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Leo W. Gerard

Leo W. Gerard

Posted: April 9, 2010 08:38 PM

In both cases -- the five fatalities in a Washington oil refinery on April 2 and the 29 deaths in a West Virginia coal mine the following Monday -- news reports described the explosions that killed workers as industrial "accidents."

When an explosion occurs at a refinery or mine that has been repeatedly fined for heath and safety violations, one question that ought to be asked is just how unexpected was the event.

Answering this question is essential because: less time plus less money spent on safety measures equals more profit for owners. America must introduce new factors into that computation to protect the lives and limbs of workers who produce the energy on which this country depends. One factor is larger safety violation penalties -- fines and shutdowns costly enough to outstrip profitability. And when corporations consider fines just another cost of doing business, another crucial factor is the ability to charge CEOs with criminal negligence when their corporations flagrantly violate safety regulations -- an ability that other countries have written into law.

As it stands now, corporations have discovered that they can continue profiting even after unconscionable disasters. Take BP for example. In 2005, a massive blast at the BP Texas City refinery killed 15 and injured 180. Business Week noted that BP continued to turn a profit every year after the Texas catastrophe, even though it paid more than $2 billion for legal costs and fines and for remediation programs at its U.S. refineries.

Regulatory agencies have repeatedly cited and fined both Tesoro, which operates the Anacortes, Wash. refinery where an explosion killed five workers and severely burned two last week, and Massey Energy Co., which owns the Upper Big Branch mine in Montcoal, W.Va., where 29 miners are dead.

Since 2005, regulators cited Massey's Upper Big Branch Mine 1,342 times for safety infractions and charged Massey $1.89 million in fines, $1.3 million of which Massey is contesting. Of the violations, 86 were for failing to obey a ventilation plan to control explosive methane gas and coal dust. These are the very factors suspected in Monday's deadly blast. Regulators issued 12 of those citations in the past month, and miners told the New York Times that dangerous gas accumulation forced evacuations of the mine several times in recent weeks. Regulators found two violations on Monday, before the explosion.

In January, agencies imposed the largest fines in the mine's history for two violations, including one case in which a mine foreman admitted he'd known of a ventilation problem for three weeks. In 2008, Massey paid what federal prosecutors said was the largest settlement in the history of the coal industry -- $4.2 million in criminal fines and civil penalties -- after a subsidiary pleaded guilty to criminal mine safety violations for a January, 2006 fire that killed two workers in Massey's Aracoma Alma No. 1 Mine. In addition those deaths at a Massey mine and the 29 killed Monday at Upper Big Branch, three other miners died at the Upper Big Branch mine since 1998.

The Charleston Gazette reported:

"In seven of the last 10 years, the mine has recorded a non-fatal injury rate worse than the national average for similar operations, according to MSHA statistics."

Serious safety concerns prompted federal investigators to temporarily halt work in portions of the Upper Big Branch mine more than 60 times since the start of 2009, the Pittsburgh Post-Gazette reported after reviewing U.S. Mine Safety and Health Administration records.

Safety was such a crisis at the Upper Big Branch mine that MSHA sent Massey a letter on Dec. 6, 2007 warning that its serious violations over the previous two years were so far above average that the mine could be designated as a pattern violator and subjected to stricter federal oversight, the New York Times reported. The letter noted that in 2006 and 2007 MSHA had found nearly twice the national average of serious violations at the mine. Within three months, the mine reduced the number by a third, escaping the extra scrutiny. Still, the total remained above the national average.

The citations and fines do not seem to faze Massey CEO Don Blankenship. He told a radio station:

"Violations are unfortunately a normal part of the mining process."

He also previously told Forbes:
"We don't pay much attention to the violation count."

Despite the deaths, all of the violations and the fines, the Massey Energy web site defends the company safety record, contending that 2009 was the 17th year out of 20 that the company scored above the industry average for safety -- this assertion although the number of safety violations in 2009 doubled from the previous year, totaled 458 and included 50 citations for breaches Massey, the nation's fourth largest coal company, knew existed but failed to correct.

Just like Massey, Tesoro claims that its safety record has improved -- despite citations and fines and five deaths. In the company fact sheet, Tesoro said its recordable injury rates have declined by 30 percent over three years.

The Washington state Department of Labor and Industry fined Tesoro $85,700 a year ago for 17 serious health and safety violations. These are violations with the potential to cause serious injury or death. In addition, the department found 150 safety deficiencies at the Anacortes, Wash., refinery. Tesoro appealed and got all but three of the most serious violations thrown out and the fine reduced to $12,500. The settlement required Tesoro to hire a safety consultant to examine the refinery. That consultant began work at the plant last month.

