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Who Should Pay?Who Should Pay?

Usman Javed ZuberiUsman Javed ZuberiDr Muhammad SharjeelDr Muhammad Sharjeel

© 2004 by Paul L. Schumann. All rights reserved.© 2004 by Paul L. Schumann. All rights reserved.

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In your judgment, and from an ethical point In your judgment, and from an ethical point of view, should Turner Construction and/or of view, should Turner Construction and/or B&C Steel pay for all or part of the B&C Steel pay for all or part of the $2,428,000 (if part, indicate which part)? $2,428,000 (if part, indicate which part)? Explain your view.Explain your view.

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Case: Case: Turner Construction contracting Turner Construction contracting B&C Steel for the installation of bridge. B&C Steel for the installation of bridge. Turner Construction should restrict B&C Turner Construction should restrict B&C Steel to comply all safety measures during Steel to comply all safety measures during installation of river bridge. Turner’s installation of river bridge. Turner’s Construction should held partially Construction should held partially responsible for this case, for not responsible for this case, for not reinforcing a proper code of ethics for its reinforcing a proper code of ethics for its subjects.subjects.

CaseCase:"a pattern of negligence in constructing and :"a pattern of negligence in constructing and assembling the bridge, from the time that the assembling the bridge, from the time that the bridge was received until the time it was bridge was received until the time it was installed."installed."

(1) B&C's trucks carrying the bridge parts were (1) B&C's trucks carrying the bridge parts were not unloaded where the bridge was to be not unloaded where the bridge was to be assembled.assembled.

(2) B&C's poor planning resulted in several (2) B&C's poor planning resulted in several problems in moving the bridge closer to the problems in moving the bridge closer to the water, including failure to note the location of a water, including failure to note the location of a fence, concrete guardrails, and a set of trolley fence, concrete guardrails, and a set of trolley tracks in the bridge's path. tracks in the bridge's path.

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(3) B&C personnel initially assembled the (3) B&C personnel initially assembled the bridge upside down.bridge upside down.

(4) a B&C truck hit a power wire causing a (4) a B&C truck hit a power wire causing a small fire which required the fire small fire which required the fire department's response.department's response.

(5) B&C did not arrange for the power lines (5) B&C did not arrange for the power lines to be disabled before the bridge was moved to be disabled before the bridge was moved beneath them. beneath them.

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Working Conditions: Health and SafetyWorking Conditions: Health and Safety Facts and FiguresFacts and Figures

Workplace InjuriesWorkplace Injuries• 4,700,000 workplace injuries and 5,000 fatal 4,700,000 workplace injuries and 5,000 fatal

on-the-job accidents/yron-the-job accidents/yr– 10% of the workforce suffers an on job 10% of the workforce suffers an on job

related injury or illness each yearrelated injury or illness each year– resulting in loss of over 31 million work-resulting in loss of over 31 million work-

days annuallydays annually Cost of work-related deaths & injuries in 2002 is Cost of work-related deaths & injuries in 2002 is

estimated $40 billion of direct costs (medical costs estimated $40 billion of direct costs (medical costs and payments to workers).and payments to workers).

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$240 billion of indirect costs (lost $240 billion of indirect costs (lost productivity, overtime, etc.) productivity, overtime, etc.)

Trends in on the job deaths & disabling Trends in on the job deaths & disabling injuries 1970-2001 injuries 1970-2001 deaths: trended downward from 18 per 100,000 deaths: trended downward from 18 per 100,000

to 4 per 100,000to 4 per 100,000 disabling injuries: totals rose from 2.2 disabling injuries: totals rose from 2.2

million/year to 3.9 million/year million/year to 3.9 million/year

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The Firm's Duties to the EmployeeThe Firm's Duties to the Employee: : the basic the basic obligation the employer owes to the employee on obligation the employer owes to the employee on the "the "rational structure" rational structure" view are view are to provide them with the compensation they to provide them with the compensation they

have freely and knowingly agreed to receive in have freely and knowingly agreed to receive in exchange for their servicesexchange for their services

to provide them with working conditions they to provide them with working conditions they have freely and knowingly agreed to accept have freely and knowingly agreed to accept

