated as a grower owned co-operative. In 2008, the Mulgrave Mill was purchased by Maryborough Sugar Factory Limited (now MSF Sugar Limited). In 2012 the MSF Sugar Limited Group was acquired by Mitr Phol Sugar Corp Ltd. Mulgrave remains a wholly owned subsidiary of Mitr Phol Sugar Corp Ltd.

1.2 Detail the alleged contravention

(a) Mulgrave did not ensure, so far as reasonably practicable, the health and safety of workers while they were at work, in that if failed to:

(i) adequately identify and assess the hazard prior to allowing workers to operate a cane railway locomotive on "Bruno's Bridge";

(ii) adequately identify and assess the risk of a failure of "Bruno's Bridge", particularly considering the age and condition of the bridge;

(iii) identify structural defects with "Bruno's Bridge", including those in relation to the extent of the deterioration of the bridge piles;

(iv) adequately inspect, maintain or repair safe infrastructure, namely "Bruno's Bridge" to enable workers to perform their work in a way that was safe and without risks to health;

(v) ensure workers were not exposed to a cane railway locomotive derailment from the cane railway tracks and a fall into the river below due to a partial collapse of the "Bruno's Bridge" substructure and superstructure;

(vi) provide a system of work for bridge clearing due to flooding;

(vii) provide adequate and appropriate training to manage the risks associated with hazards of "Bruno's Bridge";

(viii) implement adequate controls;

(ix) adequately monitor and review controls;

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(b) Mulgrave failed to identify the hazards and provide and maintain a safe workplace; and

(c) Mulgrave failed to provide a standard of work health and safety equivalent to or higher than the standard required in the Sugar Industry Code of Practice 2015 - Cane Rail Safety Supplement concerning control measures to minimise risk of injury from bridge fai lure and approved under the WHSAct.

1.3 Detail the events surrounding the alleged contravention

On 14 July 2013, a cane railway locomotive operator employed by Mulgrave was instructed to drive the "Charinga 8" cane railway locomotive across Bruno's bridge to collect 80 empty bins.

Prior to the Charinga 8 crossing Bruno's bridge, an inspection of the approaches of the bridge was carried out by the railway locomotive operator and the cane rail superintendent due to the high level of water in the Little Mulgrave River. The inspection revealed that both the approaches of Bruno's bridge were intact and the cane rail superintendent assessed the track to be in operable condition.

At approximately 8:30 am, the cane railway locomotive operator drove the Charinga 8 across Bruno's bridge to collect empty bins. A cane railway assistant locomotive operator was a passenger at the material time. Once across the bridge, the cane railway assistant locomotive operator attached 40 bins to the Charinga 8.

While the Charinga 8 was traveling back across Bruno's bridge with the 40 bins attached, it derailed on a section of the cane railway track and fell from the downstream side of the bridge into the Little Mulgrave River.

1.4 Detail the enforcement notices issued that relate to the alleged contravention detailed in term 1.2

DATE NOTICE NOTICE CONTRAVENTION ACTION TAKEN IN RESPONSE TO ISSUED TYPE NUB MER OR PROHIBITED NOTICE

ACTIVITY

28.08.2013 Improvement 11021158 Mulgrave did not 1. Mulgrave conducted an internal ensure, so far as audit of all other bridges in its cane reasonably railway network to determine if practical, the there were any other bridges provision of safe which were subject to similar plant. On 8 July environmental and locality 2013 a bridge circumstances of Bruno's bridge inspection at (for example, water level and Bruno's bridge water flow characteristics) and fai led to identify other potential factors which may major structural impede Mulgrave's ability to failure with the inspect the bridges in accordance bridge. with Mulgrave's bridge inspection

schedule.

18.07.2013 Prohibition P1015754 Using locomotive 1. The Charinga 8 was removed from Charinga 8 until an the Little Mulgrave River and inspector is transported to Mulgrave's satisfied that the maintenance shed. following matters

2. The Charinga 8 was repaired and have been remedied: the risk recommissioned.

of death or serious 3. The prohibition notice was closed injury from out. operating locomotive Charinqa 8 before

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DATE NOTICE NOTICE CONTRAVENTION ACTION TAKEN IN RESPONSE TO ISSUED TYPE NUBMER OR PROHIBITED NOTICE

ACTIVITY

it has been assessed by a competent person to be safe prior to returning to work.

