ENFORCEABLE UNDERTAKING Part 14 Work Health and Safety Act 2011 The commitments in this Enforceable Undertaking are offered to the WorkCover Authority of NSW by Terex Australia Pty Limited ABN 86 010 671 048 Page 1 of 24Enforceable Undertaking Purpose The purpose of this enforceable undertaking is to document the undertakings offered to the WorkCover ‘Authority of NSW (WorkCover) pursuant to Part 11 of the Work Health and Safety Act 2011 (WHS Act) in connection with matters relating to alleged contraventions of the WHS Act or the Work Health and Safety Regulations 2011 (the Regulations) Section 1 — General information . Details of the person proposing the undertaking Rosidential address: Postal address: Telephone contact Email address: Logal structure: ‘Type of business: ‘Commencement date of the entity: Number of workers: Products and services: ‘Comment 585 Curtin Avenue East Eagle Farm, Queensland 4009 As above a Corporation Design, manufacture, service and sale of machinery and equipment 6 October 1986 (registration date) 186 full ime workers, 2 part time workers. Machinery and industrial products and solutions ‘Terex Australia Pty Ltd (Terex Australia) is an Australian subsidiary of Terex Corporation; a diversified global manufacturer operating in five business segments: aerial work platforms, construction, cranes, material processing and material handling and port solutions. The Terex group of companies place particular importance upon the safely of its employees and others and the protection of the environment, and are committed to the continuous improvement of ‘workplace health and safety Page 2 of 24b. Details of the alleged contravention Its alleged by the WorkCover that on 25 July 2012 Terex Australia failed to discharge its obligations as a person conducting a business or undertaking under section 19(1) of the WHS Act (NSW) in that itdid not ensure so far as reasonably practicable the health and safety of the injured worker. c. Details of the events surrounding the alleged contravention As part of its crane maintenance and repair service, Terex Australia was attending to ‘wear pad! replacements for a customer's Demag 100 tonne mobile crane (Demag crane). The completion of this work involved service technicians undertaking @ weight test on the Demag crane. During the weight testing, a service technician considered that one of the sensors on the Demag crane’s boom was not properly functioning and proceeded to examine the sensor located near the boom pivot, The service technician stood on the plate platform, which is approximately 3170 mm from the ground, to examine the sensor. There was no fall protection in place either on or around the plate platform. It fs believed that the service technician fell from the plate platform suffering serious head injuries and 1a broken wrist d. An acknowledgement that WorkCover alleged a contravention has occurred {tis acknowledged that WorkCover has alleged that Terex Australia has contravened section 19(1) of, the WHS Act. ©, The dotails of any injury that arose from the alleged contravention {The details of any enforcement notices issued that relate to the alleged contravention ; a X | Yes (provide details) No lis Notices received Date issued Notice type Notice Contravention Action taken in response number to notice 26Jul2012 Prohibition 002264 Section 19, WHS Act, 1. Tool Box talk conducted clause 40, the Regulations by the National Heaith, = cease working from Safely and Environment heights without fall Manager of Terex protection Australia (HSE Manager) with all team members of the Service Team (Sydney) of Terex Cranes (Service Team) (the Page 3 ot 24Date issued Notice type Notice Contravention Action taken in response number to notice business unit of Terex Australia involved in the incident) coneeming working from heights and use of fall protaction and fall arrest equipment (rote that such equipment was kept by the Service Team at the time of the incident), 2. On 8 August 2012, 2 comprehensive full day working from — heights extemal training course (Work Safely at Heights’) was conducted by Workplace Training Centre Ply Ltd at the Service Team's worksite invalving all Service Team members (and associated business personnel working at the same worksite). The training session involved both. theory and practice with an emphasis on Working at heights on cranes. including practical demonstrations on @ Demag crane with similar height dimensions as the one involved in the incident aswell as consideration of use of all forms of working from heights equipment. At the conclusion of the session the external training provider certified all attendees as ‘competent’ 9. Astatoment of assurance about future work health and safety behaviour Terex Australia is committed to complying with its obligations under the WHS Act in ensuring, so far as reasonably practicable, the health and safety of all workers, Page 4 of 24When an alleged contraventior is associated with an injuryiitiness. h. The details of the type of workers compensation provided (if the injured person(s) is a worker of the person) ‘The injured worker, as an employee of Terex Australia, has been provided workers compensation including renablitation in accordance with Terex Australia's workers compensation policy and applicable workers compensation legislation The det ‘overcome the injuryliliness ‘The injured worker is an employee of Terex Australia. The following support has been provided to the injured person(s) oF injured person(s) family Date 25 Jul 2012 25Jul 2012 26 Jul 2012 — 28 Jul 2012 Description of support Immediately afer the Incident, Terex Australia personnel provided first aid (by a designated and qualified first ald officer) and support to the injured worker until arrival of an ambulance to trensport the injured worker to hospital Terex Australia's representatives (Branch Manager and Administrative Officer) attended the hospital where the injured worker was being treated to provide support and also contacted the injured worker's parents residing in Scotland to inform them of the incident, indicating that Terex Australia would pay