Regulator recommends $272k of penalties in death at CD&R portfolio company: Updated

  • Death of worker at Hussman Corp results in OSHA inquiry
  • OSHA places Hussmann in Severe Violator Enforcement Program
  • CD&R Partner James Berges is Hussman’s chairman

Albert Crump was killed on Sept. 6, 2014 after he was pinned between a scrap metal table and a railing at a Hussmann facility in Bridgeton, Missouri. Hussmann manufactures refrigeration and food merchandising equipment.

After investigating the death, OSHA released a report March 10 that determined Hussmann failed to turn off the machinery Crump had been working on, agency spokesman Scott Allen said. The report also uncovered more than a dozen safety violations.

“This tragic loss could have been prevented,” Bill McDonald, OSHA’s director for the St. Louis area, said in a statement. “OSHA inspectors found workers at risk of life-threatening hazards because Hussmann Corp failed to train its workforce to prevent unintentional operation of dangerous machinery. This company needs to fix safety procedure deficiencies, so no other family is forced to suffer.”

OSHA cited the company for three willful violations, which the agency defines as those committed with an intentional, knowing, or voluntary disregard for the law’s requirements, or with indifference to employee safety and health. The agency also found 12 serious violations, which refer to those in which there is “substantial probability that death or serious physical harm” could occur.

OSHA placed Hussmann in its Severe Violator Enforcement Program, which inspects employers that have demonstrated “indifference” to Occupational Safety and Health Act requirements, according to the statement. Enforcement actions under the program could include mandatory follow-up inspections, corporate-wide agreements and enhanced settlements with the federal government.

OSHA has recommended a total penalty for the various violations of $272,250, according to the report. Hussmann has until March 25 to respond to OSHA’s citations. It is not clear if Hussmann has contested the agency’s findings, Allen told Buyouts.

UPDATE: Hussman has responded to the citations by requesting an informal conference with OSHA, Allen said. Companies typically use these conferences to dispute the violations or develop a plan to resolve the issues that resulted in violations and/or pay penalties. Companies can still contest OSHA citations following an informal conference, Allen said.

CD&R acquired a majority stake in Hussmann in 2011 for $195 million of equity. CD&R Partner James Berges serves as Hussmann’s chairman, and the company “is actively committed to environmental stewardship and workplace safety,” according to CD&R’s website.

CD&R declined to comment, citing an ongoing investigation. Hussmann did not respond to requests for comment. Crump’s family could not be reached as of press time.