Document oeZmvdEqQr7LdV4kNKqXV8nm8

January 31, 1984 Construction Advisory Committee Reviews Draft OSHA Proposal On Jan. 11, OSHA's Advisory Committee on Construction Safety and Health met in Washington, DC to review a draft proposal on asbestos. Draft is to be basis of final, permanent asbestos standard that OSHA is required by law to have in place within six months of publication of its emergency temporary standard (ETS). ETS appeared in Federal Register of Nov. 4, but is presently stayed by order of 5th Circuit U.S. Court of Appeals. A hearing on merits of ETS action took place before court on Jan. 12, but as of yet, no ruling has been issued. ) Draft proposal consists of 84 pages of prefatory discus- I sion and three pages of regulatory text. Regulatory text is identical to wording of ETS. However, prefatory dis- J cussion includes list of 19 major issues upon which OSHA will solicit comments in proceedings for promulgation of final standard. These issues, which also formed basis of Advisory Committee discussion, give a good indication of agency's areas of concern, and are as follows: 1. What exposure limits would provide protection of employees against known and suspected workplace hazards of asbestos and what feasi bility limitations exist in setting any given limit. 2. Whether the permissible ceiling limit should be reduced and, if so, what the revised limit should be. What feasibility limitations exist. 3. To what extent, if any, should the standard be modified for workplaces which are of a non-fixed nature or otherwise engage a highly transient workforce, e.g., the construction industry. 4. Whether the changes in the definitions of "asbestos" and "asbestos fiber" would clarify the standard's intended scope, and properly relate to known or suspected workplace hazards; whether specifying the mineralogic ASBESTOS INFORMATION ASSOCIATION PLAINTIFF'S EXHIBIT 1745 Jefferson Davis Highway. Crystal Square 4. Suite 509 Arlington. Virginia 22202 (703) 979-1150 CAP CO JEN 0013289 Page 2 definition of asbestos, such as using the term "tremolite asbestos" rather than the current "tremolite," would better define the health hazard. 5. Whether an action-level below the PEL should - trigger certain requirements and, if so, which requirements, and what level(s): 6. Whether OSHA should modify the existing medi cal surveillance provisions (29 CFR 19i0.1001 (j)) to change the frequency of exams, their content, or otherwise. 7. Whether an expanded medical removal program should be provided where, as a result of the medical surveillance program, it is determined that an employee is at an increased risk of material impairment of health from further ex posure to asbestos. 8. Whether and under what circumstances and con ditions it is feasible to reliably measure as bestos concentrations at levels of 0.1 f/cc, 0.2 f/cc and 0.5 f/cc. 9. Whether the evidence cited by OSHA associating asbestos exposure with the following health effects is complete and whether OSHA's Assess ment is scientifically valid*. a. Lung Cancer b. Mesothelioma c. Gastrointestinal Cancer d. Asbestosis e. Other Malignant and Nonmalignant Diseases 10. Whether a linear model should be used to extra polate the risks of certified disabling asbes tosis from lifetime exposure levels below 0.5 f/cc: should oHSA quantify risks for other stages of asbestosis and if so, how. 11. Whether OSHA's analysis of the evidence for carcinogenicity and toxicity differentials by asbestos fiber types is appropriate or whether regulatory distinctions should be made for dif ferent asbestos fiber types. 12. Whether OSHA should permit any method of com pliance to reach the new permissible exposure limits after 2 f/cc has been achieved by use of engineering controls or whether it should require the use of engineering and work prac tice controls down to the PEL established in the final standard. CAP CO JEN 0013290 Page 3 13. Whether proposed procedures for initial and subsequent exposure monitoring are adequate to reliably determine employee exposure to as bestos . 14. Whether provisions for regulated areas are reasonably necessary and appropriate for all covered industries. 15. Whether provisions for hygiene facilities are reasonably necessary and appropriate for all covered industries. 16. Whether the standard should have a delayed ef fective date for any industry sector and, if so, the extent to which a phased schedule for compli ance would be appropriate. 17. What are the environmental impacts of the pro posal. 18. Whether the provisions of the proposed standard, are cost-effective and, if not, how can thev be made cost-effective. 19. Whether OSHA should develop appendices, as it . has with other health standards, that give appropriate information concerning the health hazards arising from human exposure to asbestos, substance technical information and medical sur veillance guidelines. Before discussing these issues, Advisory Committee agreed on some preliminary points. These included making no distinctions as to different kinds of asbestos fibers in final standard, and passing a resolution that "OSHA need proceed to immediately develop a separate and different Asbestos Standard for the construction industry." Publication of proposal in Federal Register is expected by mid-February, but may slip some to a later date. OSHA Issues Guide For Protection Of Workers At Hazardous Waste Sites OSHA will provide technical assistance and conduct enforce ment activities to protect worker safety and health at some 400 hazardous waste sites designated by the Environmental Protection Agency's "Superfund" for first priority in cleanup, according to a Dec. 30 instruction. Members of the OSHA Health Response Team and Regional Office Technical staff will provide health and safety advice and consultation to employ ers and contractors involved in cleanup activities at Super fund sites. Team members must complete a one-week training course before conducting any on-site inspections. r' a d r-n ipm nnn,?Qi Page 4 Complaints or accident'reports will be investigated through existing agency procedures, other toxic waste facilities will also be covered through normal OSHA inspection proce dures. Since engineering controls may not be feasible, in spectors must specifically evaluate respiratory protectionincluding use of respirators during emergency evacuation, use of protective clothing and equipment, including decontamina tion procedures, and hygiene facilities and practices. The general duty clause will be cited where there is no standard applicable to the hazard involved. Alm Promises Risk Assessment Guidelines This Year To Coordinate agency Actions Environmental Protection Agency Deputy Administrator A1 Aim has approved plans to develop six risk assessment guidance documents that will be used by all agency program offices in determining how to regulate specific toxic substances. Aim told reporters Jan. .19 that the agency will develop and issue six risk assessment guidelines this year covering mutagenicity, teratogenicity, oncogenicity, reproductive ef fects, sensitive exposed populations and complex mixtures off chemical substances. j "We'll be issuing a whole series of guidelines... and all will be out in the course of this year," Aim said, noting that there might also be a document on the use of mathematical models. Aim also said that the emphasis will be on devel oping qualitative risk assessments and not quantitative ones particularly when reviewing risks of hazardous waste sites. "We can't assess every chemical at a site and then give it a specific risk assessment [value]; there's just too many chemicals." Risk assessment guidelines will be developed by EPA's office of Research and Development. Use of the guidelines will be further explained when the agency releases its task force report on toxics integration next month. Seminar On Asbestos In Workplace. Buildings And Schools: Risk Assessment and Management A one-day seminar on "Asbestos - The Workplace, Buildings, and Schools: Risk Assessment and Management," is scheduled for Apr. 25 at the The Johns Hopkins School of Hygiene and Public Health, Baltimore, MD. Program is designed to provide up-to-date information on asbestos risk assessment and eval uation of asbestos on premises of workplaces, schools and office buildings. It is designed for both governmental and private sector technical and non-technical persons who must deal with potential hazards of asbestos, but find that their understanding of the background information and issues is in complete. CAP CO JEN 0013292 Page 5 Speakers on the program have day-to-day involvement with as bestos issues and will provide factual briefings on sub jects ranging from medical aspects to current state re quirements for worker education and training. Course director is Morton Corn, Ph.D., Professor and Director of Division of Environmental Health Engineering at Hopkins. For additional information contact: Dr. Jacqueline K. Corn, The Johns Hopkins School of Hygiene & Public Health, Department of Environmental Health Sci ences, 615 North Wolfe St., Baltimore, MD, 21205/(301) 955-2609. Litigation May Delay OSHA Hazard Communication Rule Long-standing controversy surrounding hazard communication rule published by Occupational Safety and Health Adminstration (OSHA) in Federal Register of Nov. 25 continues. United Steelworkers of America and other labor groups filed suit in 3rd Circuit U.S. Court of Appeals in Phila delphia challenging regulation even before it was published. On Dec. 21, states of Connecticut, New Jersey, and New York entered case to challenge OSHA's action. Main areas of dis .1agreement with OSHA over regulation are that coverage is limited to manufacturing sector, that rule's trade secret provisions are overly protective, and that rule's claimed pre-emption of state "right-to-know" laws is improper. According to Leonard Vance, director of health standards programs for OSHA, legal battles over pre-emption of state and local chemical right-to-know laws by federal hazard communication standard raise doubts about when chemical