UNITED STATES OF AMERICA
OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION
SECRETARY
OF LABOR, |
|
Complainant, |
|
v. |
OSHRC
DOCKET NO. 8221 |
NORTHEAST
MARINE TERMINAL COMPANY, |
|
Respondent. |
|
August 31, 1976
DECISION
BEFORE BARNAKO, Chairman: MORAN and CLEARY,
Commissioners.
MORAN, Commissioner:
A decision of Review Commission Judge
Joseph Chodes, dated January 30, 1975, is before this Commission for review
pursuant to 29 U.S.C. § 661(i). That decision vacated two citations alleging
that respondent failed to comply with the requirements of seven different
occupational safety standards. Review was directed on the following issues:
(1) What effect if any should be given in
this case to Brennan v. Gilles & Cotting, Inc. and OSAHRC, 504 F.2d
1224 (4th Cir. 1974), and Brennan v. OSAHRC and Underhill Construction Corp.,
513 F.2d 1032 (2d Cir. 1975)?[1]
(2) Whether the Administrative Law Judge
erred in finding that respondent’s employees were not shown to have been
exposed to the hazards contemplated by the standards at 29 C.F.R. §
1910.178(m)(3), 29 C.F.R. § 1910.22(a)(1), and 29 C.F.R. §
1910.106(e)(2)(iv)(b)?
For the reasons that follow, we affirm the
Judge’s decision which is attached hereto as Appendix A.[2]
Complainant’s inspector was the only
witness at the hearing. He testified that he conducted the inspection of
respondent’s worksite, a marine terminal, under the assumption that the entire
worksite was under the control of the Northeast Marine Stevedoring Company and
occupied solely by its employees. In actuality, the worksite was also occupied
by respondent, a company which is corporately separate from Northeast Marine
Stevedoring Company and which hires its own employees. Because of this
erroneous assumption, the inspector, upon observing noncompliant conditions,
failed to inquire as to which company was responsible for the conditions and
which company employed the workers who were exposed to the hazards caused by
those conditions. The only significant testimony he was able to give regarding
his observations of the three alleged violations enumerated in the second
directed issue[3]
is as follows:
29 C.F.R. § 1910.178(m)(3).[4] A high-low truck was
coming out of a shed on which two men were riding. The truck was equipped with
only one seat. One of the riders was a Mr. Lennon, the ‘foreman of the pier.’
29 C.F.R. § 1910.22(a)(1).[5] Debris was scattered in a
storeroom and in the garage. In the maintenance area of the garage, parts and
machines blocked access route for employees in the area.
29 C.F.R. § 1910.106(e)(2)(iv)(b).[6] In the garage area,
various machine parts were dripping gasoline. Employees were working in the
area which was blocked off for security reasons.
Subsequent to the inspector’s notation of
these violative conditions, he discovered that respondent was also an employer
on the site. Upon this discovery, he and a Mr. Kiplock, who had identified
himself previously as the safety director for Northeast Marine Stevedoring
Company, attempted to rectify the error by apportioning the violations between
the two companies. The inspector testified as follows regarding Mr. Kiplock’s
views on the equitable allocation of the violations:
[D]uring the discussion, Mr. Chiplock
[sic] suggested there were too many [violations] to lay off on the Stevedore
and they should be separated between the Stevedore and the Terminal operation
because the Stevedore did not function and the Terminal did another function.
Where the terminal made repairs and provided proper roadway and fire equipment
and whatever was necessary to maintain a good place to work and the building
and shed and equipment, whereas the Stevedore’s primary function was to load
and discharge vessels and store the cargo and remove it from the sheds and load
and discharge trucks.
The Judge determined that the evidence was
insufficient to prove that employees of respondent were exposed to the
hazardous conditions. He concluded:
[T]here is no probative evidence in the
record showing that the violations established exposed employees of the
respondent, Northeast Marine Terminal Co., to the hazards contemplated by the
standards . . . While the compliance officer obtained the names of some of the
employers involved, he did not ask or otherwise determine for whom they were
working . . . The failure of the compliance officer to obtain information
concerning the employment status of the individuals affected by the violations
is understandable in light of his initial unawareness that more than one
employer was involved at the worksite. Unfortunately, this does not cure the
deficiency in the evidence.
