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(c) 2010-2024 Jon L Gelman, All Rights Reserved.

Friday, July 25, 2014

Court Orders Travelers Insurance to Pay $500 Million Asbestos Settlement

Today's post is shared from the wsj.com

Travelers Cos. reported an 18% decline in second-quarter operating profit as insurance claims from wind and hail storms eroded earnings, which were below analyst estimates and a catalyst for a sharp drop in the company's shares Tuesday.

Separately, the company was hit with an adverse ruling in a long-running case involving asbestos-related claims of more than $500 million tied to the insurer's coverage of Johns-Manville Corp. decades ago.

The U.S. Court of Appeals for the Second Circuit reversed a 2012 ruling by a lower court. The ruling by the federal appellate court in New York directed Travelers to make the $500 million payment, plus interest.

"We are still reviewing the decision, but this is a matter we have disclosed for more than 10 years and we have contemplated this as a potential outcome in our reserving, although we do not have a provision for interest," a Travelers' spokesman said. The company estimated the interest at approximately $75 million, before taxes.

In afternoon trading, Travelers shares were down 4.3% at $91.15 amid gains in the broader equities market. With the decline, Travelers shares are up 0.7% in 2014.

One of the country's largest property-casualty insurers, Travelers often sets the tone for industry earnings that will be announced by its peers in the coming weeks. Analysts watch closely how it is maneuvering through a competitive price environment while low interest rates continue to put pressure on...

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Click here to read the Court Decision In Re: Johns-Manville Corporation et al, decided 7/22/2014

United Airlines' Outsourcing Jobs to Company That Pays Near-Poverty Wages Is Shameful

Today's post was shared by Steven Greenhouse and comes from www.huffingtonpost.com

On October 1, United Airlines is planning to outsource 630 gate agent jobs at 12 airports to companies that pay near-poverty level wages. The airports affected include Salt Lake City; Charlotte, North Carolina; Pensacola, Florida; Detroit and Des Moines, Iowa.

As a result hundreds of employees who formerly made middle-class, living wages will be forced to transfer to other cities, take early retirement or seek employment elsewhere. Union employees who have been with the company for years -- many making a respectable $50,000-per-year salaries -- will be replaced by non-union employees who will be paid less than half -- between $9.50 and $12 per hour.

Nine-fifty an hour is a poverty-level wage if you are trying to support a family -- and $12 barely exceeds the poverty level. In fact at $12 a family of three makes so little that they are eligible for food stamps.

That, in effect, means that United and its subcontractor will be subsidized by American taxpayers for the food stamp payments made to their new low-wage workers.

United's move to convert middle-class jobs into near-poverty level jobs is shameful -- it's that simple.

And United's move to cut employee pay is emblematic of corporate America's systematic campaign to lower wages and destroy the American middle class in order to increase returns to Wall Street shareholders. It is exactly the kind of action that must come to a screeching halt if the middle class is to survive -- and our children are once again be able to look...


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OSHA issues new directive to keep communication tower workers safe

The Occupational Safety and Health Administration has updated its Communications Tower directive regarding the use of hoist systems used to move workers to and from workstations on communication towers. This follows an alarming increase in preventable injuries and fatalities at communication tower work sites.
More fatalities occurred in this industry in 2013 than in the previous two years combined. This disturbing trend appears to be continuing, with nine worker deaths occurring so far in 2014.
"This directive ensures that communication tower workers are protected regardless of the type of the work they are doing on communication towers," said Dr. David Michaels, assistant secretary of labor for occupational safety and health. "Employers and cell tower owners and operators must make sure workers are properly trained and protected."
The directive outlines the proper use of hoist and other fall arrest systems and includes detailed information on how to hoist people safely. The directive updates a 2002 enforcement policy, which only covered the hoisting of workers to workstations during new tower erection activities. The updated policy covers any work on a communication tower - including both maintenance and new construction - that involves the use of a hoist to lift workers from one elevated workstation to another.
The release of the new directive is the latest in a series of actions OSHA has taken to improve cell tower safety. The agency is collaborating with the National Association of Tower Erectors and other industry stakeholders to ensure that every communication tower employer understands how to protect workers performing this high-hazard work.
OSHA sent a letter to communication tower employers urging compliance and strict adherence to safety standards and common-sense practices. OSHA has also created a new Web page targeting the issues surrounding communication tower work. This outreach follows a November 2013 memo to OSHA's compliance officers and regional administrators mandating increased attention, education and data collection on the industry. OSHA continues to investigate past incidents and will issue the results as they become available. Communication towers are on the agency's regulatory agenda and OSHA expects to issue a Request for Information later this year.
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA's role is to ensure these conditions for America's working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit www.osha.gov.
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Jon L. Gelman of Wayne NJ is the author of NJ Workers’ Compensation Law (West-Thompson-Reuters) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thompson-Reuters). For over 4 decades the Law Offices of Jon L Gelman  1.973.696.7900  jon@gelmans.com  have been representing injured workers and their families who have suffered occupational accidents and illnesses.

