Document xjyQpwB92dq6vNd1Y2pEVRba6

FILE NAME: Shipbuilders Council of America (SHIP) DATE: 1978 Aug 8 DOC#: SHIP084 DOCUMENT DESCRIPTION: Meeting Minutes of the Ad Hoc Committee on Asbestos with Attachments PLAINTIFF'S 6 EXHIBIT .S SBCA5018 1 ' " --1 ' ^........ . > SHIPBUILDERS COUNCIL OF AMERICA Ad Hoc Committee on Asbestos Minutes The Ad Hoc Committee on Asbestos held its first meeting on August 8, 1978 at the offices of the Shipbuilders Council of America in Washington, DC. Present were: David R. Lavalette, Ann Aya Frank R. Darling Terry G. Daughdrill Russell Guy Edwin M. Hood Frank R. Kesterman Charles Klein Donald Massengale Norman Portnoy Harold Strong Daniel Whichard Chairman _ General Dynamics Corp. Sun Shipbuilding & Drydock Co. National Steel S Shipbuilding Co. Litton/Ingalls Shipbuilding Bethlehem Steel Corp. Shipbuilders Council of America Shipbuilders Council of America Tenneco/Newport News Shipbuilding Litton/Ingalls Shipbuilding Todd Shipyards Corp. Alabama Drydock & Shipbuilding Co. Litton/Ingalls Shipbuilding Guests _U.S. Navy Representatives Carl H. Horst, CDR Bernard C. Stapor Marvin P. Nerseth, Jerry E. Schultz M. J. Cifrino JAGC-OJAG CDR JAGC-OJAC GENERAL DISCUSSION The Chairman lead a roundtable discussion on the numerous inter-related subjects associated with defining, controlling and compensating asbestos related diseases. It was the sense of the Committee that this information exchange should continue in the Ad Hoc Committee and in the Industrial Health and Safety, Workers' Compensation and Industrial Relations Committees where appropriate. , ESTABLISHING ESTIMATES OF POTENTIAL LIABILITY The Committee agreed to concentrate its initial efforts on defining the industry's potential liabilities from asbestos related claims and possible alternatives for limiting those liabilities. Accordingly, a questionnaire was developed to generate rough estimates of shipyard employment for the period 1941-present. Once the employment data has b e e n compiled, the Committee will select a range of incidence rates for asbestos related diseases, and estimated benefits which could be paid under the Longshoremen's and Harbor Workers' Compensation Act. Using the data above and assumptions on the life expec tancy of the workforce, hypothetical liability figures are to 2 derived. Once this data is in hand, the Committee intends to prepare a report for the purpose of briefing management on the scope of the asbestos liability problem. INFORMATION EXCHANGE WITH THE NAVY The Department of the Navy has stimulated and attracted wide spread public ity on asbestos exposure. In part, this may be attributed to the April 26, 1978 Statement of Secre tary Joseph Califano, Department of Health, Education and Welfare. In that statement Secretary Califano states "I have spoken with the Secretary of Defense Harold Brown, and he has directed the Department of Defense personnel to work with us in taking appropriate steps to inform former military and Federal civilian workers in Naval Shipyards." In connection with U.S. Navy representatives attending the meeting of the Ad Hoc Committee on Asbestos, it. was learned that the Office of Workers Compensation Programs, Department of Labor is presently processing 400-600 asbestos claims from present and former employees of Naval shipyards. Benefits paid to Naval shipyard employees on claims under the Federal Employees Compensation Act are reimbursed from the NAVSEA budget. Hence, there should be some incentive to hold down the number of claims filed. It was agreed that exchange of information was valuable and should continue in the future. ASBESTOS INFORMATION Mr. Kesterman provided the group with samples of booklets, papers and newsletters obtained from the Asbestos Information I Association. The Committee recommended that the Council sub scribe to the monthly newsletter of the ^iestos Information Association at the cost of $48/year. NEXT MEETING The next meeting will be scheduled after employment questionnaires are returned to the these questionnaires are being sent out under to the presidents of the member companies. the attached Council. Note separate cover A -,6. u Frank R. Kesterman Vice President and Secretary SUMMARY RESULTS ALLEGED ASBESTOS RELATED DISEASE QUESTIONNAIRE A. EMPLOYMENT (1) Years Tot. A v g . No. Employees on Payroll (as of Lee. 31) Tot. Avg. Employed Annually (Including turnover) (2) Estimated Total Different Employees 1941 - 1945 1946 - 1950 1951 - 1960 1961 - 1970 1971 - 1975 440,200 80,000 81,000 104,000 146,000 704,300 128,000 129,000 166,400 233,600 1,760,800 320,000 567,000 728,000 584,000 GRAND TOTAL 4,563,800 B WORKERS* COMPENSATION CLAIMS Period of F iling No. Claims Filed for Alleged Asbestos Related Diseases 1960 - 1965 5 1966 - 1970 10 1971 - 1975 159 1976 - 1978 294 C THIRD PARTY AND LIABILITY ACTIONS (4) Period of Filing No. of Actions 1960 - 1965 1966 - 1970 1971 - 1975 1976 - 1978 0 3 5 ` 125 (1) Insufficient data was reported regarding approxi mate average age of workforce. (2) Turnover rates assumed to be 60%/yr. or column 1 X 160% (3) Column 1 payroll at start of each period plus 60%/yr. x y r s . in period (4) This includes actions brought by or on behalf of members of employees family and other actions such as enjoinment by asbestos producers and/or suppliers regardless of merit or result. ASBESTOS SURVEY - REPORTING COMPANIES ALABAMA AVONDALE BATH BETHLEHEM (ALL) GENERAL DYNAMICS (ELECTRIC BOAT) GENERAL DYNAMICS (QUINCY) JACKSONVILLE LITTON-INGALLS NASSCO ' NEWPORT NEWS NORFOLK ROHR SEATRAIN SUN TODD (ALL)