Dear Editor,
For the past several years there has been an insurance crisis in the Virgin Islands where insurance rates have been going up and availability has been going down. Homeowners and business owners alike have been suffering through the predicament. Yet our so-called political leaders have refused to tackle the tough issue.
Eight hundred employees are out of work at Hovensa and the game continues. Rather than acknowledging the problem and seeking to find solutions with all those at stake, the present administration finds it convenient to blame others and to ignore the mess. [The Charles] Turnbull administration officials say it is not their problem, the James team says it knows nothing about the crisis.
And that is exactly why Michael Bornn and Arnold Golden are running for governor and lieutenant governor.
When 800 people get laid off in the Virgin Islands, it is the governor's and the lieutenant governor's problem. Leaders will sit down and find solutions, not play the blame game.
The fact that the layoffs are in St. Croix makes it even more serious. The neglect of St. Croix continues to baffle me. How can the governor sit by and watch as St. Croix loses cruise ships, crime becomes rampant, the economy is in depression and yet another 800 people are laid off? And yet these people have the nerve to ask Crucians for their votes.
Like it or not, Hovensa is the only viable economic factor on St. Croix. Rather than always blaming Hovensa, the Bornn/Golden team will work with that company and other business and labor concerns in the VI to build a robust economy.
Folks, we have an insurance crisis it is time we acknowledge it and start implementing solutions such as tort reform, tax incentives, creating a business-friendly environment and attracting insurance carriers back to the Virgin Islands.
I strongly recommend that the governor, lieutenant governor and Senate leaders sit down now with Hovensa to address the immediate crisis in obtaining insurance for Hovensa employees and stop playing the blame game.
Michael Bornn
St. Thomas
Candidate for Governor
We welcome and encourage readers to keep the dialogue going by responding to Source commentary. Letters should be e-mailed with name and place of residence to source@viaccess.net.
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REFINERY LAYOFFS SPARK CHARGES, RESPONSES
Sept. 18, 2002 – A St. Croix labor leader and a lawyer representing workers furloughed last week from the Hovensa refinery for lack of liability insurance are demanding compensation for their clients. Meanwhile, one of seven companies whose workers were laid off has found insurance on its own and a second is expecting to reach agreement on coverage by Thursday.
And Hovensa has disputed statements made about the layoffs and about the refinery's recently adopted policy requiring new non-union hires to agree to binding arbitration of disputes between workers and management.
Some 800 workers employed by the seven Hovensa contractors were taken off the job as of midnight last Thursday when their personal injury liability insurance coverage from American International Insurance Co. of Puerto Rico expired.
Hovensa announced the furloughs on Thursday evening, saying the insurance company had given advance notice of its intention not to renew the policy, but that, despite extensive efforts over several weeks, Hovensa had been unable to secure replacement coverage.
The layoffs were of workers for Addison Construction, Best Construction, Jacobs-IMC, Longview Inspection, M&M Construction, Triangle Construction and Maintenance, and V.I. Industrial Maintenance Corp. Four other contractors who also had been covered by American International — CBI, St. Croix Basic Industries, Turner St. Croix Maintenance and Wyatt V.I. — were able to get new coverage for their operators through mainland affiliate companies, a Hovensa release said.
"Although four of the contractors have the word 'construction' in their name, none of them is under a contract to perform construction service," Alex A. Moorhead, Hovensa vice president for government affairs and community relations, said on Tuesday. "They were all providing primarily maintenance services to Hovensa, except Longview Inspection, which provides non-destructive testing of mechanical equipment. The immediate impact will be that work on several projects has been interrupted and certain clerical, janitorial and groundskeeping services will be unavailable."
Longview Inspection has now been successful in obtaining insurance, allowing its equipment inspectors to get back to work.
Leroy Mitchell, general manager for Triangle, said on Wednesday morning he was hopeful that an agreement on coverage could be reached within hours. "I'm very optimistic that either late today or tomorrow, we'll be close to an agreement," he said.
Triangle workers account for 350 of those laid off — pipe fitters, welders, sand blasters, carpenters and masons. Mitchell declined to name the potential insurer but described it as a local company. He said talks have been going on "for over a month."
