Honeywell

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Honeywell is a large U.S. aerospace and defense contractor based in Morristown, New Jersey. Honeywell Aerospace makes flight safety and landing systems as well as jet engines, including engines for Unmanned Aerial Vehicles (UAVs) such as those used in Predators which fire Hellfire missiles. Honeywell also makes automation and control equipment used in home and industrial heating. It also makes car products for consumers such as Prestone and FRAM. [1] [2] [3]

Honeywell reported net sales of $36,529,000,000 in 2011.[4]

Federal Contracting, OSHA Violations, and Opposition to Fair Pay and Safe Workplaces Executive Order

A Honeywell executive sits on the boards of the HR Policy Association (HRPA) and of the Professional Services Council, both trade associations. HRPA and PSC are major opponents of the Fair Pay and Safe Workplaces Executive Order, an order issued by President Obama in 2014 that aims to ensure that federal contractors comply with federal wage laws, health and safety standards, and civil rights laws.[5]

An investigation by the Center for Media and Democracy of OSHA inspection records found that numerous corporations (and/or their subsidiaries)--including Honeywell--whose executives sit on the boards had been cited for serious and repeat violations of OSHA standards from 2013-2015 that would be reportable under the EO. A "serious" violation indicates "a substantial probability that death or serious physical harm could result" from a hazard, a "willful" violation is cited when "evidence shows either an intentional violation of the Act or plain indifference to its requirements," and a "repeat" violation indicates the business "has been cited previously for a substantially similar condition."[6]

In 2014, Honeywell generated $3.69 billion in revenue from the federal government, primarily related to aerospace.[7] Honeywell executives sit on the HR Policy Association Board and the board of the Professional Services Council.[8]

Between 2013-2015, Honeywell International Inc. or its subsidiaries or related entities incurred 18 “Serious” and 13 “Other-than-Serious” OSHA citations and $39,125 in penalties.[9]