Main issues relate to the question of how free and Main issues relate to the question of how free and knowing the worker's consent. knowing the worker's consent. the fairness of the wagethe fairness of the wage the fairness of the working conditionsthe fairness of the working conditions

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Contractual Basis of OrganizationContractual Basis of Organization; focuses ; focuses on two reciprocal sets of obligationson two reciprocal sets of obligations

EmployeesEmployees to obey organizational superiorsto obey organizational superiors to pursue the organization's goalsto pursue the organization's goals not to pursue conflicting goalsnot to pursue conflicting goals

EmployersEmployers to provide employees with a fair wageto provide employees with a fair wage and fair working conditionsand fair working conditions

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Organization’s DutiesOrganization’s Duties offer wages that reflect the risk-premium offer wages that reflect the risk-premium

prevalent in other similar but competitive labor prevalent in other similar but competitive labor marketsmarkets

• e.g., coal mine owner might compare risk-premiums e.g., coal mine owner might compare risk-premiums paid asbestos removal workerspaid asbestos removal workers

provide workers with suitable health insurance provide workers with suitable health insurance programs to cover unknown hazardsprograms to cover unknown hazards

research the health hazards that accompany research the health hazards that accompany each job and make all such information readily each job and make all such information readily available to workers.available to workers.

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The Caring Organization The Caring Organization Caring Caring organization approach emphasizes non-power organization approach emphasizes non-power relations: relations: cooperationcooperation friendship, respect, care friendship, respect, care

Potential Competitive Benefits for Organizations Potential Competitive Benefits for Organizations increase productivity due to reduced frictionincrease productivity due to reduced friction

recruitment advantages: due to desirability of recruitment advantages: due to desirability of working conditionsworking conditions

better customer relations: customer loyalty, repeat better customer relations: customer loyalty, repeat business, word-of-mouth recommendationsbusiness, word-of-mouth recommendations

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In our opinion, based on above arguments;In our opinion, based on above arguments; Both Turner construction and B&C Steel are Both Turner construction and B&C Steel are

partly responsible for the accident that caused partly responsible for the accident that caused economic and non-economic loss.economic and non-economic loss.

Non economic losses for Turner Construction and Non economic losses for Turner Construction and B&C Steel includes distorted image due to B&C Steel includes distorted image due to accidents on installation site. accidents on installation site.

John Goodrich, the project superintendent on the John Goodrich, the project superintendent on the Invesco Field construction, testified it was his Invesco Field construction, testified it was his "understanding that Mr. Elliot was there to help "understanding that Mr. Elliot was there to help and direct the erection of the bridge, of putting the and direct the erection of the bridge, of putting the parts and pieces together.“parts and pieces together.“

Therefore; all three parties are collectively Therefore; all three parties are collectively responsible for the incident and should pay a part.responsible for the incident and should pay a part.

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In your judgment, and from an ethical point In your judgment, and from an ethical point of view, should Elliot be held wholly or of view, should Elliot be held wholly or partially responsible for his injuries and left partially responsible for his injuries and left to shoulder all or part of the $2,428,000 to shoulder all or part of the $2,428,000 cost of his injuries (if part, indicate which cost of his injuries (if part, indicate which part)? Explain your view.part)? Explain your view.

Case: Elliot was there to help during the Case: Elliot was there to help during the process but he gave late instruction of process but he gave late instruction of OSHA all stop due to his impaired OSHA all stop due to his impaired judgment during the process of judgment during the process of construction.construction.

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Moral ResponsibilityMoral Responsibility: A person is morally responsible : A person is morally responsible only for those acts and their foreseen injurious effects only for those acts and their foreseen injurious effects of deliberate acts or omissions. of deliberate acts or omissions.

commissioncommission knowingly and freely performing or bringing aboutknowingly and freely performing or bringing about what it was morally wrong for the person to what it was morally wrong for the person to

perform or bring aboutperform or bring about omissionomission

knowingly and freely failing to perform or to knowingly and freely failing to perform or to preventprevent

which it was morally wrong for the person to fail which it was morally wrong for the person to fail to perform or preventto perform or prevent

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Mitigating Conditions: Mitigating Conditions: partiallypartially absolve the absolve the agent of blame: diminish responsibility agent of blame: diminish responsibility  Circumstances which leave a person  Circumstances which leave a person uncertainuncertain but not altogether unsure about but not altogether unsure about what they're doing.what they're doing.