Once agreement is reached, he said, Triangle management would notify its workers to return to their jobs. Asked about compensation for the time they have been off the job, he said, "I don't know about that. We'll be talking about that later. The first thing is getting them back in the gate."
Severance pay sought for one contractor's workers
According to lawyer Lee Rohn, she has filed a class-action lawsuit in Territorial Court claiming that Hovensa used the insurance situation as an excuse to lay off 450 employees of Jacobs-IMC three weeks in advance of the scheduled end of its contract with the refinery. Rohn said she charged that Hovensa denied the Jacobs-IMC workers some severance pay they were entitled to.
Because of a disagreement between Jacobs and refinery executives, Rohn said, a decision was made well in advance of the layoffs that its contractor would not be renewed. "They were going to lose their jobs, no matter what," she said. Moorhead said on Tuesday that Hovensa's contract with Jacobs expires on Sept. 27 and that Jacobs gave notice to its employees to that effect.
The lawsuit alleges that contractors in the past have acted as "labor brokers" for Hovensa, transferring groups of workers from one company to another as old contracts expired and new ones were created, and that those workers were assured of continuing benefits and seniority. But when the Jacobs-IMC workers were sent home on Sept. 12 instead of Sept. 30 as expected, Rohn said, Hovensa told them they were not entitled to any more benefits. And that, she said, violates the good faith and fair dealing provisions of V.I. labor law.
The lawsuit asks the court to order Hovensa to pay severance and punitive damages to the workers.
At a press conference held on Tuesday by Our Virgin Islands Labor Union, Terrence "Positive" Nelson, union president, called the abrupt layoffs an illegal lockout. "Hovensa is ultimately locking out their subcontractors," he said. "It is the union's perspective that this is all politics as big corporations — as they do — bully around small governments."
Our Virgin Islands represents unionized workers employed by Triangle and Addison. Nelson said the contractors were not properly notified what the consequences would be if Hovensa failed to secure replacement insurance. The union wants its workers to be compensated for lost wages. "Our union members want to be paid for their time out, because this is no fault of their own," he said. "And in the future, we would like for this type of activity to be handled more responsibly."
Regulatory officials comment
The territory's two top insurance officials also went public this week with their views of the Hovensa insurance crisis. Lt. Gov. Gerard Luz James II, whose position includes serving as the territory's commissioner of Banking and Insurance, and Maryleen Thomas, director of the Banking and Insurance Division, held a press conference on Monday.
In prepared remarks, James said it was apparent "that until last Thursday, no one outside of Hovensa seemed aware of or concerned about the loss of personal liability insurance."
He added, "If the subcontractors through Hovensa were timely informed of the decision not to renew the policy, it is reasonable to ask if the subcontractors took any steps to seek new carriers. None of the affected subcontractors contacted my office, and no insurance agent sought assistance on behalf of these subcontactors."
His conclusion, James said, is that "One must begin to wonder if the subcontractors were informed of this insurance difficulty prior to Thursday, Sept. 12."
In an interview on Tuesday, James said Hovensa had to know American International was going to terminate its policy at least 30 days in advance of the action. "What happened to Hovensa is they received notice on or about the 11th or 12th of August from their insurance carrier that they would discontinue the coverage," he said. Hovensa executives have not disputed this.
James also said he has no indication that any other company in the Virgin Islands is having a problem obtaining liability insurance, although the cost may be very high. Rohn and Nelson have suggested that if Hovensa is having problems getting coverage for its contractors, it is because of unsafe working conditions that have resulted in permanent disability for skilled workers making $25 to $30 an hour.
At the Monday press conference, Thomas said her division "is not required to take regulatory action on Hovensa's insurance situation … It is obvious that Hovensa does not need our assistance."
Thomas also commented on the wider issue of insurance availability. "We have heard that insurance companies do not want to come to or are leaving the territory because of our regulatory style," she said. "I challenge the persons who have made such statements to identify these companies." Division records, she said, "show that from July 1999 to present, 42 insurance companies (includes property and casualty and life and health companies) have applied for licenses or approval to conduct business in the territ ory."