28.08.2013 Prohibition P1015755 Driving locomotives 1. Mulgrave has removed the across the rail existing wooden Bruno's bridge to bridge identified as prevent it being used. Bruno's Bruno's bridge until bridge is to be upgraded to a an inspector is concrete pier with steel beam satisfied that the construction prior to use of the following matters bridge recommencing. have been

2. Until the upgrade works on remedied: repair and maintain the Bruno's bridge is completed, an

bridge to design alternative ra il siding is being used

standards. by Mulgrave as a temporary measure.

1.5 Detail the injury sustained or illness suffered by worker/s or other/s as a consequence of the alleged contravention detailed in term 1.2

The locomotive operator sustained fracture injuries to arm and bruising to shoulder.

The assistant locomotive operator sustained eye lacerations.

1.6 Detail the workers' compensation or other insurance benefits paid to the worker/s who sustained injury or suffered illness as detailed in term 1.5 or to the beneficiaries of deceased persons

The persons detailed are:

employees of the entity w

•

a self-employed person/s r

•

• other r (please specify)

not applicable r

•

Mulgrave was insured under the terms of the statutory workers' compensation insurance scheme operating in Queensland under the Workers' Compensation and Rehabilitation Act 2003 (Qld). The injured workers received workers compensation including rehabilitation in accordance with the statutory scheme and Mulgrave's workers compensation policy.

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1. 7 Detail the support provided or proposed by the person to worker/s, other/s or their families who sustained injury or suffered illness or to the family/famil ies of the deceased worker/s or other/s

DATE DESCRIPTION OF SUPPORT COMMENTS

The injured workers were offered Only the locomotive operator took

July 2014 up the offer to receive counsell ing in counselling to be facilitated by Mulgrave.

relation to the incident. The locomotive operator continued

The locomotive operator took time off to work as a locomotive operator work and received rehabilitation and with Mulgrave until late October returned to work in late September 2013. 2013 when the worker decided to

retire. - -- --The assistant locomotive operator took a short amount of time off work before The assistant locomotive operator returning and continuing employment with returned to work on 24 July 2013. MulQrave.

1.8 Detail any current occupational health and safety management system (OHSMS) implemented and maintained by the person

Mulgrave has an existing OHS MS as well as inspection and management programs in place for the bridges in its cane railway network. The work programs and practices have been formulated based on The Australian Sugar Industry Code of Practice for Track and Civil Infrastructure Design and Maintenance Practices (Code of Practice). The inspection program meets the criteria recommended by the Code of Practice with regard to both inspection frequency and inspection practices.

1.9 Detail the level of auditing undertaken on the OHSMS referred to in term 1.8, including compliance audits and audit frequency

Internal auditing is conducted numerous times a year in sections or targeted areas mainly focused on confirming compliance with the management systems. Periodically, external audits have been conducted focusing on the system and performance. These external audits have been conducted every 2 to 3 years by safety specialist companies.

1.1 O Detail the consultation undertaken or proposed to be undertaken, in relation to the enforceable undertaking

The workers charged with the bridge inspection tasks have been consulted to identify the issues in performing bridge inspections and the outcome of these discussions forms the basis of the intiatives re lating to inspection systems. These same workers will participate and contribute to the trials and testing of the bridge inspection initiatives outlined at section 3.

1.11 Detail the rectifications to the workplace or work practices made as a result of the alleged contravention and events detailed in terms 1.2 and 1.3 and the enforcement notices issued as detailed in term 1.4

Mulgrave has, and had at the time of the incident, an existing bridge inspection and maintenance program where inspections of Mulgrave's bridges are conducted by competent Mulgrave personnel at least once per year. The scheduling of programmed bridge inspections is automatically generated by Mulgrave's Computerised Maintenance Management System (CMMS). Additionally, where use of bridges has been suspended or interrupted due to flood or rising waters, the bridges are further inspected prior to re-use. As part of the inspection program, information on the condition of the bridges is collected. This information forms the basis of Mulgrave's bridge maintenance program.

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A timber bridge replacement program has been in progress for some time but was escalated in 2005. This program has been ongoing, with its purpose being to identify and replace Mulgrave's timber bridges with concrete and steel structures. The program prioritises the replacement of bridges based upon the risk rating of the bridge, as identified through the inspection program and their exposure to locomotive traffic. At the time of the incident, Mulgrave had already replaced or upgraded 10 timber bridges.

Since the incident, Mu lgrave has done the following:

1. Bruno's bridge was removed to prevent it from being used. Since the bridge has been removed the Mill has been paying for harvesting contractors to haul the cane to a nearby rail siding whilst an assessment on the benefit of reinstating Bruno's bridge is completed. If this study determines to reinstate Bruno's bridge (in lieu of continuing to pay for additional hau l distance) it will be upgraded to a concrete pier with steel beam construction prior to use of the bridge recommencing.