for their air travel to visit the injured worker During this period, Terex Australia's representatives visited the injured worker in hospital a total of three times @ day; one personnel visiting twice a day (once during work hours and the other time after work hours) staying with the injured worker approximately one hour each visit, It was known that the injured worker had recently come fo Australia from Scotland and had no immediate family in Australia Accordingly, Terex Australia wanted to ensure that the injured worker was properly supported and comforted whilst in hospital until the arrival of his family from Scotland, ‘Comment of the support provided, and proposed to be provided, to the injured person(s) to Page 5 of 24Date 28 Jul 2012 28 Jul 2012 30 Jul 2012 — 8 Aug 2012 8 Aug 2012 — 30 Oct 2012 Description of support ‘Terex Australia representatives attended the airport to pick up the injured worker's father, mother and brother who had arrived from Scotland, and then drove them to the hospital where the injured worker was being treated. After visiting the injured worker, the representatives then drove the family to a nearby hote! ND where Terex ‘Australia had arranged for the family to stay for the duration of their visit Terex Australia's __ representatives, continued to visit the injured worker at hospital (one representative attended every day and the other every second day). The representatives also kept in constant communication with the injured worker's family, providing them with support and attending to their needs. Terex Australia's. _ representatives continued to visit the injured worker at hospital (both representatives were visiting approximately twice during the working week and once on the weekend), as well fas keeping in constant contact with the Injured worker's family and providing them with support and attending to their needs, Comment Terex Australia reimbursed the injured worker's family (father, mother and brother) for air travel tickets from their home in Glasgow, Scotland to Sydney, Australia, and also paid for the family’s return air travel back to Glasgow (flying business class) as well as the injured worker's air travel from Sydney to Glesgow (also. fiying business class) Terex Australia paid a total of $21,505.63 for air travel for the family and the injured worker. Terex Australia arranged and paid for the family's hotel accommodation for the duration of their trip (father staying for approximately 2 months and mother and brother staying for approximately 3 months) including hotel meals and other expenses. Terex Australia paid $11,910.60 for hotel accommodation and expenses, In the first five days of the injured worker's family stay, Terex Australia arranged and paid for cab charges for the family to travel to and from their hotel accommodation land the hospital to visit the injured worker. The approximate cost of this travel being 4,000.00 Subsequently, Terex Australia arranged land paid for car hire for the family to visit the injured worker in hospital for the duration of their stay and also paid for petrol, parking fees, as well as phone charges. Terex Australia paid $4,862.93 for car hire (covering the period 30 Jul 12 ~ 30 Oct 12) Terex Australia paid $639.99 for parking fees, petrol and phone charges. Terex Australia paid for the injured workers TV use whilst at hospital at the cost of $89.60. Page 6 of 24Date 30 Oct 2012 30 Oct 2012 ~ 28 Jan 2013, 21 Jan 2013 26 Jan 2013 27 Jan 2013 — 17 Feb 2013 Mar 2013 Description of support ‘The injured worker had recovered sufficiently to travel back to Scotland with his family to continue recovery and rehablitation ‘The injured worker was residing with his family in Glasgow, Scotland during this period. Terex Australia’s representative (Branch Manager) spoke with the injured worker on a number of occasions during this period to check on his welfare The injured worker retumed to Sydney, Australia with his brother. Terex Australia arranged for the injured worker (accompanied by his brother) to attend a Demag crane manufacturing plant at Zwelbricken (near Frankfurt), Germany en-route to Sydney, Australia (crane manufacturing plant visit). The injured worker was shown around the sile by Demag personnel, spoke about his foxperiences and was given training on working with 1007 Demag cranes, The injured worker continued with his rehabillation and recovery in Sydney, ‘Australia, with the assistance of Terex Australia, Terex Australia arranged and paid for hire car (including petrol and tolls) for the injured worker and his brother to use whilst the brother was staying with the injured worker to assist in the injured worker's recovery and welfare. ‘The Injured worker commenced a return to work plan with the Service Team, Comment Terex Australia arranged and paid for the injured worker and his mother and brother to fly together from Sydney, Australia to Glasgow, Scotland on business class (see earier entry). Note that the father had returned to Glasgow, approximately one month earlier with Terex Australia aiso paying for the cost of his air travel Terex Australia arranged and paid for the injured worker and his brother's air fight from Glasgow, Scotland to Sydney, Australia via | Frankfurt’ ZweibrUicken, Germany (traveling business class for the entire journey). Terex Australia paid $13,960.00 for air travel for the injured work and his brother. Terex Australia also paid for hotel accommodation and airport transfers for the injured worker and his brother in respect of their crane manufacturing plant Visit. The injured work and his. brother Spent approximately three days in Germany in respect of the crane manufacturing plant visit, Terex Australia paid $851.00 for hotel accommodation and airport transfers. Terex Australia pald $1,571.94 for car hire, petrol and toll fees covering this period Page 7 of 24Date Description of support ‘Comment Mid Sep 2013 Upon the approval of Terex Australia, the A chauffeur driven hire care service was = 31 Oct 2073 injured worker was permitted to use the arranged by Terex Australia and paid for chauffeur driven hire care service by Terex Australia's. workers. approximately 2-3 mes a week to attend compensation insurer for the purpose of Parramatta or Sydney city for recreational the injured worker travelling to and from. purposes to assist in the injured worker's work to attend to his retumn to work plan, general recovery. However, Terex Australia paid for the injured worker's permitted recreational use of the hire care service as described in this entty at the cost of $2,190.00. 