Hundreds of court cases, most of them settled
Rohn said she handles at least 80 percent of workers' liability claims against the refinery and has taken at least 250 such cases to court against in the last 10 years, with most of them settled out of court. Last month, she said, she represented a worker who won a liability case in court with the jury awarding her client $1 million, although a negotiated settlement with the company after the trial resulted in a smaller award.
According to insurance industry executives, aggressive litigation and the excessive damages awarded by juries in the Virgin Islands is the reason that Hovensa can't get insurance. (See "Without tort reform, V.I. could be in big trouble".) "We have reached the point that few insurance companies are interested in writing in the Virgin Islands," David C. Ridgway, president of Marshall & Sterling Insurance, said. "For every $1 million collected in premiums, $10 million is paid out in settlements," Tom Fitzsimmons, president of St. Croix Insurance, said, adding that in the territory, insurance companies often opt to make excessive payments to avoid going to court.
According to Moorhead, American International had been providing coverage for three years. "No reason was given in the notice of non-renewal or in any other written communication," he said.
But he said American and "prospective carriers that have been contacted have expressed concern about the aggregate size of claims pending against the contractors." He added, "This has apparently overshadowed the fact that the rate of injuries among contractors in the refinery has declined in recent years."
Rohn, however, charged that "Hess is not a safe place to work." She said, "I probably get five calls a week from people who get injured at Hess by negligence."
(Hovensa is a joint venture of Hess Oil Virgin Islands Corp. and a V.I. subsidiary of Petroleos de Venezuela, the South American nation's giant state-owned oil company that supplies most of the crude oil processed at the St. Croix refinery.)
Nelson charged that problems occur because the refinery is generally understaffed and "sometimes there seems to be a rush to meet deadlines in projects." He added, "There are over 254 chemicals used there."
Refinery to reimburse companies that find carriers
Moorhead conceded there may not have been clear communication from the refinery about what contractors would be expected to do if efforts to obtain replacement insurance failed, and he said they should not be penalized for that. "If they secure the insurance on their own, we would have to reimburse," he said. "They don't have to dig into their profits to pay the cost for something they didn't have to pay for before."
But he denied that Hovensa either misrepresented or hid its situation. "We had a search made nationally and internationally in order to find replacement insurance," he said.
And, Moorhead said, "We are continuing to solicit proposals from insurance companies nationally and internationally. As soon as Hovensa secures a binder of adequate general and auto liability insurance covering the contractors who do not yet have such coverage, all the remaining contractors will be allowed to resume work in the refinery. Alternatively, if an individual contractor secures such a binder of insurance covering its own employees, that contractor will be allowed to resume work in the refinery."
Rohn said a new problem for the contractors may be one of finding liability coverage at a cost Hovensa will find acceptable. She said Hovensa has already turned down as too expensive some insurance estimates presented by contractors.
"So far as I know, that is not the case," Moorhead said. Costs will be a factor, he said, but individual agreements with the companies will be reached through negotiations.
Hovensa is asking its contractors to provide liability coverage of up to $5 million for any single incident resulting in worker injury or death and $10 million for the life of the policy, he said.
Nelson and Rohn say the timing of the insurance crisis is suspect, suggesting it was planned to coincide with Gov. Charles W. Turnbull's consideration of the Omnibus Act of 2003, part of the territory's budget for the coming fiscal year, which begins on Oct. 1. The voluminous bill, passed by the Legislature on Aug. 28, contains a provision restricting the circumstances under which binding arbitration may be used to resolve labor-management disputes.
The provision apparently is directed against Hovensa, which as of July 1 began requiring applicants for non-union positions to agree in writing to have disputes resolved by arbitration. It instituted the policy after a similar requirement implemented by one its contractors, Wyatt V.I., was upheld in District Court. (See St. Croix Source story "Hovensa hires now must sign arbitration pact".)
Moorhead has issued public statements warning that the arbitration provision of the Omnibus Act would be rejected in court as a violation of the Federal Arbitration Act.