Violations of the Act cannot be predicated
on an arrangement between a compliance officer of the complainant and the
safety director of an employer who is not the respondent in this case, albeit
he did have some overall supervision of the worksite.
We find that complainant has failed to
establish by a preponderance of the evidence[7] that any employee of
respondent was actually exposed to the alleged hazardous conditions or had
access thereto. In view of that failure, we agree with the Judge’s disposition
of the exposure question.
Moreover, we cannot infer from the
evidence that respondent created the noncompliant conditions or was responsible
therefor. The inspector’s only information regarding respondent’s
responsibilities was from Mr. Kiplock. That evidence is much too inconclusive
and unreliable for us to conclude that respondent was the responsible employer.
Mr. Kiplock simply outlined to the inspector the general functions of
respondent and the general working areas of respondent’s employees. There was
no direct evidence from which we can reasonably infer that respondent was the
employer responsible for the alleged functions of respondent are inherently
unreliable because his authority to of Mr. Kiplock on the professed functions
of respondent are inherently unreliable because his authority to represent
respondent was not clearly shown. On the other hand, the Judge’s distrust of
Mr. Kiplock’s allocation of the violations was justifiable since his authority
to represent the Northeast Stevedoring Company has not been questioned.
Finally, we note our basic disapproval of
the procedures followed by the inspector in this case. He should not have
attempted to correct his mistake by simply dividing up the violations,
especially since he was dependent solely on the judgment of Mr. Kiplock to do
so. It would have been more equitable, and simpler in the long run, for him to
have retraced his steps and determined for himself who was actually responsible
for the conditions and whose employees were exposed to the resulting hazards.
Because of the aforementioned evidentiary
deficiencies in complainant’s case on the responsibility and exposure
questions, the Judge’s decision holding that the citations must be vacated is
affirmed.
FOR THE COMMISSION:
William S. McLaughlin
Executive Secretary
DATED: AUG 31, 1976
CLEARY, Commissioner, DISSENTING:
The Secretary of Labor has successfully
carried his burden of establishing respondent’s violation of section 5(a)(2) of
the Act[8] for its failure to comply
with the standards at 29 CFR § 1910.178(m)(3), 29 CFR § 1910.22(a)(1), and 29
CFR § 1910.106(e)(2)(iv)(b).[9] Hence, I do not agree with
my colleagues’ disposition of this case.
Our point of disagreement does not center
on whether the standards cited by the Secretary apply to the conditions at
issue, nor, I believe, do we disagree that there has been a failure to comply
with the cited standards. Indeed, Judge Chodes found that violations of the Act
did exist. Furthermore, I doubt seriously, based upon the record before, us,
that my colleagues would argue that no employees were exposed to the hazards
occasioned by the admittedly present violative conditions. In short, I submit
that the majority (a) knows the cited standards apply to the conditions at
issue, (b) knows there has been a failure to comply with the cited standards,
and (c) knows there are employees exposed to the hazards created by these
noncomplying conditions. Yet, by all but ignoring essential facts, my
colleagues manage to vacate the citations.
The majority concludes that it cannot
infer from the evidence that respondent created the noncomplying conditions or
was responsible therefor. The only way my colleagues can reach this conclusion
is to discount completely the statements made to the Secretary’s compliance
officer (CO) by respondent’s safety director, Mr. Kiplock.[10]
At the conclusion of the two day
inspection, respondent’s safety director told the CO[11] that Northeast Marine
Terminal was responsible for providing and maintaining the roadway, work sheds,
buildings, and equipment in the terminal. On the other hand, the safety
director continued, Northeast Marine Stevedoring was responsible for loading
and discharging vessels, storing and removing cargo from sheds, as well as loading
and discharging trucks.[12]
In addition to these general descriptions,
respondent’s safety director assisted the CO in determining the responsibility
under the Act for each noncomplying condition. Regarding both the powered
industrial truck item [29 CFR § 1910.178(m)(3)] and the housekeeping item [29
CFR § 1910.22(a)(1)], the safety director noted that Northeast Marine Terminal
(respondent) was the proper party to cite since no ships were ‘working’ at the
time. In other words, there was no loading or unloading being done—the function
performed by Northeast Marine Stevedoring. As to the flammable liquid item,
respondent’s representative made it known that the gasoline was being used by
Northeast Marine Terminal to clean equipment as part of its repair and
maintenance function.
