Companies get stimulus contracts, despite OSHA violations
December 7, 2009 by Fred HosierPosted in: In this week's e-newsletter, Investigations, Latest News & Views, OSHA news, What do you think?, contractor safety, enforcement
At least 10 companies with prior records of workplace safety violations have received millions in federal stimulus contracts in one state.
Some of the companies didn’t disclose previous violations as required. Now the Massachusetts Highway Division is demanding written explanations from at least 7 companies awarded contracts as to why they didn’t reveal the violations on forms they submitted to obtain bidding approval for state projects.
The situation came to light after a review by the New England Center for Investigative Reporting at Boston University.
Example: Liddell Brothers of Halifax, MA, received a $2.6 million stimulus contract. OSHA had cited the company four separate times since 2007 for failing to provide cave-in protection for workers in trenches. Liddell paid $46,580 in OSHA fines.
Former OSHA administrator Charles Jeffress said companies with repeat or willful safety violations should not get state contracts. In 2007, Liddell was issued a willful violation.
Liddell attorney Robert Lizza said in an e-mail that because the company immediately abated the hazards, paid its fines and the issue didn’t progress to a formal proceeding, as stated in the application form, Liddell didn’t disclose the violations.
The key question on the form asks contractors to report “any civil, criminal, or administrative proceedings involving public contracts, safety, environmental laws, or regulations” for the previous 3 years.
The Highway Division’s administrator said it doesn’t have enough staff to verify the accuracy of the information provided by contractors. The agency has threatened to refer the contractors in question to the state attorney general’s office for making false claims on the applications.
What do you think? Should contractors be barred from receiving government contracts if they have been issued a willful safety citation in the previous 3 years? Does abatement wipe the slate clean? Let us know in the Comments Box below.
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Tags: cave-in, OSHA violations, stimulus contracts, trenches
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December 7th, 2009 at 7:09 am
[...] is the original post: Companies get stimulus contracts, despite OSHA violations … Share and [...]
December 8th, 2009 at 7:28 am
Abatement should not wipe the slate clean. The violation that occured is a standard construction issue, need to use trench boxes. Its not like they got caught on some obscure rule. The state is dumb for not making the form clearer with no loop holes. The state should ask that all OSHA and other regulatory agency inspection results be reported. This just rewards bad behavior.
December 8th, 2009 at 8:56 am
Is anyone else surprised that the most liberal state in the US circumventing their own laws? That state has been run like that for 60 years!
December 8th, 2009 at 10:12 am
If the law precludes them from receiving funds - then OK. But just because a former OSHA admin says he thinks they should not receive money is not a factor.
December 9th, 2009 at 10:44 am
Can you compare it to getting a speeding ticket? I think states should require an OSHA 10 for all construction workers like they do in Nevada. It covers the employee to an extent as far as providing basic “Knowledge”. What the person does with it should be passed on to their own personal responsibility and then has documented evidence that they have been trained and makes for termination due to “willful” non-compliance of CFR 1926 - If a forman on a project does not use a protective system for an employee in a trench deeper than 5′ and is fired or even disciplined then I think the company should be able to continue working on stimulus projects as long as actions have been taken but the company must prove that they have previously been trained and that disciplinary action has been taken/enforced
December 10th, 2009 at 2:13 pm
[...] to a recent report by Safety News Alert, 10 Massachusetts companies with prior records of workplace safety violations have received [...]
December 14th, 2009 at 5:14 pm
You have got to be kidding. Almost all of our work is state work and we do extensive private sector work as well. In 2008 we had a trench that was 5ft 6in. deep without using adequate protection in the trench. In August of 2009 we were cited for an excavation that was less than a foot from compliance along side a building that washed away over the weekend and the supervisor was late getting to work to make adequate changes to the wall. We were cited for a Repeat Violation.
We are NOT a bad contractor we spend 100’s of thousands a dollars every year just for PPE and spent over 100,000 dollars and 20,000 man hours on Safety and Health Training over the winter months. We work really hard to be safe and the supervisors were disciplined and fired accordingly. The welfare of this company is over 95% dependent on state projects and a repeat violation does NOT make us a bad company. We’ve changed things, hired additional safety help, improved on our safety program and move on. To dismiss a contractor from actually doing any work because of a Repeat Violation is unfair. We only had 7 recordable injuries in 2008 and no lost time injuries for the entire year and work in 5 states. This statement by Mr. Jeffers is typical from someone from the political side of things and has never worked in the field. Not in a factory…on a construction site. Factories have the same exposures over and over and never change. Once you abate a problem it’s gone forever. No excuse.
States should ask the company what have they done to see that this never happens again and move on.
December 15th, 2009 at 10:34 am
I believe the issue is the company was cited for a willful violation. A willful violation is one where OSHA can proove the employer had knowledge of a hazard and CHOSE to not correct it. I do believe they should lose the right to get a government contract if they are willfully violating safety standards.