Firestone's Blowout

For 20 years, Firestone manufactured a defective truck tire that it knew could explode and seriously injure or kill mechanics, according to a lawsuit that was recently settled for $4.9 million. Firestone settled the case with the family of Oscar Hernandez, a mechanic who suffered massive facial, head and hand injuries in 1984 when a Bridgestone/Firestone tire he was mounting on a truck exploded with devastating force. He later committed suicide because of brain damage he incurred.

Bill Edwards, the Hernandez family's attorney, says that mismatching the defective 16-inch tire with a 16.5 inch rim � an easy mistake, since neither the rim nor tire are dearly labeled � causes the tire to "let loose like a cannon" upon inflation. He accuses Firestone of waiting until 1990 to use a stronger bead of wire in the tire (which makes the tire able to withstand the pressure of being mounted onto a larger rim), although it knew how to correct the problem in the early 1970s.

Last year, Edwards learned that Firestone had begun manufacturing its truck tires with the stronger bead, in effect admitting that the weaker bead was defective. Although it was in the midst of the Hernandez litigation with him, Firestone failed to notify Edwards that it was finally using the new bead. As a result, Texas District Court judge Rachel Littlejohn ruled that Firestone deliberately withheld the information and ordered the company to pay a $1.2 million penalty.

While its new tires are made with the stronger bead, Firestone has chosen to pay off the tire's innocent victims rather than recall the defective tire and lose even more money in revenues, says Edwards. "I would like to see the tires taken off the market because they're extremely dangerous items," he adds.

A Firestone spokesperson refused to comment, saying only, "[The tire's] something that we'll take a look at and take action on from there."

Slimy Settlement

Admitting that its criminal actions polluted the environment, Exxon Corporation settled two separate criminal and civil cases in March 1991. The settlements stemmed from the 1989 Valdez spill of 11 million gallons of crude into the Prince William Sound in Alaska and the 1990 Bayway refinery leak of 567,000 gallons of home heating oil into the Arthur Kill, a narrow water-way between New York and New Jersey. In addition to pleading guilty to violating various environmental statutes, Exxon agreed to pay $1 billion for the Valdez spill and $15 million for the Arthur Kill spill.

Exxon opted to settle the cases rather than go through what was sure to be a highly publicized courtroom battle. Referring to the Arthur Kill spill, Exxon president Lee Raymond said Exxon has learned its lesson and looks "forward to continuing our improved operations in a safe, reliable and environmentally sound manner."

Environmentalists assert that the money Exxon agreed to pay in both cases is inadequate to cover the expenses of the extensive environmental damage the company caused. Steve Conn, director of the Alaska Public Interest Research Group, says the $1 billion Valdez settlement will "in no way encompass the actual damage." Similarly, calling the $15 million for the Bayway spill "not a whole lot of money," Andy Willner of the New York Harbor Baykeeper, a local environmental group, says the damaged part of the Arthur Kill, some of which is a wildlife refuge for endangered species, is "worth much more than $15 million."

The Valdez settlement came under heavy fire at a recent Congressional hearing. After analyzing the 10-year payment schedule of the $1 billion settlement, the Congressional Research Service (CRS) found that the amount Exxon will pay will be dramatically lessened through reimbursements granted for past costs, credit given for all future cleanup costs and federal income tax deductions. CRS calculated that Exxon will end up paying only between $421 million and $524 million.

Petrocrisis

Explosions and deadly vapor releasesplagued the petrochemical industry in March 1991, as accidents at four facilities killed eight workers and injured almost 50 others. The accidents fueled calls for high-level corporate officials to be held accountable for worker safety and sparked harsh criticism of the Occupational Health and Safety Administration (OSHA).

"The continuing carnage of workers in this industry has gone past the point of crisis," says Robert Wages, vice president of the Oil, Chemical and Atomic Workers Union (OCAW).

The explosions occurred at a Citgo Petroleum refinery, a Kerr-McGee refinery, the Union Carbide Seadrift ethylene oxide plant and a Phillips Petroleum booster station. OSHA is investigating each of the ex-plosions. Ironically, both the Citgo refinery and the Union Carbide plant have received awards for being among the safest plants in the industry.

OCAW's director of health and safety, Sylvia Krekel, blames the accidents on companies' failure to provide a safe workplace. She criticizes OSHA for "extending corporate control" over safety programs rather than allowing worker input to help achieve safer working conditions. She also argues that criminal penalties must be used against managers who disregard the safety and health of their employees.

� David Lapp