Immediately after the five refinery workers died, the American Petroleum Institute and the National Petrochemical and Refiners Association jumped to defend refining safety. Before funerals were held and with two workers still hospitalized with life-threatening burns, the Petroleum Institute complained that the industry wasn't getting credit for health and safety improvements. And the National Petrochemical and Refiners Association contended that the industry has lower injury rates than manufacturing generally.

The problem with their numbers is that they mingle deaths with OSHA counts of slips and falls -- taking the focus off incidents like the fire ball that killed the five Tesoro workers, or the blast that killed 15 at Texas City, or the explosion at another refinery in Anacortes in 1998 that killed six workers.

Also, they don't want to count injuries to or deaths of subcontractors who refineries often hire to perform dangerous maintenance work. At Tesoro, a contractor was crushed to death in 2002 and three contract workers were hospitalized in 2006 for exposure to naphtha.

In addition, the OSHA numbers used by the refining industry associations exclude explosions and fires at refineries that had the potential to maim and kill both workers and community members but, instead, miraculously resulted only in "close calls."

OSHA Assistant Secretary David Michaels contradicted the refining industry association safety assertions, saying: "The petroleum industry has a long way to go before we can feel comfortable that workers there are adequately protected."

Similarly, Daniel Horowitz, a Chemical Safety Board spokesman, told the Seattle Times, a disproportionate number of incidents occurred at the 150 refineries in the U.S., compared with infractions at tens of thousands of chemical plants handling other hazardous materials. Of the 18 cases the Chemical Safety Board is investigating, seven involve oil refineries.

Republicans and Tea Partiers are running around like Chicken Little screaming that government is too big. Thirty workers killed in explosions in four days is what happens when government is too small, when right-wing strategists like Grover Norquist have gotten their way and shrunk regulatory agencies to a size where they can be drowned in a bathtub.

Like the Wall Street CEOs who recklessly speculated with America's economy for their personal profit, industrial CEOs have carelessly gambled with worker's lives for personal gain. The "free market" doesn't control that immoral behavior. Government must do it. And when it does, it must have the power to impose fines or workplace shut downs that will damage the bottom lines of CEOs who care about nothing else. And it must have the power to criminally charge and potentially imprison CEOs, treating them the same as drunk drivers who risk other peoples' lives.

In 1946, a group of miners from Illinois wrote their governor seeking his help in enforcing regulations against dangerous coal dust accumulation in a Centralia Coal Co. mine. They wrote:

"In fact, Governor Green, this is a plea to you, to please save our lives."

The Centralia Coal Co., despite being cited for violations, didn't acknowledge a problem. On March 25, 1947, a coal dust explosion killed 111 Centralia miners, including three of the four who sent the letter.

Woody Guthrie wrote the song, "The Dying Miner" after the Centralia explosion, including these lyrics:


"I can hear the moans and groans,
More than a hundred good men.
Just work and fight and try to see,
That this never happens again."

More than a half century later, the protections and enforcement for miners, steelworkers, refinery workers, paper workers and others remain inadequate. The proof is that the explosions and deaths continue to occur over and over again.

The slaughter must stop now. Workers go to jobs to earn their daily bread. They don't go to die.

 

Follow Leo W. Gerard on Twitter: www.twitter.com/uswblogger

 
 
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HUFFPOST SUPER USER
Stretchumall
"With Liberty and Justice for All"
11:18 AM on 04/12/2010
When a person (and now corporations are people as well) is allowed to become soo wealthy that they can afford to purchase Judges and Juries, it is expected that they are in fact THE LAW.
HUFFPOST SUPER USER
masher
software engineer
12:49 PM on 04/11/2010
I have always defended union members of dangerous jobs. We absolutely need strong unions for these types of work. Either that or end all corporate immunity and shareholder liability.

Right now in the US a shareholder can vote for management that puts workers lives at risk. The shareholders can profit from the deaths. And yet the government won't allow us to sue the shareholders no matter what. A corporation can pollute my private property and endanger my family but I can't sue the shareholders. Ok, then the deal is we get unions. That's the deal.

But Obama and the Democrats want to keep all the liability protection for Wall Street and they want to end unions. (So does the GOP). That in a nutshell is today's America.
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no1099rs
09:11 PM on 04/11/2010
True this is today's America,What are we going to do about tomorrow's? Just talk about it? Let production dictate profit? Start a committee and reach out? We have the tools to do something.We can stop Corporate America from fleasing our rights.What has been missed is that Coal Mine accidents happen in every Industry. Last American Craftsman.TM.
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medicontheedge
big loud broad
12:09 PM on 04/11/2010
We need the ghosts of the Molly Maguires now more than ever.
10:29 AM on 04/11/2010
"less time plus less money spent on safety measures equals more profit for owners."

Not a true statement, which anyone that has managed a business knows is not a true statement.

