OSHA rebuts charges of lax enforcement A report from the Chicago-based National Safe Workplace Institute has lambasted the Occupational Safety & Health Administration for seven years of lax enforcement and "sweetheart" deals with the nation's industry. OSHA spokesmen say the criticisms are way off base. The report limits its criticisms to what OSHA has done since the beginning of the Reagan Administration. Several specific problems are raised, most of which have also been cited by other OSHA critics. These include reductions in the number of serious citations issued by inspectors, failure to target the most unsafe job sites for inspection, and ignoring the needs of accident victims and their families. Spotlighted in the report is a statistical calculation claiming to demonstrate 9115 excess workplace fatalities since 1981 stemming from OSHA's alleged failure to carry out the policies of the previous Administration. The report bases its findings on the period from 1975 to 1980, during which workplace deaths were reduced 2.2% annually. Since 1981, NSWI says, the reduction was only 0.7% annually, against which is derived the 9115 figure. Terry Mikelson, chief spokesman for OSHA, says the numbers are misleading. "If you look at the Bureau of Labor Statistics data, the trends are still downward," he says. "The BLS numbers show significant declines in workplace fatalities from 1973 until the present." According to Alan Hoskin, manager of the statistical department at the National Safety Council, which calculates workplace fatality numbers yearly, on-the-job deaths have fallen steadily from about 13,000 in 1975 to 11,100 in 1987. A second major criticism in the report is of OSHA's downward negotiation of the huge fines it has been proposing over the past two years. About 50 such fines have been sought since OSHA began a new records inspection program in 1986. Most have been settled for amounts substantially less than the original fine. NSWI claims that the agency
is reaping big publicity when it announces the proposed fine, giving the public the image of an agency doing an efficient job. But by going back and reducing those fines as much as 90%, OSHA is making "sweetheart" deals with industry. "Historically, the agency has been willing to give up money for abatement programs that remove hazards," Mikelson says. In return for reducing the fines, he says, all companies have to agree to eliminate the offending safety problems. And
large firms that have negotiated settlements have agreed to correct similar problems in all their facilities throughout the U.S. Reducing fines is not new to this Administration, he adds, saying that the Carter Administration did it as well. NSWI is a nonprofit organization funded by foundations and individual contributions. According to NSWI executive director Joseph A. Kinney, it is not affiliated with any industry or labor organization. David Hanson
Dow rescues Essex from Gurit-Heberlein After months of hostile takeover activity by Gurit-Heberlein, Dow Chemical stepped in earlier this month to rescue Essex Chemical from the Swiss chemicals and textile finishing company. The merger agreement worked out between Dow and Essex calls for a tender offer by Dow at $36 per share, for a total value of about $366 million. Gurit-Heberlein originally offered $24 per share for Essex. This was subsequently raised to $30 per share, and then Gurit offered to raise its offer further to $32 per share if a negotiated merger could be arranged. In a terse statement last week following the Dow offer, Gurit said that it has terminated its tender offer. Dow was evidently one of a group of companies with which Essex was
Essex profitability recovers following restructuring Profit margin, % a
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a After-tax earnings from continuing operations, excluding extraordinary and nonrecurring items, as a percentage of sales, b First six months.
negotiating. Essex has declined to name the other firms. Dow's president and chief executive officer, Frank P. Popoff, says: "Essex complements Dow's businesses, particularly in the automotive industrial adhesives and sealants areas. Essex will further enhance Dow's strong specialties emphasis." Ironically, after the deal is complete, Dow will end up working with Gurit through the Essex-Gurit joint venture in Europe that produces automotive adhesives. "We hope to develop a good working relationship with Gurit-Heberlein, notwithstanding its likely disappointment over not acquiring Essex," Popoff says. "The strength Dow will bring to the continuing business should provide benefits that GuritHeberlein will share." Essex, with sales through the first half of 1988 of $139 million, produces specialty products, industrial chemicals, refrigerant gases, organic intermediates, and generic drugs. The largest segment, specialties, makes formulated products, systems, and other value-added materials for the automotive and durable goods industries. Last year, Essex went through a restructuring that resulted in an after-tax charge of about $17.9 million against earnings. During the restructuring, Essex said that it would dispose of a phosgene chemicals plant in Baltimore; of United Epitaxial Technologies, a producer of gallium arsenide epitaxial wafers; and of ECW, a manufacturer of insulation systems for liquid transformers. September 12, 1988 C&EN
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