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OSHA, Alliance Laundry Systems Reach Settlement

Agency reclassifies citation, halves penalty in exchange for company’s enhancements

RIPON, Wis. — Alliance Laundry Systems has reached a settlement agreement with the Occupational Safety and Health Administration (OSHA) in regards to an incident that took place July 20 of last year.

Inspectors found the Wisconsin company returned a hydraulic press to operation without adding safety guarding after a 65-year-old employee’s right middle fingertip was amputated as he lowered a press used to square parts for washing machines and dryers.

On Dec. 6, OSHA proposed penalties of $124,709 to Alliance after the agency’s investigation of the workplace injury identified one willful safety violation.

“When OSHA issues a citation to an employer, it also offers the employer an opportunity for an informal conference with the OSHA area director to discuss citations, penalties, abatement dates or any other information pertinent to the inspection,” says Scott Allen, regional director of public affairs for the U.S. Department of Labor. “The agency and the employer may work out a settlement agreement to resolve the matter and to eliminate the hazard.

“OSHA’s primary goal is correcting hazards and maintaining compliance rather than issuing citations or collecting penalties.”

Randy Radtke, global public relations manager for Alliance, says members of the company’s team, including management and union representatives, met with OSHA Area Director Robert Bonack on Dec. 28.

“In this informal conference, this group shared information about the specific piece of equipment mentioned in the citation, our commitment and history of safety, and what activities are planned for 2017,” Radtke says.

Allen says as part of the settlement agreement, OSHA agreed to reclassify the willful violation to a repeat violation with a 50% penalty reduction in exchange for 17 enhancements at Alliance.

The company has agreed to pay a penalty of $63,354.50.

Allen says commitments on the part of Alliance to improve working conditions include:

  • Hiring two additional safety and health positions.
  • Implementing a machine safeguarding mapping program.
  • Relocating 11 electrical disconnects from mezzanines to machine side to provide easier lockout/tagout.
  • Improved training.
  • Development of safety procedures.
  • Improved communication.

Radtke says that the unfortunate accident is not reflective of Alliance’s culture of safety.

“However, it has served as a reminder that all employees need to continuously focus on safety, both in staffing and in following standard operating procedures, throughout the company,” he says.

Radtke says Alliance recently hired a new global director of employee health and safety, and continues to work cooperatively with the local union steering committee to maintain a culture of safety.

“OSHA is pleased with the settlement agreement and Alliance Laundry’s commitment to improve the safety and health of its employees on the job,” Allen says.

“Alliance has a history of implementing procedures to protect our most valuable assets—our employees,” Radtke says. “We will continue to fine-tune and redesign any process or procedure, where necessary, to perpetuate the culture of safety we have fostered.”

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Have a question or comment? E-mail our editor Bruce Beggs at [email protected].