Even if respondent’s representative had
never said a word to the CO, the safety director’s actions concerning the cited
items illustrate respondent’s control of the hazardous conditions.[13] Upon discovering the
powered industrial truck and housekeeping violative conditions, Mr. Kiplock,
respondent’s safety director, ordered and obtained immediate abatement.
As noted previously, the third violative
condition, that involving the flammable liquid, concerned the cleaning and
maintenance of certain equipment by Northeast Marine Terminal for eventual use
by Northeast Marine Stevedoring. It is clear to me that respondent controlled,
if it did not create, the physical conditions that resulted in the citations.
Hence, we have an employer who controls hazards to which the employees of
another employer engaged in work at the same site are exposed. Under such
circumstances, I would extend the multiple employer precedent developed by the
Second Circuit in Brennan v. O.S.H.R.C. and Underhill Construction Corp.,
513 F.2d 1032 (2d Cir. 1975)[14] and would find Northeast
Marine Terminal Co. in violation of the Act for its failure to comply with the
standards at 29 CFR § 1910.178(m)(3), 29 CFR § 1910.22(a)(1), and 29 CFR §
1910.106(e)(2)(iv)(b).
UNITED STATES OF AMERICA
OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION
SECRETARY
OF LABOR, |
|
Complainant, |
|
v. |
OSHRC
DOCKET NO. 8221 |
NORTHEAST
MARINE TERMINAL COMPANY, |
|
Respondent. |
|
January 30, 1975
DECISION AND ORDER
APPEARANCES:
Theodore T. Gotsch, Esq., of New York, N.
Y., for the Secretary of Labor
William M. Kimball, Esq., of New York, N.
Y., for the Respondent
Joseph Chodes, Judge, OSAHRC
STATEMENT OF THE CASE
This is a proceeding pursuant to section
10 of the Occupational Safety and Health Act of 1970 (29 U.S.C. § 651 et seq.)
in which the respondent is contesting a citation issued by the complainant
under the authority vested in complainant by sections 9(a) of the Act (29
U.S.C. § 658(a)). After a complaint and an answer had been filed by the
parties, the case came on for hearing at New York, New York on September 13,
1974.
The citation, which was issued on May 14,
1974, following an inspection on April 3 and 4, 1974 of a place of employment
at the Marine Terminal at the foot of 39th Street, Brooklyn, New York, alleged
that the respondent violated section 5(a)(2) of the Act (29 U.S.C. § 654(a)(2))
by failing to comply with certain occupational safety and health standards
promulgated by the Secretary of Labor pursuant to section 6 of the Act (29
U.S.C. § 655) and codified in 29 Code of Federal Regulations, Chapter XVII,
Parts 1910 and 1918.
Specifically, the respondent was charged
with a repeated violation and with nonserious violations as follows:
Repeated
Violation |
29
C.F.R. § 1910.178(m)(3) in that respondent failed to prevent unauthorized
personnel from riding on powered industrial trucks. |
Nonserious
Violations |
1.
29 C.F.R. § 1910.27(f) in that respondent failed to maintain all ladders in a
safe condition and inspect all ladders regularly with the intervals between
inspections being determined by use and exposure. 2.
29 C.F.R. § 1910.22(a)(1) in that respondent failed to keep all places of
employment clean and orderly and in a sanitary condition. 3.
29 C.F.R. § 1910.213(h)(1) in that respondent failed to equip a radial arm
saw with a lower blade guard in building 111A storeroom. 4.
29 C.F.R. § 1918.25(e) in that respondent permitted the use of a portable
straight ladder which failed to extend at least 36 inches above the upper
landing surface in the garage from a platform to the 10 foot blockhouse. 5.