Honeywell International Inc., 905 East Randolph, Hopewell, VA
On January 28 2015, a tank exploded at Honeywell International's Hopewell, Virginia plant after it became over-pressurized during cleaning.[10] The Hopewell facility "is one of the world’s largest single-site producers of caprolactam, the primary feedstock in the production of nylon polymer used in carpet fibers, plastics and films," and "also produces a wide range of chemical intermediates," including sulfuric acid, specialty oximes, ammonia and carbon dioxide, as well as ammonium sulfate fertilizers.[11]
Luckily nobody was injured in the explosion, but the incident comes as little surprise at a plant that had been cited in 2013 for serious OSHA violations, and was responsible for numerous chemical leaks between 2013 and 2015 resulting in $300,000 in fines from the Virginia Department of Environmental Quality for spills of chemicals including “nitric acid, methyl ethyl ketone, caprolactam, oil and gasoline.”[12] Honeywell agreed to make $13 million in repairs to the plant. “DEQ has issued 14 enforcement orders to (the Hopewell plant) since 1990,” the Virginia agency said in a news release. “In addition, a joint consent decree by DEQ and the U.S. Environmental Protection Agency was issued to Honeywell in 2013 for air quality violations.”[13] These environmental problems do not trigger action under the Executive Order, but they are included to demonstrate that companies that run afoul of workplace health and safety regulations also often have problems with other regulations that protect the public.
02/02/2015: Days after the January 2015 explosion described above, OSHA inspected the Hopewell site and issued an initial fine of $3,675 for 1 “Serious” violation of Virginia’s General Duty requirement.[14]
03/09/2015: A month later, OSHA returned for a planned inspection of the facility and cited Honeywell for 3 additional serious violations and issued fines of $8,330. The company failed to train workers or to develop and implement safe work practices related to process safety management of highly hazardous chemicals; or to provide protection for workers using electrical equipment. The fines were later reduced to $6,545 in an informal settlement.[15]
03/14/2013: Less than two years before the explosion, OSHA conducted an inspection at Hopewell, and issued 6 “Serious” violations and fines of $9,540. When the case was closed in May, 2014 Honeywell was fined $3,780 and cited for 3 serious violations related to process safety management of highly hazardous chemicals, problems similar to those that would be found by OSHA in the aftermath of the 2015 explosion. Unfortunately, the Hopewell plant is not the only troubled Honeywell site: several other facilities have similarly been cited multiple times by OSHA for serious violations over that same time period.[16]
Honeywell International, Chesterfield Plant, 4101 Bermuda Hundred Road, Chester, VA
Honeywell’s Chesterfield facility "is one of the largest U.S. producers of nylon 6 resin, used in the production of carpet fiber, molded parts for automobiles, cord for fish nets, and plastic that is found in food packaging and pharmaceutical applications."[17]
09/08/2014: In response to a complaint, an OSHA inspection resulted in initial penalties of $8,300 for 3 “Serious” and 4 “Other-than-Serious” violations of OSHA for failing protect workers who are servicing or maintaining machines and equipment from hazardous energy; failure to ensure employees had an exit route door which could be opened from the inside at all times without keys, tools, or special knowledge; and failure to provide certain protections for workers using electrical equipment. The violations are under contest.[18]
09/08/2014: In response to a complaint, an OSHA inspection resulted in initial fines of $4,165 for 1 “Serious” and 3 “Other-than-Serious” violations. In a settlement, these were reduced to 3 “Other- than-Serious” violations and a fine of $3,332 for violations that included failure to perform proper exposure monitoring for employees, where Methylene Chloride, which OSHA considers a potential occupational carcinogen, is present.[19]
05/22/2013: In response to a complaint, an OSHA inspection resulted in initial fines of $3,570 for 2 “Serious” violations. In an informal settlement, these were reduced to 2 “Other-than-Serious” violations and fines of $1,700 for violations of the lockout/tagout standard.[20]
Honeywell International, Golden Valley, MN
"Honeywell’s Golden Valley facility is the global headquarters of Honeywell’s Automation and Control Solutions (ACS) division and three of its seven strategic business units."[21]
05/01/2014: In response to a complaint, an OSHA inspection resulted in a fine of $1,750 for 1 “Serious” violation for failing to protect the fingers of workers using welding machines.[22]
09/24/2013: In a planned inspection, Honeywell was cited for 4 serious violations and fined $5,600 for violations of several OSHA standards including: failure to provide protections for in-plant handling, storage, and utilization of all compressed gases; failure to provide proper guards for machine gears; and failure to provide protections when using electrical equipment.[23]
07/30/2014: Following a planned inspection at another Honeywell International site in Golden Valley, MN, OSHA issued a $1,750 penalty and 1 serious violation for failing to protect workers against exposure to electrical wiring and components.[24]
Honeywell Aerospace, 1985 Douglas Dr N., Golden Valley, MN 55427
09/25/2013: After a planned inspection, Honeywell subsidiary, Honeywell Aerospace was cited for 1 “Serious” and 1 “Other-than-Serious” violation and fined $1,400. The serious violation concerned the OSHA standard for hand and portable powered tools and equipment. An informal settlement sustained the violations and reduced the penalty to $980.[25]
Violations at Other Facilities
04/15/2015: After a referral inspection at a Chickasaw, AL site of UOP LLC, a Honeywell subsidiary, OSHA issued 1 “Serious” violation and a penalty of $2,168 for failing to maintain floors in a clean and dry condition.[26]
In 2012, OSHA cited Honeywell Electronic Chemicals, LLC for jeopardizing the safety of employees at its Mansfield, Texas, and issued 10 “Serious” violations with $53,000 proposed penalties. Employees were found to be exposed to catastrophic releases of highly hazardous chemicals while conducting operations at the plant,” reads the OSHA Press release. “This company jeopardized the safety of its employees by failing to implement OSHA's process safety management regulations effectively,” said Jack Rector, OSHA's area director in Fort Worth, Texas. “OSHA requires employers to provide safe and healthful working conditions to prevent accidents and illnesses.”[27] The case closed in August, 2013 after a formal settlement sustained 5 “Serious” and 2 “Other-than-Serious” violations and a penalty of $23,300. The serious violations concerned process safety management of highly hazardous chemicals, and failure to post warning signs of the danger posed by permit-required confined spaces.[28]
In 2011, OSHA cited Honeywell International’s operations in Metropolis, Illinois for safety violations following a vapor release. “The U.S. Department of Labor's Occupational Safety and Health Administration has cited Honeywell International Inc. with 17 serious safety violations for process safety management violations after its Metropolis processing plant experienced a release of hydrogen fluoride vapor. Proposed penalties total $119,000.”[29] The case was closed in March, 2013 after a formal settlement in which the company was cited for 12 ”Serious” and 1 ”Other-than-Serious” violation, and a penalty of $70,000.[30]
Both of the preceding cases could trigger action under the EO as they reached a final resolution within the three-year look-back period.
Additional Complaints
Honeywell International has been trying for years to settle tens of thousands of asbestos exposure cases, and, in its 2015 SEC filings (see Note 19) the company estimated that at the end of 2014 it was liable for $1.5 billion in asbestos-related claims. These private lawsuits would not trigger action under the EO but are mentioned here to provide additional context.[7]

Related Articles: Fair Pay and Safe Workplaces

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Ties to Pete Peterson's "Fix the Debt"

Campaign to Fix the Debt
Company Profile
Company Name Honeywell
CEO Name David Cote
CEO Compensation $37,842,723
CEO Retirement Assets $78,084,717
Underfunded Company Pension -$2,764,000,000
Annual Company Revenue $36,529,000,000
Tax Dodger ('08-'10) -0.7%
Territorial Tax Break $2,835,000,000
Federal Lobbying/Political Donations ('09-'12*) $25,982,000
Click here for sources.
2011 data unless otherwise noted.
©2013 Center for Media and Democracy

The Campaign to Fix the Debt is the latest incarnation of a decades-long effort by former Nixon man turned Wall Street billionaire Pete Peterson to slash earned benefit programs such as Social Security and Medicare under the guise of fixing the nation's "debt problem." Honeywell is part of the Campaign to Fix the Debt as of February 2013.

