How to Implement Chain of Responsibility

On 13 May 2016, a visiting truck salesperson was injured when struck by a B-Double truck delivering aggregate to a Holcim concrete plant in Sydney, NSW. SafeWork NSW alleged that Holcim failed to ensure the health of its workers so far as reasonably practicable.

Holcim had a working WHS management system at the time, which was audited externally by a legal team and internal auditors every two years. However, an external audit by a safety representative was never completed at an operational level to ascertain whether the current traffic management was suitable for the site.

The enforceable undertaking was accepted on the basis that the alleged contravention did not appear to be a section 31 reckless conduct category 1 offence. Had it been classified as such, the undertaking would not have been accepted — and the consequences would have included lengthier legal proceedings, potential jail time for responsible duty holders, and much larger fines.

Two key failures stood out in this case:

Incomplete operational audit

The external audit was never completed at an operational level to verify that traffic management arrangements were suitable for the site and its day-to-day activities.

Missing duty-holder training

Training of the company's duty holders was not completed, leaving front-line staff without the awareness needed to manage vehicle and pedestrian interactions safely.

Under the Heavy Vehicle National Law, the principle of shared responsibility means each party in the chain must take all reasonable steps to prevent breaches. The HVNL also places a specific duty on executives of legal entities to exercise due diligence. When those duties are not supported by verified training and operational audits, the entire system is exposed.

For guidance on closing these types of gaps, see Using a Chartered Risk Lens to Close Chain of Responsibility Gaps in Australian Transport.

Following the incident, Holcim implemented a range of rectification measures at the Caringbah plant, totalling $70,960. Company-wide traffic management improvements exceeded $4,000,000.

Specific implementations included:

• An independent pedestrian and vehicle audit
• Entrance redesign with a new front gate
• Implementation of flashing lights
• Line marking and floodlighting
• Segregated walkways
• Pedestrian crossings, handrails, signage, and gates
• Improvements to car parks
• Lobbying of the local council to change parking notices at the site entrance

Holcim also committed to a broader set of agreed activities under the enforceable undertaking, including:

• Safety leadership training for all front-line and senior members in its NSW concrete business
• An external traffic management audit of five NSW concrete manufacturing sites
• An industry forum on best-practice vehicle and pedestrian traffic management
• A community safety awareness campaign
• A truck advertisement campaign promoting safety awareness

The Holcim case highlights that having a management system is not enough. The system must be operationally verified, and every duty holder must be trained to understand their CoR responsibilities.

MAEZ has helped dozens of businesses address risks found through gap analysis that would have exposed them to serious financial penalties for not adequately implementing Chain of Responsibility obligations. In many cases, the exposure easily exceeded the costs Holcim faced.

Key takeaways for transport operators:

• Ensure audits are completed at an operational level, not just at a corporate or document level
• Provide targeted CoR training for front-line staff and executives who carry primary duties
• Verify that site-specific traffic management controls are suitable for the actual activities taking place
• Treat CoR as an integrated part of your Safety Management System, not a separate compliance checkbox

For training pathways, see Chain of Responsibility Training for Australian Operators.

MAEZ helps Australian transport businesses turn Chain of Responsibility, HVNL, WHS, and chartered risk obligations into practical training, advisory, audit, and implementation pathways. Our approach focuses on three stages:

Find

Identify what is exposed before an auditor or regulator does.

Fix

Build Safety Management System controls around how the transport business actually runs.

Prove

Use structured records, reminders, audits, and evidence to demonstrate compliance.

Where software is the right next step, CoRGuard supports the evidence workflow, including training records, driver diary checks, corrective actions, document control, inductions, and audit reporting.

To get started with a practical review of your controls, evidence, training, and SMS gaps, contact MAEZ or explore our Chain of Responsibility consulting services.