A 29-year-old employee of Taylor Engineering and Plastics (TEP) developed the condition from sanding tools that he used while working in the factory's trimming department, Greater Manchester Magistrates' Court was told.
The Health and Safety Executive (HSE) found that although TEP was required to provide health surveillance under regulations that were introduced in 2005, it had failed to do so until 2014.
The HSE said the company's risk assessments were insufficient and that staff training had been inadequate as many were unaware of the consequences of exposure to high levels of vibration. It also had failed to implement control measures such as using tools with lower levels of vibration, it added.
TEP pleaded guilty to breaching s 2(1) of the Health and Safety at Work Act. It was fined £20,000 and ordered to pay costs of £1,171.