Posts Tagged ‘Massey Energy’

MSHA: Upper Big Branch Miner Deaths Were “Entirely Preventable”

Wednesday, December 7th, 2011

Every time Massey sent miners into the UBB Mine, Massey put those miners’ lives at risk” – Joe Main, assistant labor secretary for mine safety and health and chief of MSHA

A scathing report issued by the U.S. Mine Safety and Health Administration yesterday put the blame for the coal mining disaster that claimed 29 lives on “a workplace culture that valued production over safety.” The report characterized the coal mining disaster as “entirely preventable”, one that could have been avoided if long-standing and well-known safety standards had been followed. The report documents flagrant safety violations, routine coverups of violations, and intimidation of workers to keep them from reporting safety hazards and violations.
Ken Ward, who has covered the Upper Big Branch Mine Disaster with painstaking detail in The Charleston Gazette, reports:

“Outlining flagrant safety violations and a practice of trying to cover up major hazards, the U.S. Mine Safety and Health Administration officials cited mine operator Performance Coal Co. with 369 violations — including 12 that directly contributed to the disaster — and levied more than $10.8 million in fines.

Both the fines and the settlement are by far the largest ever in a case over worker safety in the mining industry.”

In addition, federal prosecutors announced a $200 million settlement with Alpha Natural Resources, the firm that bought Massey Energy. The settlement calls for $80 million to be directed to enhanced safety at all the company’s underground mines, as well as a dedicated training center and a $48 million trust to fund mine safety research at academic institutions. The settlement also includes $46.5 million in restitution for the families of the disaster victims.
Ward states:

Key to the deal, though, is that — unlike a previous deal with Massey following the Aracoma Mine fire — the Justice Department is not agreeing to never bring charges against any individual executives, officers or employees of Massey or Performance. Goodwin said resolution of issues with Alpha allows prosecutors to focus their resources on potential cases against such individuals.

In addition to his newspaper reports, Ward covers related events at his Coal Tattoo blog. Of particular note is a post in which he talks more about the settlement and how U.S. Attorney’s criminal probe will continue. He quotes one US attorney as saying, “If anything, certain aspects of our investigation are going into high gear.”

All eyes will be on Alpha going forward. Their buyout occurred last June despite intense opposition, questions about events, and allegations of secret deals revolving around the $8.5 billion sale. Shortly after this deal, Alpha joined industry opposition to tougher safety rules.

The report was issued on the 104th anniversary of the worst mining disaster in U.S. history – the coal mining explosions at Monongah W.V. that claimed 362 lives. While mining safety has improved in the decades since, yesterday’s report demonstrates there are many more improvements that could and must occur to protect workers.

Related prior posts

Massey Energy: The Don of an Era

Thursday, May 19th, 2011

Last year 29 coal miners died in an explosion at Massey Energy’s Upper Big Branch Mine in West Virginia. Don Blankenship, Massey CEO, blamed the explosion on federal interference and a gigantic methane bubble that percolated up from below the mine shafts. The bubble has burst, but not in the way Blankenship would have you believe.
An independent team appointed by the former West Virginia governor, Joe Manchin, and led by the former federal mine safety chief Davitt McAteer, has issued its findings, which are both unambiguous and scathing. There was no methane bubble. There was, instead, a pattern of negligence by management that led directly to the deaths of the miners.
As summarized in the New York Times, the report is a searing indictment of Massey’s management style:

“The story of Upper Big Branch is a cautionary tale of hubris,” the report concluded. “A company that was a towering presence in the Appalachian coalfields operated its mines in a profoundly reckless manner, and 29 coal miners paid with their lives for the corporate risk-taking.”

The report goes on to say that a “perfect storm” was brewing inside the mine, combining poor ventilation, equipment whose safety mechanisms were not functioning and coal dust, which, contrary to industry rules, had been allowed to accumulate, “behaving like a line of gunpowder carrying the blast forward in multiple directions.”