Last weekend, Rohn placed a full-page advertisement in a local print newspaper disputing Moorhead's claims and challenging the validity of Hovensa making agreement to have labor disputes resolved by arbitration a condition of employment. Moorhead responded on Monday, calling Rohn's statements "blatantly false."
Turnbull has not yet acted on the Omnibus bill or other FY 2003 budget bills on his desk.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
And Hovensa has disputed statements made about the layoffs and about the refinery's recently adopted policy requiring new non-union hires to agree to binding arbitration of disputes between workers and management.
Some 800 workers employed by the seven Hovensa contractors were taken off the job as of midnight last Thursday when their personal injury liability insurance coverage from American International Insurance Co. of Puerto Rico expired.
Hovensa announced the furloughs on Thursday evening, saying the insurance company had given advance notice of its intention not to renew the policy, but that, despite extensive efforts over several weeks, Hovensa had been unable to secure replacement coverage.
The layoffs were of workers for Addison Construction, Best Construction, Jacobs-IMC, Longview Inspection, M&M Construction, Triangle Construction and Maintenance, and V.I. Industrial Maintenance Corp. Four other contractors who also had been covered by American International — CBI, St. Croix Basic Industries, Turner St. Croix Maintenance and Wyatt V.I. — were able to get new coverage for their operators through mainland affiliate companies, a Hovensa release said.
"Although four of the contractors have the word 'construction' in their name, none of them is under a contract to perform construction service," Alex A. Moorhead, Hovensa vice president for government affairs and community relations, said on Tuesday. "They were all providing primarily maintenance services to Hovensa, except Longview Inspection, which provides non-destructive testing of mechanical equipment. The immediate impact will be that work on several projects has been interrupted and certain clerical, janitorial and groundskeeping services will be unavailable."
Longview Inspection has now been successful in obtaining insurance, allowing its equipment inspectors to get back to work.
Leroy Mitchell, general manager for Triangle, said on Wednesday morning he was hopeful that an agreement on coverage could be reached within hours. "I'm very optimistic that either late today or tomorrow, we'll be close to an agreement," he said.
Triangle workers account for 350 of those laid off — pipe fitters, welders, sand blasters, carpenters and masons. Mitchell declined to name the potential insurer but described it as a local company. He said talks have been going on "for over a month."
Once agreement is reached, he said, Triangle management would notify its workers to return to their jobs. Asked about compensation for the time they have been off the job, he said, "I don't know about that. We'll be talking about that later. The first thing is getting them back in the gate."
Severance pay sought for one contractor's workers
According to lawyer Lee Rohn, she has filed a class-action lawsuit in Territorial Court claiming that Hovensa used the insurance situation as an excuse to lay off 450 employees of Jacobs-IMC three weeks in advance of the scheduled end of its contract with the refinery. Rohn said she charged that Hovensa denied the Jacobs-IMC workers some severance pay they were entitled to.
Because of a disagreement between Jacobs and refinery executives, Rohn said, a decision was made well in advance of the layoffs that its contractor would not be renewed. "They were going to lose their jobs, no matter what," she said. Moorhead said on Tuesday that Hovensa's contract with Jacobs expires on Sept. 27 and that Jacobs gave notice to its employees to that effect.
The lawsuit alleges that contractors in the past have acted as "labor brokers" for Hovensa, transferring groups of workers from one company to another as old contracts expired and new ones were created, and that those workers were assured of continuing benefits and seniority. But when the Jacobs-IMC workers were sent home on Sept. 12 instead of Sept. 30 as expected, Rohn said, Hovensa told them they were not entitled to any more benefits. And that, she said, violates the good faith and fair dealing provisions of V.I. labor law.
The lawsuit asks the court to order Hovensa to pay severance and punitive damages to the workers.
At a press conference held on Tuesday by Our Virgin Islands Labor Union, Terrence "Positive" Nelson, union president, called the abrupt layoffs an illegal lockout. "Hovensa is ultimately locking out their subcontractors," he said. "It is the union's perspective that this is all politics as big corporations — as they do — bully around small governments."
