After Crises, Companies Continue to Place Public and Workers at Risk

In the wake of high-profile regulatory failures, including the worst mine disaster in recent history, the companies responsible continue to run afoul of laws and regulations meant to protect public health and worker safety.

On July 1, an electrician was killed in a West Virginia mine owned by Massey Energy when the worker was run over by an underground vehicle. 31 of the 40 miners killed on the job in 2010 have worked in Massey mines, according to the Department of Labor.

An April 5 explosion in West Virginia's Upper Big Branch mine, also owned by Massey, killed 29 miners. The incident, the worst mining disaster since 1984, has prompted scrutiny of federal mine safety policy, including the regulations and practices of the Mine Safety and Health Administration (MSHA).

Another Massey-owned mine, the Tiller No.1 mine in Virginia, avoided placement on MSHA's pattern-of-violations list when on June 8, a Federal Mine Safety and Health Review Commission (FMSHRC) judge dismissed 10 of the 29 citations the company contested. The judge ruled that only 19 of the violations were "significant and substantial." Mines can be placed on the list if 25 violations are proved.

Mining operations frequently contest MSHA citations in order to avoid placement on the list, which triggers stricter oversight. As a result, FMSHRC has a backlog of approximately 16,000 cases. A recent Department of Labor Inspector General report also found that MSHA is not aggressively pursuing new listings, in part due to resource limitations.

Problems with mine safety policy are illustrative of the broader difficulties regulators face in the wake of major incidents, which often highlight long-standing deficiencies such as resource constraints or lack of regulatory authority. With quick fixes seldom available, agencies are often ill-equipped to gain leverage with regulated industries or prevent future crises.

Like Massey, Toyota Motor Corp. continues to experience public struggles after a major safety crisis. On July 2, Toyota announced a recall of more than 138,000 Lexus vehicles for engine problems that can lead to stalling while the vehicle is in motion. Toyota says the event of a stall is unlikely and is unaware of any injuries or crashes as a result of the defect.

Toyota recalled millions of vehicles in 2009 and early 2010 after multiple crashes were linked to sudden, unintended acceleration. Toyota has blamed floor mats and human error for the crashes, but investigators have yet to determine a definitive cause. Toyota has also recalled thousands of Lexus sport utility vehicles after discovering problems with the electronic stability controls, which make the vehicles more susceptible to rollover.

Congress is considering legislation to strengthen the hand of the Department of Transportation and to require new vehicle safety measures. Among other things, the bill would raise the penalty cap for safety violations, currently set at $16.4 million, which Toyota paid in response to the sudden acceleration defects.

However, auto industry lobbyists are fighting tough new protections, and safety advocates fear the industry has already succeeded in weakening aspects of the bill. Original plans to eliminate the penalty cap have already been scuttled; instead, a Senate version of the bill sets the cap at $300 million, while the House version sets it at $200 million, the Los Angeles Times reports. Without the cap, Toyota's liability for the sudden acceleration defect could have been in the billions of dollars.

Perhaps the most high-profile of recent regulatory failures, the BP Deepwater Horizon oil spill disaster, continues to endanger not only the environment but worker safety and health. As of July 4, BP and the Occupational Safety and Health Administration (OSHA) have recorded 1,337 injuries and illnesses among cleanup workers. Most of the incidents, such as insect bites and heat stress, are minor, OSHA says. The April 20 explosion that sunk the rig and led to the spill killed 11 workers.

OSHA is keeping close tabs on cleanup efforts. According to the agency's website, OSHA has visited cleanup sites in the Gulf almost 2,000 times and has 146 staff members stationed in the area.

However, the regulatory situation remains muddled, especially for rig workers. OSHA only maintains regulatory authority up to three miles off of U.S. coasts, at which point the U.S. Coast Guard takes over. In the case of offshore oil rigs, OSHA has no regulatory authority for occupational safety and health – the Coast Guard and the Department of Interior share responsibility.

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