manufacturers and industrial employers who use chemicals will be required to comply with federal standard. Speaking at a conference in Philadelphia jointly sponsored by OSHA and American Conference on Chemical Labeling, Vance said some state and local .chemical right-to-know laws go beyond scope of OSHA standard by requiring information on hazards to be made available to public as well as to industry employees. It would be up to courts to decide if narrower OSHA rule pre-empts such state or local regulations. Vance said a frequently asked question is how OSHA will treat states- that have previously taken over management and en forcement of their overall job-safety and health programs. In such situations. Occupational Safety and Health Act re quires OSHA approval of standards developed by state. In a state like Pennsylvania, which has not taken over job safety and health enforcement, OSHA's position is that the state is pre-empted, even if it enacts a chemical hazard com munication program. In a state like Maryland, which has taken ever management and enforcement of occupational healrh and CAP CO JEN 0013293 Page 6 safety with OSHA's approval, OSHA would give state six months to add a chemical hazard communication plan that must be at least as effective as federal standard "It has to be at least as effective. The law does not say it can't be more effective," Vance said. "Given that kind of fuzzy language, it leads to a lot of hearings, and the first time that happens, we are going to have a hearing." Whatever decision OSHA makes on pre-emption will still be subject to a court decision if challenged, he added. Issue of pre-emption in states by OSHA's hazard communica tion rule was also subject of a briefing session sponsored by Chemical Week and Executive Enterprises, Inc. in Washing ton, DC on Jan. 24. Claire M. Boccella, an attorney with Chemical Manufacturers Association, noted that based on past cases, "OSHA appears to take the view in its regulations that states have no authority to enforce any state regula tion, exclusive or concurrent, on an issue covered by a fed eral standard, except by going through the state plan proce dure contained in the Occupational Safety and Health Act.".j State plans must be "at least as effective as" federal J standard covering same area. Boccella asserted that state J requirements imposing different or even more stringent re- - quirements on employers than OSHA standard could be found to be less effective. Such might be case if a state requirement led to worker confusion due to changing hazard communication programs to which workers had become accustomed, or if it re quired labeling so detailed that important hazard information was obscured. Further, if state law applies to products which are distributed or used in interstate commerce, its standard must be "compelled by local conditions" and must not "unduly burden interstate commerce." Boccella concluded that courts are likely to find pre-emption under section 18 of OSH Act if provisions of state regulation dealing with worker protection can be severed from balance of state regulation without unduly damaging rest of state scheme. Additional factors would be if provisions of state regulation dealing with worker protection appear to be primary purpose of regulation, which could have been submitted as part of a state plan, or if there is evidence of intent on part of state to circumvent state plan requirements. First Quarter AIA/NA Directors Meeting Scheduled For Mar. 14 The regular fourth quarter meeting of the Association's Board of Directors will be held Wednesday, Mar. 14, at Stouffer's National Center Hotel, 2399 Jefferson Davis Highway, Arlington, VA. A reception and dinner are scheduled for Tuesday, Mar. 13. Details will be pro vided by separate correspondence. CAP CO JEN 0013294 "Hanville CorpMVin^ft '?Tln Hew.Tort, Robert J.'Rceenberg, the attorney representing the asbestos commit tee. said the judge's ruling "is no surprise.'* Court KuEngsiri Fightr But be declined to comment further^ be cause be hadn't read the decision. For Chapter 11 Status In Denver, John McKinney, Kanrule's chairman, said the judge's ruling"makes it possible for all parties to more forward to 9yWMxJtwwaaet2WMMtx,StaffKtporUT' ultimate confirmation of the. Manville NttW TOftlf-Federal Bankruptcy Judge plan." . -- .- .- Burtow Lifland dismissed four challenges to However, Manville still faces a welter of ManvHJe Corp.'s petition to operate under motions from the plaintiffs' attorneys oppos Chapter 11 of the federal Banlzuptcy Code.' ing the plan for paying both asbestos vic He also decided that a legal representative tims and their lawyers. Judge Lifland has < should be appointed to protect the Interests scheduled a Feb. 3 hearing to set dates for., of future claimants whose sickness from as considering the remaining'motions. Those '. bestos tart jet atanifesledL T include petitions by Manville for approval of: ManWife filed forcourt protection in Au Its proposed method of liquidating all cur- '' gust 1MZ to ward off thousands of lawsuits that It claimed threatened its existence. Un-' der Chapter 11. a company continues to op-. erate bee from creditor lawsuits as it works rent claims and setting fees for the plain- -tiffs' lawyers in lieu of their contingency ' contracts with clients. - ---------- -- idiii-.: out a reorganization plan. The most Important petition to dismiss THE WALL STREET JOURNAL * - the proceedings was filed by the committee Tuesdiy, January 24,-1984 .'r t*-- representing plaintiffs suffering from as-, bestos-related illnesses. In essence, it charged that Manville had acted in "bad. faith" fir filing for court protection. The' ' committee argued that Manville had "con cocted" some figures used to demonstrate UNR Sues U.S. in Bid its case. But Judge Ufiapd stated that "the To Share Liability,*economic reality of Manville's highly pre carious financial postion due to massive debt sntiafns its eligibility and candidacy For Asbestos Damages for reorganization." In addition to potential suits by individu als. Judge Lifland said Manville laces other By a Wall Sthut Jooanal StaffReporter liabilities. He mentioned "a range of 1500 millkM to $1.4 billion" of debt to schools, which used asbestos In construction before the dangers of the powdery mineral product became widely known. . CKCAGO-UNR Industries Inc. said itls suing the U.S. for an amount that could exceed $100 million, charging that the federal government shares liability in asbestos-re lated cases brought against UNR.; .. . Commercial-Debt Claims The 'company said It Is seeking reim Moreover, the judge said there are bursement from the U.S. because damages. - claims of. $425 million of liquidated commer "are likely to exceed $100 million." -. cial dfebttfiaa have been, filed in the proceed The company Is facing thousands-of ings. Those riSjims. he continued; triggered the acceleration of more than $275 million in other, unsecured debt that hadn't been due before the filing. When Manvilie filed for Chapter 11 pro tection, it said potential liabilities from the asbestos suits would have been about $2 bil claims filed by people who say they were harmed by. exposure to asbestos when UNR's predecessor companies, Union As bestos & Rubber Co. and-Unarco, supplied asbestos Insulating material to the U.S. dur- tag Worid War II. The material was deliv ered to federal and private shipyards build ing warships, the company said. A company . lion by the end of the century. The compa that UNR purchased to 1947, Carolina As ny's assets at the time were about $2 bil bestos Co., supplied asbestos cloth to ship- lion. The ottef d&miSeSi' petttfBns.'some' of .. yards.' . - The material has been linked to cancer which were- filed' by former co-defendants and lung in humans. The UNR suit, with Manville In the suits, were more techni similar to one filed by Manville Corp. In cal. One noted that future claims couldn't be July, claims the government knew about assessed because they are nonexistent But and Ignored the dangers of exposure to as the judge found that the claims of the as- bestos before buying the material for Its beslt&ocpased individuals may survive the shipbuilding program. bankruptcy proceedings because of the long joe'HoWngsworth of the Washington law period from the time of exposure to the firm of Spriggs. Bode and'Hollingsworth, manifestation of asbestos induced diseases: which Is representing UNR, said the fact asbpstnsis and various cancers, including thatlhe U.S. purchased the asbestos through lung cancer. direct contracts, as well as through subcon Judge's Position Judge Lifland said the petitioners will have to abide by the court's determination of whether the reorganization plan that emerges "deals fairly and equitably with ail creditor groups." The motion to appoint a legal representa tive for asbestos-exposed future claimants was filed by Keene Corp., a unit of Balmco Corp. Tfie judge said "it is abundantly clear that the Man'llle reorganization will have to be accountable to future asbestos claim- tractors, means the government should share any liability arising from those agree ments. He contended that-under federal law If the manufacturer follows contract specifica tions and ends up with an unsafe product, the company can recover costs. The UNR suit calls for the government to pay the company more than $60 million ini tially, the attorney said. That could exceed $100 million as additional cases pendtag against the company are settled, he said. ants.' Currently, there are 20,000 cases pending, of which UNR estimates about 13,000 are re lated to government projects. UNR, which filed for court protection from creditors un der Chapter 11 of the U.S. Bankruptcy Code ta July 1962, said a total of 4,500 cases aris ing, from asbestos exposure have already been dismissed, settled or adjudicated. Between $10 million and $15 million has I already been paid In settlements, the com pany said. THE WALL STREET JOURNAL' Tuesday, January 17, 1984 [Manville Corp. Faces | Increasing Opposition 'To Bankruptcy Filing Loss of Creditor Support Could Bring Liquidation Instead of Reorganization Tale of the Errant Husband 'By Dean Rotsast ~ - StaffReportero/Tkz Waxx SntErrMuw,u - NEW YORK-Wben Manville Corp. de cided to file for bankruptcy-court protection in August 1382, It literally bet the company on the outcome of the highly unusual legal maneuver.. : Despite its sound fiscal beaith-lts June 30, 1982, financial statement had boasted a net worth of $1.1 billion, with short-term debt of $102 million and long-term debt totaltag $438.7 milllon-the Denver-based con struction and forest-products company saw the Chapter 11 filing as a fast and fair way to deal with a worsening problem: lawsuits by individuals claiming health damage from exposure to Manville-made asbestos. Al though the move wyuld mean operating un der court'supervision, it would insulate Man ville from the suits while the company de vised a reorganization plan to satisfy credi tors and plaintiffs and to free Itself from fu ture asbestos-related claims. It was'a bold,gambit that Manville still insists will pay oft But the odds against it are growing. Al though Federal Bankruptcy Judge Burton Lifland last week dismissed challenges by as bestos-exposed liti gants to Manville's Chapter 11 petition, that decision has been appealed: and the company is cer tain to face other challenges by those litigants against its reorganization plan, which was proposed 1 CAPCO JEN 0013295 ..