Don Blankenship, CEO of Massey Energy Co., addresses reporters during the West Virginia mine disaster last month that killed 29 workers. (AP/Haraz N. Granbari)
by Kim Geiger
Massey Energy Co. CEO Don Blankenship has a tough week ahead. Blankenship, whose actions at the Massey helm have been under scrutiny after a massive explosion at the company's Upper Big Branch mine in West Virginia killed 29 workers last month, will face shareholders tomorrow at the company's annual meeting.
Angered over Massey's flawed safety record, CtW Investment Group, a shareholder with voting rights, has called for Blankenship's resignation and is now seeking a management shakeup by urging the removal of three Massey directors.
"In our view, Massey's alarming record of non-compliance ultimately reflects the board's fundamental inability to exercise independent oversight of Donald Blankenship, a domineering Chairman and CEO who fosters a reckless, 'production first' culture and takes a confrontational approach to regulators, shareholders and workers," CtW wrote in a letter to shareholders.
Tom Hamburger and Andrew Zajac wrote last month about Blankenship's history pushing coal production over safety. Months after that memo was issued, two miners died in a fire at the Massey-owned Aracoma mine. Criminal fines and civil penalties from that incident totaled $4 million.
"An Oct. 19, 2005, company memo obtained in Aracoma litigation indicates that before the Aracoma fire, all of the company's deep mine superintendents -- including at Upper Big Branch -- were put on notice by Massey Chief Executive Don Blankenship that coal production trumped any other concerns."
Massey has estimated that the explosion could cost the company as much as $212 million - up to $150 million in "benefits being provided to the families of the fallen miners," and $62 million in damage to equipment, mine development and mineral rights.
Massey shares have dropped 37 percent since the explosion and the company's actions are under investigation by the Justice Department.
Later this week, Blankenship will testify before a Senate Appropriations subcommittee. It is the first committee appearance by a representative of Massey Energy and is sure to make for good political theater.
Blankenship will testify alongside Cecil Roberts, who heads the United Mine Workers of America. The Upper Big Branch Mine was not a union shop, and the UMW has been outspoken in its frustration with Massey.
At a hearing last month, Roberts accused Massey of worker intimidation and urged criminal penalties against the company.
"These miners who work at Massey are scared to death," Roberts said. "They're intimidated. The company is run like it's 1921, not like it's the present day."
"Fear and intimidation is the rule there," he continued. "This is the United States of America. This is not China. This is not Colombia. . . . They've gamed the system here. Had the law been obeyed here, we would not have had this explosion and 20 miners losing their life."
We'll be tuning in for the fireworks. You can, too -- the hearing will be webcast here.
Comments
Does anyone have a complete copy of that 2005 memo which continues to be quoted regarding 'production at all costs'?
I would like to read it in context to make an informed opinion about Don Blankenship.
Posted by: synfluent | May 17, 2010 6:28 PM
Leave Mr. Belvedere alone!
Posted by: Frank Adam | May 17, 2010 8:22 PM
If the fines that were levied on corporations were taken out of the C.E.O's pocket, we would see more stringent adherence to regulations.
Posted by: SleepsWithCats | May 17, 2010 8:39 PM
Hey Don, where's your "flag" suit? Maybe you will give your next speech wearing an orange jump suit.
Posted by: Samuel Yachup | May 17, 2010 9:53 PM
Swamp, what do mean I made too many comments?? I NEVER made a comment before!
Posted by: Samuel Yachup | May 17, 2010 9:57 PM
Not sure why you want the link to the one doc. He followed up with 'safety first, production second'. What he said was that they were operating a business and therefore mine engineers/superintendents needed to act like it was a business.
This is mining and business. It's NPV. I think he's talking about development really, not safety. Also, if you don't focus on production, you won't get it. It's effective supervision.
Posted by: James | May 18, 2010 12:36 AM
Life without parole. Only because I am an absolutist in opposition to the death penalty. Lock Blankenship up and throw away the key, and those assholes from BP, too, let's not forget that they killed 11 people.
Posted by: Christian | May 18, 2010 12:59 AM
Can someone just put this guy in an unused mine tunnel and blast it shut.
He has no regard for safety.
Profits, bigger bonus's
He even donated 3 million bucks to get a judge re-elected in hopes of a favorable ruling on other safety violations.
Real piece of work.
Posted by: jack | May 18, 2010 1:49 AM
This is a classic example of where justice, in all of its many forms, veers in another direction, than it would, if a worker were being judged for his/her actions. Fines are not good enough for this guy, Blankenship, an management/ owner participant, he should be going to jail, for a long time. His deliberate efforts to ignore safety regulations and practices, should be enough to sentence him to years in jail and the Corporations that benefitted from his malfeasant leadership should be punished severely, as well. Workers deaths were involved during his term in the " leadership " position, fines and firings will not get it. He needs to be punished, and punished severely, as to set an example for future " leaders " to take note. Making money is fine, but not at the expense of workers' lives !! For centuries, mine workers have been the most trodden upon, by management/owners!! It is time to correct that tradition, to eliminate that tradition. Probably, like every thing else, capitalistic, the pool of workers for the mine sites operational, no doubt, were of a contrived nature, allowing the management/owners to get away with anything, concerning the workers safety, including, keeping their mouths shut. I am sure our government forces will now be emboldened to act in the interests of the workers, just as it is now forced to deal with another private sector mess, down in the Gulf of British Petroleum !!
SUPPORT OUR TROOPS, BRING THEM HOME, ALIVE AND WHOLE. NOW.
Posted by: Don Fitzgerald, IL | May 18, 2010 7:34 AM
At the very least, Blankenship should be charged with 29 counts of manslaughter. Criminal fines and charges should be levied against Massey.
This man showed no concern for the health, safety, and well being of the workers.
Posted by: Doug R. | May 18, 2010 9:31 AM
Somewhere in the US a corporate officer needs to do some hard time. This rat would be a good start, to get the ball rolling.
Posted by: John Henry | May 18, 2010 1:02 PM
Take it from someone that lives in WV not far from this area; Don Blankenship is a snake that does not care about worker safety. To him, people are the same as a piece of mechanical machinery. It hurts the pocketbook to lose a person or machine, but they can be just as easily replaced. I think his office should be set up in a deep shaft that he gets sent into everyday. I bet they would keep the gas out then.
Posted by: CDE | May 18, 2010 3:00 PM
I take GREED is not so good after all.
Posted by: Paul Toussaint | May 18, 2010 3:18 PM
Two protesters of Massey Energy Co are in jail now in WV unable to come up with the $100,000.00 each bond placed on them by a Massey Energy Co paid for judge. in the same town a child raper was given a $15,000 bond. No one talking about this.
Posted by: Rick | May 18, 2010 4:49 PM
We know that it is generally a truism. Where there is capitalism, corruption thrives !! Only in America, the capitalists are blatant about it. They don't need no stinking badges !! What Constitution !! The one that the Corporations, with the help of the Supreme Hacks, particularly the Bush ideologues, have trashed !!? Get some more of the Republican-Libertarian-T.Baggers in Office and our Constitution will be shredded !! I guarantee that !!
SUPPORT OUR TROOPS, BRING THEM HOME, ALIVE AND WHOLE. NOW.
Posted by: Don Fitzgerald, IL | May 19, 2010 12:02 PM