Not So Sweet: Hershey's Plant Smacked with $283K in OSHA Fines

OSHA issued six willful violations for failing to record injuries and illnesses on the OSHA 300 log for four years, evaluate the accuracy of the 300 logs before certifying them for three years, and develop and implement an effective hearing conservation program.

OSHA has cited Exel Inc. for nine—including six willful—workplace safety and health violations at the Eastern Distribution Center III, a facility in Palmyra, Pa., owned by the Hershey Co. and operated by Exel. Proposed penalties total $283,000. OSHA also has cited the SHS Group LP, doing business as SHS Staffing Solutions, for one violation with a proposed penalty of $5,000.

The agency’s inspection was conducted in response to a complaint filed by the National Guestworker Alliance on behalf of a group of foreign students who were performing summer jobs at the Palmyra facility under the U.S. Department of State’s J-1 visa program. Their visas were sponsored by the nonprofit organization Council for Educational Travel‒USA. The complaint alleges a number of abuses of the visa program, which is designed to promote cultural exchange, as well as exploitative and unsafe conditions in the workplace.

Under a contract with Exel, SHS Staffing Solutions hired the students to work at the Palmyra site repackaging Hershey candies for promotional displays. Exel is a contract logistics provider headquartered in Westerville, Ohio, with more than 40,000 employees at more than 500 sites in North America.

Exel was responsible for recordkeeping in the Palmyra facility. OSHA has issued the six willful violations with penalties totaling $280,000 for failing to record injuries and illnesses on the OSHA 300 log for four years, evaluate the accuracy of the 300 logs before certifying them for three years, and develop and implement an effective hearing conservation program.

“Nothing useful can be learned from an unrecorded injury,” said OSHA Assistant Secretary Dr. David Michaels. “Accurate records provide critical information to employers and employees about the cause and prevention of work-related injuries. The law requires employers to maintain complete and accurate records because, without these, it is more difficult to prevent additional injuries and illnesses from occurring.”

SHS Staffing Solutions, a temporary staffing provider headquartered in Lemoyne, Pa., has been cited with one serious violation for failing to provide training to employees on the lockout/tagout of energy sources.

Exel also has been cited for three other-than-serious violations carrying a $3,000 penalty related to inadequate recordkeeping.

Additionally, the Labor Department’s Wage and Hour Division is investigating potential violations of the Fair Labor Standards Act relating to the work performed by the CETUSA-sponsored foreign students. Because CETUSA has withheld documents from investigators, the secretary of labor filed a petition to enforce an administrative subpoena against CETUSA in the U.S. District Court for the Middle District of Pennsylvania in order to complete this investigation. On Feb. 7, Judge William W. Caldwell ordered CETUSA to file a response on or before Feb. 20 to explain to the court why the documents have not been produced. CETUSA has filed a response pursuant to the court's order, and further proceedings before Caldwell are anticipated.

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