-J- lastNorember.J'ur- thenncre. Manville is Joeing support among. Its Influential commercial tod trade eredF- ton. some of whom now belfeve that a twr gantzafion Isn't possible without the restgna- '."V/ tion of John A. McKinney, ManWOe's eoctro-' venial chairman, who has superristO hjs company's sometimes rancorous deaiingr wilh asbestos lawyers. . ' . Troublesome Possibility ' '* Most troublesome to Manville is the in* ' creasing possibility that it might be liqui dated, Instead of reorganized. That decision is up to the court but will be lnfinoriorf by the wishes of creditors who will vote on the company's reorganization proposal. Manville's various creditors have been divided by the court Into committees, includ ing the Committee of Asbestos-Related Liti gants and/or Creditors and the Unsecured Creditors' Committee (Informally called the commercial- and trade-creditors' commit tee) . The committees represent the Interests of their members at large; but when It comes to a vote on the reorganization pro posal. each creditor can vote as be or she wishes. And although liquidation is consid ered unlikely at this time, some creditors say that a First Boston Corp. projection of Manville's liquidation value has encouraged them to take a hard look at the merits of selling off Manville's considerable assets and divvying up the proceeds. - "As time goes by, I think you have to more seriously consider the liquidation sce nario," says John Jamison, dean of the Col lege of William and Mary's school of busi ness administration and Goldman, Sachs It Co.'s representative on the commercial- and trade-creditors' committee. Robert J. Ro-' senberg, an attorney for the asbestos-health' creditors' committee adds: "Every day that Manville remains In the bankruptcy court, the liquidation of the company becomes a mare realistic alternative.** How the case is resolved will have reper cussions far beyond Manvllle. Other as bestos makers, for example, have been pon dering whether to follow Manville's Chapter 11 lead to combat lawsuits against them. At least one producer confides that it has al- ' ready abandoned the Idea because Man ville's reorganization has hit so maty snags. Bargaining Chip The case could also affect the legal strat egy of other corporations outside the as bestos industry that are facing massive toxic-tort or product-liability litigation-- makers of pesticides, defoliants and other chemical products, for Instance. And even if other companies' choose not to follow Man-. vale's bankruptcy move, their fate still could be influenced by the outcome of the case. "If things go poorly for Manvllle. It could mean other companies will have more motl-' vation to settle their claims out of court," says Morris Shanker, a bankruptcy-law pro fessor at Case Western Reserve University. "But if things go well for Manville," be adds, "companies will use'the threat" of bankruptcy as a bargaining chip. Still, some members of Congress are de termined to limit the effect of the Manville strategy. Although Manville filed for bank-. ruptcy on the basis of future liabilities, seek ing court protection before the lawsuits filed against It eroded all Its worth, congressional dittos believe tbe bankruptcy code was never intended to protect a solvent company .>-rin Manville's predicament And If Manville ii'i prevails, the congressmen may seek legisla-.^i: tion to curb rimilar moves by other'eompa/' 'Vi--- nies. ' > -.' V "No company'should be able'to cloak It-'-it self in tbe Judicial processes of the U.S. to t-/. evade all responsibility," says. Democratic.; * Rep. George Miller of California, who Is-, chairman of tbe House Subcommittee on La- . bor Standards.- ' --'T?'";*-;' Ootwart'CataT'-`'*'^ : Through it all, however,'Manvllle offl--'.... dais remain outwardly calm. They acknowl-^v.: edge disappointment over the delays and.'.-,.', lack of creditor support for the company's.: reorganization plan but argue that Man- vllle's strategy eventually will succeed.-^,--.- Given tbe same set of circumstances, ."I - think that people inside the company would '. make the same decision again,'.* says G.' - Bari Parker, a Manville senior vice presl- dent-who has been instrumental in the bank v.- ruptcy planigng. V. v;- r-'T .- To understand how Manville came.to make that decision, it helps to know some-' V,' thing about the company's involvement with asbestos. That dales to founding of the H-W. ' Johns Co. in 1858 by Henry Ward Johns, s': - New York roofing manufacturer who fan- - ded the 'fibrous mineral's fire-retardant -: properties. In 1901, Johns merged with Man- i - - Wile Covering Co.i a Milwaukee-based -.* maker of insulation for pipes, and eventu ally became Johns-ManWile Co., for decades. the non-Communist world's largest producer' of asbestos. In 1981, a corporate restructure- - lng resulted to the formation of Manville - Corp., a holding corporation, with Johns- ManWile' as one of its five operating subsldi- aries. - - From tbe turn of the century until the .- mid-1960s, asbestos was used widely to the .- production of everything from trontog-board . covers to spaceships. Millions of Americans worked with tbe mineral or had substantial - exposure to it But It is known now that asbestos poses a serious health hazard. Expo-'. sure to Its raw dust can cause debilitating or even fatal lung diseases which often don't show up for as much as 20 years. As early as the 1930s. scientists and doc tors were coming to believe that asbestos exposure could be harmful to workers to as bestos mines, mills and factories where ex tensive exposure to the product' occurred.. However, only a minority-'of the cases against ManWile 'Involve those kinds of - workers. "The vast majority of cases pend ing against MaaWlle are brought by individ uals allegedly exposed to asbestos-contain ing todustrial-tosulafioo products during fab rication and- installation," 'the company . says. And it states further that as late asI96f.lt still didn't know that that kind of ex- posure-and exposure to other asbestos products-was unsafe. (It was to that year, the company says, that It voluntarily began placing warnings about asbestos-exposure problems on Its Industrial thermal-insulation . products: the government began requiring . similar warnings to 1972.) - Indeed, although Manville had faced a , trickle of asbestos-related health claims from the 1930s to the 1970s, by 1976 it still had only 120 such suits pending against ft. However, that number had ballooned to . about. 17,000 by the time of the company's bankruptcy filing; the total reflected a sub stantial increase to claims bv World War n shipyard workers. Moreover! at the tifne of , r tbe filing, Manville projected It would face at least 35,000 additional suits. The potential cost was enormous, especially as some Ju ries had begun awarding large punitive damages to plaintiffs based on claims that Manville had known the dangers of asbestos and totted to want them: Manville denies any such foreknowledge.' v. After agonizing, Manvllle says. Its board ! decided to seek bankruptcy protectton-but, not before ManWile's management got a strong warning against such a move. Only: five days, before the filing, the company's recently retired president and chief operat ing officer, Frederick L. Pundsack, pleaded with Manville Chairman McKinney not to do it * ' "This company is a Wable, ongoing bust- j ness enterprise," Mr. Pundsack argued to a' 5H- page, handwritten appeal. "Why to God's name should this company be placed 1 to bankruptcy with all the implications for stockholders, employees, creditors, etc.?" he asked to tbe letter, which now is part of Manville's voluminous court record. :. Both Mr. McKinney and Mr. Pundsack declined to be interviewed. But to court fil ings, Manville says that when Mr. Pundsack wrote the letter, two weeks after his retire ment be hadn't been informed of an ac counting opinion that was a major factor to Manville's bankruptcy. That opinion, solicited from an outside accountant hired by ManviUtl directors to study- the company's contingent liabilities, was that Manvllle needed to .took a 5L9 bil lion accounting reserve against the possible cost of-future asbestos-remed lawsuits. Manville believed such a move would force . it to secure all Its future borrowings against assets and, eventually, to sell off assets to keep current; there was also the potential, tbe company says, of leaving future Wctlms ' with little or no compensation. Manville ' says that Mr. McKinney himself opposed the bankruptcy filing before learning of tbe ac- counting opinion. Blaming the Lawyers f Although some experts applaud the rea soning behind Manville's