This article is part of the Center for Media and Democracy's investigation of Pete Peterson's Campaign to "Fix the Debt." Please visit our main SourceWatch page on Fix the Debt.

About Fix the Debt
The Campaign to Fix the Debt is the latest incarnation of a decades-long effort by former Nixon man turned Wall Street billionaire Pete Peterson to slash earned benefit programs such as Social Security and Medicare under the guise of fixing the nation's "debt problem." Through a special report and new interactive wiki resource, the Center for Media and Democracy -- in partnership with the Nation magazine -- exposes the funding, the leaders, the partner groups, and the phony state "chapters" of this astroturf supergroup. Learn more at PetersonPyramid.org and in the Nation magazine.

Norway shuns ties to Honeywell

The country of Norway has removed Honeywell along with six other corporations from its pension fund because of the corporations' presumed involvement in the production of nuclear weapons. The six other corporations are BAE Systems of Britain, Boeing, Northrop Grumman, United Technologies, Finmeccanica of Italy, and Safran of France.[31]

Most of the companies, including Honeywell, would not confirm to Norway's central bank the production of nuclear weapons components but Norway's Finance Ministry said verification was obtained by company news releases and sources like Jane's Information Group which publishes military information. [31]

Personnel

Key Executives

As of January 2013[32]

  • David M. Cote, Chairman and CEO
  • Tim Mahoney, President and CEO, Aerospace
  • Roger Fradin, President and CEO, Automation and Control Solutions
  • Alex Ismail, President and CEO, Honeywell Transportation Systems
  • Andreas Kramvis, President and CEO, Performance Materials and Technologies
  • Katherine L. Adams, Senior Vice President and General Counsel
  • David J. Anderson, Senior Vice President and Chief Financial Officer
  • Rhonda Germany Corporate Vice President and Chief Strategy and Marketing Officer
  • Mark R. James, Senior Vice President,Human Resources and Communications
  • Mike Lang, Vice President and Chief Information Officer
  • Krishna Mikkilineni Senior Vice President, Engineering and Operations and President of HON Technology Solutions (HTS)
  • Shane Tedjarati President, Global High Growth Regions

Former executives include:[33]

  • Adriane M. Brown - former President and CEO, Transportation Systems
  • Nance K. Dicciani - former President and CEO, Specialty Materials
  • Rob Gillette - former President and CEO, Aerospace
  • Peter M. Kreindler - former Senior Vice President, General Counsel
  • Mark James - former Senior Vice President, Human Resources and Communications

Executives and 2006 pay

  • David M. Cote - Chairman and CEO, $25,760,000[34]
  • David J. Anderson - Senior Vice President and Chief Financial Officer, $7,623,081[35]
  • Larry E. Kittelberger - Senior Vice President, Technology and Operations, $6,401,052[36]

Board of Directors

As of January 2013[37]

  • David M. Cote, Chairman and Chief Executive Officer of Honeywell International Inc.
  • Gordon M. Bethune, Retired Chairman and Chief Executive Officer of Continental Airlines, Inc.
  • Kevin Burke, Chairman, President and Chief Executive Officer of Consolidated Edison, Inc. (Con Edison)
  • Jaime Chico Pardo, President and Chief Executive Officer, ENESA, S.A. de C.V. (also a directors at AT&T)
  • D. Scott Davis, Chairman and Chief Executive Officer of United Parcel Service, Inc. (UPS)
  • Linnet F. Deily, former Deputy U.S. Trade Representative and Ambassador (ambassador to the World Trade Organization under George W. Bush) and former Vice Chairman of The Charles Schwab Corp.
  • Judd Gregg, former U.S. Senator from New Hampshire
  • Clive R. Hollick, former Partner, Kohlberg Kravis Roberts & Co.
  • Grace Lieblein, Vice President, Global Purchasing and Supply Chain of General Motors Corporation (GM)
  • George Paz, Chairman, President and Chief Executive Officer of Express Scripts, Inc.
  • Bradley T. Sheares, former Chief Executive Officer of Reliant Pharmaceuticals, Inc.; former President, U.S. Human Health, Merck & Co., Inc.

