Labor & Employment Law

BP to Pay Record $50.6 Million OSHA Fine for Texas City Blast

By James Parks

BP agreed today to pay a fine of $50.6 million to the Occupational Safety and Health Administration (OSHA) for violations related to the 2005 explosion at its Texas City, Texas, refinery that killed 15 and injured 170. The company also must pay another $500 million to protect workers at the plant, Labor Secretary Hilda Solis said this afternoon during a press conference call.

Last October, OSHA proposed fines of $87.4 million after it found that the company had failed to correct problems at the Texas City refinery under a previous settlement following the 2005 explosion and more than $30 million for some 439 new violations the agency found in 2009.  BP had contested those penalties.

As part of today’s settlement, BP has agreed to what Jordan Barab, OSHA?s deputy assistant secretary, called ?unprecedented oversight? from OSHA on its safety procedures, including monthly meetings between BP and local OSHA officials, detailed quarterly reports, third-party verification and high-level meetings between OSHA and BP officials of safety. The United Steelworkers (USW), which represents workers at the Texas City refinery, also will be involved in monitoring safety procedures, he said.

As Solis said:

We feel this agreement achieves our goal of protecting the workers at the refinery….The size of the penalty rightfully reflects BP?s disregard for workplace safety. We hope it sends a message to all employers that we will enforce the law so that workers can return home safe at the end of their shifts.  

 Read Solis? remarks here and the full agreement here.

Full post as published by AFL-CIO NOW BLOG on August 12, 2010 (boomark / email).