FORMER Ports of Auckland Ltd CEO Tony Gibson has been hit with a six-figure fine over a 2020 health and safety breach that saw the death of a stevedore.
In November last year, Judge Bonnar KC in the District Court at Auckland released a decision finding Mr Gibson guilty of one Health and Safety at Work charge, after stevedore Pala’amo Kalati was killed in August 2020 when struck by a container while working on vessel Constantinos P at the Fergusson terminal.
This was the first time in NZ an officer of a large company had been convicted of a breach of their due diligence duty. The total penalties, handed down late last week, include a NZ$130,000 fine and an additional $60,000 payment to MNZ. The Judge’s decision is seen as one that clarifies legislative health and safety obligations for officers of large companies.
MNZ also brought charges against POAL, which was convicted and fined $500,000 in December 2023.
Commenting on Friday’s sentence, MZ director Kirstie Hewlett said people are at the centre of prosecutions such as this, and Mr Kalati’s family, will forever feel the impact of what occurred at the port nearly four and a half years ago.
“This has not been a quick process, and we fully understand how difficult the ongoing proceedings against the Port and Mr Gibson would have been for those close to Mr Kalati, and the other victim,” Ms Hewlett said.
The District Court found that, as the chief executive of Port of Auckland, Mr Gibson did not exercise his due diligence responsibility for ensuring that the port complied with its health and safety responsibilities.
“This was a serious departure from the duty of care he should have provided to the workers at the port as the senior officer in charge (the chief executive).
“Mr Gibson had the knowledge, influence, resources and opportunity to address safety gaps and ensure that appropriate systems were in place at the port, but failed to do so,” Ms Hewlett said.
During his more than a decade managing it, the port company was convicted of several offences under health and safety legislation. The past incidents resulted in fatalities and serious injuries, MNZ noted.
Ms Hewett said it was hoped this case will serve as a strong reminder to chief executives of large companies that they need to understand the critical risks at their businesses; and assure themselves, through reliable sources, that there are controls and systems in place, and that these are working effectively on the ground.
“In saying this I recognise there are many officers in New Zealand who are meeting their health and safety obligations, and they should be confident this decision reaffirms the work they do to keep their people safe at work.
“More broadly I also want to recognise the work of the Port sector- port companies, stevedores and unions since the death of Mr Kalati to improve safety on New Zealand ports. This work has included the delivery of the Approved Code of Practice (for loading and unloading cargo at ports and on ships) which was launched last year to ensure consistent base line safety standards.
“It is important that this work continues to ensure we prevent tragedies like this and that workers come home healthy and safe,” Ms Hewlett said.
Mr Gibson, who was previously P&O Nedlloyd’s NZ chief and subsequently that of Maersk Line NZ following the latter’s takeover of the former in 2005, joined POAL in 2016 and left in 2021. In 2022 MNZ charged him with two counts of breaching the Health & Safety at Work Act 2015, to which Mr Gibson pleaded not guilty. The lengthy trial began in April 2024.