United Airlines cited at Newark, N.J., airport for repeat and serious safety hazards


Company faces $101,300 penalty following OSHA inspection
United Airlines Inc. has exposed ground operation workers at the Newark airport to hazardous conditions, prompting the U.S. Department of Labor"s Occupational Safety and Health Administration to issue 16 citations and propose penalties of $101,300.
The safety violations were found during a January 2014 inspection that is part of an OSHA effort to focus on workplaces with high rates of injuries and illness. The inspection found three repeat violations that had been discovered by OSHA during inspections in 2011 and 2013.
"United Airlines should immediately address these safety violations to prevent worker injuries and ensure a safe workplace," said Kris Hoffman, director of OSHA"s Parsippany Area Office. "These workers face electrical hazards, falls, and being struck-by objects and equipment daily. Their safety is critical. Airline ground operations safety is of vital importance, not only to the workers, but to the millions of Americans who depend on air travel every day."
Carrying a $55,000 penalty, the repeat violations were cited for United Continental Holdings Inc."s failing to clearly mark exits located inside facilities where food service employees, baggage handlers and gate agents worked; keep unused openings closed on an electrical box where conduit or knockout plugs were located; and use extension cords as a substitute for required permanent wiring at Newark Liberty International Airport. A repeat violation exists when an employer previously has been cited for the same or a similar violation at any other facility in federal enforcement states within the last five years.
The company was cited for nine serious violations, with a $46,300 penalty, including exposing aircraft mechanics to fall hazards while working from a ground support vehicle and struck-by hazards by storing materials, such as aircraft parts including landing gear tires and aircraft struts and fasteners, on storage racks, which were damaged and not anchored. United Airlines also failed to:
  • Properly guard equipment, store materials and dispose of waste materials.
  • Ensure exits were unobstructed and wide enough and place directional signs in areas where exits were not apparent.
  • Ensure employees operating tugs to transport luggage used seat belts.
  • Use power strips according to manufacturer"s recommendations.
  • Use ladders for purposes intended by the manufacturer, and remove damaged ladders from service.
A serious citation is issued when there is substantial probability that death or serious physical harm could result and the employer knew, or should have known, of the hazard.
Three other safety violations involved failing to maintain clean and orderly work areas, and not providing fire extinguisher training for ground operation workers and welders. Additionally, powered industrial trucks in need of repair were not taken out of service, and placards on the trucks were illegible.
For more information on safety and health in the airline industry, visit https://www.osha.gov/SLTC/airline_industry/index.html
United Airlines has 15 business days from receipt of its citations and penalties to comply, ask for an informal conference with OSHA"s area director, or contest the citations and proposed penalties before the independent Occupational Safety and Health Review Commission.
To ask questions, obtain compliance assistance, file a complaint, or report workplace hospitalizations, fatalities or situations posing imminent danger to workers, the public should call OSHA"s toll-free hotline at 800-321-OSHA (6742) or the agency"s Parsippany Area Office at 973-263-1003.
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA"s role is to ensure these conditions for America"s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.
….

Jon L. Gelman of Wayne NJ is the author of NJ Workers’ Compensation Law (West-Thompson-Reuters) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thompson-Reuters). For over 4 decades the Law Offices of Jon L Gelman  1.973.696.7900  jon@gelmans.com  have been representing injured workers and their families who have suffered occupational accidents and illnesses.

