Georgia Sugar Plant Explosion Results in $6 Million Fine

WASHINGTON - The U.S. Department of Labor's Occupational Safety and Health Administration today announced it has resolved litigation with Imperial Sugar Co. stemming from the February 2008 explosion at its Port Wentworth, Ga., plant and subsequently discovered safety and health violations at the company's Gramercy, La., facility."The 2008 explosion took the lives of 14 people and seriously injured dozens of others. Clearly, health and safety must become this company's top priority," said Secretary of Labor Hilda L. Solis. "This agreement requires Imperial Sugar to make extensive changes to its safety practices, and it underscores the importance of proactively addressing workplace safety and health hazards."In the agreement, submitted to Judge Covette Rooney of the Occupational Safety and Health Review Commission, Imperial Sugar will pay $4,050,000 in penalties for the 124 violations found at its Port Wentworth plant after the explosion, plus an additional $2 million for the 97 violations found in March 2008 after an inspection of its only other facility, located in Gramercy. The citations alleged, among other safety and health hazards, that the company failed to properly address combustible dust hazards. As part of the settlement, Imperial Sugar agrees that it has corrected all deficiencies at both of its plants or will correct those deficiencies according to a set schedule. Preventative maintenance and housekeeping programs have been established, and Imperial Sugar will identify and map locations where combustible dust may be present at its plants. The company also will conduct regular internal safety inspections and employee training, and hire an independent expert at each plant to ensure that there are adequate avenues of communication on worker safety and health issues within the company. Furthermore, Imperial Sugar has hired and agrees to continue to employ a full-time certified safety professional for the Georgia plant. The company will retain outside consultants to conduct safety audits for a three-year period and evaluate Imperial's programs relating to managing combustible dust hazards, such as housekeeping, preventative maintenance and protective equipment for workers. OSHA will approve all safety, health and organizational experts retained by the company. OSHA will receive current and accurate injury logs whenever requested, and OSHA will be allowed to enter the facility and conduct inspections based on those logs without objection from the company. OSHA will regularly monitor progress and compliance with the agreement and continue to conduct regular inspections of the facility.Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA's role is to assure these conditions for America's working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov/.

Revised Stipulation Payment Memoradum

Reproduced in toto:

MEMORANDUM NO. 2010-02(Supersedes Memorandum No. 2007-02)
TO:
WCC Commissioners, District Administrators, Advisory Board, Legal Advisory Panel, Medical Advisory Panel, Medical Practitioners, Self-Insureds, Insurance Carriers, Attorneys, and Unions
FROM:
John A. Mastropietro, Chairman
DATE:
June 4, 2010
RE:
Revised Stipulation Procedure – Effective July 1, 2010
The following memorandum supersedes Memorandum No. 2007-02 dated April 2, 2007. The Commission has determined that the prior memorandum did not provide sufficient guidance as to the construction to be accorded the term “commence on or before” contained in § 31-303. For this reason, the Commission issues the following revision based on its reading of § 31-303.
Sec. 31-303 requires that payment “shall commence on or before the twentieth day” from the date of an award or agreement. In addition, “[a]n employer who fails to pay within the prescribed time limitations of this section shall pay a penalty for each late payment, in the amount of twenty per cent of such payment, in addition to any other interest or penalty imposed pursuant to the provisions of this chapter.”
Determination of whether a penalty shall be assessed pursuant to § 31-303 due to the late payment of an award by stipulation shall be based upon the following:
Proof of payment by personal service, certified mail, or registered mail; OR
Placement of the payment due under an award by stipulation with a third party entity engaged in the regular business of delivery and the payor’s retention of written verification of same.
The 20-day period shall be counted from the date following the date on which the stipulation was approved by the Commissioner.
Parties in attendance will be hand-delivered the executed stipulation.
A certification page shall be maintained in the Commission’s file indicating the date on which the stipulation was approved and forwarded by the Commission’s staff.
Approved stipulations will be forwarded to non-appearing parties by regular mail to the address provided within the body of the stipulation by each party who requires and/or requests an executed copy.
For reference, § 31-303 provides:Payments agreed to under a voluntary agreement shall commence on or before the twentieth day from the date of agreement. Payments due under an award shall commence on or before the twentieth day from the date of such award. Payments due from the Second Injury Fund shall be payable on or before the twentieth business day after receipt of a fully executed agreement. Any employer who fails to pay within the prescribed time limitations of this section shall pay a penalty for each late payment, in the amount of twenty per cent of such payment, in addition to any other interest or penalty imposed pursuant to the provisions of this chapter.