Given the uncompromising language of the report, Massey management may not enjoy the “exclusive remedy” protections of the workers comp statute. They are now vulnerable to charges of criminal negligence. I suspect that attorneys for the widows and children of the miners will look rather closely at the assets of Massey’s (now former) CEO.
Farewell, My Ugly
Don Blankenship resigned from his CEO post in December of last year. Don’t bother putting up a collection to buy this ethically-challenged titan of business a gold watch. In 2009 he earned $17.8 million, which does not include deferred compensation of an additional $27.2 million. There is no question that Blankenship’s leadership created profits for the company. Unfortunately, these profits came at the expense of the environment and of the men who extracted the coal from the West Virginia mountains.
The anecdote that tells you a lot about Blankenship involves his personal water supply. When Massey Energy activity poisoned the water reaching his own home, Blankenship ran a private pipeline to the next town, where clean water was readily available. His neighbors, lacking Blankenship’s resources, have to make do with the local, polluted water.
It will be interesting to see what happens next. In a just world, Blankenship would be held accountable for his actions as Massey’s CEO. But we do not live in a world where justice prevails very often. Blankenship will likely continue to enjoy his retirement years, drinking clean mountain waters, railing about government interference, buying a few politicians and generally living the good life. We can only hope that each and every night his dreams are haunted by visions of the 29 miners and their struggling families. That would be one form of justice indeed.

Health Wonk Review, CTE, bill review, messing with Texas, and more

Thursday, March 3rd, 2011

Jared Rhoads of The Lucidicus Project hosts this week’s Health Wonk Review, and he dishes up a heaping helping of the blogosphere’s best heath policy posts from the last two weeks. Check it out!
Happy Birthday – to David Williams at Health Business Blog for 6 years of quality healthcare blogging. David is one f the regular Health Wonkers. See his Best of the Blog post for a fine sampling of his work.
More sports-related head trauma tragedy – Earlier this week, my colleague posted about football-related chronic traumatic encephalopathy (CTE). Yesterday, the New York Times featured a story about how hockey brawler Bob Probert also suffered from CTE: “But the legacy of [Bob] Probert, who died last July of heart failure at 45, could soon be rooted as much in his head as his hands.After examining Probert’s brain tissue, researchers at Boston University said this week that they found the same degenerative disease, chronic traumatic encephalopathy, whose presence in more than 20 deceased professional football players has prompted the National Football League to change some rules and policies in an effort to limit dangerous head impacts.”
Bill review – Are you getting what you pay for with medical bill review? At Managed Care Matters, Joe Paduda takes some of the mystery out of the equation in his discussion about what your savings should be from your work comp medical bill review program.
Criminal indictment for Massey mine official – Hughie Elbert Stover, the chief of security for Massey Energy’s Upper Big Branch Mine has been charged with two felonies related to the April 2010 explosion that killed 29 coal miners. He is accused of lying to investigators and destroying records. On his blog, reporter Ken Ward asks if this is just the beginning of indictments.
Don’t mess with Texas – If you ever use the words “workers compensation” and “Texas” in the same sentence, you better think twice. TX law blogger John Gibson has been issued a “cease and desist” order and threatened with further legal action for his TX Workers Comp Law Blog for having the temerity to use the words “workers compensation” and “Texas” in his blog. We can’t get Gibson’s take because his blog appears to be down (www.texasworkerscomplaw.com), but Julius Young posts the scoop on the Texas workers comp language imbroglio at his Oakland Workers Comp Blog. If you don’t see his post – or ours – please blame Texas. Just to be on the safe side, from here on out we may begin referring to Texas as “Exas-Tay.”
Sedgwick acquires SRS – In a major move in the world of third party administrators, Sedgwick completed the purchased of Specialty Risk Services for $278 million. SRS was the claims TPA arm of The Hartford. In his bog on the Hartford Courant, Matthew Sturdevant reports that: “The deal makes Sedgwick CMS the largest independent North American provider of claims administration services. The combined companies will have annualized revenue of about $1 billion as well as almost 8,500 employees.”
Devil’s in the details – Yvonne Guilbert of Complex Care Blog posts two concrete incidents that show how one small detail missed in home care could easily end up costing $50,000 or more.
Safe hiring practices – As the economy ramps up, new hires will increase an employer’s potential for workplace injuries. At MEMIC Safety Blog, Greg LaRochelle says that a new employee is 5x more likely to have a lost-time injury than a more experienced worker, and that 40% of all workers injured on the job have been on the job for less than a year. He posts about hiring practices to help mitigate risk.
Hiring VetsHR Daily Advisor offers a good roundup of tips and advice for hiring returning veterans. The post includes questions to ask and to avoid during the interview.
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