bankruptcy strat- _ egy, there is little question It hasn't worked out as the company envisioned. Manville mainly blames the asbestos Wctlms' law-, yers, arguing that they have hamperetUeri: . ous negotiations in the'effort to enlarge their ' clients' claims and beef up their own fees. But Manville's critics say the company mis calculated the amount of compromise and negotiation necessary to pull oft a bank ruptcy reorganization. "Once they got into bankruptcy, you had ! to "continually beat them over the head to .. get even the most basic financial taformation out of them," says one of the company's ~ largest creditors. Another major creditor describes Manville as having "a siege men- . tality that prevails to this day." r`t-_ Manville's creditors outside the asbestos ' group began to get particularly uncomfort able with the company's hard-line strategy late last summer, when the company and asbestos representatives were discussing a possible settlement of the 20,000 asbestoshealth cases now pending against Manville. ` . . Tbe company offered to settle the litigation . for 5400 million; the asbestos creditors coun tered with a demand for J675 million. But In- . stead of continuing the talks, an attorney for one Manville creditor recalls, the company simply declared 5400 million to be Its final offer and then withdrew it CAP CO JEN 0013296 I rf;*To me. the two offers repfesejttd a"ae-' gotiahte. dlfference^.nyi the lawyer. who bas tea forotred In other line bankruptetes. "ManvlUe never should hire willed twiy from the table.' With little consensus an a'reorginlzation plin in sight, Mamrilie eventually filed its own proposal, one particularly repugnant to the asbestos-creditors committee. In es sence, Manvllle proposes to commit to credi tors almost all Its cash flow from U.S. oper ations. for as long as it takes to pay off its debts. But rather than allowing asbestos vic tims a jury trial to determine their claims, Manvllle wants a system that would provide fixed benefits to all victims, with certain flexibility for personal circumstances. In addition. Manvllle proposes to transfer Its operating assets to a new company. The new concern would continue to use its cash flow to pay off the debts of the old company, but it would be Immune from any direct at tack on its assets by current or future as bestos victims. Manvllle also has asked the court to cut sharply the fees claimed by at torneys for the asbestos victims. Eroding Support It Isn't surprising that Manvllle is facing opposition from the asbestos committee, which believes the plan is designed solely to deprive asbestos victims of reasonable com.pensation. More damaging to Manvllle's chances of Successfully reorganizing is the erosion of support among other creditors, particularly the commercial and trade cred itors. With {00 million of their funds ensnarled in the case, they are in a position to influence the proceedings-and many of them are getting fed up with the lack of progress. The passage of time and the growing Ir ritation, aggravation and Impatience cause most of the creditors to wish we could find some way to move forward," says Charles Hazelrigg. president of United Bank of Den ver, which holds S6 million in Manvllle debt. Another leading commercial creditor says. I'm damn sick of this bankruptcy, and I'm looking for .the fastest way out" Some creditors .feel they won't recover their.money under a reorganization plan anytime soon unless they can get the com pany and Its asbestos creditors to settle their differences. But deep animosities on both sides are keeping them far apart and liquidation may be the only choice if a reor ganization plan can't be confirmed, these creditors say. "It's like a man who has cheated on his wile four times," says one Manvllle trade creditor. "When be starts out the door at' night she can only wonder. The lack of trust is a. serious, serious problem-in this easel" Those Manvllle creditors who would like to see Mr. McKinney ousted (an action that could.be taken by the.bankruptcy Judge) be lieve their efforts to bring Manvllle and the asbestos group closer have been hampered by the chairman's no-compromise direction of the reorganization and his personal dis taste for the asbestos creditors' committee. After a recent meeting with Mr. McKinney, "I was left with the impression that this guy Just hates the guts of the asbestos [attor neys]," recalls a lawyer on another commit tee. "There is this enormous sense among Manville's management that what the as bestos creditors are doing is being unfair to them." DefeSdSn* tne Boas - Mr. McKinney is' straggly defended , by Publfc Advocate : Mr. Parker, the senior vice president, who says his boss has the "full support" of Man ville's board and isn't about to compromise or step aside because "bis principles are getting in the way of [negotiating] .maneu vers." Mr. Parker adds that "if it is sug gested that we should abandon the princi ples we set out to accomplish, we categori cally refuse to do so." v.v Michael Crames, a New York bankruptcy attorney representing Manvllle, says.the company will fight any attempt to remove Mr. McKinney or to liquidate Manvllle. "If people think that going through reorganiza tion procedures are difficult,that would pale by comparison with the fight that we could give them if anyone ever, tried to liquidate the company," he asserts; Mr. Crames pre dicts a liquidation would result in "a .host of makes asbestos complaint TRENTON (UPI) -- Th Department of Public Advocate filed a complaint yesterday on behalf of about 40 Amtrak workers in an 7_ attempt to have the federal government enforce - regulations regarding exposure to asbestos. The complaint, filed with the Occupational Safety and Health Administration's regional office is New York, contends the employees' are -- ; exposed to harmful levels of asbestos when they .work with asbestos-protected circuit breakers at 11substations in New Jersey. . . .. . ... FRIDAY, JANUARY 13,1984 .The News, North Jersey horrors." adding that, "its achlevability la close to zero." But many creditors strongly disagree. According to the liquidation analysis First Boston conducted for the asbestos-creditors' committee, Manvine's creditors could ex pect to fare well, and maybe even better than they would if the company reorganized. The confidential report concludes that, as a 1 going concern, Manvllle has an estimated value of tl.8 billion to 0.3 billion but that liquidation of the company's businesses seg ment by. segment could bring in between $1.90 billion and C-36 billion. And while some legal hurdles might need to be over come, First Boston says, "there is a market, for both Manvllle as a whole and for se lected assets." (In the nine-month period ended last Sept 30, Manvllle had income from continu ing operations of $58.9 million, or $1.68 a share. Because of S7.1 million of Income from discontinued operations, Its net Income for the period was {8 million, or {1.97 a share. Revenue In the period was 31.34 bil lion.) "The First Boston report shows us that we all win in liquidation," declares Mr. Ro senberg, the asbestos-committee attorney. "If First Boston is right there would be enough cash generated from the sale of the parts to pay all commercial ahd trade credi tors, pay all victims what they are. asking land leave over {1 billion to pay future ' claims." Adds Mr. Jamison, the businessschool dean: "Creditors always love to see a mountain of cash and then go fight over K."- Nader asks______ Reagan to oust OSHA official WASHINGTON. -- Twenty health and safety groups have asked President Reagan place Thome Auchter, the; sistant Secretary of Labor :f OSHA. -yf Ralph Nader wrote the letter charging Auchter with refusing to issue health standards in a "timely.and prudent fashion." Auchter'.-has denied requests for temporary standards to reg- ulate benzene, formaldehyde, ethylene oxide and ethylene dibromide, Nader said. He add ed that OSHA has delayed im plementation of portions of the hearing conservation amend ment and the lead standard. Nader asserted that standards OSHA had issued or" plana to issue will not adequately, pro tect workers from exposure to asbestos, ethylene dibromide and ethylene oxide. 4A-24 AUTOMOTIVE NEWS WEEKLY 56,100 . JAN 9 1984 Asbestos defendants win case CHICAGO--In a decision favorable to asbestos defendants, a fed eral appeals court has affirmed a lower-court ruling requiring vic tims of asbestos disease suing in Indiana to bring lawsuits within two years after their last exposure to the substance. The 7th U.S. Circuit Court of Appeals rejected in a 2-1 decision plaintiffs' arguments that the Indiana statute of limitations only begins after victims discover their injuries. As a result, plaintiffs who don't become aware of their asbestos injuries until many year* after their last exposure, will be barred from recovery. The dissenting judge in the case called the decision a "mockery of justice." The decision affirmed the dismissals of seven suits brought by former asbestos workers and spouses at a New Castle, Ind., factory operated by the World Bestos Division of Firestone Tire St Rubber Co". Defendants included Flintkote Mines Ltd., Bell Asbestos Mines Ltd. and Raybestos-Manhattan Inc. An attorney for the plaintiffs has asked for a rehearing before the appeals court. /.' C3 05 CM =E <-> r.APr.n .ifki n n -i a -7 Vs. f ' stx state legislators comprising a , oni toxic fire hazards have sug gested that insurance companies take Into account the toxidty of building construction materials when under- writing fire policies.' The suggestion was made during a _ public hearing in New York City by the national task force on fire gas toxicity: ` The task forte is expected to issue its formal recommendations to the Court- ' d! of insurance Legislators at its annual ' meeting. The purpose- of the hearing was to jpwWfciegjsfStSws nationwidewith the information necessary to develop a comprehensive program to minimize the dangers inherent in the use oftoxic building materials. In addition to the question of policy underwriting, 