Accidents cost business money, every business wants zero accidents. The real problem with government safety regulations is they often do not solve the real problems or issues in the plant. You can comply with the regs, but still have a very unsafe workplace because the regs don't change as fast as technology or equipment.

Like usual, instead of investigating and finding the real cause of the problem, everyone jumps on their political bandwagon first before the facts are known.
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masher
software engineer
12:57 PM on 04/11/2010
The way you rise up through management is by showing the ability to act concerned and yet not let that stop you from driving people into danger. That is just American management culture. Management knows unconsciously that it is a gamble. Throw the dice and take the risk. That's what management looks for in young managers.

Its not evil. It just how businesses run.

Now in the US our government shields corporations from liability. The shareholders are totally immune from liability. They can only lose their investment. So the incentive to gamble with risks is even greater.

In the US we talk about "responsibility" but we hate to take any. We love the public corporation because the government protects us from taking any responsibility at all. So why not drive the business to the edge of danger? If there isn't a mine explosion then the profits are awesome. But if people die I only lose my investment. Its not like I can be sued.

I just wish people understood there is a huge difference between a business and a corporation.
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no1099rs
08:55 PM on 04/11/2010
Ive been in management Rule#1 blame someone else when things go wrong
Rule#2 take all the kudos for yourself. Rule#3 the squeaky wheel get the oil. its alot like running a nation. If you want President Obama's attention Squeak. Don't get me wrong I like Obama he has to uphold laws passed that dont trend in workers favor. Cant be easy for a guy that likes working people. Corporate America has the proverbial brass ring true but, If the employee would get past Union vs Non Black vs White Rep vs Dem the wrongs can be righted,and I think Obama would get a kick seeing Americans come together to defend their share of the dream
Tuned IN
You Can't Make This Stuff Up!!
07:07 PM on 04/12/2010
Yes, people do not understand the different business models and the varying amount of risks each can assume.

Risk Management is exactly running the number$ to determine if the benefit$ outweigh the ri$k$. Questions asked: how much do we profit?, what's the reputational risk?, what's the class size or fine? If question number one outweighs two or three, go for it and hope to not get caught.

When it comes to employee injuries those are limited under worker's compensation laws. Unless, you are a contract employee injured on site.
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stack
USW Blogger
06:37 PM on 04/11/2010
So, Photofarm, you'd like to return to the days when there was no government regulation of mining?
Those were, of course, the days when 1,000 miners a year were killed in mine catastrophes.

Also, if you think government regulation is so useless, how do you explain the fact that union mines -- where the individual miners' jobs are protected by their union when they report safety infractions -- are so much safer than non-union mines like the one where this explosion occurred?
09:32 AM on 04/11/2010
While watching this tragedy play out on television, one thought kept coming to mind. I wonder how many of the miners will return to work? I'm guessing the vast majority will, simply because it's the only job available to them. The fault lies with the company and it's management, but it's a national disgrace that plays out over and over again.

Chrissie55 states that "People are more important than profits", a sentiment I have stated as well. Unfortunately, it's not true, not here, not in most of the world. It hasn't been true since the birth of civilization. Charles Dickens wrote "A Christmas Carol" in protest, yet the lesson remains unlearned.
Greed seems to be a fundamental character in human nature. Most people develop empathy as a counter, but many don't. It's too bad for all of us that many of those who don't are so richly rewarded.

I have no personal knowledge of Don Blankenship, but I doubt he's lost any sleep over this, unless it was worrying about bad publicity and loss of revenue and/or stock valuations.
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masher
software engineer
01:01 PM on 04/11/2010
The fault also lies with corporate immunity. If the shareholders are the owners then they need to all be held liable. And we need to end class action lawsuits which allow a lawyer to sue (for low damages) get a small settlement and that ends all the lawsuits.

We need to get back to responsibility. If you are a shareholder you should be accountable in court for any and all actions of the corporation.
Tuned IN
You Can't Make This Stuff Up!!
04:10 PM on 04/10/2010
Excellent article.

Great point!!

"And when corporations consider fines just another cost of doing business, another crucial factor is the ability to charge CEOs with criminal negligence when their corporations flagrantly violate safety regulations -- an ability that other countries have written into law. "
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masher
software engineer
01:02 PM on 04/11/2010
I also want the shareholders held accountable.
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USW Blogger
06:40 PM on 04/11/2010
Right on, Masher. If corporations want the rights of people -- to spend to affect elections, etc.-- then shareholders should have all the responsibilities of people.
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Chrissie55
Volunteer
07:16 AM on 04/10/2010
People are more important than profits! In the UK, there is a media culture of belittling 'silly & petty' H&S tactics, mainly imposed by organisations which are fearful of litigation, yet people are still getting killed at work.
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USW Blogger
08:42 PM on 04/09/2010
The United States needs a Westray Bill, like Canada has, to criminally charge CEOs who gamble with workers' lives.