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Alyeska Case Study

In: Business and Management

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The Alyeska Pipeline Service Company

71

1\

sentation and disregard for quality assur­ ance/quality control as at Alyeska," claimed tfi Glen Plumblee was a quality. control Plumblee. 51 )pspector at Alyeska with 18 years of experi­ . In responding to Plumblee's allegations, C)~nce. He was hired in 1990 as part of a new William Howitt, Alyeska~s vice-president of t-"get-tough attitude" towards quality control engineering stated that:(quality-control jobs .after the Exxon Valdez oil spill. Over a three­ were restructured to allow inspectors to mon­ to-four month period, he wrote 200 so-called itor work in real time so that immediate cor- f~ "discrepancy reports" indicating quality con­ rections could be made; the inspectors were trol problems 'in his area. These compared making less money because they no longer with only 3 or 4: discrepancy reports that worked overtime although their hourly pay were written over the entire prior 13-year had been increased; cathodic monitors were period. Notwithstanding, during his time used once a year; a program was in place to with the company, Alyeska reduced the num­ inspect internally all tanks by 1995; and, that ,ber of inspectors from 8 to 4 and demoted neither state nor federal law dictated as to Plumblee from the position of senior quality how often vessels must be inspected.~ control inspector tp quality control coordina­ James Schooley charged Alyeska with tor. He also reported that he was forced by his ignoring his warning that an improperly con­ superiors to visit a mental health clinic to structed fire-control system might fail during det.ermine why he complained so much. an emergency. He stated that crucial pipes Plumblee was fired by Alyeska in November had not been strongly welded together and 1991 because he refused to accept the pay cut that the .,foam they carried might not reach a and demotion. Soon thereafter, he contacted fire ignited in the crude oil holding tanks. ). the media and Hamel, . passing on his allega­ Schooley was accused by his supervisors of tibns along with a notebook that he had kept, not being a team player when he refused to which documented Alyeska's refusal to sign off on discrepancy reports that he had address his concerns. written. He filed a complaint with the Labor In a complaint filed with the Department Department charging that Alyeska was try­ of Labor and in an affidavit to members of the' ing .to remove all company inspectors from U. S. Congress, Plumblee reported that: (1) the field and replace them with temporary welding done during initial construction of c.ontract inspectors who could be removed the pipeline was never appropriately evalu­ without cause. Schooley was fired in ated and some test results were faked; (2) November 1992. only 67 out of 230 pressure vessels holding Kenneth Hayson was a former Alyeska liquid or gas were ever inspected; (3) leak electrical inspector. He claimed that Alyeska and vapor losses were allowed to occur often workers had been violating national electri­ with little concern for worker health and the cal codes by incorrectly sealing equipment on environment; (4) inspectors were inti1;1lidated a tanker-loading berth..There was the danger and harassed while trying to perform their of an explosion taking place should vapors duties; (5) only 8 out of 36 bulk storage tanks from the dock .seep into the equipment. He had been internally. inspected; (6) there was resigned because he felt that Alyeska's super­ no evidence to show that any of the tanks had visors were abusive; they prevented him a cathodic monitoring system to measure cor­ from doing a good job and; made his working . rosion as required by federal regulations; and conditions intolerable. Richard Green had 30 years of exp~rience (7) the recent replacement of segments of cor­ roded pipeline was not performed~· compli­ as a quality control manager at nuclear plants · \}ranee with written specifications. 'Never in and big construction companies. He was my career have I experienced such isrepre- hired by Alyeska in April 1991 and worked

ft,y Alyeska throughout the early 1990s.

ht' safety and environmental laws committed

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The Alyeska Pipeline Service Company
~lY Alyeska throughout the early 1990s. tf; Glen Plumblee was a quality. control
3~nce.

71

Itt' safety and environmental laws committed

)pspector at Alyeska with 18 years of experi­ He was hired in 1990 as part of a new f."get-tough attitude" towards quality control . after the Exxon Valdez oil spill. Over a three­ to-four month period, he wrote 200 so-called "discrepancy reports" indicating quality con­ ,trol. problems 'in his area. These compared with only 3 or 4: discrepancy reports that were written over the entire prior 13-year period. Notwithstanding, during his time 'with the company, Alyeska reduced the num­ ber of inspectors from 8 to 4 and demoted Plumblee from the position of senior quality control inspector to quality control coordina­ tor. He also reporte"d that he was forced by his superiors to visit a mental health clinic to det.ermine why he complained so much. Plumblee was fired by Alyeska in November 1991 because he refused to accept the pay cut and demotion. Soon thereafter, he contacted the media and Ham'el, . passing on his allega­ tibns along with a notebook that he had kept, which documented Alyeska's refusal to address his concerns. In a complaint filed with the Department of Labor and in an affidavit to members of the' u. S. Congress, Plumblee reported that: (1) welding done during initial construction of the pipeline was never appropriately evalu­ ated and some test results were faked; (2) only 67 out of 230 pressure vessels holding liquid or gas were ever inspected; (3) leak and vapor losses were allowed to occur often with little concern for worker health and the environment; (4) inspectors were intiJ;1lidated and harassed while trying to perform their duties; (5) only 8 out of 36 bulk storage tanks had been internally. inspected; (6) there was no evidence to show that any of the tanks had a cathodic monitoring system to measure cor­ rosion as required by federal regulations; and (7) the recent replacement of segments of cor­ compli­ roded pipeline was not performed~· ~nce with written specifications. 'Never in //\my career have I experienced such isrepre-

sentation and disregard for qualitY'assur­ ance/quality control as at Alyeska," claimed Plumblee. 51 _In responding to Plumblee's allegations, William Howitt, Alyeska~s vice-president of engineering stated that:(quality-control jobs were restructured to allow inspectors to mon­ itor work in real time so that immediate cor- f~ rections could be made; the inspectors were : making less money because they no longer worked overtime although their hourly pay had been increased; cathodic monitors were used once a year; a program was in place to inspect internally all tanks by 1995; and, that neither state nor federal law dictated as to how often vessels must be inspected.A) James Schooley charged Alyesia with ignoring his warning that an improperly con­ structed fire-control system might fail during an emergency. He stated that crucial pipes had not been strongly welded together and that the Joam they carried might not reach a fire ignited in the crude oil holding tanks. '. Schooley was accused by his supervisors of not being a team player when he refused to sign off on discrepancy reports that he had written. He filed a complaint with the Labor Department charging that Alyeska was try­ ing to remove all company inspectors from the field and replace them with temporary c.ontract inspectors who could be removed without cause. Schooley was fired in November 1992. Kenneth Hayson was a for~er Alyeska electrical inspector. He claimed that Alyeska workers had been violating national electri­ cal codes by incorrectly sealing equipment on a tanker-loading berth..There was the danger of an explosion taking place should vapors from the dock .seep into the equipment. He resigned because he felt that Alyeska's super­ visors were abusive; they prevented him from doing a good job an~ made his working conditions intolerable. . Richard Green had 30 years of exp~rience as a quality control manager at nuclear plants · and big construction companies. He was hired by Alyeska in April 1991 and worked

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