When an Amazon worker was killed by a forklift in a Plainfield warehouse in 2017, the state of Indiana’s investigator found the company was at fault. The state cited Amazon for four major safety violations and fined it $28,000.
But an investigation by Reveal from The Center for Investigative Reporting has found that, as Gov. Eric Holcomb sought to lure Amazon’s HQ2 to Indiana, state labor officials quietly absolved Amazon of responsibility. After Amazon appealed, they deleted every fine that had been levied and accepted the company’s argument — that the Amazon worker was to blame.
The investigator on the case, John Stallone, had arrived at the warehouse a day after 59-year-old Phillip Lee Terry was crushed to death. He was so troubled by the pushback he was getting from higher-ups that he secretly recorded his boss, Indiana OSHA Director Julie Alexander, as she counseled the company on how to lessen the fine.
“It’s like being at a card table and having a dealer teach you how to count cards,” Stallone said.
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It began in September 2017, when Amazon announced a search for a second headquarters, saying it would invest more than $5 billion and bring as many as 50,000 jobs to whichever city won the sweepstakes.
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Indiana OSHA issued four serious safety citations, for a total fine of $28,000. Stallone sought more, but he was getting pushback. On Nov. 20, 2017, Stallone joined his boss, Julie Alexander, the Indiana OSHA director, as she called Amazon officials. He secretly recorded the conversation, which is legal in Indiana, and shared the recording with Reveal.
During the call, Alexander told the Amazon officials what she’d need from them in order to shift the blame from the company to “employee misconduct,” according to the recording.
And she walked them through how to negotiate down the fines. “We sometimes like to consider grouping citations to lower the penalty amounts,” she said.
She suggested Amazon could partner with her agency as a “leader in safety” to kick off a program promoting best practices in the logistics industry.
After hanging up with Amazon, Alexander said: “They’re wanting to probably take this offer and go back and look and say, ‘Hey, we’re partnering with Indiana. We’re going to be the leader.’ ”
She told Stallone, “I hope you don’t take it personally if we have to manipulate your citations.”
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Some days after the conference call with Amazon officials, Stallone said Indiana Labor Commissioner Rick Ruble pulled him into his office. The governor was there, too, standing by the commissioner’s desk, according to Stallone.
He recalled that Holcomb told him how much it would mean to Indiana if the state won the Amazon headquarters deal. Then, Stallone said, the commissioner told him to back off on the Amazon case — or resign.
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The same day Stallone sent his whistleblower email, Amazon’s corporate offices in Seattle gave a $1,000 campaign contribution to Indiana’s governor. It was years before Holcomb would next face reelection, and Amazon hasn’t donated to him before or since.
A year after Terry’s death, Indiana officials quietly signed an agreement with Amazon to delete all the safety citations and fines. The agreement said Amazon had met the requirements of an “unpreventable employee misconduct defense.” The official record now essentially blames Terry for his own death.
Capitalism at Its Finest
In an effort to improve their (in retrospect non-existent) chance to land Amazon’s HQ2, Indiana regulators downplayed the online retailer’s responsibility for the death of one of their employees:
Note that that Amazon did not have to ask anyone to do anything for them.
This is just the nature of “business friendly” politicians and their administrations.
It doesn’t matter if the politician is a Republican or Democrat, though Holcomb is a Republican, these folks will literally sacrifice the blood of their citizens on the alter of profit.