'a wide variety of other issues relating to combustion toxicity were considered as witnesses from in surance companies, rate setting firms, architects and builders group and at torneys involved in fire-related insur ance litigation addressed the growing problem of toxic fire liability from vast ly different perspectives. One witness. M. H.'DeYoung. presi dent of the American Assn, of Insur ance Services. Bensenville. ill., maintaiwHittBt. the. magnitude of the risk posed by combustible toxic materials paralleled that of asbestosis. the asbes tos-related disease that last year forced the Johns-Manville Corp. into bank ruptcy. Mr. DeYoung also expressed his fear that insurance company reserves, maintained to protect policyholders, are likely to be substantially eroded by creative court interpretations of insur ance policies which often subject insur ers to significant liabilities. Mr. De Young's contention that such liability is a problem beyond the reach of insur ance companies and best left to govern ment was questioned by the panel of state legislators. Rep. Sally Tanner of California sug gested that insurance firms should play a vital role in promoting safety by pro hibiting the use of dangerous toxic materials in building construction. Sen. Charles Butts of Ohio asserted that thisotgeanve: could be achieved if insurers considered the toxic properties of ma terials in determining fire insurance rates. As an additional precaution. Rep. Irving Levin of Rhode Island recom mended that all building products con taining dangerous toxic materials be so labeled to protect the consumers. Another witness. Cincinnati-based attorney Stanley Chesiey. who has rep resented individuals In several car-.5 in . which toxic gases produced by fire -. caused death and serious injury, noted several areas which he felt deserved . governmental review, including the following; . ....: ' the need to conduct tests to gether and disseminate Information concerning potentially toxic materials.' the establishment of. a national T " '''`'V" ' ' 43A-27 NATIONAL UNDERWRITER. PROPERTY & CASUALTY INS. EO.. WTFKLY 25.000 -. . policy requiring autopsies sufficient to produce accurate information concern-.,^- '`re'.,.- ing the cause of death on all firerteted - J.' ' ioaT victims. . . frV: 30 1383 an in-depth examination of-the -r-:; - quasi-public organizations which de-.-ui^.j , . velop and carry out the product testing j: y.. on which municipal codes and corpo-' .: rate polities are based. TV'' a requirement that insurance rat- \. - v---- ing bodies provide both state insurance . ................. _ " , ... departments and buildings owners ' with existing information concerning toxic materials used in building con- .............. struction. '-'^= A key theme of the testimony of all ' -l -' :'- of the witnesses was the need for gow emment to act to establish some ` . ... mechanism for generating, gathering_ . ... and disseminating information con-7.'. ' ._ ceming the toxic properties of building .; materials. - // . r - - (PMA)-D5*606,0P0H0IL(8A)D1E,0L3P5H,0IA00INQU^IRER 0 EC 28 1983 Biw of sea ruled out on shworker's claim Vnltti hxst Inirtrniitml case. The appeals court upheld his PHILADELPHIA -- A shipyard decision. worker who develops long disease Volpe, who .worked at the Navy from exposure to asbestos cannot tile Yard from 1967' to 1974, .filed suit a dataige claim under admiralty law against Johns-Manville'and other as- and"J$ist meet the state's statute of * bestos manufacturers in 1977, four limitations, a Pennsylvania appeals years after it was determined he had court ruled yesterday. :contTacted asbestosis, a lung disease The decision by the Superior Court `caused by inhalation of tiny asbestos upheld a ruling by Philadelphia fibers. Common Pleas Court Judge Harry - In seeking to file the claim under TakHt.who is presiding over a spate admiralty law, Volpe contended that of damage claims filed against asbes- his work on ships was sufficient to tos.pianufacturers by workers at the satisfy a maritime connection. That Philadelphia Naval Shipyard. argument was rejected by Takiff and Taklff dismissed a damage claim the appeals court, which said Volpe's filed Jty Amedeo Volpe, a shlpyard-- job as a welder'did not qualify as i workenwbo said be developed lung maritime role. disease from exposure to asbestos "Mr. Volpe did not face the dangers during work. He sought to file the Inherent in traveling upon the seas claim- using admiralty law, which or on navigable lakes and rivers," goveros matters related to the sea, in the court said in its decision, written an itfempt to circumvent the state's by Judge Richard Wlckersham. two-ypar statute of limitations. Because admiralty law was not in Bul-Takiff ruled that working on volved, Volpe should have filed his dockfiTships did not establish a mar suit within two years of December itime connection and that admiralty 1973, when he first learned of the lawCftttich is usually decided in fed-'' relationship between his disease and erahcourts, could not be used in the his work, the court said. ! t_ CAPCO JEN 0013298 December 30, 1983 MOTES -OSHA's ETS On Asbestos To Be Reviewed By Court On Jan, 12 As reported (N&N Nov.), the Occupational Safety and Health Administration's (OSHA) emergency temporary standard (ETS) for occupational exposure to asbestos which was issued on Nov. 4 was stayed by the U.S. Fifth Circuit Court of Appeals on Nov. 23 pending judicial review. This ruling by the Court was in response to a motion for stay filed by this Association and other petitioners. A hearing date of Jan. 12, 1984 was established for oral argument with briefsj to be filed by Jan. 3. J On Nov. 28, OSHA filed a motion with the Court to advance the hearing date from Jan. 12 to Dec. 16. AIA/NA commented on Nov. 29 that it was willing to meet whatever schedule that might be established by the Court, but felt that any modification to original timetable had potential to be counterproductive. On Dec. 1, the Court denied OSHA's mo tion to advance the hearing schedule as previously set, i.e. Jan. 12 for hearing. In addition, the Court advised both parties that the hearing should specifically address the following issues: What new discovery or other discrete event indicates the existence of an "emergency" -- that is a sudden, generally unexpected occur rence demanding immediate action? Compare this case with situations in which OSHA has used, and had declined to use, the ETS procedure in the past. In answering each part of this question, include discussions of any court cases and legislative history deal- with either subject. OSHA's ETS remains null and void pending further action by the Court. The Court has not established any schedule for itself in rendering a final decision. Notwithstanding the Court's prior decision to grant a temporary stay or any follow-on ruling after the Jan. 12 hearing, the ETS is only effective for six months and will expire May 3, 1984. ASBESTOS INFORMATION ASSOCIATION 1745 Jefferson Davis Highway, Crystal Square 4. Suite 509 Arlington. Virginia 22202 (703) 979-1150 CAPCO JEN 0013299 Page 2 OSHA continues to develop a separate notice of proposed rulemaking on asbestos which, according to the ETS, "will soon be published." This proposal will, of course, be much, broader in scope than the ETS and will pertain to all industries covered by the Act, including general in dustry, maritime industry and construction industry. By notice in Federal Register of Dec. 27, OSHA announced that its Advisory Committee on Construction Safety and Health will meet on Jan. 11, 1984 in the Yorktown Room, Hyatt Regency Hotel, 400 New Jersey Ave., NW, Washington, D.C., at 9:30 AM "to review a draft proposal on asbestos." The meeting is open to the public. Subsequent to above review, it is understood that the draft proposal will then be submitted to the Office of Management and Budget for additional review prior to its issuance. The draft proposal currently calls for a hearing 60 days after publication in Washington, D.C. As related item, the OSH Act mandates that the permanent standard shall be promulgated no later than six months after publication of an ETS. AIA/NA will be represented at the Court's hearing on Jan. 12 on the ETS and is making preparations to participate in the rulemaking proceedings associated with OSHA's sep- .? arate proposal yet to be published. -[ Canadian Ambassador Expresses Concern Over U.S. Regulatory Initiatives On Asbestos His Excellency Allan E. Gotlieb, Canadian ambassador to the United States was principal speaker at quarterly meeting of AIA/NA's board of directors on Dec. 13. He expressed his government's strong concern that the U.S., through the Environmental Protection Agency, was considering "abandoning the controlled use concept of asbestos practiced by other regulatory agencies in this and other countries in favor of banning." Ambassador Gotlieb said the possible U.S. action was out of step with the "exhaustive reviews and conclusions" reached after many years, not only in Canada, but also by the nations that make up the European Economic Community. The Interna tional Labor Organization recently developed a code of prac tice for the "safe use of asbestos" which is generally con sistent with the EEC approach. "There is no doubt governments should do all necessary to protect the interests of their citizens," the Ambassador stressed. He continued by pointing out that "in many coun tries asbestos is not hazardous to health when it is properly regulated. All governments have the responsibility to ensure minimum risks be associated with its use worldwide." Gotlieb further explained that Canada has consistently sought to develop safe standards, adequate engineering controls and CAP CO JEN 0013300 Page 3 firm adherence to regulations in the use of asbestos. He also urged the U.S. Government to do as Canada has done by seeking the assistance of other countries' ex perts to review the issues and develop regulations in harmony. OSHA Hazard Communication Rule Pre-emptive, Auchter Says Appearing as luncheon speaker before