21 Oct2013~ This Is the period of the injured worker's The total expenditure by Terex Australia in 16Nov2013 current return to work plan. The injured supporting the injured worker and his ‘worker has returned to full pre-injury duties without restriction. family (excluding indirect costs eg. staff ‘work time expended) as at 15 Nov 2013 is, approximately $88,800.00. If the matter involves a fatality or very serious injury’, a claim to demonstrate that exceptional circumstances exist that the enforceable undertaking is a more appropriate response than pursuing prosecution Does the contravention involve 2 fatality or very serious injury"? Ch. [x] Tho details of any existing occupational health and safety management system at tho workplace including the level of auditing currently undertaken ‘Terex Australia has in place, and had in place at the time of the incident, an occupational health and safety management system and environmental management system. Key aspects of these systems are subject to an internal audit conducted by an external provider once every three years. However, Terex Australia proposes, as a strategy to be pursued as part of this enforceable undertaking, to have in place within the period of the enforceable undertaking an occupational heaith and safely management system an integrated environment management system applying to Terex Australia’s crane business operations at its NSW and Qld worksites that are certified by a qualified extemal auditor as being compliant with OHSAS 18001 and ISO 14001 standards respectively. For further details see Section 2(e) (Initiative 2), 1. Aa cy tet nae caused oereue syst damane Feb fo ad Le mens nesosely or panel cesicon of meDity or myones & mae amyuioton ot a ie o par of ho Gos) for exara.a.amouiten above fh ke o bow. The fer ne ened inte WMS AL, Es used Wain IMetsecomento dently cosen sreumerstee whcr witgersoakors! aepain he eneraese undertaking eae Page 8 of 24n The dotails of any consultation undertaken within the workplace regarding the proposal of an enforceable undertaking The proposed strategies to deliver benefits to workers, industry and the community (see section 2) were referred to Terex Australia's NSW employee heaith and safety committee for consideration. In January 2014, the committee discussed the proposed strategies (as they were at that time) in a meeting and noted that the proposed strategies were acceptable. The committee also noted amongst cher things that the improvements to the cranes product line s result of the strategies outlined in the enforceable undertaking were acknowledged as being significant and worthwhile, A statement of rogrot that the incident occurred ( not an admission of guilt) Terex Australia sincerely regrets that the incident on 25 July 2012 occurred and that a worker sustained injuries as a result ofthe incident. Any roctifications made as a result of the contravention 1. Too! Box talk conducted by HSE Manager with all teams members of the Service Team concerning working from heights and use of fall protection and fall arrest equipment (being a measure taken in response to a Prohibition Notice: for further details see section 1(f). 2. A.comprehensive full day working at heights external training course (Work Safely at Heights’) was conducted by Workplace Training Centre Pty Lid at the Service Team's worksite involving all Service Team members (and associated business personnel working al the same worksite) (being a measure taken in response to a Prohibition Notice; for further details see section 1(f)) Cost: $5,300 3. In August 2012, an external consultant from the United Kingdom provided a two day workshop (Behavioural Safety — Leadership Safety Observation Training’) to sixty-seven management personnel across Terex Australia. Following the incident, Terex Australia decided to extend the workshop to its entire staf. The workshop was conducted by the HSE Manager. Cost: $20,000 4. Purchase of an elevated working platform (GS-2646 Genie Scissor Lift) for use by the Service Team. Cost: $24,800 5, Purchase of further ladders and pletforrs (two platform ladders and a MAC 25 platform) for use by the Service Team Cost: $6,000 6, Purchase of further working from heights equipment: |. Terex Cranes business in Victoria (elevated work platform (GS-2646 Genie Scissor Lif), two platform ladders and a MAC 25 platform) I Terex Cranes business in Western Australia (two platform ladders, tivo 6m platforms and a MAC 25 platform) II Terex Cranes business in Queenstand (two platform ladders, two 2m platforms, two 6m platforms and a MAC 25 platform) Cost: $78,800 Page 9 of 247. Design and development of specialised rear body handrails for the Pick & Carry Grane (10 sets distributed across all state branches including NSW) Cost: $17,707 8. Design and development of specialised front body platform for the Pick & Carry Crane (4 sets distributed across all state branches including NSW). Cost $31,027 8. A comprehensive full day working at heights external training course provided by external providers for Terex Crane's Victorian, Queensland and Western Australian businesses. Cost: $12,200 10, Production of a three minute video of the injured worker's accident and subsequent experiences in an interview format (‘Injured Worker's Story’). The aim of the video is to increase awareness of safety and risks when working at heights. The video is accessible to Terex Australia's workers, (and Terex's workers worldwide) on the organisation's intrenet site. Cost: $4,600 TOTAL AMOUNT SPENT ON RECTIFICATIONS $270,434 An acknowledgement that the enforceable undertaking may be published and publicised Terex Australia acknowledges that the enforceable