Retributive justiceRetributive justice: concerned with the fair : concerned with the fair imposition of punishments on those who do imposition of punishments on those who do wrong.wrong.

Partly Elliot is himself partly responsible Partly Elliot is himself partly responsible for his injuries, based upon the arguments for his injuries, based upon the arguments of moral responsibility and retributive of moral responsibility and retributive justice. justice.

Reasons behind the movement of bridge Reasons behind the movement of bridge after Elliot’s OSHA all-stop command after Elliot’s OSHA all-stop command should be investigated.should be investigated.

Negligence of B&C staff to halt operations Negligence of B&C staff to halt operations held B&C responsible partly for the injuries held B&C responsible partly for the injuries of Elliot. of Elliot.

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In your judgment, is the Colorado worker’s In your judgment, is the Colorado worker’s compensation law to which Tuner compensation law to which Tuner Construction appealed fair? Explain your Construction appealed fair? Explain your view.view.

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Case: The primary purpose of the Colorado workers' compensation act "is to provide a remedy for job-related injuries, without regard to fault." (Colo. 1988). Through an interrelated set of provisions, "the statutory scheme grants an injured employee compensation from the employer without regard to negligence and, in return, the responsible employer is granted immunity from common-law negligence liability." To be afforded this immunity, an employer must be a "statutory employer" as defined by the act.

Any person, company, or corporation operating Any person, company, or corporation operating or engaged in or conducting any business by or engaged in or conducting any business by leasing or contracting out any part of all of the leasing or contracting out any part of all of the work thereof to any lessee, sublessee , work thereof to any lessee, sublessee , contractor, or subcontractor . . .shall be contractor, or subcontractor . . .shall be construed to be an employer as defined in construed to be an employer as defined in articles 40 to 47 of this title and shall be articles 40 to 47 of this title and shall be liable . . . to pay compensation for injury or liable . . . to pay compensation for injury or death resulting there from to said lessees, death resulting there from to said lessees, sublessees , contractors, and subcontractors and sublessees , contractors, and subcontractors and their employees or employees' dependents. their employees or employees' dependents.

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Colo. Rev. Stat. § 8-41-401(1)(a). Relying Colo. Rev. Stat. § 8-41-401(1)(a). Relying on this language, the district court on this language, the district court concluded that Turner Construction was not concluded that Turner Construction was not a statutory employer because it did "not fall a statutory employer because it did "not fall within Section 8-41-401 with regard to its within Section 8-41-401 with regard to its dealings with Mabey." App. IV at 748. The dealings with Mabey." App. IV at 748. The court read the statute as only covering those court read the statute as only covering those situations where Mabey was a "lessee, situations where Mabey was a "lessee, sublessee, contractor, or subcontractor."sublessee, contractor, or subcontractor."

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We can held someone morally responsible We can held someone morally responsible for an injury only when: for an injury only when:

1. The person caused or help cause it, or failed to prevent it when he could and should have, and

2. The person did so knowing what he or she was doing, and3. The person did so of his own free will

The primary purpose of the Colorado The primary purpose of the Colorado workers' compensation act is to provide a workers' compensation act is to provide a remedy for job-related injuries, without remedy for job-related injuries, without regard to fault.regard to fault.

Therefore, appealing under a law that did Therefore, appealing under a law that did not take fault into account is un-ethical.not take fault into account is un-ethical.

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Compensatory JusticeCompensatory Justice Concerns restoring to Concerns restoring to

individuals what they have lost due to being individuals what they have lost due to being wronged by anotherwronged by another

Insofar as possible Insofar as possible the wrongdoer the wrongdoer should should restore the loss.restore the loss.