OSHA cites willful safety violation after workers expected to 'free climb' 195-foot tower without adequate fall protection

Two workers were free climbing, or climbing without safety lines, a 195-foot communication tower under construction without adequate fall protection in Coolville. As a result, Morlan Enterprises has been cited for one willful and eight serious safety violations by the U.S. Department of Labor's Occupational Safety and Health Administration. OSHA has proposed penalties of $52,500.
"Free climbing a communication tower is extremely dangerous, and it was this company's responsibility to ensure appropriate fall protection was provided and used," said Deborah Zubaty, OSHA's area director in Columbus. "Employers and cell tower owners and operators must do everything possible to stop senseless, preventable tragedies in the communication tower industry."
No more falling workers. Disturbing trend in communication towers-related worker deaths. 2011 = 6; 2012 = 2; 2013 = 13. Source: CY data from OSHA Integrated Management Information System.
In 2013, 13 workers were fatally injured at communication work sites. The majority of these deaths were a result of falls. OSHA requires employers to provide fall protection equipment, train employees how to use the safety equipment and ensure that they use it properly and consistently.
Morlan Enterprises was contracted by New Era Broadband Services of Coolville to perform tower construction and antenna installation services at 20 locations in the Meigs County area. The New Era Broadband construction project is being funded by a grant, administered through the U.S. Department of Agriculture-Rural Utilities Service, to bring broadband services to underserved communities in the area.
The willful violation cites the company for failing to ensure workers climbing the tower were using effective and adequate fall protection, including installing a climbing cable to the tower. A willful violation is one committed with intentional, knowing or voluntary disregard for the law's requirement, or with plain indifference to employee safety and health.
Eight serious violations were cited for failing to provide workers with training on fall hazards, provide personal protective equipment, such as shock-absorbing lanyards and hard hats, and requiring workers to purchase their own fall arrest harnesses and other protective equipment. Other violations involved failing to make provisions for prompt medical attention* before starting work and having first aid kits available for emergencies.
An OSHA violation is serious if death or serious physical harm could result from a hazard an employer knew or should have known exists.
OSHA is concerned about the alarming increase in preventable injuries and fatalities at communication tower work sites. As a result, OSHA is collaborating with the National Association of Tower Erectors and other industry stakeholders to ensure that every communication tower employer understands how to protect workers performing this high-hazard work.
More fatalities occurred in this industry in 2013 than in the previous two years combined. This disturbing trend appears to be continuing, with seven worker deaths occurring so far in 2014. To prevent these tragic incidents, OSHA has sent a letter to communication tower employers urging compliance and strict adherence to safety standards and common-sense practices. OSHA has also created a new Web page targeting the issues surrounding communication tower work. This outreach follows a November 2013 memo to OSHA's compliance officers and regional administrators* mandating increased attention, education and data collection on the industry.
Morlan Enterprises, based in Parkersburg, West Virginia, has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA's area director, or contest the findings before the independent Occupational Safety and Health Review Commission.

Thursday, July 24, 2014

Rick Perry Orders Dallas Cowboys to Mexican Border


Immigration reform Texas Repuublican style. Today's post shared from newyorker.com
DALLAS (The Borowitz Report)—In his boldest move yet to address the immigration crisis, on Thursday Texas Governor Rick Perry dispatched the Dallas Cowboys to the United Statesborder with Mexico.
In a photo opportunity with the Cowboys and several of the team’s cheerleaders, Perry explained the rationale behind his latest decision. “Those who would cross our borders illegally will have to contend with the power and fury of America’s Team,” he said.
Critics of the move dismissed it as political theatre, noting that once the Cowboys arrived at the border it was unclear what they would do there.
Additionally, there were questions about how effective the Cowboys would be in stopping illegal immigrants, since the team has the worst-ranked defense in the N.F.L.
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Appeals Court Deals Major Blow to Implementation of Affordable Care Act


Today's post is shared by WSJ Law Blog and comes from blogs.wsj.com

A federal appeals court on Tuesday dealt a serious blow to the Obama administration’s implementation of its signature health-care law, striking down subsidies available to some consumers who purchase health coverage on insurance exchanges set up by the federal government.

WSJ’s Brent Kendall has more on the breaking legal development out of Washington:

The U.S. Court of Appeals for the District of Columbia Circuit, on a 2-1 vote, invalidated an Internal Revenue Service regulation that implemented a key piece of the 2010 Affordable Care Act. The regulation said subsidies for health insurance were available to qualifying middle- and low-income consumers whether they bought coverage on a state exchange or one run by the federal government.

The ruling potentially could cripple the Affordable Care Act by making subsidies unavailable in as many as 36 states where the federal government has run some or all of the insurance exchanges.

The court sided with challengers, four individuals and three employers, who argued the health law allowed subsidies only for insurance purchases made through state exchanges. The issue became an important one after the law was enacted because more than two-thirds of the states chose not to set up their own exchanges, relying on federally run exchanges instead.

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