undertaking may be published on WorkCover's internet site and may be referenced in WorkCover's publications, Terex Australia will cause a notice to be published in the Crane Industry Council of Australia monthly newsletter within 30 days of the date of this enforceable undertaking. A statement of ability to comply with the terms of the enforceable undertaking Terex Australia acknowledges that it has the financial abilty to comply with the terms of this enforceable undertaking and have provided evidence to support this deciaration, ‘Statement regarding relationships with beneficiaries Terex Australia acknowledges that there are no known current relationships with any beneficiaries outlined in this enforceable undertaking, other than its employees including employees of associated businesses. intellectual property licenoo WorkCover may only disclose materials related to the strategies or projects developed by Terex Australia to third parties on the receipt of Terex Australia’s prior written consent (which will not be unreasonably withheld or delayed). For the avoidance of doubt, the parties acknowledge and agree that any and all intellectual property, rights developed by or on behalf of Terex Australia as a result of any projects undertaken by or on Page 10 of 24behalf of Terex Australia in accordance with this enforceable undertaking, subsisting now or in the future, anywhere in the world, including (but not limited to) the following rights: '8)_patents, copyright (including future copyright), rights in circuit layouts, designs, trade and service marks (Including goodwill in those marks), domain names and trade names, confidential information and any right to have confidential information kept confidential: ang b) any application or right to apply for registration of any of the rights referred to in Paragraph (a), (hereafter, Intellectual Property) will immediately vest in Terex Australia on and from creation of such Intellectual Property, ‘The parties acknowledge and agree that nothing in this enforceable undertaking gives, transfers, assigns or licenses to WorkCover any Intellectual Property in of arising from any strategies or projects undertaken by Terex Australia in accordance with this enforceable undertaking. Without limiting this clause. WorkCover heraby agrees that it has no rights in, and agrees not to ciaim that it has any rghte, including any Intellectual Property in or related to any improvement, modification, invention oF copyright arising or created from any strategies or projects undertaken by Terex Australia in accordance with this enforceable undertaking, including but not limited to any rights to any technical drawings, CAD mode's, prototypes, technical specifications, know-how, formula, process, methods or any other materials. The primary objective of these strategies or projects undertaken pursuant to this enforceable undertaking is to improve the safety of Terex Australia’s workers, industry, and community Accordingly, any disclosure of any Intellectual Property must not disadvantage Terex Australia's business, ‘The person may be required to provide a statutory declaration WorkCover has requested a statutory declaration outlining details of any prior work health and safety ‘convictions oF findings of guilt under work health and safety legislation” or work health and safety related legistation? x | Yes No ‘The statutory declaration is attached (if applicable) x | Yes Na 2 Subject oan eet egal census sun ape eset eatin A statutory declaration has been forwarded to WorkCover confirming no prior convictions or findings Of guilt under the work health and safety legislation. Acknowledgement of enforceable undertakings overview and guidelines Applicable representatives of Terex Australia have read and understood Enforceable undertakings — an overview, and Enforceable undertakings ~ guidelines for proposing an enforceable undertaking. Page 11 of24Section 2 — Enforceable Terms ce A commitment that the behaviour that led to the alleged contravention has ceased and will not reoccur Terex Australia is committed to taking all reasonably practicable steps to prevent recurrence of the incident. A commitment to the ongoing effective management of work health and safety risks Terex Australia is committed to managing the risks associated with working from heights in Its Service Team. Key measures and strategies it has implemented or intends to do so in the effective management of these risks include: ‘+ Taking a proactive and systematic approach to safety compliance. + Terex Australia currently have 21 ‘Health and Safety Road Maps’ addressing compliance measures and strategies for major safety issues in the workplace for all worksites in Australia (including the Service Team's worksite) as part ofits safely management and compliance system. One of the road maps rolled out to-date concemed working from heights. The road maps are subject to regular reviews and audits ‘+ Having its occupational health and safety management system (applying to the Service Team) certified by a qualified external auditor as being compliant with OHSAS 18001 + Purchasing more height safety equipment (e.g. more work ladders and platforms of different sizes, harnesses and elevated work platforms). * Pursuing leadership and behavioural safety programs. + Raising awareness of workplace safety ¢.g. through sharing the injured worker's experience on a video accessible to all workers, ‘+ Implementing regular training programs and courses for personnel on a range of risks, hazards ‘and work health and safety matters. © Design and development of ‘working at heights’ solutions for the production assembly and sorvicing of Terex Pick & Carty mobile articulated cranes, A commitment to dissominate information about the undertaking to workers, and other relevant parties (which may include work health and safety representatives), and in the annual report (if applicable) Terex Australia agrees to disseminate information about this enforceable undertaking within the workplace through its health and safety committees within 6 weeks of the enforceable undertaking being accepted