THE FRONT
Work Crimes IN NOVEMBER 1988, S.A. Healy, a national construction contractor
based in McCook, Illinois, was excavating a 10-foot wide, 40- foot deep
sewage tunnel beneath Milwaukee as part of a $2 billion water pollution
abatement project for the Milwaukee Metropolitan Sewage District (MMSD).
The tunnel contained methane, an extremely volatile, naturally occurring
gas. Because the contractor failed to take appropriate preventive measures,
the methane was ignited, producing a blast that killed three Healy workers.
In an extremely rare action, federal and state law enforcement agencies
prosecuted Healy for criminal acts. But workplace- safety experts say the
penalties meted out to Healy are insufficient to deter other construction
companies from endangering workers by placing profits before safety. After
the blast, the Occupational Safety and Health Administration (OSHA) cited
Healy for 68 wilful violations of federal workplace safety regulations
and proposed that the company pay fines totalling $68,000. OSHA then recommended
that the Justice Department bring criminal charges against the company--an
action OSHA has taken in very few cases. In June 1990, U.S. Attorney John
Fryatt and Milwaukee District Attorney Michael McCann announced indictments
of the construction company. A state jury subsequently convicted Healy
in December 1990 on two counts of reckless homicide. "We're hopeful that
the conviction may stimulate those employers who may be lax on safety issues
to adopt a more aggressive posture on safety," McCann told Multinational
Monitor. "Our motivation definitely leans more toward prevention than punishment."
For the state conviction, Healy was fined $15,000. In February 1991, a
federal jury followed suit, convicting Healy of three wilful violations
of safety standards that led to the deaths of the three workers. The federal
jury ruled that Healy was responsible for the deaths because it failed
to instruct the tunnel employees in the recognition, avoidance and nature
of the hazards when working in confined spaces; failed to shut off electric
power in the area of the tunnel after high levels of methane gas were detected;
and failed to install explosion deterrent electrical equipment in hazardous
tunnel locations. The company was fined $750,000, half of the possible
fines for the statutes under which it was convicted. David Cannon, Healy's
attorney, said the company is considering an appeal, but he refused to
comment on the convictions. In court, Cannon called the explosion a "tragic
accident" that "nobody, under any circumstances, could tell was going to
happen." In his closing arguments, Assistant U.S. Attorney Eric Klumb countered
that the accident could have been prevented if Healy had not displayed
"corporate arrogance" by placing profits and work schedules ahead of worker
safety, according to a Milwaukee Journal report. "This case is significant
not just to attain justice for the three people who died, but to gain the
attention of an industry whose attention needs to be gotten," Klumb said.
But critics say the penalties against Healy were minor for a company convicted
of wilfully killing three workers. The $15,000 in state and $750,000 in
federal fines which Healy was sentenced to pay constitute a paltry sum
compared with the company's annual earnings of $200 million. And the charges
against the only company official originally indicted were dismissed. "It's
awful that no one has gone to jail," says Joseph Kinney, executive director
of the National Safe Workplace Institute. Kinney contends that unless the
threat of jail time becomes a reality for employers, workers will continue
to die needlessly. He said employers like Healy typically treat fines as
a cost of doing business. Although Healy may write the criminal fines off
as a cost of doing business, it faces other sanctions that may be more
significant. Many government agencies are refusing to award the company
contracts because of its safety record. In December 1989, despite Healy's
submission of the lowest bid for another Milwaukee sewage contract, this
one worth $40 million, the city declined to award the company the contract,
citing its weak safety record. In February 1991, Los Angeles county officials
voided all bids for a contract to build a section of the city's Metro Rail.
Healy had submitted the lowest bid for the contract, $46.4 million. While
they declined to say why the contracts were voided, the county officials
said they planned to draft new regulations governing tunnel projects which
would most likely bar Healy and companies with similar criminal histories
from winning the job. Debarment (government prohibitions against awarding
contracts to deviant corporations) may be an important tool to force the
construction industry to pay greater attention to safety. "The construction
industry is the most hazardous industry in the country by way of deaths
and serious injuries," says John Moran, executive director of the Laborers
Health and Safety Fund. Moran estimates that while construction workers
make up between 5 and 6 percent of the U.S. workforce, they suffer about
25 percent of the on-the-job fatalities. "OSHA's enforcement in the construction
industry is severely lacking," he charges. But Moran says state and local
jurisdictions are increasingly holding construction companies criminally
liable for seriously injuring or killing their employees. -David Lapp