2. Mulgrave conducted an internal audit of all other bridges in its cane railway network to determine if there were any other bridges which were subject to similar environmental and locality circumstances of Bruno's bridge (for example, water level and water flow characteristics) and other potential factors which may impede Mulgrave's ability to inspect the bridges in accordance with Mulgrave's bridge inspection schedule.

3. As a result of the audit, it was identified that Bruno's bridge was the only wooden pier bridge within Mulgrave's cane railway network which was subject to water level and water flow factors which made for difficult inspection of the bridge's piers all year round.

4. Additionally, as a result of the audit, all of Mulgrave's bridges in its cane railway network were ranked according to their ease of inspection. The results of the audit have assisted Mulgrave to consider further control measures and alternate or improved inspection techn iques to improve Mulgrave's current systems and manage risks associated with Mulgrave's bridge structures.

5. Mulgrave also engaged an external consultant structural engineer to review Mulgrave's inspection system and maintenance practices for Mulgrave's bridge structures.

6. As a result of the external review, some improvement opportunities were identified. Mulgrave is now working with the consultant structural engineer to implement the recommendations where appropriate.

7. Mulgrave has informed other mill operators about the occurrence of the incident and the failure of Bruno's bridge. Mulgrave has also informed the Cane Supply and Transport Managers Group of the Australian Sugar Milling Council about the incident. Mulgrave has committed to sharing its learnings with other mill operators to prevent a similar incident occurring at other cane rai lway networks.

8. The Australian Sugar Industry's A Guide to the lnspect1on, Reporting and Assessment of Bridges and other Structures on Cane Railways document (Inspection Guidelines) has been reviewed and revised.

Amount spent on rectifications:

• Approx $25,000 per year for additional cane haulage (2013 and 2014).

• Approx $25,000 on removal of the old Bruno's bridge, structural engineering reviews and review of inspection systems.

Total : Approximately $75,000.

SECTION 2: GENERAL TERMS

The person acknowledges and commits to the general terms set forth in the sub-terms below.

2.1 Acknowledgement that the regulator alleges a contravention occurred as detailed in term 1.2

It is acknowledged that the Regulator has alleged that Mulgrave has contravened provisions of the WHS Act in relation to the incident.

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2.2 Statement of regret that the alleged contravention occurred and the reasons the persons considers this undertaking is a more appropriate response to the alleged contravention than a court imposed sanction

Mulgrave sincerely regrets that the incident occurred and is committed to continuing to support both workers involved in the incident and their families.

2.3 Statement of commitment that the behaviour, activities and other factors which caused or led to the alleged contravention has ceased and will not reoccur

Mulgrave has taken steps following the incident to develop systems which will prevent an incident of this nature from occurring again. Examples of rectification measures carried out by Mulgrave are set out at clause 1. 11 above. Mulgrave is committed to the future management of risks associated with this incident.

2.4 Acknowledgment of the guidelines published by the regulator for the acceptance of an enforceable undertaking

I have read and understood:

Guidelines for the acceptance of an enforceable undertaking

Version: 1 Dated: March 2015

2.5 Acknowledgement that this undertaking may be published and publicised

2.5.1 Mulgrave acknowledges that the undertaking may be published on the departmental internet site and referenced in departmental material.

2.5.2 Mulgrave acknowledges that th e undertaking may be publicised in newspapers.

2.6 Statement of the person's ability to comply with the terms of the undertaking and meet the projected costs of the activities

2.6.1 Mulgrave has the financial ability to comply with the terms of this undertaking and have provided evidence with this undertaking to support this declaration.

2.6.2 In the event of impending liquidation or sale of the entity, Mulgrave will advise OIR of the relevant circumstances and its capacity to comply with the outstanding terms of this undertaking.

2.7 Statement regarding person's relationship with any corporations, officers, employees, contractors, proposed beneficiaries of donations or scholarship or other recipient of financial benefit contained in this undertaking

There are no existing relationships with the beneficiaries outlined in section 3 below.

2.8 Statement regarding Intellectual Property Licence

Mulgrave, grants OIR a permanent, irrevocable, royalty-free, world-wide, non-exclusive licence to use, reproduce, publish, distribute, electronically transmit, electronically distribute, adapt and modify any materials developed as a result of this undertaking.

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2.9 Acknowledgement that the person may be required to provide a statutory declaration

OIR has requested a statutory declaration outlining details of any prior WHS I ES I SRWA convictions 1

or findings of guilt under the WHS, ES or SRWA Act.

r YES ~NO

2.1 o Statement of commitment from the person to participate constructively in all compliance monitoring activities of the undertaking

2.10.1 It is acknowledged that respon sibility for demonstrating compliance with th is undertaking rests with the person.