Terex Australia is not required to publish an annual report. Page 120124d. A commitment to participate constructively in all compliance monitoring activities of the undertaking It is acknowledged that responsiblity for demonstrating compliance with this enforceable undertaking rests with the person who has given this enforceable undertaking. Evidence to demonstrate ‘compliance with the terms will be provided to WorkCover by the due date for the term. Itis acknowledged that WorkCover may undertake other compliance monitoring activities to verify the evidence that is provided and compliance with the relevant tem. The evidence provided to demonstrate compliance with the enforceable undertaking will be retained by the person who has given this enforceable undertaking unt advised by WorkCover that the enforceable undertaking has been completely discharged Terex Australia acknowledges that WorkCover may initiate additional compliance monitoring activities, such as inspections, as considered necessary at WorkCover's expense, Strategies that will deliver benefits to workers, industry and the community e. Strategies that will deliver worker benefits Introduce Work @ Heights’ solutions for the production assembly and servicing of the Terex Pick & Carry mobile articulated cranes Scope: To introduce improved Work @ Heights’ solutions for Terex Australia personnel when working on the range of Terex Pick & Carry mobile articulated cranes to ensure improved safety when working at heights. Following the incident, Terex Australia has proactively performed risk assessments on many ofits processes involving production assembly and servicing of cranes. In Australia, Terex Australia primarily manufactures and services the Pick & Carry mobile articulated crane. Even though the incident involved working at height on a larger slew crane, Terex Australia initiated this project to remove similar risks on its smaller Pick & Carry Cranes to ensure all personnel are not at risk when working at height. Outcomes: The project requires research, development and testing of number of working at height processes for the Pick & Carry cranes. The design and development outcomes are as follows: a) Front Body Handrails ~ clamp-on alloy handrail system developed for production assembly or servicing the crane. ten sets of handrails were manufactured atter prototype approval and distributed across all Terex Australia sites. Project completed in November 2013, Figure 1 - Front body handrail Page 13 0f24b) Unloading of crane bodies from trucks ~ new work process designed to eliminate production assembly staff from working at height when unloading trucks with new crane bodies entering the production assembly line at the Eagle Farm, Qld site. Project completed in September 2013 Figure 2 ~ Unloading of Trucks with new crane body fabrications ©) Inserting pins into crane boom — new work platform designed for working at height when assembling the boom to the crane on assembly line. Project to be completed by June 2014. Figure 3 ~ Platform for securing boom to crane ‘The safety benefit of this project being improved safety at height for Terex Australia personnel (including the Service Team) when working on Terex Pick & Carry mobile articulated cranes. Delivery method: This project will be delivered into all Terex Cranes sites in Australia. Timeframe: As specified under each sub-project. Total estimated cost: $32,410 Page 14 of 242. Develop a certified OH&S Management system (and integrated environmental system) Scope: Terex Australia proposes to undertake further work on its existing occupational health and safety management system and integrated environmental system in order to have in place within the period of this enforceable undertaking an occupational health and safety management system and integrated environment management system applying to its crane business operations at Wetherill Park, NSW and Eagle Farm, Qld worksites, that are certified by a qualified extemal auditor as being compliant with OHSAS 18001 and ISO 14001 standards respectively. The focus of the work to be undertaken by Terex Australia will be on review and development of the existing systems in order to ensure that it meets the OHSAS 18001 and ISO 14001 standards including the training of workers as to the systems’ requirements that meets these standards Terex Australia will then engage a qualified extemal aucitor to audit the systems for accreditation ‘as well as undertake two successive yeariy audits of the systems (in respect of the NSW Worksite) to ensure on-going compliance with the standards, Outcomes: A certified CHSMS and integrated environmental management system applying to Terex Australia worksites in NSW and Qld The safety benefit of this project being improved safety processes, management, and performance to benefit Terex Australia personnel, visitors and customers. Delivery method: Terex Australia health and safety staff led by HSE Manager will be responsible for undertaking work on the existing OHSMS and integrated environmental system to ensure it ‘complies with OHSAS 18001 and ISO14001 standards. The certification and subsequent extemal compliance audits are to be undertaken by a qualified extemal auditor (SAI Global). Before certification, communication and training of the system for Terex Australia personnel bbe undertaken Timoframé + OHSMS system and integrated environmental management system to be certified by an exteinal auditor to OHSAS 18001 and 1014001 respectively for crane business ‘operations at the Terex Australia worksite in Qld in November 2013. + OHSMS system and integrated environmental management system to be certified by an ‘external auditor to OHSAS 18001 and 1SO14001 respectively for crane business ‘operations at the Terex Australia worksite in NSW in June 2015. + First compliance audit by external auditor of OHSMS and integrated environmental system in NSW in June 2016. + Second compliance audit by external auditor of OHSMS and integrated environmental system in NSW in June 2017, Total estimated cost: $68,600 Total estimated cost of benefits to workers $98,010 Page 15 024ft