29 C.F.R. § 1918.25(f) in that respondent failed to lash, block or otherwise
secure a portable straight ladder in the garage used from a platform to the
10 foot blockhouse to prevent shifting or slipping. 6.
29 C.F.R. § 1910.106(e)(2)(iv)(b) in that flammable or combustible liquids
were used or handled in the garage machine repair area without providing
means to dispose promptly and safety of leakage or spills. |
Pursuant to the enforcement procedure set
forth in section 10(a) of the Act (29 U.S.C. § 659(a)), the respondent was
notified by letter dated May 14, 1974, from Nicholas A. DiArchangel, Area
Director of the New York area, Occupational Safety and Health Administration,
U. S. Department of Labor, of the assessment of proposed penalties for the
violations totalling $620.
PRELIMINARY MOTIONS
The respondent moved to vacate the
citations and proposed penalties on the grounds that the citation was not
issued ‘with reasonable promptness’ as required by section 9(a) of the Act (29
U.S.C. § 658(a)). The authority relied on was Secretary v. Chicago Bridge
& Iron Co., 6 OSAHRC 244 (1974). That case held that the issue of
reasonable promptness was an affirmative defense. In the absence of evidence
that the citation was issued more than three days after the complainant or his
authorized agent had formed his belief that a violation had occurred (the rule
followed in the Chicago Bridge case) the motion was denied (T–8).
Another motion to vacate the citation and
proposed penalties was made by respondent. It was contended that the citations
in the instant case should be vacated because a citation was issued to another
employer for alleged violations at the same worksite involved herein about a
month prior to the issuance of the citations in the instant case. The motion
was denied since any action taken by complainant against another employer is
not considered to be relevant to the disposition of this case (T–12).
AMENDMENT OF CITATION
At the hearing a motion to amend item 4 of
the citation for nonserious violations to read ‘29 C.F.R. 1918.25(e)’ was
granted (T–91).
SUMMARY OF EVIDENCE AND
DISCUSSION
On April 3 and 4, 1974, Joseph D. Martino,
one of the claimant’s compliance officers, inspected Marine Terminal at the
foot of 29th Street, Brooklyn, New York, comprising several piers consolidated
into one complex (T–14, 15). He met with Mr. Kiplock, safety director for the
Northeast Stevedoring Co. (a different company from Northeast Marine Terminal
Co., the respondent herein) and Mr. Viola, vice president of Northeast
Stevedoring Co. (T–15, 16, 19). Mr. Martino was accompanied on his inspection
by Mr. Kiplock, and Mr. Ciccone and Mr. Santos, shop stewards for Local 1814,
I.L.A. (T–23, 24). Initially, Mr. Martino did not know that another company,
the respondent Northeast Marine Terminal Co., Inc. was also working at the
terminal.
At the conclusion of the inspection, Mr.
Martino held a closing conference with Mr. Kiplock during which they discussed
about 27 alleged violations observed during the inspection. Mr. Kiplock stated
that there were too many violations to ‘lay off’ on Northeast Stevedoring Co.
and suggested that, since Northeast Stevedoring Co. performed one function at
worksite (loading and discharging vessels, storing and removing cargo from
sheds, and loading and discharging trucks) while the respondent Northeast
Marine Terminal Co. performed other functions (repairs, maintenance and care of
fire equipment), the violations should be divided between the two companies.
Mr. Martino and Mr. Kiplock went down the list of violations and agreed to
charge the respondent with the violations relating to the operational features
at the terminal and to charge Northeast Stevedoring Co. with the other
violations (T–26, 27). The determination with respect to which violations would
be charged against each employer was made by mutual agreement between Mr.
Martino and Mr. Kiplock acting as representatives of management for both
employers (T–67, 83, 85).
Following Mr. Martino’s inspection, a
citation was issued against Northeast stevedoring Co. on April 15, 1974 for 14
or 15 violations (T–85) and later, on May 14, 1974, citations were issued
against the respondent which are the subject of this proceeding.
Mr. Martino, who was the only witness at
the hearing, testified to facts from which violations of the standards charged
against the respondent could be inferred. However, there is no probative
evidence in the record showing that the violations established exposed
employees of the respondent, Northeast Marine Terminal Co., to the hazards
contemplated by the standards.
