Polish national Zbigniew Galka, 39, died after suffering suffered haemorrhaging, shock and severe traumatic injury to both legs and died on his way to hospital.
A joint investigation by the Health and Safety Executive (HSE) and Merseyside Police found Mr Galka died on 23 December 2010 while trying to fix a machine which compresses waste material into small bales.
A HSE spokesman said the machine had a system which allowed a worker to enter it while it was still in operation ,but its safety system had been disabled two months earlier.
He said Mr Galka had crawled into the baling chamber of the machine to clear a blockage, but the machine had automatically restarted.
Jonathan Gaskell, 47, of Tarporley, Cheshire, admitted breaching health and safety laws at Liverpool Crown Court.
His company (Gaskells Waste Services in Bootle) was also fined £700,000.
The joint investigation found Gaskell’s (North West) Ltd – which was also ordered to pay about £100,000 in costs – had continued to operate the machine in a dangerous manner for up to five years after Mr Galka’s death.
The HSE praised the patience and resilience of Mr Galka’s family who had to wait almost 8 years for the verdict.