Strategies that will deliver industry benefits 3, Design and development of Counterweight Sensing device incorporated with the Load Moment Indicator (LMI) system for the MAC25 Pick & Carry mobile articulated crane ‘Scope: To design and develop a crane counterweight sensing device for the LMI system used in the MAC25 (25t capacity) Pick & Carry mobile articulated cranes to ensure the safe selection of lifting duties during operation and minimise the risk of the crane tipping over. ‘The current MAC25 (25t capacity) Pick and Carry mobile articulated crane is fitted with a Load ‘Moment Indicator (LMI) system which constantly advises the operator of the crane's iting capacity during operations to ensure safety of the lift, rane and surrounding environment. This LMI system has a number of different modes that correspond with how the crane is setup (ie. ling on the winch hook, lug etc) and can motion cut the operator controls should the erane risk turning over. These modes are called duties. In addition, to allow the MAC25 crane to travelling legally on Australian roads, a 1500kg steel weight (call a counterweight) is fitted to the front of the crane, but can also be fitted to the rear of the crane. This setup allows two (2) diferent lting duties in the LMI system. 500%g steel counterweight fitted to the front and rear of the Mac25 crane Figure 4: Counterweight Setup ‘The current design allows the operator to select a LMI duty with the counterweight fited in the rear, while itis actually stil fitted to the front of the crane, The result of this action means the LM system can allow the crane to lift heavier loads and risk the crane's stability. ‘The proposed design and development will introduce a software and hardware enhancement in the counterweight sensor of the crane that will enable any lifting duty to have the correct counterweight applied to balance out the crane, and if not, to lock out the system preventing the lifting duty selected from activating. This would ensure that the crane does not tip over upon Incorrect selection of liting duty. Outcomes: The project requires research, development and testing of a sensor system to detect the location of the 1500kg counterweight along with a software enhancement to the LMI computer to prevent the operator from selecting and lifting loads in the wrong duty. Page 18 of24Techical disk ‘+ design must ft within existing crane sub-systems, unique to mobile cranes + design must meet regulatory requirements and standards + design must allow for iting to older model cranes. ‘The safety and related benefts ofthis project being + improved safety in lifting operations preventing the operator from selecting an incorrect duty on the LMI system + improved safety for worksites and surrounding environment and people “+ reduced risk in crane damage caused by overload in capacity, ‘This project would benefit mobile crane operators, workers at worksites where the mobile crane is being operated and mobile crane owners. Delivery method: This project will be delivered into industry via + all new MAC25 Pick & Cary cranes manufactured by Terex Australia will include the sensor device as standard ‘+ the sensor device will be made available for retrofit into existing cranes in the field as part of an LMI upgrade kit + information about this project will be shared with the crane industry (refer to Initiative 7) Timeframe: 42 weeks from start of project design work commencing in February 2014. Total estimated cost: $13,030 Design and development of Load Moment Indicator (LMI) system for the MAC25 Pick & Carry mobile articulated crane with improved safety features ‘Scope: To design and develop @ LMI system for the MAC25 model Pick & Carry mobile articulated crane with additional safe operational features including + dynamic deration of Rated Capacity on slopes + continuous calculation of variable Articulation Rated Capacity + Site Safety Restriction setup menu before iting + over-ride time out function to prevent using the crane in constant override state + telematics logging data crane operations back to crane owner server via 3G network + improved graphical interface display. Page 17 of 24‘The current MAC2S (26t capacity) Pick and Carry mobile articulated crane is fitted with @ Load Moment Indicator (LMI) system which advises the operator of the crane's iting capacity during ‘operations to ensure safety of the lift, vane and surrounding environment. This LMI system has a number of different modes that correspond with how the crane is setup (ie. lifting on the winch hook, lug ete) and can motion cut the operator controls should the crane risk turning over. These modes are called duties. Figure 5: LM system graphical interface display and MAC25 crane ‘The current design LMI system does not derate the crane’s rated capacity with liting loads on side slopes, risking the crane’s stabilly. Other improvements as detailed above will also ensure the crane’s abilty to operate with improved safety. Outcomes: The project requires research, development and testing of an improved LMI system for the MAC25 Pick & Carry crane. The output includes new hardware and software development integrated into the crane’s existing operational systems. Technical risk: + design must ft within existing crane sub-systems, unique to mobile cranes + design must meet regulatory requirements and standards ‘+ design must allow for fiting to older model cranes. ‘The safety and related benefits of this project being + improved safety in lifting operations advising the operator of the actual rated capacity ‘when crane steering is articulated andor on a side slope ‘+ improved safety in liting operations preventing the operator from selecting an incorrect duty on the LMI system ‘improved safety on sites with crane restrictions entered into the system preventing crane lifing operations outside of the required site restrictions ‘+ improved safety for worksites and surrounding environment and people ‘+ reduced risk in crane damage caused by overload in capacity + provides owners with real time data on the crane to ensure itis being operated safely. This project would