2.10.2 Evidence to demonstrate compliance with the terms will be provided to OIR by the due date for each term.

2.10.3 The evidence provided to demonstrate compliance with the undertaking will be retained by the person until advised by the regu lator, that the undertaking has been completely discharged.

2.10.4 It is acknowledged that any failure to meet the due date for an enforceable term will result in the matter being escalated and may lead to enforcement action .

2.10.5 It is acknowledged that OIR may undertake other compliance monitoring activities to verify the evidence and compliance with an enforceable term, and cooperation will be provided to OIR.

2.1 0.6 It is acknowledged that OIR may initiate additional compliance monitoring activities, such as inspections, as considered necessary at OIR's expense.

2.1 0. 7 It is acknowledged that details of all seminars, workshops and training conducted by a non­registered training provider must be notified to OIR, by email, at least one week prior. Notification should include time, date, location and the trainer/facilitator.

SECTION 3: ENFORCEABLE TERMS

The person acknowledges all activities set forth in the enforceable terms below must be auditable and include a date for completion and an estimated cost for each activity.

The person commits to performing the activities below diligently, competently and by the respective completion date.

3.1 A commitment by the person to perform activities that will ensure the ongoing effective management of risks to health and safety in the future conduct of its business or undertaking

Mulgrave commits to implementing systems to address WHS risks. Mulgrave will continue to use those systems or improve upon them by implementing the initiatives set out in this undertaking in order to appropriately manage the risks to workers arising from the operation of the Mulgrave Mill .

3.2 A commitment by the person to disseminate information about the undertaking to workers, and other relevant parties

Dissemination will be achieved by doing the following:

' Subject to any local legal constraints such as spent conviction legislation.

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All employees at the Mulgrave Mill will be informed about the undertaking and its contents at toolbox talks within two months of the date this undertaking being accepted, at WHS Committee meetings at the Mulgrave Mill and at executive meetings.

Dissemination will occur by: 2 months after the date of this undertaking being accepted.

Minutes of toolbox meetings with attendees' signatures will be provided.

3.3 Activities to be undertaken to promote the objects of the WHS Act that will deliver benefits for workers/others

ACTIVITIES COST TIMEFRAME --

Phase 1 - Develop External Bridge Inspection Training Course

Mulgrave previously had its workers undertake Structure Inspection training courses facilitated by an external provider. However, this course is no longer Within 12 available. months of

3.3.1 Mulgrave undertakes to consult with the Industry $5,000 acceptance of

Cane Supply and Transport Managers Group to this enforceable identify an alternative external provider to develop undertaking.

and establish an alternative Bridge Inspection Training Course. Mulgrave will then engage the provider to develop and establish the Course for Mulgrave workers with training to be provided as below at section 3.3.2.

Phase 2 - Train Mulgrave Personnel in Developed Bridge Inspection Training Course

Mulgrave currently has one trained worker who has completed a Structure Inspection training course.

Within 12 Once developed, Mulgrave will facilitate two additional months of

3.3.2 workers to undertake the Bridge Inspection and

$25,000 development of Maintenance Training Course developed in the training accordance with section 3.3.1 above, allowing more course at section workers at Mulgrave to undertake bridge inspection 3.3.1. duties.

Flight, food, accommodation and course fee receipts will be provided to OIR as evidence of this undertaking.

-- ---Update Existing OHSMS

The existing OHSMS at Mulgrave has been developed informally using internal resources based on industry Codes of Practice. Reasonable

It would be of benefit to Mulgrave if the system was level of

formally assessed against a recogn ised standard to implementation 3.3.3 ensure that it addresses all the requirements of such $20,000 with in 24 months

a system and to enable its effectiveness to be of acceptance of

comparatively assessed. this enforceable undertaking.

Mulgrave will further develop its existing OHSMS to meet the principles of AS/NZS 4801:2001 Occupational Health and Safety Management Systems - Specification with guidance for use.

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~

Mulgrave will engage an external consultant to further develop the OHSMS and w ill utilise internal resources to deliver training to staff on the updated OHSMS.

Mulgrave will make the updated OHSMS available and accessible to all workers through the Mulgrave intranet. Furthermore, the system will be developed as part of a MSF Sugar group wide initiative and the upgraded OHSMS will be available to other business units within the MSF Sugar Limited company.

Mulgrave will provide documentation to OIR to support the costings for this undertaking (ie. invoices, timesheets).