a Dec. 15 meeting of Chemical Manufacturers Association, Occupational Safety and Health Administration (OSHA) chief Thorne G. Auchter dis cussed his agency's recently issued hazard communication rule (N&N Nov.). In particular, Auchter focused on pre-emptive effect of rule. If this new federal standard is pre-emptive, it will take priority over right-to-know laws and regulations promulgated in many states. Question of whether OSHA rule will pre-empt state right-toknow regulations has been a subject of controversy even before it was published in Nov. 25 Federal Register. Labor and consumer groups filed suit against OSHA on Nov. 22, in part to challenge contention that federal rule will pre-empt-.") what they view as more stringent state right-to-know standard^. Auchter indicated OSHA would not assert pre-emption over any J state rules prior to effective date of federal standard in Nov. 1985. However, he said it could be "credibly argued by some other party that a state regulation may not be enforced even before the effective date of the federal standard since compliance with one regulation, only to have it pre-empted later by another, could present an unreasonable burden to those sub ject to regulation." In response to a question from audience, Auchter made it clear that OSHA could support, in any dispute over pre-emption issue, position that federal law supersedes any state statute. Federal standard would be effected differently in states that administer their own regulations under approved OSHA plans and in states without such plans. Auchter declared that in states without approved plans, right-to-know regulations will be pre empted by federal rule "in all occupational settings." Under Occupational Safety and Health Act, states with approved OSHA plans are given six months from publication date of federal regulation, in this case Nov. 25, to submit their own plans to agency for approval. Under section 18(c) of OSH Act, these plans must be "at least as effective" as federal rule. If they are as effective as federal rule, but differ from it, Auchter noted that they "must be justified on the basis of compelling local conditions, and they must not pose an undue burden on in terstate commerce." . "Unlike the situation in non-plan states, federal OSHA makes this determination, although, of course, our decision can be challenged in court." Auchter anticipated that there would be "a great amount of litigation on the pre-emption issue for many years," but none CAPCO JEN 0013301 Page 4 theless expected manufacturers and importers to have labeling systems in place by Nov. 25, 1985. "If there ever was an OSHA issue which'clearly required a uniform application nationwide, this has to be it," he added. New CDC Head Outlines Agency Priority Dr. James Mason, who assumed the directorship of Centers for Disease Control (CDC) on Dec. 1, has declared eradication of work-related disease to be "keystone" of work of CDC and its workplace safety and health component. National Institute for Occupational Safety and Health (NIOSH). Speaking before meet ing of National Advisory Committee on Occupational Safety and Health, Mason called upon fellow scientists and doctors to re gard top 10 occupational safety and health problems as eradicable. Ten leading work-related diseases and injuries, as determined by NIOSH (N&N Feb.), are focus of control strategies being, developed jointly by NIOSH and CDC. List consists of occupa.tional lung disease; musculoskeletal injuries; occupational-:] cancer; fractures, amputations, eye losses, and traumatic j deaths; cardiovascular disease; reproductive problems; neurof toxic illness; noise-induced hearing loss; dermatological J problems; and psychological disorders. These occupational problems must be considered from both an environmental and behavioral viewpoint. According to Mason, "the approach must address those two responsibilities, the life style and behavior of the individual as well as those things that occur in the environment, over which the individual has no control." Mason used study of occupational lung disease as an example of how CDC and NIOSH are working together. "We are working on and concerned about asbestosis, byssinosis, silicosis, and coal workers' pneumoconiosis. We have called for broad controls to improve ventilation in mining operations, to improve bagging operations, using substitute materials that are less toxic, and use of respirators." Although acknowledging that these are all mechnical solutions to lung disease problem, Mason said efforts are also being made to change worker behavior habits, such as smoking, that increase risk of lung problems in certain occupations, and to encourage adherence to safety procedures and proper use of protective equipment. First Session Of 98th Congress Comes To Modest Close Both House and Senate adjourned for 1983 on Nov. 18, bringing to an end a congressional session in which many issues were addres sed but not much legislation was passed. Given below is a status report on pending legislation of significant interest. CAP CO JEN 0013302 Page 5 Clean Air Act Amendments - As was the case in 97th Congress, no significant progress was made toward amending Clear Air Act. . In Senate, hearings were held in Environment and Public Works Committee on S.768, introduced by Committee Chairman Robert T. Stafford (R-Vt.). That bill is identical to a pack age of comprehensive amendments reported out of Environment and Public Works Committee last Congress. In House, Energy and Commerce Chairman John D. Dincell (D-Mich.) held oversight hearings on EPA's implementation of hazardous air pollutants provision of Clean Air Act, section 112. However, no compre hensive amendments to Clean Air Act have been introduced in House. In 1983, most of attention focused on two issues, section 112EPA's mandate to list and regulate potentially hazardous sub stances, and acid rain. S.768 would require, among other things, EPA to list automatically nearly 40 substances for regulation under section 112. With regard to acid rain, bill would require reduction of sulfur dioxide emissions in a 31 state region east of Mississippi River by 8 million tons. Clean Water Act - When Congress convened in Jan. of this year. Clean Water Act (CWA) appeared to be one of major environmental laws likely to see early action. CWA had been focus of heafj- ings in 1981 and 1982, but tentative agreements that opposing parties reached in 1982 broke down after elections changed J composition of Congress. j This year on June 28 Senate Environment and Public Works Com mittee reported out S.431, sponsored by Sen. Stafford. This bill would extend Clean Water technology compliance deadlines, establish stricter conditions for municipalities that want to discharge wastes into ocean, expand civil and criminal liabi lities for violations, extend term of certain discharge permits from five to ten years, and mandate development of water quali ty - based effluent limitations. On Sept. 21, Committee reported out S.2006, also introduced by Stafford, which would encourage states to develop effective management programs for "nonpoint sources of pollution," mainly runoff from agricultural lands and urban areas. Because of disagreements over a number of issues, neither bill was . acted on by full Senate. In House, Water Resources Subcommittee of Public Works Com mittee held extensive hearings on H.R.3282, introduced by Rep. James J~. Howard (D-N.J.), but bill was not marked up or repor ted out. Consumer Product Safety Commission - House and Senate each passed reauthorization bills, neither of which makes any sub stantive change in Commission's basic mandate. House bill contains two conflicting congressional review amendments and this dispute prevented scheduling of a House/Senate conference. CPSC is currently operating under continuing resolution funding. a o r* r\ ICM r\ r\ h o o no Page 6 Resource Conservation and Recovery Act - A bill amending national hazardous waste law, H.R.2867, was passed Nov. 3 in House. This is second time in two years House has passed Resource Conservation and Recovery Act (RCRA) reauthorization without corresponding action by Senate. In Senate, Environment and Public Works voted to report out S.757, introduced by Sen. John H. Chafee (R-R.,1.) in June, but report was not filed until late October. Floor consider ation of this bill was pending as Congress adjourned. Bar ring new developments, RCRA should be first major environ mental bill to reach President's desk, probably in late spring. Occupational Disease - Rep. George Miller, (D-Calif.) intro duced H.R.3175, a bill which would establish a federally administered workers' compensation system for occupational disease. Hearings on this proposed legislation were held by Miller's Labor Standards Subcommittee of House Education and Labor Committee, but despite plans for a 1983 markup, bill re mained stalled in subcommittee. In Senate, Don Nickles (R-Okla.), Chairman of Labor Subcommit tee of Labor and Human Resources Committee, announced he wovild not hold hearings on occupational disease until amendments w*ere enacted to Longshore and Harbor Workers' Compensation Act. f Amendments were not enacted, and occupational disease hearings were not held. Product Liability - Senate Commerce Committee twice postponed markup sessions on S.44, Federal Product Liability Act, which would establish nation-wide uniform product liability laws. Measure would also change relationship between tort liability and workers' compensation arising out of job-related injury or illness. Any judgement would be reduced by amount of workers' compensation to which an injured person "is or would have been entitled." If bill clears Senate Commerce Committee, it may still be referred to Senate Labor and Human Resources Committee. Superfund - Numerous bills to -amend Comprehensive Environmental Response, Compensation and Liability Act (CERLA), better known as Superfund, were introduced in Congress. Some dealt with com pensation for personal injuries resulting from exposure to haz ardous materials such as chemical wastes. Others focused on programs's funding mechanism. Currently, billion dollar trust fund is generated by excise taxes on raw chemical and petroleum feedstocks. Recently introduced proposals would shift funding to a tax or actual amount of hazardous waste disposed. While authorization of Superfund does not expire until Sept. 1985, Congress may expand size and scope of program in 1984. Toxic Substances Control Act - Little substantive legislative action occurred on Toxic Substances Control Act (TSCA). In closing days of session. Rep. James J. Florio (D-N.J.) intro duced two bills amending TSCA, H.R.4303 and H.R.4304. Both will be subject of hearings before Florio's Commerce, Transportation and Tourism Subcommittee-in early 1984. CAPCO JEN 0013304 e .APPEALS COURT DENIES OSHA'S REQUEST TO EXPEDITE HEARING ON ASBESTOS STAY.. -v?