benefit mobile crane operators, workers at worksites where the mobile crane is being operated and mobile crane owners, Page 18 of 24Delivery method: This project will be delivered into industry via + all MAC25 Pick & Carry cranes manufactured by Terex Australia will include the LMI system as standard + the LMI system will be made available for retrofit into existing cranes in the field as part of an LMI upgrade kit + information about this project will be shared with the crane industry (refer to Initiative 7). ‘Timeframe: 52 weeks from start of project design work commencing in January 2014 Total estimated cost: $138,910 Design and development of BOOM raise warning alarm incorporated with the Load Moment Indicator (LMI) system for the Pick & Carry mobile articulated crane ‘Scope: To design and develop a Crane Boom Raise Warning Alarm device for the LMI system used in the Pick & Carry mobile articulated cranes to ensure the safer travel of cranes on road networks. ‘The current Pick and Carry mobile articulated crane is fitted with a Load Moment Indicator (LMI) system which constantly advises the operator of the crane's lifing capacity during operations to ensure safety of the lif, crane and surrounding environment. This LMI system has a number of different maces that correspond with how the crane is setup (i. lifting on the winch hook, lug etc) and can motion cut the operator controls should the crane risk turning over. These modes are called duties. In addition, this system also displays general road travel information (speed, tachometer, fuel, temperature ete) when the crane is travelling to and from site on road networks. Figure 6 The current design allows the operator to travel on road networks at speeds up to 80 km/hr (travel mode) with the boom elevated at angle risking collision with bridges, tunnels as per example Figure 6 Page 19 0f24Outcomes: The project requires research, development and testing of a warming system to detect when the crane boom Is above a certain postion when in travel mode (10 degrees). The output being a software enhancement to the LMI computer to provide a warning to the crane operator whien the boom needs to be lowered for travel Technical Risk: ‘+ design must fit within existing crane sub-systems, unique to mobile cranes ‘+ dosign must moet regulatory requirements and standards + design must allow for fitting to okler model cranes. The safety and related benefits ofthis project being + improved safety in travel operations warning the operator when the crane boom is not in the correct position for travel on road networks + Improved safety for surrounding environment and people ‘+ reduced risk in crane damage caused by colisions with obstacles, This project would benefit mobile crane operators, people using road networks and surround environment and mobile crane owners. Delivery method: This project will be delivered into industry via + all new Pick & Carry cranes manufactured by Terex Australia will include the warning system as standard + the waming system will be made available for retrofit into existing cranes in the field as part of an Lil upgrade kit ‘+ information about this project will be shared with the crane industry (refer to Initiative 7) Timeframe: 52 weeks from start of project design work commencing June 2013, Total estimated cost! $31,910 Speak about Terex Cranes’ work safety at a leading Australian crane industry conference Scope: Terex Australia will arrange to have the President of Terex Cranes division of Terex. Corporation (or in the event that he becomes unavailable, another senior global leader in Terex's crane business), who resides in USA, to speak about Terex Cranes’ work safely al the leading Australian crane industry conference arranged by the Crane Industry Council of Australia (Crane Industry Council of Australia National Annual Conference, September 2014) The Crane Industry Council of Australia (CICA) was formed in 1980 and is the national peak body for the crane industry. CICA represents the interests of crane operators, owners, manufacturers, suppliers, designers and importers in all sectors including mobile cranes, tower cranes and vehicle loading cranes, through promoting the crane industry nationally. It also provides a forum for its members to keep informed and discuss issues and developments concerning the crane Industry (including work safety) through arranging regular conferences, seminars, meetings anc Page 20 of 24distributing newsletters as well as providing other services aimed at assisting its members to ‘operate more effectively and safely work in the crane industry. CICA arranges a major conference once a year (the next one being the National Annual Conference in September 2014) which is usually attended by the majority of its membership including representatives of related businesses such as major construction companies. Terex ‘Australia decided to deliver its presentation on work safety at this conference to ensure its strong mescage of work safety reaches a wide, targeted and influential audience. ‘The proposed talk will focus on Terex Cranes’ experience with work safely with the overriding theme of ‘making safety personal’. In addressing this theme, the President will share with the ‘audience experiences in dealing with workplace injuries including the injured worker's story, as well as showing the video of the Injured Worker's Story (see section 1(n) item 10). Total estimated cost: $20,000 Share information about the benefits and outcomes from initi ‘rane industry ives 3, 4, and 5 with the ‘Scope: Terex Australia has committed to three (3) safety improvement design projects as part of this enforceable undertaking that will deliver benefits to the crane industry (refer to initiatives 3, 4, and § for details) (design project(s) To support the effective delivery of these design projects to the crane industry, Terex Australia will share in broad terms the benefits and outcomes of these research and design initiatives with the crane Industry by providing the following Information: + detailed explanation of the safety improvement and how this benefits the crane industry + supporting layout drawings, specifications and attributes of the designed safety improvement + any supporting research and design process steps taken and testing results to support the before and after benefits from the project outcomes (hereafter, project information). The project information will be shared with the crane industry through implementing the following strategies: + All, or aspects of, the project information for each design project will be included in a Product Advisory bulletin. These bulletins will be mailed or emailed to Terex Australia's customers following project completion. + Technical presentations concerning all, or aspects of, the project information will be made at Crane Industry reference group meetings (held every 3 months). Terex Australia will present on these matiers following completion of the each design project. ‘+News articles conceming all, or aspects of, the project information for each design project will be placed in a monthly CICA newsletter which is distributed by email to all members of the Cranes Industry Association of Australia Total estimated cost: $7,820 Total estimated cost of benefits to industry $211,470 Page 21 of 249. Strategies that will deliver community benefits 8. Participation in a university linked training program which provides an engineering student with an opportunity to complete an industry based project, Scope: To engage with a university (Griffith, QUT, or UG) undergraduate or postgraduate engineering student through participation in an industry-based training program (CEED Program). ‘The CEED Program links companies with talented undergraduate and coursework Masters level students for completion of specific projects (refer to www.corptech.com au). ‘The proposed project will involve the design and prototype of innovative safety improvements for the operation and performance characteristics of articulated vehicles. It will require research and development of existing or new technologies into steering, suspension, and/or braking systems used in articulating machines. This industry based project will provide the selected engineering student an opportunity for advanced learning, mentoring and training by participating in a real world project for the crane industry, plus the opportunity to deliver potential design outcomes that improve safety in the ‘operation and performance of articulated vehicles which are widely used in industry. The selected student will also receive academic credit for the project plus a scholarship and will be assessed Con the project towards his or her degree Outcomes: Terex Australia will participate in a CEED Program involving a university Undergraduate or post graduate engineering student. This project assists in the development of future engineering professionals through participation in an industry based project (developed by Terex Australia). Timeframe: 52 weeks from start of project design work commencing in February 2015. Total estimated cost: $117,855 Total estimated cost of bonofits to the community $117,855 TOTAL ESTIMATED VALUE OF THE UNDERTAKING $427,335 ‘A commitment regarding linking the promotion of benofits to the enforceable undertaking ‘Terex Australia is committed to ensuring that any promotion of a benefit arising from this enforceable undertaking will clearly link the benefit to this enforceable undertaking, Where appropriate (i-!) A commitment to establish and maintain (or maintain if a system already exists) an ‘occupational health and safety management system (OHSMS) Terex Australia already has an occupational health and safety management system in place. However, Terex Australia is commited to having a system that itis certified by a qualified extemal auditor a8 being compliant with OHSAS 18001 standard as per Section 2(6) (ntiatve 2). Page 22 of 24Acommitment to ensure the OHSMS is audited by third party auditors Terex Australia commits to ensuring the OHSMS will be audited by accredited third party auditors. Terex Australia acknowledges that the auditors selected to perform OHSMS audits will meet the qualification requirements as set by WorkCover NSW. Terex Australia acknowledges that details of the auditors’ qualifications against the stated requirements will be provided with audit reports submitted to WorkCover. Terex Australia acknowledges that in respect of OHSMS applying to its NSW worksite, an initial third party audit will be undertaken within the first year of the undertaking being accepted and two further third party audits will be undertaken during the course of the undertaking A commitment to provide a copy of each finalised OHSMS audit report to WorkCover Terex Australia acknowledges that audit reports received from the aucitor will be sent to WorkCover ‘within two weeks of receipt of the audit report along with a letter certfying that the report has not been altered from the copy provided to the person by the audit. Terex Australia acknowledges that within one month of receipt of the auditor’s written report, WorkCover will be advised of the intended action in addressing each of the report's recommendations. ‘A commitment to implement the recommendations from these audits (unless otherwise negotiated with WorkCover) Terex Australia commits to fully implementing the intended actions arising from the audit within three months from receiving the aucit report from the OHSMS auditor unless otherwise agreed by WorkCover. Page 23 of24Section 3 - Offer of undertaking oR | offer this undertaking and commit to the As a duly authorised person of Terex Australia Pty Limited, | offer this undertaking and commit to the torms herei terms heroin. Signed signed [Person] [Duly auth Prin name Print name Position: Position: .COMELAL. Weare cen. Dated at this day Dated at. AGLE PA... tis... 22. day (subur {euburb] of June 2014 of June 2014 Section 4 - WorkCover’s acceptance of undertaking | accept this undertaking as an enforceable undertaking under section 216 of the WHS Act, Signed: fe Nemrianl Print name: ). Position: CHINE Gece, OCELCER.... WorkCover NSW Dated at . SUONEA this ES yewrtday of dune 2014. [suburb] Soly Page 24 of 24