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$7,000,000
Ford Settlement with MIOSHA
State Reaches
Historic Settlement Agreement with Ford and UAW
On Sept.
2, 1999, the Michigan Department of Consumer and Industry Services
(CIS) concluded its investigation of the fatal explosion at the
Ford Rouge Complex power plant with an unprecedented and historic
$7 million Settlement Agreement with Ford Motor Company and the
UAW.
The tragic explosion was one of the worst automotive industry
accidents in Michigan. On Feb. 1, 1999, a catastrophic explosion
in the power plant at the Ford Rouge Complex in Dearborn, resulted
in the death of six workers and seriously injured 14 others.
This unique
and innovative settlement resolution to the Michigan Occupational
Safety and Health Act (MIOSHA) and Bureau of Construction (BCC)
was announced by CIS Director Kathy Wilbur in Detroit. "This
historic agreement can never reclaim lost lives or restore injured
bodies-but it can ease the suffering of the victims and their
families by assuring a safer and healthier work environment for
all Ford employees in the future," said Wilbur. The settlement
includes a record $1.5 million civil penalty, the largest monetary
sanction ever levied in Michigan as a result of a MIOSHA investigation.
The key elements of the $7 million agreement include:
• $1.5
Million-MIOSHA Penalty,
• $1.5 Million-Establishment of programs to achieve lasting
improvements in power generation safety,
• $1.0 Million-Research to increase the understanding of
industrial safety and health,
• $1.5 Million-Medical research, facilities or equipment
in the treatment of burns and other critical care,
• $1.0 Million-Scholarship Fund, and
• $0.5 Million-Potential third-party reimbursement.
MIOSHA and
BCC inspectors worked cooperatively on this accident to assure
that a comprehensive investigation was achieved. "Coordinating
these state inspection efforts allowed us to utilize the expertise
of our CIS employees to assure a thorough investigation with
an emphasis on a safer workplace in the future at Ford,"
said CIS Director Wilbur. BCC inspectors were able to establish
cause in this incident. They determined the explosion was caused
by a natural gas build up in Boiler No. 6. The build-up was a
result of inadequate controls for the safe shutdown of the boiler.
While BCC inspectors look for the cause of an accident, MIOSHA
investigations focus on identifying violations of state worker
safety and health standards.
Ford Complex
Background
On February
1, 1999, at approximately 1:00 p.m., there was an explosion in
the power plant jointly owned by Ford Motor Company and Rouge
Steel. The 80-year-old Ford Rouge produces steel for the automotive
industry.
About 140
workers were employed at the power plant, which was scheduled
to be replaced with a new facility in 2000. The Rouge power plant
produced steam by burning a mixture of natural gas, pulverized
coal, and blast furnace gas. The new facility, already under
construction at the time of the accident, will use natural gas
to generate electricity.
BCC Investigation
Boiler accidents
are rare in Michigan, but when they do happen the results are
often devastating. There are more than 70,000 commercial boilers
in Michigan, with 4,000 high-pressure power boilers like those
at Ford. Power boilers are inspected annually by licensed inspectors.
The Rouge
power house contained seven power boilers used to provide steam
at the complex. All boilers were housed in the same building.
At the time of the explosion, Boilers No. 2, 3,4,5, and 7 were
operating. At 8:00 a.m., Boiler No. 6 was being shut down for
annual maintenance. At 12:00 noon, workers were completing the
shut-down process by blanking the natural gas supply. At about
12:58 p.m., the natural gas control valves were opened to facilitate
purging any remaining natural gas from the supply lines through
the boiler. The explosion occurred a few minutes after the valve
was opened.
The BCC investigation
determined that the accident was a natural gas fuel explosion
and not a boiler steam explosion. BCC inspectors concluded the
cause of the accident was a result of inadequate procedural controls
for the safe shut-down of the boiler. Improper valve line-ups
and inadequate work group communication allowed natural gas to
flow into the boiler furnace chamber. This is believed to be
the source of the gas build-up which caused the explosion.
The boiler inspection was conducted by BCC Boiler Division Chief
Bob Aben and Boiler Inspector Dave Johnson. A large part of the
BCC involvement consisted of working with Ford to restore power
to the complex. Companies across the U.S. provided 38 temporary
boilers. BCC worked closely with Ford to assure the safe installation
and operation of the temporary boilers. Manufacturing resumed
in the Ford companies at the complex within a week after the
explosion. At Rouge Steel most of the production activities were
down for more than three months.
MIOSHA Investigation
By 3:00 p.m.,
MIOSHA Safety Officer Joe Barela was on-site at the accident.
He found activities at the scene focused on rescue operations
and immediately called for backup assistance. Because the first
priority was to rescue the injured and evacuate the building,
the MIOSHA investigation started the following day. Due to the
size of the catastrophe and the number of employees involved,
the CIS investigative team consisted of five MIOSHA investigators
and two BCC inspectors.
Entry into
the seven-story power house was, and is, hampered by debris,
making some areas unstable and impossible to enter until cleaned
and stabilized. Also, a large amount of asbestos was blown off
the piping, which posed additional hazards for entry, and required
full protective suits and respirators to be worn. Electrical
power was not available, so the investigations could only be
conducted during daylight hours.