Our Virgin Islands represents unionized workers employed by Triangle and Addison. Nelson said the contractors were not properly notified what the consequences would be if Hovensa failed to secure replacement insurance. The union wants its workers to be compensated for lost wages. "Our union members want to be paid for their time out, because this is no fault of their own," he said. "And in the future, we would like for this type of activity to be handled more responsibly."
Regulatory officials comment
The territory's two top insurance officials also went public this week with their views of the Hovensa insurance crisis. Lt. Gov. Gerard Luz James II, whose position includes serving as the territory's commissioner of Banking and Insurance, and Maryleen Thomas, director of the Banking and Insurance Division, held a press conference on Monday.
In prepared remarks, James said it was apparent "that until last Thursday, no one outside of Hovensa seemed aware of or concerned about the loss of personal liability insurance."
He added, "If the subcontractors through Hovensa were timely informed of the decision not to renew the policy, it is reasonable to ask if the subcontractors took any steps to seek new carriers. None of the affected subcontractors contacted my office, and no insurance agent sought assistance on behalf of these subcontactors."
His conclusion, James said, is that "One must begin to wonder if the subcontractors were informed of this insurance difficulty prior to Thursday, Sept. 12."
In an interview on Tuesday, James said Hovensa had to know American International was going to terminate its policy at least 30 days in advance of the action. "What happened to Hovensa is they received notice on or about the 11th or 12th of August from their insurance carrier that they would discontinue the coverage," he said. Hovensa executives have not disputed this.
James also said he has no indication that any other company in the Virgin Islands is having a problem obtaining liability insurance, although the cost may be very high. Rohn and Nelson have suggested that if Hovensa is having problems getting coverage for its contractors, it is because of unsafe working conditions that have resulted in permanent disability for skilled workers making $25 to $30 an hour.
At the Monday press conference, Thomas said her division "is not required to take regulatory action on Hovensa's insurance situation … It is obvious that Hovensa does not need our assistance."
Thomas also commented on the wider issue of insurance availability. "We have heard that insurance companies do not want to come to or are leaving the territory because of our regulatory style," she said. "I challenge the persons who have made such statements to identify these companies." Division records, she said, "show that from July 1999 to present, 42 insurance companies (includes property and casualty and life and health companies) have applied for licenses or approval to conduct business in the territ ory."
Hundreds of court cases, most of them settled
Rohn said she handles at least 80 percent of workers' liability claims against the refinery and has taken at least 250 such cases to court against in the last 10 years, with most of them settled out of court. Last month, she said, she represented a worker who won a liability case in court with the jury awarding her client $1 million, although a negotiated settlement with the company after the trial resulted in a smaller award.
According to insurance industry executives, aggressive litigation and the excessive damages awarded by juries in the Virgin Islands is the reason that Hovensa can't get insurance. (See "Without tort reform, V.I. could be in big trouble".) "We have reached the point that few insurance companies are interested in writing in the Virgin Islands," David C. Ridgway, president of Marshall & Sterling Insurance, said. "For every $1 million collected in premiums, $10 million is paid out in settlements," Tom Fitzsimmons, president of St. Croix Insurance, said, adding that in the territory, insurance companies often opt to make excessive payments to avoid going to court.
According to Moorhead, American International had been providing coverage for three years. "No reason was given in the notice of non-renewal or in any other written communication," he said.
But he said American and "prospective carriers that have been contacted have expressed concern about the aggregate size of claims pending against the contractors." He added, "This has apparently overshadowed the fact that the rate of injuries among contractors in the refinery has declined in recent years."
Rohn, however, charged that "Hess is not a safe place to work." She said, "I probably get five calls a week from people who get injured at Hess by negligence."
(Hovensa is a joint venture of Hess Oil Virgin Islands Corp. and a V.I. subsidiary of Petroleos de Venezuela, the South American nation's giant state-owned oil company that supplies most of the crude oil processed at the St. Croix refinery.)
Nelson charged that problems occur because the refinery is generally understaffed and "sometimes there seems to be a rush to meet deadlines in projects." He added, "There are over 254 chemicals used there."