- - Within 3 months

3.3.4 OHSMS Audits - as per clause 3.9.6 & 3.9.7 $50,000 of acceptance and at 12 months intervals

Total estimated cost of benefits for workers/others $100,000 ~.

3.4 Activities to be undertaken to promote the objects of the WHS Act that w ill deliver benefits for industry

ACTIVITIES COST TIME FRAME

Phase 1 - Researching Methodologies for Underwater Inspection of Rail Infrastructure

The incident demonstrated that additional methods of performing underwater inspections of piles would be of benefit to personnel required to undertake inspection tasks in the industry.

Currently, the only methods for performing underwater inspections of piles are to build a temporary dam around the piles or to have personnel enter the water (either professional divers or site personnel). Both of these methods present

Within 12 challenges and in some cases risk to personnel from months of dangerous underwater wildlife (crocodiles and acceptance of

3.4.1 sharks). $10,000 this

Mulgrave engineers will undertake a review and trial enforceable of underwater inspection methods to determine undertaking. appropriate methods for inspection of underwater bridge infrastructure owned and operated by Mulgrave. Following this review and trial, new methods and procedures will be developed and provided to QFSWQ for review.

The findings will also be provided for consideration and incorporation into the revision of the Inspection Guidelines as outlined in section 3.4.3 below.

Mulgrave will provide documentation to OIR to support the costings for this undertaking (ie. invoices, timesheets).

,._

Phase 2 - Development of Research Paper on Within 24 3.4.2 $5,000 months of Underwater Inspection Methods

acceptance of

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Mulgrave will prepare a research paper based on the this review and trial of the various methods trialled for enforceable underwater inspections as outlined above in section undertaking. 3.4.1.

Mulgrave will make the paper available to the OIR and industry stakeholders to improve awareness of alternative underwater inspection methods that may be beneficial to the industry.

Mulgrave will provide documentation to OIR to support the costings for this undertaking (ie. invoices, timesheets ).

Phase 1 - Develop Updated Inspection Guidelines

The 'Australian Sugar Industry - A Guide to the Inspection, Reporting and Assessment of Bridges and Other Structures on Cane Railways' (Inspection Guidelines) are used in the industry as a standard for inspection of cane railway bridges. Following the incident, the Sugar Industry Cane Supply and Transport Manager's Group completed a review of the Inspection Guidelines to address shortcomings. As a result, three separate guidelines relating to bridge inspections were consolidated into a single document.

Mulgrave believes that a further revision of the Inspection Guidelines, which would include a more formal assessment of techniques and asset

W ithin 6 management strategies conducted by a RPEQ months of structural engineer, would be beneficial to all end acceptance of

3.4 .3 users of the Inspection Guidelines. $10,000 this

Mu lg rave will engage an RPEQ structural engineer to enforceable further revise the Inspection Guidelines and commits undertaking . to adopting any further improvements or recommendations made and will make it available to the rest of the industry for their consideration.

Improving the standard of the Inspection Guidelines will allow for simpler interpretation and implementation of the inspection, reporting and assessment practices benefiting both the workers responsible for undertaking bridge maintenance activities and those using the respective infrastructure which in turn should be presented in a safer, more reliable condition as a result.

Receipts of fees charged by the consulting engineer and a copy of the revised inspection Guidelines will be provided to OIR as evidence of this undertaking.

Phase 2 - Distribution of Updated Inspection Guidelines

Mulgrave will share the final Inspection Guidelines With in 18

w ith the sugar cane industry stakeholders via the months of

3.4.4 Industry Cane Supply and Transport Managers $1,000 acceptance of

Group. This will ensure that the industry has access this

to the most up to date guidelines which have also enforceable

been formally vetted by a RPEQ structural engineer undertaking.

This will be conducted by presentation at the industry forums and it would also be made available to the

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~ -- -,..--A- u-stralian Sugar Milling Council (ASMC) for inclusion I on their industry website library of reference material.

Total estimated cost of benefits for industry

I $26,000

3.5 Activities to be undertaken to promote the objects of the WHS Act that will deliver benefits for community

I ACTIVITIES COST TIMEFRAME

Phase 1 - Rail Safety Risk Study and Rail Video Monitoring

While there are currently systems in place to ensure cane rail safety in the community, there are still incidents occurring each year which are a result of intentional behaviour by members of the public. This includes interaction with pedestrians (adults and children) in cane rail corridors and interaction with vehicles at cane rail road crossings .

Mulgrave intends to engage a University to undertake a public cane rail safety risk study to review and document current rail safety initiatives as well identify Within 12 any deficiencies. months of

3.5.1 To assist with the gathering of evidence for the risk $20,000 acceptance of study, Mulgrave will trial a video surveillance system this for cane rail locomotives for monitoring trespass on enforceable the rail corridors and illegal interaction with road traffic undertaking. at rail crossings.

