Ford Canada faces over $1M in fines after workplace deaths

Written by  COS staff 26 May 2010
Ford Motor Company of Canada Limited was fined more than $1 million last Tuesday for violations under the Occupational Health and Safety Act (OHSA) after two workers were killed in separate incidents, a statement from the Ministry of Labour said.


On January 31, 2008, a worker was fatally injured at Ford's Oakville assembly plant after being crushed between two forklifts. The worker was standing beside a forklift when a co-worker reversed another forklift into the worker. A Ministry of Labour investigation found that the forklift operator did not keep a clear view of the vehicle's path of travel while reversing, the statement said.

 

A year later on January 14, 2009, another worker was killed while driving a lift truck carrying an unsecured pallet at Ford's Bramalea parts distribution centre. While the worker was driving the lift truck down a narrow aisle, the pallet struck a storage rack. The worker was crushed between the pallet and the vehicle. A Ministry of Labour investigation found that Ford's material movement policies and procedures were not adequate.

 

Ford Motor Company of Canada Limited pleaded guilty to two counts of failing to take all reasonable precautions in the circumstances to protect the safety of the workers.

 

A fine of $850,000 was imposed by Justice of the Peace Jerry Woloschuk. In addition to the fine, the court imposed a 25 per cent victim fine surcharge of $212,500, as required by the Provincial Offences Act, bringing the total fine to $1,062,500. The victim fine surcharge is credited to a special provincial government fund to assist victims of crime. 

Last modified on Wednesday, 26 May 2010 12:54

comments  

 
0 #2 Owen Berg 2010-06-08 11:10
While Ford will most likely get this as a deduction, legal sources in Alberta have informed me that the prosecution and Judge are aware of the potential for the percentage of income tax deduction and the fines are sometimes adjusted accordingly. Also the message of the 1 million dollar fine is not just for Ford at any rate.

As Industry becomes aware of this public information, it is hoped that they will also learn from this. There are also costs to Ford not included in this including legal, investigation, more OH&S focused inspections, increased premiums, not to mention costs in loss of production due to stress from workers involved or witnessed the event who may also be recieving some WCB benefits.

Also if the Board of Directors of Ford opted out of WCB coverage, the family may have an opportunity to sue the Ford BoD over these deaths.
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+6 #1 Tamra Mann 2010-05-31 16:44
So, now the hard question: does Ford Motor get to deduct these fines pursuant to the Income Tax Act? The tax treatment of fines levied pursuant to occupational health and safety legislation has been addressed collaterally in various coroner's inquests. Has anything changed? If not, one wonders what message is being sent when these fines are treated the same way as business and promotion 'write-offs', or other expenses of doing business...
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