Violation of Occupational Health & Safety Act Results in Unprecedented Fines

On April 5, 2024, an unprecedented fine was levied towards a corporation and its director for violation of the Occupational Health and Safety Act. The corporation was fined $600,000 and the director was fined $80,000, plus a 25% victim surcharge.

These are highest fines levied both towards a corporation, and to an individual for a single charge in Canadian history, and is further evidence that governing bodies are serious about enforcing legislation to protect workers and prevent further fatalities and injuries.

What can we learn from this?

1. Chemical handling protocols are critical for reducing risk in the workplace. In this case, diesel fuel and gasoline were unintentionally mixed, causing an increased flammable hazard. Ultimately, this mistake resulted in catastrophic explosions and fires that caused the death of 6 people and serious injury of another.

2. Directors are being held increasingly accountable for the workers under their care; specifically, for oversight of middle management/supervisors and ensuring hazards are identified and controlled. While consistent with their legislated duties under the Act, historically directors have not been the target of large fines and charges. Instead, the penalties were previously levied toward front line supervisors and staff. This reflects the growing understanding that senior directors have the most accountability for the workplace and workers, and that they have a duty to know what is happening in their organization. 

3. Senior leaders need to have open communication and trust with their workforce to ensure candid and frequent flow of information. Leaders won’t know what is happening, and therefore cannot take action to address risk if the workforce is fearful or apprehensive about reporting their concerns.

Consider who in your workplace provides this information and to whom. If you are a leader, what questions should you be asking and what to you need to know? Do you believe that staff are open and honest, without fear of repercussions when delivering bad news? Is there a clear and accessible process for reporting, tracking, and resolving issues?

4. Workplace culture is built from the top. Leaders are responsible for establishing systems and structures that support a culture that prioritizes worker safety. Blame-centered culture reinforces our natural instinct of self preservation over disclosure; silence and secrecy over candor and open communication. Also, actions mean more than words. Leaders need to ensure actions and directives echo policy statements, and vice versa.

So, what can you do?

Ensure that you have an environment where staff feel comfortable reporting issues, where supervisors and managers appreciate staff input and take action to address these concerns. Having little or no reported concerns is a red flag and is a prime indicator that staff do not understand or feel comfortable reporting issues. Ensure that staff are trained about the specific tasks and hazards in your workplace, not just general safety measures, and equip supervisors and managers with the tools and knowledge they need to be successful and manage the workers under their care.

To read more about the incident, the Ministry of Labour, Labour, Immigration, Training and Skills Development has published a court bulletin: https://news.ontario.ca/mlitsd/en

For any assistance or answers about how you can bolster your health and safety systems and due diligence, contact our resident safety expert Jennifer Goertzen, CRSP.