WATCH: CoRsafe’s experts unpack the legal aftermath of the Eastern Freeway tragedy for Australia’s transport executives
The legal outcomes of the Eastern Freeway tragedy should have the transport industry’s attention - especially its leaders.
In this video, Aaron Louws, Supply Chain Technical Manager for CoRsafe, and logistics legal expert Nathan Cecil, Partner at law firm Holding Redlich, break down the details of the case and what it means for businesses and their staff.
The video in brief
A severe truck accident on Melbourne's Eastern Freeway involving a truck driver impaired by drugs and fatigue resulted in the death of four police officers, triggering a series of legal charges against the driver, the transport company, and several executives.
The driver received a significant prison sentence, while the transport company faced a multimillion-dollar fine. Executives and the National Operations Manager were also heavily penalised, indicating a broad scope of legal accountability.
This case marks one of the few instances where individuals, not just the company, were prosecuted under a category one offence under heavy vehicle national law, setting a precedent in legal responsibility within the transport sector.
The case broadened the legal definition of an 'operator' to include individual managers and supervisors within a company, highlighting their critical role in ensuring compliance with safety regulations.
The case underscores the importance of actively implementing, monitoring, and adapting safety policies and systems within an organisation, moving beyond mere documentation to effective practical application.
The background
The case originated from a catastrophic event in which a truck, driven by an individual impaired by drugs and fatigue, struck and killed four Victorian police officers, who had pulled over a car on the Eastern Freeway.
Legal expert and Partner with Holding Redlich Nathan Cecil says that charges were brought about because it was alleged the driver's employer wasn't properly managing fatigue within the organisation.
This case not only involved the driver but also implicated the transport company and several executives within the organisation, highlighting the shared responsibility in the logistics chain.
The legal outcomes
The legal consequences were severe and wide-ranging. Cecil says the driver was sentenced to 18 years and six months in prison, while the transport company was fined $2.3 million. Two of the company’s executives were fined, and the National Operations Manager was sentenced to three years imprisonment. One more executive is awaiting a legal outcome.
A groundbreaking legal precedent
Cecil says this case is significant for several reasons. Firstly, it's one of the few instances where individuals were prosecuted under a category one offence for heavy vehicle national law. He says, "There's been only one category one conviction against an individual in Australia, but the circumstances of that case differ greatly." That was an owner-operator of a tow truck - this is the first time an executive down the hierarchy has faced jail time.
This precedent expands the scope of legal accountability beyond the company to include individual managers and operators within a business.
Broadening the definition of 'operator'
One of the groundbreaking aspects of the case is the broadened definition of 'operator' in the context of heavy vehicle national law. Cecil says the court held that “an operator could be someone like the immediate manager or supervisor of a driver." This redefinition signifies a shift in legal interpretation, emphasising the role of management in ensuring safety compliance.
Implications for executives and managers
The case also brings to light the responsibilities of executives and managers in the transport sector. Cecil says executives are defined as being “statutory directors ….and anyone that's concerned or takes part in the management of a corporation." The finding that the National Operations Manager fell within the definition of ‘executive’ suggests a deeper level of accountability for those in managerial positions.
Lessons for the supply chain
The case has significant implications for all parties in the supply chain. It emphasises the importance of not only having safety systems and policies but effectively implementing and monitoring them. Cecil says, "The great failing was the company wasn't actually implementing, monitoring and ensuring that those policies were being effective."
Key takeaways for transport leaders
Safety policies on paper are not enough. This underscores the necessity of translating safety policies into tangible actions within the organisation.
This case sets a significant precedent in transport law, expanding the accountability to individual managers and operators.
For the transport and logistics industry, this case serves as a crucial lesson in the importance of vigilance, responsibility, and continuous improvement in safety practices.
This article contains general information only and is not advice.
© 2023 Logistics Safety Solutions Pty Ltd (LSS) ABN 25 134 417 379.
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This video contains general information only and you should obtain your own professional advice based on your personal and business circumstances. LSS bears no responsibility, and shall not be held liable, for any loss, damage or injury arising directly or indirectly from your use of or reliance on the information in this webinar.