The surveillance collected will be used to review the effectiveness of the current safety program and may also be provided to the Queensland Police Service for their campaigns. If successful, additional systems will be installed on other locomotives as they will also provide assistance for locomotive crews to demonstrate compliance in the event of an incident.

The outcomes of this risk study will be used to develop the rail safety public awareness campaign and DVD outlined in section 3.5.2 below.

Phase 2 - Develop Rail Safety Public Awareness Develop and Campaign

$35,000 in deliver intial Based on the findings of the risk study outlined in the first year advertising section 3.5.1 above, Mulgrave will develop a public (advertising campagin and awareness campaign focused on rail safety to be campaign DVD within 6 delivered via radio I TV advertising to the local and DVD)+ months of community. Mulgrave will engage with local media to $20,000 per completion of

3.5.2 develop and broadcast the campaign. Mulgrave will year for the risk study also broadcast the campaign each year for the next following 2 outined in two years. years for the section 3.5.1 +

In addition, a DVD will be developed and provided to broadcast of broachcast

local schools in the community to provide education the advertising

on the sugar industry and rail safety. Mulgrave will advertising campagin each

engage an external contractor to assist with the campaign. year for the

development of the content and production of the following 2

DVD. years.

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I

[ - Total estimated cost of benef_it_s _to_r_t_h_e_c_o_m_m_un_i_tY ____ $_9_5_,_o_oo _ _ _ ___ __ ~

3.6 Agreement to pay OIR's recoverable costs

Mulgrave agrees to pay OIR's costs associated with the undertaking, as itemised below, and it is acknowledged that payment is due 30 days after receipt of the OIR invoice:

• administrative costs

• legal costs

• compliance monitoring costs

• publication costs

Total recoverable costs

$3,814

$1,500

$3,410

$ 900

$9,624

3.7 A commitment regarding linking the promotion of benefits by the person to the undertaking

Mulgrave is committed to ensuring that any promotion of a benefit arising from this undertaking will clearly link the benefit to the undertaking and that the undertaking was entered into as a result of the alleged contravention.

3.8 A commitment to maintain an occupational health and safety management system (OHS MS)

3.8. 1 Mulgrave commits to ensuring that within 12 months of the acceptance of the undertaking the OHSMS shall be compliant with the principles of AS!NZS 4804:2001 Occupational health and safety management systems-General guidelines on principles, systems and supporting techniques.

3.8.2 Mulgrave acknowledges that the OHSMS will be maintained in accordance with ASINZS 4804:2001 Occupational health and safety management systems-General guidelines on principles, systems and supporting techniques.

3.9 A commitment to ensure the OHSMS is audited by third party auditors

3.9 1 Mulgrave acknowledges that the auditors selected to perform OHSMS audits must meet the qualification requirements as set by the regulator.

3.9.2 Mulgrave commits to ensuring the OHSMS will be audited by certified third party auditors.

3.9.3 Mulgrave acknowledges that details of the auditors' qualifications will be provided with audit reports submitted to OIR.

3.9.4 Mulgrave acknowledges that costs associated with these audits wi ll be met by Mulgrave as part of the undertaking.

3.9.5 Mulgrave commits to ensuring the OHSMS will be audited against criteria that meets the principles of ASINZS 4801:2001 Occupational Health and Safety Management Systems ­Specification with guidance for use, to verify the OHSMS meets the principles of ASINZS 4804:2001 Occupational health and safety management systems-Genera/ guidelines on principles, systems and supporting techniques.

3.9.6 Mulgrave acknowledges that the current OHSMS in place, as detailed in term 3.8.1 is acceptable to the regulator and commits to ensuring that an initial third party audit will be undertaken within three months of the acceptance of the undertaking.

3.9. 7 Mulgrave commits to ensuring at least two further third party audits will be undertaken at 12 month intervals, commencing 12 months after the initial audit.

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3.1 O A commitment to provide a copy of each finalised OHSMS audit report to OIR

3.10.1 It is acknowledged that audit reports received from the auditor will be sent to OIR with in 30 days of the audit along with written confirmation that the report has not been altered from the copy provided to the person by the auditor.

3.10.2 It is acknowledged that within 30 days of receipt of the auditor's w ritten report, OIR will be advised of the intended actions for addressing each of the report's recommendations.

A commitment to implement the recommendations from third party audits

Mulgrave commits to ensuring the recommendations resulting from the OHSMS audits will be fully implemented within six months of receiving the audit report, unless OIR grants an exemption due to the actions being unreasonable.