The investigation
was among the most complex ever conducted by MIOSHA. The investigation
lasted seven months, and was hampered by several factors including:
problems with access to the site; the need to conduct extensive
interviews, including waiting until hospitalized workers were
released; the availability of key documents and the physical
review of voluminous material; the instability of the structure;
and the large number of entities conducting investigations, including
CIS the Dearborn Fire Marshal Office: Ford Motor Company, the
UAW, and at least three insurance companies.
The MIOSHA
investigative team consisted of: Chuck Lorish, Regional Supervisor,
Chuck Slavik, Senior Safety Officer, and Safety Officers Joe
Barela, Jeff Kelley, and Rick Odorico. These safety officers
reviewed more than: 689 blueprints; 324 binders of documents
containing more than 200,000 pages and 29,000 photos; and 375
boxes of evidence, including material in 10 file cabinets and
20 blueprint file cabinets.
In a typical
MIOSHA investigation, a single safety officer conducts the inspection
and issues the report. In this investigation, the safety officers
worked as a team to evaluate the safety and health practices
at the Rouge plant. The team relied heavily on employee interviews.
Insurance audits which evaluated Ford's safety and health practices
in the power plant, along with other documents and physical evidence
which were also critical in the investigation.
The CIS team
conducted more than 300 interviews with about 150 Ford employees
and supervisors. Repeat interviews were necessary to clarify
information. Chuck Lorish and Rick Odorico conducted management
interviews, Chuck Slavik and Jeff Kelley conducted employee interviews,
and Joe Barela continued the on-site investigation. At times,
industrial hygienists from the MIOSHA Occupational Health Division
were also involved. BCC Boiler Inspector Dave Johnson also worked
closely with the team, and his expertise proved invaluable.
General Industry Safety Division Assistant Chiefs Eva Hatt and
Jim Gordon, as well as Deputy BSR Director Doug Kalinowski contributed
leadership, direction and expertise in the management and coordination
of the investigation. Diane Phelps, Chief of the BSR Appeals
Division and Rick Gartner from the office of the Attorney General,
were also of great help during the investigation and in the development
of the Settlement Agreement. Professionals from Ford and the
UAW were also cooperative in attempting to facilitate a thorough
and comprehensive investigation.
The team
met almost daily to evaluate findings and utilized several new
technologies including: cell phones, to check information quickly;
the Internet, which provided a wealth of information; laptop
computers to record interviews, evidence and generate weekly
reports and video cameras, which are not normally used in accident
investigations.
MIOSHA also
received assistance from the federal Occupational Safety and
Health Administration (OSHA) Salt Lake City Technical Center.
The technical expertise of the OSHA staff provided essential
details as the investigation proceeded. An explosion expert and
a power plant engineer with 40 years experience also provided
important technical expertise.
The team
concept worked extremely well and the MIOSHA investigation provided
a solid basis on which to forge the Settlement Agreement. MIOSHA
safety officers found that significant workplace safety and health
violations existed at the time of the explosion, as well as a
lack of safe industry practices on the part of Ford.
Violation/Citation
Summary
Ford Motor
Company has agreed to pay a $1.5 million penalty for violations
of MIOSHA requirements. This agreement ranks as one of the largest
monetary settlements for workplace safety and health violations
in the nation. CIS Deputy Director Dr. Kalinin Smith was actively
involved in forging the Settlement Agreement.
"This
historic agreement allows us to focus our efforts on helping
Ford and the Union create a safe and healthy workplace in the
future-rather than spending our limited resources on litigation,"
said CIS Deputy Director Smith. "This exceptional compliance
resolution minimizes the possibility of a lengthy legal battle,
and provides immediate benefit to Ford workers. "
The violations
found by MIOSHA were mainly associated with: physical controls
on the boilers, written operating and maintenance procedures,
housekeeping, and employee training. MIOSHA findings led to the
inclusion in the Settlement Agreement of several items which
will positively impact the working conditions for Ford employees
nationwide. MIOSHA expended the necessary resources in this investigation
to determine unsafe workplace practices and to identify viable
solutions.
Agreement
Highlights
CIS, Ford,
and the UAW signed the Settlement Agreement on Sept. 2, 1999.
Ford has provided assurance of abatement for the cited conditions
and paid the penalty. In addition, Ford has also undertaken the
following activities beyond the scope of abatement at the Rouge
power plant, with most activities to be initiated within 45 days
of the effective date of this Agreement.
Safety Improvements
in Ford Facilities
Ford will dedicate $1,500,000 to promote the establishment of
programs to achieve lasting improvements in workplace safety
and health beyond the Rouge Complex.
Occupational
Safety and Health
Ford will donate $1,000,000 to Michigan organizations to conduct
research on industrial health and safety. They will also donate
$1,500,000 for research, facilities and/or equipment relating
to the treatment of bums or other critical care.
Scholarships
in Memory of the Deceased
Ford will donate $1,000,000 to a scholarship fund for the benefit
of UAW members and their families in memory of the workers who
lost their lives as a result of the power plant incident.
Potential
Third-Party Litigation Costs
If CIS personnel are required to testify in third party litigation
involving the explosion, Ford has agreed to reimburse the state
for the actual salary/ wages, fringe benefits, and travel expenses
incurred, up to a maximum of $500,000.
Reprinted
from "MIOSHA News"
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