In a rare case of a CEO being personally held to account for corporate wrongdoing the former boss of US coal mining company, Massey Energy, Don Blankenship has been convicted of conspiring to violate US mining health and safety standards. These safety violations led to an explosion at one of its mines, Upper Big Branch in West Virginia, which killed 29 miners.
During the course of Blankenship’s trial the jury heard from 27 witnesses including coal miners who had worked at the UBB mine who spoke of the unsafe working conditions at the mine, violations of U.S. Mine Safety and Health Administration (MSHA) regulations, and organised efforts to obstruct and interfere with MSHA inspectors.
Bill Ross, former Manager of Technical Services at Massey, said that he warned Blankenship about the company’s practice of rampant violations, and told the defendant prior to the UBB explosion that Massey’s standard tactic of ignoring or defrauding MSHA could not be sustained without the possibility of a serious accident that could have fatalities. The evidence also showed that Blankenship received daily updates on safety violations and helped perpetuate them.
U.S. Attorney Booth Goodwin said, “The jury’s verdict sends a clear and powerful message: It doesn’t matter who you are, how rich you are, or how powerful you are – if you gamble with the safety of the people who work for you, you will be held accountable. The evidence overwhelmingly showed an enterprise that embraced safety crimes as a business strategy. It was reprehensible, and the jury saw it for what it was. Time and time again the defendant chose to put profits over safety. He got rich and the coal miners who worked for him paid the price.
“This is the first time that I am aware of that the chief executive officer of a major corporation has been convicted of a workplace safety crime. It is my hope that this case will make a difference throughout this country, and make the places where working men and women spend their days a little bit safer. Everyone deserves to go home to their families and friends when their shift is over.”
Blankenship will be sentenced in March next year. He faces up to one year in federal prison, and a fine of up to twice the gain or loss that resulted from his conduct.
The report of an independent investigation panel into the UBB mining explosion told Governor Earl Ray Tomblin found that there had been serious safety breaches and recommended better enforcement by regulators of health and safety requirements. The criminal investigation into the UBB mining explosion has led to the conviction of five people. Additionally, Alpha Natural Resources which subsequently acquired Massey, has been forced to pay out over $200 million to resolve the criminal and civil charges made against Massey. This agreement reached with federal authorities established a foundation dedicated to mine safety and health research, with nearly $50 million set aside in funding for the organisation.
Last Updated: 10 December 2015