3.11 Minimum spend

3.12.1 Mulgrave commits to a minimum spend of $230,624 for this undertaking.

3.12.2 Mulgrave agrees to spend any residual amount arising from an original term not being completed or being less costly than estimated in this undertaking. Agreement on how to spend this residual will be sought from the regulator.

3.12.3 Mulgrave acknowledges the minimum spend comprises of:

• •

• •

Total value of benefits to workers/others

Total value of benefits to industry

Total value of benefits to community

OIR recoverable costs

Estimated total value of the undertaking

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$100,000

$ 26,000

$ 95,000

$ 9,624

$230 ,624

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SECTION 4: EXECUTION

This enforceable undertaking is given by the person on the date it is accepted by the regulator as set forth in section 5 below.

Executed by The Mulgrave Central Mill Company ABN 14 009 657 032 in accordance with section 127 of the Corporations Act 2001:

KELLY ANNE SLATTERY - ----- -

Name of company secretary (BLOCK LETTERS)

on the 2nd day of October, 2015

before me:

. L.l{n.e.f[e J~d(lt! ffi_, D~ ccnQtl _____ _ Wft'ness name in full

Witness address

T he Mulgrave Centra l Mill Company Limited Version: I Date: 20ctobcr2015

MICHAELJOHN BARj _ / __ _

Name of director (BLOCK LETTERS)

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SECTION 5: ACCEPTANCE

This enforceable undertaking is accepted by the regulator on the S-day of ,A.)~~015.

-(signature)

Appointed by the Governor in Council as regulator under Schedule 2, Part 1 of the Work Health and Safety Act 2011, Schedule 2 of the Electrical Safety Act 2002 and section 32 of the Safety in Recreational Water Activities Act 2011.

The Mulgravc Central Mill Company Limited Version: I Date: 2 October 20 15 Page 17 of 17

Work Health and Safety Act 2011

Part 11 Enforceable Undertakings

REASONS FOR DECISION

Event No. 185594

Entity The Mulgrave Central Mill Ltd

ABN 14 009 657 032

Entity Address 47 Gordon Street, Gordonvale, Queensland, 4865

Location of Incident Bruno's Bridge, Little Mulgrave River, Gordonvale, OLD, 4865

Date of Incident 14 July 2013

1 History of the Application

1.1 On 14 July 2013, two workers employed by The Mulgrave Central Mill Ltd (Mulgrave), sustained serious injuries when a locomotive they were operating derailed on the Bruno's Bridge crossing over the Little Mulgrave River, Gordonvale, OLD, 4865.

1.2 Following an investigation by Workplace Health and Safety Queensland (WHSQ) inspectors, prosecution action was commenced (by complaint and summons) against Mulgrave on 4 July 2014 on the basis that Mulgrave being a person who had a workplace health and safety (WHS) duty under section 19(1) of the Work Health and safety Act 2015 (the Act) failed to comply with the duty contrary to section 32 of the Act.

1.3 On 15 October 2014, notification to give a WHS undertaking (undertaking) for this matter was received by the then Office of Fair and Safe Work Queensland (OFSWQ).

1.4 A final draft of the undertaking was received on 12 August 2015.

1.5 On 24 August 2015, an Evaluation Panel (the Panel) consisting of a senior public servant and two external, independent persons evaluated the final draft undertaking, recommending the regulator accept the undertaking as an enforceable undertaking (EU).

1.6 On 12 October 2015, a final signed version of the undertaking was received by the Office of Industrial Relations (OIR).

2 Legislation and Policy

2.1. It is alleged that Mu lg rave being a person who had a WHS duty under section 19(1) of the Act failed to comply with the duty contrary to section 32 of the Act.

2.2. An undertaking was given in accordance with section 216 of the Act in which, the regulator may accept a written undertaking given by a person in connection with a matter relating to a contravention or alleged contravention by the person of the Act.

2.3. The Deputy Director General (DOG), OIR (formerly OFSWQ) has been appointed as the regulator by the Governor in Council under Schedule 2, Part 1 of the Act.

2.4. The former OFSWQ provided the relevant publications outlining information regarding the EU Program and the regulator's expectations for giving an undertaking.

2.5. The Guidelines for the acceptance of an enforceable undertaking dated 2015 are publications provided to assist duty holders in preparing an undertaking for consideration pursuant to section 230(3) of the Act.

2.6. In determining whether to accept the undertaking as an EU, the regulator has considered the provisions of section 217 of the Act, in which the regulator must give the person seeking to give an undertaking written notice of the regulator's decision to accept or reject the undertaking and of the reasons for the decision.