Refinery to reimburse companies that find carriers
Moorhead conceded there may not have been clear communication from the refinery about what contractors would be expected to do if efforts to obtain replacement insurance failed, and he said they should not be penalized for that. "If they secure the insurance on their own, we would have to reimburse," he said. "They don't have to dig into their profits to pay the cost for something they didn't have to pay for before."
But he denied that Hovensa either misrepresented or hid its situation. "We had a search made nationally and internationally in order to find replacement insurance," he said.
And, Moorhead said, "We are continuing to solicit proposals from insurance companies nationally and internationally. As soon as Hovensa secures a binder of adequate general and auto liability insurance covering the contractors who do not yet have such coverage, all the remaining contractors will be allowed to resume work in the refinery. Alternatively, if an individual contractor secures such a binder of insurance covering its own employees, that contractor will be allowed to resume work in the refinery."
Rohn said a new problem for the contractors may be one of finding liability coverage at a cost Hovensa will find acceptable. She said Hovensa has already turned down as too expensive some insurance estimates presented by contractors.
"So far as I know, that is not the case," Moorhead said. Costs will be a factor, he said, but individual agreements with the companies will be reached through negotiations.
Hovensa is asking its contractors to provide liability coverage of up to $5 million for any single incident resulting in worker injury or death and $10 million for the life of the policy, he said.
Nelson and Rohn say the timing of the insurance crisis is suspect, suggesting it was planned to coincide with Gov. Charles W. Turnbull's consideration of the Omnibus Act of 2003, part of the territory's budget for the coming fiscal year, which begins on Oct. 1. The voluminous bill, passed by the Legislature on Aug. 28, contains a provision restricting the circumstances under which binding arbitration may be used to resolve labor-management disputes.
The provision apparently is directed against Hovensa, which as of July 1 began requiring applicants for non-union positions to agree in writing to have disputes resolved by arbitration. It instituted the policy after a similar requirement implemented by one its contractors, Wyatt V.I., was upheld in District Court. (See St. Croix Source story "Hovensa hires now must sign arbitration pact".)
Moorhead has issued public statements warning that the arbitration provision of the Omnibus Act would be rejected in court as a violation of the Federal Arbitration Act.
Last weekend, Rohn placed a full-page advertisement in a local print newspaper disputing Moorhead's claims and challenging the validity of Hovensa making agreement to have labor disputes resolved by arbitration a condition of employment. Moorhead responded on Monday, calling Rohn's statements "blatantly false."
Turnbull has not yet acted on the Omnibus bill or other FY 2003 budget bills on his desk.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
REFINERY LAYOFFS SPARK CHARGES, RESPONSES
Sept. 18, 2002 – A St. Croix labor leader and a lawyer representing workers furloughed last week from the Hovensa refinery for lack of liability insurance are demanding compensation for their clients. Meanwhile, one of seven companies whose workers were laid off has found insurance on its own and a second is expecting to reach agreement on coverage by Thursday.
And Hovensa has disputed statements made about the layoffs and about the refinery's recently adopted policy requiring new non-union hires to agree to binding arbitration of disputes between workers and management.
Some 800 workers employed by the seven Hovensa contractors were taken off the job as of midnight last Thursday when their personal injury liability insurance coverage from American International Insurance Co. of Puerto Rico expired.
Hovensa announced the furloughs on Thursday evening, saying the insurance company had given advance notice of its intention not to renew the policy, but that, despite extensive efforts over several weeks, Hovensa had been unable to secure replacement coverage.
The layoffs were of workers for Addison Construction, Best Construction, Jacobs-IMC, Longview Inspection, M&M Construction, Triangle Construction and Maintenance, and V.I. Industrial Maintenance Corp. Four other contractors who also had been covered by American International — CBI, St. Croix Basic Industries, Turner St. Croix Maintenance and Wyatt V.I. — were able to get new coverage for their operators through mainland affiliate companies, a Hovensa release said.