- . The US. Court of Appeals for the Fifth Circuit Dee. 1 ,' I denied the Occspatlooal Safety and Health Administration's `- request to accelerate tbe hearing schedule on the court's stay of the agency's emergency temporary standard cover ing occupational exposure to asbestos.' The appellate court's order in The Asbestos Informa tion Association, et aL v. Occupational Safety and Health Administration, Raymond J. Donovan, et aL (Nos. 83-4687, 83-4688, and 83-4711) puts the parties under the time schedule originally set by the appeals court on Nov. 23 when It granted the Asbestos Information Association's --- request for a stay of the OSHA emergency action (Current Report, Dec. 1, p. 691). At that time, the three-judge panel set a hearing date of Jan. 12,1984, and ordered tbe petitioners and respondent to file shnnltaneoos supplementary briefs by Jan. 3, 1984. Tbe court's stay ban the agency from lowering the permissible workplace exposure limit for asbestos to O.S fibers per cubic centimeter "pending further order of the court." In an effort to resolve the situation "as quickly as possi ble," OSHA bad asked the court on Nov. 28 to further expedite the hearing schedule, setting Dec. 6 for the filing of the agency's brief, while giving AIA until Dec. 9 to submit its papers. OSHA sought a hearing on Dec. 15. OSHA issued the emergency standard of 0.5 fibers on Nov. 4 requiring employers for the next six months to achieve tbe reduced exposure level through "any feasible combination of engineering controls, work practices, and personal protec tive equipment and devices" (Current Report, Nov. 10, pp.. 587,596). In filing suit against the emergency standard, AIA argued that the rulemaking represented a "precipitous" action based on "the unfounded conclusion that a health `emergen cy' exists" under the current two fiber per cubic centimeter standard. JECHNOLOGY Lingering Asbestos Market.... OING WITHOUT HAZARDOUS ASBESTOS hasn't been Dia*v easy. Despite a decade of research, no substitute has been.found that can play all of the mineral's roles. Several mate rials are doing most jobs as well as asbestos, once did, and doing them more safely. But even the Environmental Protection. 4Agency, which next year expects to propose that all remaining uses! -- of asbestos gradually be eliminated, concedes that for some applica-' tions, alternatives haven't yet been discovered. .; .!. The use of asbestos, which appears to cause cancer and lung disease, has been dropping since 1973. But Americans are still using: * about 127,000 metric tons a year for thousands ------------------------ | of tasks. } _.r. r, In sprayed insulation,' shredded wood pulp and fibers made from the residue of iron ana steel manufacture have taken the place of asbestos. Plastics now give strength to plaster. . Filters and shields against heat are being made . of substances known as aramids. .: In electrical insulation, however, "noth- . tag yet really takes the place of asbestos," says William Mirick, a chemist at Battelle Columbus Laboratories, a re-. search institute. There appears to be a similar lack when it comes to . pipe that will resist corrosive soils in the Southwestenhstates, where . asbestos-cement pipe is preferred. . . Progress has been made in eliminating asbestos from vehicle brakes by moving from drum brakes, which use the material, to disk brakes, which don't However, because so many cars and trucks still use drum brakes, there promises to be a lingering market for as-, bestos. .,,. ^ . OCCUPATIONAL SAFETY 4 HEALTH REPORTER December 8,1983 . THE WALL STREET JOURNAL ' Friday, December 16, 1983 Asbestos: Just the Fads, Please The fibers of as*be*stos, a ma*te--rUia1l --walls, for example, asbestos wprreoswenittls' widely used in construction and insula little problem -- unless damaged in tion before 1973, are linked to lung can .such a way as to crumble and release cer. The potentialSazaid exists wShn fibers into the air. the fibers are airborne and capable of Asbestos occurs under so many dif being breathed into the lungs. ferent circumstances that it is difficult to devise general guidelines for schools . That has caused concent in some to use in addressing tbe matter, said a schools. It goes without saying that the Washtagton-based EPA specialist, Ed- public has the right to expect schools -ward. Mein. He seemed to be es- free ofan asbestos hazard. ~ doistag 4 calm, rational approach At the same time, common sense is when he said: needed. It would be foolish to go to "What you really need in a school is great expense to solve a problem that people who understand how to deal is unlikely to occur. with asbestos, who-can recognize a Not all asbestos is harmful. Only certain forms of asbestos under certain conditions are considered dan problem from a non-problem.'* Officials on all levels -- and the pub-' 11c -- should. Insist on the facts and gerous. Used in flooring or sealed in avoid emotional reactions, NE-D16 OMAHA WORLD-HERALD (D) 224,400 (S) 278.400 NOV 25 1983 Illinois OKs' asbestos bill SPRINGFIELD, IlL--The statute of limitations for asbestos injury ( claims in Illinois will be extendedto 25 yean from tbe date of last ex posure from the current three yean. SJB. 1070, as earlier amended by Gov. James Thompson, was en acted by the Legislature during its fall veto session and will take effect July 1. Besides changing the statute of limitations for asbestos Haims, the measure also expands the Illinois Industrial Commission by one . member and raises the interest rate applied to awards in appealed worken compensation cases (Bf, Oct. 17). 43A-5 BUSINESS INSURANCE SEMI-WEEKLY 37,000 NOV 14 1983 CAP CO JEN 0013305 CO CO CT> o z ce qS CAP CO JEN 0013306 "Recent Trends H in t D e re g u la te s Z e a l Is W aning S jg E For Industry's Decline and Its Bleak Future '* ' * ^ *V*`*^* ` " * *1 ` * T".' '*' - By Alan Fbdux sell control of the company to Quebec in late share Just before Quebec bought control of StaffReporterof Tux Wall SnxvT Joumui. 1981. - - : the company in 198L MONTREAL-Canada Is still waiting for the recovery of Its asbestos-mining industry, and that mikes some Canadians mad at the U.S. Canada is the Western world's largest producer of asbestos, and for decades has provided virtually all of the mineral used in the U.S. But since 1979, production has de clined <5%, a loss of *200 million (Cana dian). And exports to the U.S. have been cut by more than half. Canadian executives tend to blame the decline on a deep recession in the construc tion industry; about 757< of world asbestos production is used in building materials. But at the same time, resentment of the U.S. runs deep. U.S. agencies have restricted as bestos use because of evidence that it can cause cancer and asbestosis, a lung ailment U.S. regulators seem ready to go further, gradually eliminating most asbestos use. The sale couldn't have come at a better Mr. Berube, still a minister in the prov time for General Dynamics. Asbestos Corp. ince's government but no longer responsible had begun to report losses. In 1979, the com-. for asbestos policy, says that despite the set piny had earnings of $17.7 million (Cana backs, the government wu wise to create dian) on sales of S17L8 million; for the first Soclete Nationale de l'Amiante, the agency nine months of this year, it bad losses of that controls Asbestos Corp. and other as $11.2 million on sales of $664 million. The bestos ventures. "You have to ask the ques company's work force at its main operation tion; If Soclete Nationale de l'Amiante in Thetford Mines, Quebec, has fallen to didn't exist, wbat would there be left of as about 600 from 1,450. A second mine in- bestos? It's true the Industry Is less prosper northern Quebec has been dosed. ous, but it remains one of the most impor Private investors have also acquired tant mining industries" In Quebec. some of the asbestos operations. Last Sep tember ManvlUe Corp. completed the sale of its giant asbestos mine at Asbestos, Quebec, Mr. Berube says the agency has set up plants to make asbestos paperi asbestos yam and asbestos brake linings, as well as Canadian Asbestos Production .. plants for extracting magnesium oxide and mineral wool insulation from asbestos tail ings. But total employment in these, plants is (In thouMndl of metric tow) '' about 400; employment at the provmce's as bestos mines has fallen to 3,300 tils year from 6,400 in 1980. if Ironically, the Canadians got control of the asbestos industry in the midst of its decline. Two big U.S. companies have sold their as bestos operations to Canadians, one under pressure from the Quebec government The decline has meant hard times for the economy of Quebec's asbestos-mining re' glon. Georges Nadeau manufactures wood pallets at a small facility in Thetford Mines. In 1979, he employed 55 workers, with 70% of The Canadians think the U.S. is being un his production going to the asbestos mines. fair. "If you touch cotton, you affect the Today, the mines.take only 50% of his out whole southeast U.S.,'' a Canadian mining put, and employment has dropped to 35. executive says. "But asbestos production is purely Canadian." Government Control Population Decline "There aren't many secondary Industries except for machine shops