3 Material and evidence considered by the regulator

3.1. In making a decision regarding this matter, the regulator has made consideration to the following documents.

3.2. Work Health and Safety Act 2011

3. 3. Guidelines for the acceptance of an enforceable undertaking - dated 2015

3.4. EU material published on the WHSQ website - https:llwww. worksafe.qld.gov.au/laws-and­compliancelenforceable-undertakings

3.5. Complaint - General Purposes - Made, and Summons - dated 4 July2014

3.6. OFSWQ Investigation Report Event E185594-signed 17 March 2014

3. 7. Improvement notice: 11021158, date issued 28 August 2013

3.8. Prohibition notice: P1015754, date issued 18 July 2013

3.9. Prohibition notice: P1015755, date issued 28 August 2013

3.10. WHSQ Statement by the Director, Legal and Prosecution Services - Event 185594, dated 4 December 2014

3.11 . WHSQ Regional Director's Statement of compliance history - Event 185594 - dated 8 January 2015

3.12. Work Cover Workers Compensation Report for The Mulgrave Central Mill Ltd

3.13. WHSQ - EU Chronology - The Mulgrave Central Mill Ltd

3.14. Injured worker response - dated 15 March 2015

3.15. The Mulgrave Central Mill Ltd Financial Capacity Letter - dated 2 October 2015

3.16. CQU Agreement Letter - dated 29 September 2015

3.17. ASMC Agreement Letter - dated 7 October 2015

3.18. The Mulgrave Central Mill Ltd Evaluation Panel Assessment - dated 13 October 2015

3.19. The Mulgrave Central Mill Ltd Enforceable Undertaking - date 2 October 2015

4 Findings on material questions of fact

4.1 I regard the Guidelines for the acceptance of an enforceable undertaking dated 2015, publication as containing considerations which are relevant and appropriate to my decision.

4.2 The undertaking given by Mulgrave satisfies the specified requirements of the Act and the policy requirements discussed above with respect to the operation of Part 11 of the Act as they have been published.

4.3 The objective gravity of the matter has been assessed as a 'medium/low' level, which takes into consideration the nature and circumstance of the incident, the culpability of the company, the presence of any aggravating or mitigating factors relevant to the alleged offence and any prior prosecution action by the State against the company.

4.4 I find the quantum of the undertaking as a proportionate amount relevant to the objective gravity.

4.5 I find the significance of the commitment in the undertaking is comparable to the capability of the person.

4.6 Mulgrave acknowledge the alleged contravention and regret the occurrence and the consequences.

4.7 Mu lg rave were prosecuted in 2001 for a breach of the Workplace Health and Safety Act 1995, however the facts involved in that offence are very different and the matter was simpliciter only.

4.8 WHSQ compliance history records show no adverse compliance history.

4.9 I acknowledge the assurance given by Mulgrave that the behaviour that led to the alleged contravention has ceased and the commitment to ensuring the ongoing effective management of risks to health and safety in the future.

4.10 I find Mu lg rave provided return to work assistance for the injured workers with both returning to full-time work.

4.11 One of the injured workers did not respond to an invitation to provide the EU Unit with an impact statement in relations to the incident.

4.12 I find the second injured worker has since left Mulgrave's employment and in their response describes their thoughts on the incident.

4.13 I find the undertaking would constitute tangible benefits for the Mu lg rave workers/workplace, and for the Sugar industry and community. Those benefits are the upgrade and maintenance of the occupational health and safety system, the development of an external bridge inspection training course, training personnel in the bridge inspection course, industry research project on Underwater Inspection of Rail Infrastructure methodologies, development and distribution of updated Australian Sugar Industry Guide for inspection, reporting and assessment of bridges and other structures on cane railways, funding a university to review public cane rail safety risks and developing a rail safety public awareness campaign.

4.14 I find the undertaking commits the person to a standard that is higher than the recognised compliance for the activity and/or to activities over and beyond recognised compliance levels.

5 Decision

5.1 Based on the evidence and findings, I have carefully considered this matter and am of the opinion that the undertaking given by Mulgrave is an appropriate enforcement option in regards to this case.

5.2 I have concluded that an EU is the preferred enforcement option to continuing the prosecution due to the opportunity to provide lasting organisational change within Mulgrave and the implementation of monitored and targeted health and safety improvements, which could not be achieved by prosecution.

5.3 Under section 216 of the Act, it is my decision to accept this undertaking as an EU and the effect of this decision is that the prosecution proceedings shall be discontinued.

Simon Blackwood Deputy Director-General Office of Industrial Relations

5 1 II 12015