There is evidence that Mr. Magna, who is
vice-president of Northeast Marine Terminal Co., the respondent herein, abated
a violation involving an unauthorized rider on a powered industrial truck, but
the identity of the employer of the employees involved was not elicited (T–49,
50). The compliance officer was not sure who hired the employees (T–52). Mr.
Magna also ordered abatement involving a ladder violation, but here again,
there is no definite evidence indicating for whom the involved employees worked
(T–92, 93). While the compliance officer obtained the names of some of the
employers involved, he did not ask or otherwise determine for whom they were
working (T–31, 75). The failure of the compliance officer to obtain information
concerning the employment status of the individuals affected by the violations
is understandable in light of his initial unawareness that more than one
employer was involved at the worksite. Unfortunately, this does not cure the
deficiency in the evidence.
Violations of the Act cannot be predicted
on an arrangement between a compliance officer of the complainant and the
safety director of an employer who is not the respondent in this case, albeit
he did have some overall supervision of the worksite. This is particularly so
where the determining factor as to which employer to cite was the nature of the
work employees were performing at the time the violation was observed, rather
than the identify of the employer whose employees were exposed to the hazard.
Absent proof that the violations found
exposed employees of this respondent to the hazards contemplated by the
standards violated, a citation against the respondent cannot be sustained. The
principle was expressed by Chairman Moran in Secretary v. Otis Elevator Co. No.
688 (October 8, 1974) as follows:
This Commission has consistently held that
just because a condition on the worksite fails to comply with the
specifications of a standard, a violation of the Act has not been established.
There must be evidence that employees of respondent have been exposed to the
hazard as a result of noncompliance. Secretary v. Hawkins Construction Co.,
OSAHRC Docket No. 949 (May 20, 1974); Secretary v. City Wide Tuckpointing
Service, OSAHRC Docket No. 247 (May 24, 1973).
FINDINGS OF FACT
On the basis of the citations,
notification of proposed penalty, notice of contest, pleadings and the
representations of the parties, it is concluded that on the basis of the record
as a whole, a preponderance of the evidence supports the following findings of
fact:
1. The respondent is an employer engaged
in a business affecting commerce (respondent’s answer, paragraph 2).
2. On May 14, 1974, the complainant issued
citations for a repeat violation and for nonserious violations as set forth
above under the heading ‘Statement of the Case’ and at the same time the
respondent was notified of the proposed penalties totalling $620.
3. On May 28, 1974 the respondent filed
with the complainant a notice of contest of the citations and proposed penalty
referred to in paragraph 2 above.
4. An inspection of a workplace at the
Marine Terminal at the foot of 29th Street, Brooklyn, New York, made on April 3
and 4, 1974, revealed that the standards set forth above under the heading
‘Statement of the Case’ had been violated, but the evidence does not establish
that any of the respondent’s employees were affected by the violations or
exposed to the hazards contemplated by the standards.
CONCLUSIONS OF LAW
1. The respondent at all times material
hereto was engaged in business affecting commerce within the meaning of section
3 (5) of the Occupational Safety and Health Act of 1970.
2. The respondent at all times material
hereto was subject to the requirements of the Occupational Safety and Health
Act and the standards promulgated thereunder, and the Commission has
jurisdiction of the parties and of the subject matter herein.
3. The respondent did not violate the
standards set forth above under the heading ‘Statement of the Case’.
ORDER
Upon the basis of the foregoing findings
of fact and conclusions of law, and upon the entire record, it is
ORDERED that the citations issued on May
14, 1974 for violation of 29 C.F.R. sections 1910.178(m)(3); 1910.27(f);
1910.22(a)(1); 1910.213(h)(1); 1918.25(e); 1918.25(f); and
1910.106(e)(2)(iv)(b) and the proposed penalties totaling $620 are hereby
vacated.
