COMPANY TO PAY $2 MILLION TO SETTLE DISCRIMINATION CASE INVOLVING 795 JOB APPLICANTS

FROM:  U.S. DEPARTMENT OF LABOR
Baldor Electric to pay $2 million to settle hiring discrimination case with US Labor Department
Agreement includes back wages and interest, some job offers, for 795 female and minority applicants denied positions at Fort Smith, Ark., facility

WASHINGTON — The U.S. Department of Labor's Office of Federal Contract Compliance Programs today announced that Baldor Electric Co. has agreed to settle allegations of systemic discrimination stemming from the company's applicant screening process at its facility in Fort Smith, Ark. OFCCP investigators determined that the process violated Executive Order 11246 by creating a disparate impact on women and minorities. As a result, 795 qualified women, African-Americans and job seekers of Asian and Hispanic descent were denied the opportunity to advance to the interview stage when applying for production and laborer positions.

"I am pleased with this settlement, which reflects a mutual commitment between the Department of Labor and the leadership of Baldor to ensure that all workers have a fair and equal shot at competing for good jobs," said Secretary of Labor Hilda L. Solis. "Our shared goal is to create lasting change so that anyone who comes looking for work at Baldor can be sure that discrimination will never be a factor in determining who gets the job."

Under the terms of the conciliation agreement negotiated by OFCCP, Baldor will pay a total of $2 million in back wages and interest to the affected individuals and will make at least 50 job offers to members of the original class as positions become available. The company also has agreed to undertake extensive self-monitoring measures to ensure that all hiring practices fully comply with the law, including record-keeping requirements.

"Discrimination is preventable when employers have certain processes in place and see to it that they are followed," said OFCCP Director Patricia A. Shiu. "That's why it's so important for federal contractors to implement their affirmative action programs, keep accurate employment records and commit to ending barriers to fair employment. A proactive strategy is the best way to guarantee that all workers have an equal opportunity to succeed in the workplace. Plus, it's the law."

Baldor Electric, which is owned by Zurich, Switzerland-based ABB Ltd., manufactures industrial motors and generators. The company currently holds federal contracts worth more than $18 million with the General Services Administration and the U.S. departments of Veterans Affairs and Justice. From 1997 to 2010, Baldor received $79 million to produce batteries and generators for federal agencies including GSA, the Justice Department and the Army.

2 BUSINESSES CITED BY DOL AFTER 6 DIED AND 2 INJURED AFTER GRAIN ELEVATOR EXPLODED

FROM:  U.S. DEPARTMENT OF LABOR
Bartlett Grain in Atchison, Kan., cited for willful and serious violations by US Labor Department after 6 die, 2 injured in grain elevator explosion
Contractor Kansas Grain Inspection Services also cited
ATCHISON, Kan. — Bartlett Grain Co. L.P. faces five willful and eight serious safety violations cited by the U.S. Department of Labor's Occupational Safety and Health Administration following an October 2011 grain elevator explosion in Atchison that killed six workers and left two others hospitalized.

The willful violations include allowing grain dust — which is nine times as explosive as coal dust — to accumulate, using compressed air to remove dust without first shutting down ignition sources, jogging (repeatedly starting and stopping) inside bucket elevators to free legs choked by grain, using electrical equipment inappropriate for the working environment and failing to require employees to use fall protection when working from heights.

"The deaths of these six workers could have been prevented had the grain elevator's operators addressed hazards that are well known in this industry," said Secretary of Labor Hilda L. Solis. "Bartlett Grain's disregard for the law led to a catastrophic accident and heartbreaking tragedy for the workers who were injured or killed, their families and the agricultural community."

The serious violations involve a lack of proper preventive maintenance, certification and lubrication of grain handling equipment; inadequate emergency action plan training for employees and contractors; a lack of employee and contractor training on job hazards; and a housekeeping program that was deficient because it did not prevent grain dust accumulations.
The citations to Bartlett Grain, which is based in Kansas City, Mo., carry $406,000 in proposed fines.

Topeka-based Kansas Grain Inspection Services Inc., a contractor employed by Bartlett Grain, also is being cited for one willful violation involving a lack of fall protection for employees working on the top of rail cars; one serious violation, the lack of a hazard communication program; and one other-than-serious violation, not providing basic advisory information about respirators to employees. These violations carry total proposed penalties of $67,500.

"OSHA standards save lives, but only if companies comply with them," said Dr. David Michaels, assistant secretary of labor for occupational safety and health. "Bartlett Grain has shown what happens when basic safety standards are ignored, and this agency simply will not tolerate needless loss of life."

A willful violation is one committed with intentional knowing or voluntary disregard for the law's requirements, or with plain indifference to worker safety and health. A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known. An other-than-serious violation is one that has a direct relationship to job safety and health, but probably would not cause death or serious physical harm.

Over the past 35 years, there have been more than 500 explosions in grain handling facilities across the United States that have killed more than 180 people and injured more than 675. Grain dust is the main source of fuel for explosions in grain handling. This dust is highly combustible and can burn or explode if enough becomes airborne or accumulates on a surface and finds an ignition source (such as a hot bearing, overheated motor or misaligned conveyor belt, as well as heat or sparks from welding, cutting and brazing operations). OSHA standards require that both grain dust and ignition sources be controlled in grain elevators to prevent potentially deadly explosions.

Both companies have 15 business days from receipt of the citations and penalties to comply, request an informal conference with OSHA's area director in Wichita, or contest the findings before the independent Occupational Safety and Health Review Commission.