and the like, and Such troubles weren't expected In 1977, when Quebec's newly elected separatist gov they all depend on the asbestos industry," Mr. Nadeau says. The unemployment rate ernment announced far-reaching plans to in Thetford Mines is more than 20%, and the get a stake in the province's asbestos-min population has declined by 1,500 in the past ing business, then dominated by U.S. and British concerns. Most of Canada's asbestos production is concentrated in Quebec, and the government figured that getting a'share of it would create thousands of Jobs and in crease Quebec's control of a valuable re source whose price was rising on world mar kets. The controversy over the health effects of asbestos was already growing, but Yves Berube, the minister responsible for Que bec's asbestos policy, said it wasn't a cause for concern. "Asbestos isn't a product that's about to disappear," he said at the time. "It's an industrial product that will make Quebec rich." The government decided to go after As to a group of Canadian Investors for $U7 million (Canadian). Manvllle dedded to get out of the asbestos business after going Into bankruptcy proceedings to protect itself against a deluge of lawsuits involving as bestos health dalms. With the sales by Manvllle, General Dy namics and Turner & Newall, a British com pany, about 60% of the Quebec asbestos is domestically owned. The only U.S. compa nies that still have Canadian asbestos mines are Asarco Inc. and Jim Walter Corp. But control of the industry hasn't neces sarily benefited the Quebec government The government has invested $54.4 million in its asbestos agency, which has given it year as people leave to look tor Jobs. Mr. Nadeau has helped organize a com mittee of business, union and municipal leaders in both Thetford Mines and Asbestos in an attempt to revive the industry. The committee has persuaded the Canadian gov ernment to defend the industry against U.S. actions that would weaken it further. The Occupational Safety and Health Ad ministration recently decided on an emer gency health standard that would cut tbe permissible level of asbestos exposure to one-half fiber per cubic centimeter from two fibers. A stay on the order was ordered last month by a U.S. court- But what really concerns the industry Is bestos Corp., the province's second-largest producer, which was controlled by General Dynamics Corp., the St. Louis aerospace concern. After four years of bitter negotia tions, lengthy court battles and a threat of control of assets valued at $349.6 million. That Investment Is a fraction of what the government has invested in a deficit-plagued steel company, but it has nonetheless been costly. Asbestos Corp. stock, for example, a proposal by the Environmental Protection Agency to ban some asbestos uses immedi ately and phase out all others. A formal pro posal for the ban Is expected by July, to be followed by public comment and hearings. It expropriation. General Dynamics agreed to has fallen to about $10 a share from $37 a - ov<r- THE WALL STREET JOURNAL Monday, December 19. 1983 CAP CO JEN 0013307 b expected that the proposed hen wOT be cantexted la the wfe' ' Gearies Dahmen. director {tutrxl c< the vp;"J7Tr.`Vi "- ^...uin Asbestoc Information Center, a . jovenunent-lndostry tobbytog* --t,'.j ban by the EPA would be "catastropfafo. . ^ Daniel Perlsteln, president at Sodete Nfr~; r- ':^.'-: ..., wTMai de TAmiante. says be fears fler-;y c countries will ban asbestos If the OS. tes. He says a ban would be "a purely political more without any scientific basii"-- ,, Mr. Perlsteln concedes that asbestos me must be tightly controlled to avoid health .. dangers, but be says there is bo danger - .. when asbestos Is locked in to products like .. vinyl tile, cement pipes and roofing mattrt-, als-ali uses that the EPA wants to ban. . Edward Klein, director of the EPA office . nroposing the ban. argues that his agency is looldng at the "whole life cycle" of asbestos. - from tte time it Is mined until the flashed product Is disposed of. rather than taking a _ strict occupational health approach* The. . agency has concluded that the risks area t worth taking when substitutes are avail*, al>*Mr. Perlsteln says that even though a ~s-Zs.23 `s - .'gvlsa 5 ' . ? 2*2'2= * _ `-- *35' 25 O - -- ^ c 2 s- 2L . O A co CO cn in O IE ban hasn't been formally proposed. let alone enacted, talk of such of a move Is' hurting every sale In the U.S." He complains that tv not issuing a formal proposal, the EPA is "regulating by rumor and regulating by slander." Even without the ban, Mr. Perlsteln doesn't see Canadian asbestos mines prociudng at more than 60% of capadty for some time. But he does see potential for growth in exports to the Third World, where asbestos cement Is a cheap and durable con struction material. "As soon as their debt problems are solved. Third World exports should grow at rates of 3% to 5% a year, Mr. Perlstein says. Even the. unions representing asbestos miners, which have fought for stricter regu lation of the industry, are worried that U.S. moves may lead to more layoffs. Oemeht Belanger, head of the miners' union at As bestos Corp., says asbestos Is an easy target for U.S. regulators because the mining In dustry Is concentrated In Canada. 'Tobacco is even worse than asbestos." he says, "but then againIj there are many states that depend on it" - Boycott Sought OnManville. ccuiereuco u--a ..Si trying to organise a boycott <x til products made by ths Manvine Corporation, whtefa-want into bankruptcy Aug. 36, M3* relief from thousands ofasbartoa-relawl lawsuits. At the news eoofereocB, tba Asbestos Victims of America, the White Lung Aaaodatloci and the creditors committee rape*, seating the asbestos litigant* said the reorginliitioa piaa Manville filed Monday Is "a ccnttanation Of the unhamana and ruthless fraud Mtsvlut has perpetrated.** <D > q </> o (/) (D _Q to O O 0 LL. tC L =co 5*2 - *| g cb*jesba *~z Z Vt 9 OJ <9 i2-lo w jz : - 9 i 0. : a. s .3 ee ae "' JJ* - c -"S E <-. -'E| a'e?* =_- - s *:<5 -o a o---. e s c W-- 3 t act a ` 6. **sc fa?| ., --in ,a0 40> g <3 S' * SS * A*y* 7ccc? s^w 4) ^ KA, b hea 3> w. e*e-I ! 91' E.: v =' 2 = jc c S -8 .c 5.- E . 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E .. o .. *3 : m Pis. ^ISlft f>rce, <S*TC'-O 2O " . 5 cjg _ 9 -- e t I c`W5,> ^Bg i 9b. o- 349 C.S. 9 c 9> o CO itsM & 00 (Oi V) .' < ur-So'-J S '09b* 'c U -- -3 P 3C 940 15 2 * -.E - c et; ^9 t_z u --9 9 "S >w O 9 9 C 40 > i* w * b< o Ua9s^5 .^5 ^ j*e ** c2 g-- w 9 S 13 *3 5? 49 " se c - * z S-o-o : *g Issue ojee *3 c Co o-- E&S; Ur 9fS4ca-J2* >tsbS^ S c b c H C9k9 C 9 :.sz *8' !*2^ go.r^e r w rj-,r Sw >9O c *9 *3 Js 9 9& S *5 c 9 c= 2 > . = - E^ 4U0 t4f0l 5 *5x9w*o 5^5;h2 m to "-'O ojoS< 22> g-5 ,2 E e- s- -- e. a x bb- = 5 " u -- - S= =sSS >*5 A u: v:?E: 5t- to u P_ .,,3H 3W gNpo V, ^co* I. k nr, 2a2 m ^X a=. o *0a-* 5 ^ ct.. B E<^ Jh KY-040 THE HEW YORK TIMES (MJ814.S80 (S)1.477,600 HOV 23 1983 CAP CO JEN 0013308 TO: Asbestos Information Association/North America 1745 Jefferson Davis Highway Arlington, Virginia 22202 Phone (703) 979-1150 ------------------(Date) Please forward the materials noted below. We understand that we will be billed for costs plus shipping charges. Handbook--"ASBESTOS--Federal & State Regulations" in three-ring binder. S20.00 each. Quantity jiNEWS MOTES A monthly report of items of interest to the asbestos industry. S60.00 per year to non-AlA/NA members. Quantity ASBESTOS: A natural SUBSTANCE FOR MODERN NEEDS m "Asbestos: A Natural Substance for Modern Needs" An overview of asbestos and current use in products. 5'A x 8'A S.75 each. Quantity WhatVbu Stxxrid Know About Asbestos And Health "What You Should Know About Asbestos and Health." Employee information pamphlet. 5"x7" S.35 each. Quantity------------------------- rev (S/#2) "Recommended Practices for Handling Asbestos Fiber." Heavy coated stock poster, Il"xl4" printed blue on white for employee information boards. S.30 each. Quantity------------------------- i.v Also available in 33A" x 9" pamphlet form suitable for mailing in ?10 envelope. jjiettia ^ Fber S.20 each. Quantity Booklets--"Friction Materials Work Practices Guide"--S.15 each. Quantity_____________ "Recommended Work Procedures for Resilient Floor Coverings" S.20 each. Quantity---------------------- Booklets--Recommended Work Practices "Fabrication and Use of Asbestos Paper Products" 51.50 each. Quantity--------------------------- "Shop Fabrication of Asbestos Sheet Products" 51.50 each. Quantity-------------------------- "Molding and Fabrication of Asbestos Containing Plastic Products" 51.50 each. Quantity-------------------------- "Fabrication and Use of Asbestos Friction Materials" S1.50 each. Quantity----- "Use and Handling of Asbestos Textile Products" 51.50 each. Quantity "Field Fabrication of Asbestos-Cement Sheet" SI.25 each. Quantity "Recommended Work Practices for A/C Pipe" 5.50 each. Quantity CAP CO JEN 0013309 Booklet-- "Working With Asbestos Cement" . S.50 each. Quantity_____________ Pamphlets--"Asbestos in the Atmosphere--A hazard to health?" S.25 each. Quantity___ "Asbestos in Water--A hazard to health?" S.25 each. Quantity Poster Series-- "Asbestos Health Hints for the Workplace." 15*'x23*' in various colors. Available at S.50 each or complete series at S3.00. ; Vacuum dust spills... never dry sweep!^ M Quantity When ^ required, always use your respirator! Quantity IS you don't smoke now; don't start. IS you do 'smoke, ^ quit! > // Quantity Report unsafe conditions immediately! Use change rooms and lockers! Leave dusty clothes Li'ip artwork! Quantity . Quantity Set of Six Posters (Quantity) Films--AlA.'NA can make available, on a loan basis and at no charge, the educational training 16 mtn films: "Working With Asbestos" (J-M, 20 min.); "Asbestos, The Indispensable Mineral" (J-M. 20 min.); "Living With Dust"(3M. 15 min.): and "Asbestos at Work" (A1C-UK, 20 min.). Slide Presentation--"Asbestos: A Natural Product for Modern Needs" (35mm - 20 min.) Special Mailing Instructions: City Companv Address Suite Zip Sienjture CAPCO JEN 0013310