Imperial Sugar Defends Safety Record, Challenges OSHA Citations, Allegations

BUSINESS WIRE --With the Senate poised to address the issue of combustible dust standards this coming week, Imperial Sugar today challenged public statements made by OSHA in their release of citations and allegations against the company late last week. Imperial has already filed a “notice of contest” of the citations, but also wanted the public record to reflect Imperial’s ongoing and steadfast commitment to workplace safety.

“Imperial shares a mission with OSHA: the safety of our employees in the workplace,” said CEO and President John Sheptor. “Imperial has and will continue to prioritize improving safety at our facilities.”

OSHA released its citations and held a press conference just two days before the Senate hearing on combustible dust standards. During the media event, Assistant Secretary of Labor for Occupational Safety and Health Edwin G. Foulke Jr. and others made a number of accusations about Imperial Sugar and its commitment to safety in the workplace. Sheptor responded as follows: “We do not believe the facts support OSHA’s allegations. We are extremely disappointed in the remarks made by OSHA as they failed to appreciate the measures taken by the Company prior to the February 7 tragedy to address hazards, including combustible dust. OSHA’s comments also do not reflect the commitment the Company has made to create the safest workplace possible.”

Sheptor specifically took issue with OSHA’s remarks about the Company’s Gramercy facility. Although OSHA suggested Imperial Sugar had done nothing to improve safety at the Gramercy facility after the event in Port Wentworth, in fact, Imperial quickly worked to address concerns, including preemptively shutting down the powdered sugar operations, which remains closed while the Company ensures that it has taken all appropriate measures to ensure safe operation.

Sheptor noted that OSHA’s National Emphasis Program on combustible dust was first published in October of 2007, and that Imperial Sugar implemented an action plan at Port Wentworth in response to the program, much of which was completed prior to the February 7 explosion. “While we believe that the Company did respond appropriately to the National Emphasis Program, we also think a clear and comprehensive OSHA standard that specifically addresses combustible dust would further workplace safety by placing employers and employees on appropriate notice of what the hazards are and the means to prevent them.”

“Imperial Sugar has spent millions of dollars in capital investment to enhance safety programs and to reduce the threat of combustible dust. We will commit millions more to further enhance safety. We disagree strongly with OSHA’s claims and we look forward to presenting the facts that show our commitment to safety – both before the February 7 accident and afterwards. At the same time, we also welcome the opportunity to work with OSHA to improve safety at our facilities and other employers, including assisting OSHA in promulgating a combustible dust standard,” said Sheptor.

Federal OSHA Issues Third Largest Fine in History Following Sugar Refinery Explosion

PRNewswire-USNewswire/ -- The Occupational Safety and Health Administration (OSHA) today (July 25, 2008) issued citations proposing penalties totaling $8,777,500 against the Imperial Sugar Co. and its two affiliates alleging violations at their plants in Port Wentworth, Ga., and Gramercy, La. OSHA initiated the inspections following an explosion and fire on Feb. 7, 2008, at the Port Wentworth refinery that claimed the lives of 13 employees and hospitalized 40 others. Three employees still remain hospitalized. The proposed penalties against Imperial Sugar represent the third largest fine in the history of OSHA.

OSHA's inspections of both facilities found that there were large accumulations of combustible sugar dust in workrooms, on electrical motors and on other equipment. The investigation also determined that officials at the company were well aware of these conditions, but they took no action reasonably directed at reducing the obvious hazards.

"I am outraged that this company would show a complete disregard for its employees' safety by knowingly placing them in an extremely dangerous work environment," said Assistant Secretary of Labor for Occupational Safety and Health Edwin G. Foulke Jr. He added, "What is even worse is that a month after the devastating catastrophe in Port Wentworth that claimed the lives of 13 people, this company had done little to ensure abatement of the combustible dust hazards at its other plant. If OSHA investigators had not inspected and posted an imminent danger notice regarding areas at the second plant, the same thing could have happened again."

OSHA proposed $5,062,000 in penalties for safety violations at the Port Wentworth refinery and $3,715,500 for safety violations found at the Gramercy refinery. The citations include 108 instances of willful violations related to the combustible dust hazard, including the failure to clean up dust and not using appropriate equipment or safeguards where combustible dust is present. OSHA also has issued 10 citations for other willful violations, 100 citations for serious violations and four citations for other-than-serious safety and health violations.

The company has 15 business days to contest the citations and proposed penalties before the independent Occupational Safety and Health Review Commission. OSHA's Savannah, Ga., area office staff inspected the Port Wentworth site, while the agency's Baton Rouge, La., area office staff inspected the Gramercy, La., location.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing a safe and healthy workplace for their employees. OSHA's role is to promote the safety and health of America's working men and women by setting and enforcing standards; providing training, outreach and education; establishing partnerships; and encouraging continual process improvement in workplace safety and health. For more information, visit www.osha.gov.