Jungheinrich to Pay Over $200,000 for Bypassing Safety Sensors in Customer Forklifts

A leading forklift service provider has been fined $150,000, ordered to fund a $30,000 safety video for SafeWork NSW, pay over $3,000 to market the video for SafeWork, and pay SafeWorks costs after its technicians bypassed critical safety systems in forklifts at a Sydney manufacturing site, exposing workers to the risk of serious injury or death. This penalty is not yet fully calculable but is between $200,000 and $300,000 (in addition to their legal costs).

The New South Wales District Court convicted Jungheinrich Australia Pty Ltd under section 32 of the Work Health and Safety Act 2011 (NSW), following its guilty plea to a charge of failing to comply with its duty to ensure the safety of others at a Liverpool worksite operated by Prysmian Australia Pty Ltd.

The offending involved the systematic use of bypass plugs—known as “special service tools”—which disabled the seat safety system on 7-tonne Manitou forklifts. This allowed the machines to be operated even when the driver was not seated, contrary to manufacturer design and WHS requirements.

The incident came to light after a Final Test Operator at the site was found using a forklift with the bypass in place on 2 December 2021. Subsequent inspections revealed that all four Manitou forklifts at the site had been modified in the same way. The Court found this was not an isolated breach, but a practice that had continued since at least 2019, with knowledge of site management.

In 2019, a Jungheinrich technician had acknowledged in an email to Prysmian that “machine operators are using a supplied special service tool (SST) to bypass the seatbelt lock out safety system BUT leaving it in place which we agree is not acceptable.” Despite this acknowledgment and some corrective actions, the unsafe practice continued for years.

District Court Judge Russell SC noted that the risk was foreseeable, known to the company, and easily preventable. “The potential consequences of a 7-tonne forklift colliding with a worker are very serious,” he said, adding that the required safety steps were “simple and effective” and involved “no particular burden or inconvenience.”

While no injuries occurred, the Judge emphasised that WHS offences are based on risk, not harm. The Court found Jungheinrich’s conduct fell in the lower end of the mid-range of objective seriousness. The original fine of $200,000 was reduced by 25% due to the early guilty plea.

In addition to the fine, Jungheinrich was ordered to fund a $30,000 educational video about the incident and safety obligations for forklift servicing, with content to be managed and approved by SafeWork NSW. A further $3,500 will be allocated to promoting the video, which will be publicly distributed and carry SafeWork NSW branding.

Jungheinrich was also ordered to pay the prosecutor’s costs.

In sentencing, Judge Russell acknowledged that Jungheinrich had cooperated fully with the investigation and taken significant steps since the incident to strengthen its safety systems. These included new checklists, technician training, increased supervision, and the appointment of a Director of Quality, Safety and Environment at the executive level.

Despite these improvements, the Judge stressed the need for general deterrence.

“Employers must take the obligations imposed by the WHS Act very seriously,” he said. “The community is entitled to expect that both small and large employers will comply with safety requirements.”

The case highlights the critical role of maintenance providers in ensuring that plant and equipment are returned to service in a safe condition—and the legal consequences when they are not.