JOSEPH CHODES
JUDGE, OSAHRC
Dated: January 30, 1975
New York, New York
[1] This issue
concerns the liability of employers on multi-employer worksites. In Secretary
v. Anning-Johnson Co., OSAHRC Docket No. 3694, May 12, 1976, and Secretary
v. Grossman Steel & Aluminum Corp., OSAHRC Docket No. 12775, May 12,
1976, a divided Commission held that an employer on a multi-employer
construction site who creates or controls a hazard to which employees of any
employer are exposed is liable. The Commission further held that an employer
who did not create or control a hazard but whose employees were exposed thereto
was also liable under certain circumstances. A divided Commission has also held
that exposure is to be determined by a rule of access. Secretary v. Gilles
& Cotting Inc., OSAHRC Docket No. 504, Feb. 20, 1976.
In this case, we find a failure of
proof both as to whether respondent created or controlled the hazardous
conditions shown to exist and whether respondent’s own employees were exposed
to the hazards. Therefore, respondent is not responsible under any theory of
liability and further discussion of this matter is obviated. Consequently, the
divergent positions Chairman Barnako and I both took in the above decisions in
no way are inconsistent with our agreement in this opinion.
[2] Chairman Barnako
does not agree to this attachment.
[3] The complainant
argues in his review brief that only these three violations are in issue and
requests reversal of the Judge’s decision only as to those violations.
[4] This standard
provides that:
Unauthorized
personnel shall not be permitted to ride on powered industrial trucks. A safe
place to ride shall be provided where riding of trucks is authorized.
[5] This standard
provides that:
All
places of employment, passageways, storerooms, and service rooms shall be kept
clean and orderly and in a sanitary condition.
[6] This standard
provides that:
Where flammable or combustible liquids are
used or handled, except in closed containers, means shall be provided to
dispose promptly and safely of leakage or spills.
[7] See Olin
Construction Co. v. OSAHRC, 525 F.2d 464 (2d Cir. 1975); Secretary v.
Armor Elevator Co., 5 OSAHRC 260 (1973).
[8] 29 U.S.C. §
654(a)(2).
[9] The standards
have been set out in the majority opinion.
[10] The majority
states that Mr. Kiplock’s ‘authority to represent respondent was not clearly
shown.’ I disagree. There is unrebutted testimony establishing that Mr. Kiplock
was the safety director for both Northeast Marine Stevedoring Company and
Northeast Marine Terminal Company (respondent). In addition, he was named as
such in a letter from respondents counsel to Judge Chodes. The letter, in
pertinent part, reads as follows:
Respondent may call as a witness its
safety director, P. Kiplock, who is an expert on terminal activities and
who may testify concerning specific facts of each claimed violation . . .
(emphasis added).
[11] The testimony of
the compliance officer with respect to the safety director’s statements is
arguably hearsay. These statements, however, were admissions of a
party-opponent by an employee concerning a matter within the scope of his
employment. See McCormick, Handbook of the Law of Evidence, Sec. 267 (2d
ed. 1972). As such, the statements are reliable and probative. See 5 U.S.C. §
556(d). Furthermore, the Federal Rules of Evidence characterize such admissions
as non-hearsay, F.R.E. 801(d)(2), and freely admissible to prove the truth of
the matter asserted.
[12] This breakdown of
assigned responsibilities comports with the commonly recognized stevedore
functions. indeed, ‘stevedore’ as a term is defined as ‘to work at or undertake
responsibility for the loading and unloading of a ship.’ Webster’s Third New
International Dictionary (unabridged, 1971).
[13] In determining if
one has control of a hazardous condition, the Commission considers whether the
employer ‘realistically had the means to rectify the condition in the manner
contemplated by the cited standard’ (footnotes omitted). Anning-Johnson
Company, Nos. 3694 & 4409, BNA 4 OSHC 1193, CCH OSHD para. 20,690
(1976). The ‘means to rectify’ refers not only to actual physical capability,
but includes also the ability to order abatement. See Anning-Johnson
Company, supra.
[14] The Commission
has stated previously that it will follow the Second Circuit’s Underhill
decision. Anning-Johnson Co., Nos. 3694 & 4409, BNA 4 OSHC 1193, CCH
OSHD para. 20,690 (1976); Grossman Sheet & Aluminum Corp., No.
12775, BNA 4 OSHC 1185, CCH OSHD para. 20,691 (1976).