Former board members include:[38]

Political Contributions and Lobbying

Honeywell gave $797,343 to federal candidates in the 2006 election through its political action committee - 38% to Democrats, 61% to Republicans, and 1% ($8,500) to independent Joseph Lieberman (I-CT). [39]

The company spent $2,880,000 for lobbying in the first half of 2007. $700,000 went to seven lobbying firms with the remainder being spent using in-house lobbyists. [40]

A report by Public Campaign revealed that Honeywell spent $18.3 million in lobbying between 2008-2010. During the same time period, it received $34 million in tax rebates and made $4.903 billion in US profits, meaning it paid a tax rate of -1%. Executive compensation also increased 15%, from $47,246,881 in 2008 to $54,279,566 in 2010. In addition, between 2009-2011 Honeywell made $5,112,779 in federal campaign contributions. [41]

Between 2011 and 2012, total contributions from Honeywell reached $3,996,227. Top candidate recipients include Mitt Romney, provided with the most at $53,820. Barack Obama closely followed with $47,626. In 2012, Honeywell spent approximately $7,120,000 in lobbying expenses.[42]

Contact details

101 Columbia Road
Morristown, NJ 07962
Phone: 973-455-2000
Fax: 973-455-4807
Web: http://www.honeywell.com

Resources

Related Sourcewatch articles

Featured SourceWatch Articles on Fix the Debt

References

  1. Honeywell Profile, Hoovers, accessed November 2007.
  2. Turbojet Propulsion Engines, Creative Energy Concepts, accessed November 2007.
  3. RQ-1 Predator, Air-Attack, accessed November 2007.
  4. Honeywell, "2011 Annual Report", organizational report, page 22.
  5. President Barack Obama, "Executive Order --Fair Pay and Safe Workplaces," government document, July 31, 2014.
  6. Occupational Safety and Health Administration, "Inspection Documentation," government documentation, accessed October 2015.
  7. 7.0 7.1 Honeywell International Inc., "FY 2014 Form 10-K," SEC filing, February 13, 2015. See p. 2.
  8. HRPA Policy Association, "Our Board," organization website, accessed January, 2016.
  9. Occupational Safety and Health Administration, "Search results: Honeywell," inspection case records, database accessed January 2016.
  10. Sarah Bloom, "Tank ruptures at Hopewell Honeywell plant; no injuries," NBC 12 WWBT Richmond News, February 7, 2015.
  11. Honeywell, "Honeywell’s Hopewell Facility," corporate website, accessed January 2016.
  12. Rex Springsteen, "Honeywell agrees to $13 million in improvements and $300,000 penalty in Hopewell spills," Richmond Times-Dispatch, August 24, 2015.
  13. "Honeywell plant in Hopewell must make changes after Nov. 2014 spill," WRIC, August 24, 2015.
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  19. Occupational Safety and Health Administration, "Inspection: 994264.015 - Honeywell International Inc," inspection case record, database accessed January 2016.
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  21. Honeywell, "Minnesota Location," corporate website, accessed January 2016.
  22. Occupational Safety and Health Administration, "Inspection: 317710481 - Honeywell International Inc," inspection case record, database accessed January 2016.
  23. Occupational Safety and Health Administration, "Inspection: 317327559 - Honeywell International Inc Dba Honeywell Acs," inspection case record, database accessed January 2016.
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  27. Occupational Safety and Health Administration, "US Labor Department's OSHA cites Honeywell Electronic Chemicals for multiple process safety management violations in Mansfield, Texas," press release, December 10, 2012.
  28. Occupational Safety and Health Administration, "Inspection: 470719.015 - Honeywell Electronic Chemicals, Llc," inspection case record, database accessed January 2016.
  29. Occupational Safety and Health Administration, "US Labor Department's OSHA proposes $119,000 in fines to Honeywell International in Metropolis, Ill., for safety violations following vapor release," press release, June 22, 2011.
  30. Occupational Safety and Health Administration, "Inspection: 313017774 - Honeywell International, Inc.," inspection case record, database accessed January 2016.
  31. 31.0 31.1 Daniel Altman, "Norway shuns ties to weapons", International Herald Tribune, January 6, 2006.
  32. Honeywell, Leadership, organizational website, accessed January 2013
  33. Leadership, Honeywell, accessed November 13, 2007.
  34. CEO Compensation David M Cote, Forbes, accessed November 2007.
  35. David J Anderson, Forbes, accessed November 2007.
  36. Larry E Kittelberger, Forbes, accessed November 2007.
  37. Honeywell, "Board of Directors", organizational website, accessed January 2013
  38. Board of Directors, Honeywell, accessed November 2007.
  39. 2006 PAC Summary Data, Open Secrets, accessed November 2007.
  40. Honeywell lobbying expenses, Open Secrets, accessed November 2007.
  41. For Hire: Lobbyists or the 99%? How Corporations Pay More for Lobbyists Than in Taxes Public Campaign, December 2011
  42. Honeywell International Summary, Open Secrets, accessed March 2013.

External articles