"Although four of the contractors have the word 'construction' in their name, none of them is under a contract to perform construction service," Alex A. Moorhead, Hovensa vice president for government affairs and community relations, said on Tuesday. "They were all providing primarily maintenance services to Hovensa, except Longview Inspection, which provides non-destructive testing of mechanical equipment. The immediate impact will be that work on several projects has been interrupted and certain clerical, janitorial and groundskeeping services will be unavailable."
Longview Inspection has now been successful in obtaining insurance, allowing its equipment inspectors to get back to work.
Leroy Mitchell, general manager for Triangle, said on Wednesday morning he was hopeful that an agreement on coverage could be reached within hours. "I'm very optimistic that either late today or tomorrow, we'll be close to an agreement," he said.
Triangle workers account for 350 of those laid off — pipe fitters, welders, sand blasters, carpenters and masons. Mitchell declined to name the potential insurer but described it as a local company. He said talks have been going on "for over a month."
Once agreement is reached, he said, Triangle management would notify its workers to return to their jobs. Asked about compensation for the time they have been off the job, he said, "I don't know about that. We'll be talking about that later. The first thing is getting them back in the gate."
Severance pay sought for one contractor's workers
According to lawyer Lee Rohn, she has filed a class-action lawsuit in Territorial Court claiming that Hovensa used the insurance situation as an excuse to lay off 450 employees of Jacobs-IMC three weeks in advance of the scheduled end of its contract with the refinery. Rohn said she charged that Hovensa denied the Jacobs-IMC workers some severance pay they were entitled to.
Because of a disagreement between Jacobs and refinery executives, Rohn said, a decision was made well in advance of the layoffs that its contractor would not be renewed. "They were going to lose their jobs, no matter what," she said. Moorhead said on Tuesday that Hovensa's contract with Jacobs expires on Sept. 27 and that Jacobs gave notice to its employees to that effect.
The lawsuit alleges that contractors in the past have acted as "labor brokers" for Hovensa, transferring groups of workers from one company to another as old contracts expired and new ones were created, and that those workers were assured of continuing benefits and seniority. But when the Jacobs-IMC workers were sent home on Sept. 12 instead of Sept. 30 as expected, Rohn said, Hovensa told them they were not entitled to any more benefits. And that, she said, violates the good faith and fair dealing provisions of V.I. labor law.
The lawsuit asks the court to order Hovensa to pay severance and punitive damages to the workers.
At a press conference held on Tuesday by Our Virgin Islands Labor Union, Terrence "Positive" Nelson, union president, called the abrupt layoffs an illegal lockout. "Hovensa is ultimately locking out their subcontractors," he said. "It is the union's perspective that this is all politics as big corporations — as they do — bully around small governments."
Our Virgin Islands represents unionized workers employed by Triangle and Addison. Nelson said the contractors were not properly notified what the consequences would be if Hovensa failed to secure replacement insurance. The union wants its workers to be compensated for lost wages. "Our union members want to be paid for their time out, because this is no fault of their own," he said. "And in the future, we would like for this type of activity to be handled more responsibly."
Regulatory officials comment
The territory's two top insurance officials also went public this week with their views of the Hovensa insurance crisis. Lt. Gov. Gerard Luz James II, whose position includes serving as the territory's commissioner of Banking and Insurance, and Maryleen Thomas, director of the Banking and Insurance Division, held a press conference on Monday.
In prepared remarks, James said it was apparent "that until last Thursday, no one outside of Hovensa seemed aware of or concerned about the loss of personal liability insurance."
He added, "If the subcontractors through Hovensa were timely informed of the decision not to renew the policy, it is reasonable to ask if the subcontractors took any steps to seek new carriers. None of the affected subcontractors contacted my office, and no insurance agent sought assistance on behalf of these subcontactors."
His conclusion, James said, is that "One must begin to wonder if the subcontractors were informed of this insurance difficulty prior to Thursday, Sept. 12."
In an interview on Tuesday, James said Hovensa had to know American International was going to terminate its policy at least 30 days in advance of the action. "What happened to Hovensa is they received notice on or about the 11th or 12th of August from their insurance carrier that they would discontinue the coverage," he said. Hovensa executives have not disputed this.
James also said he has no indication that any other company in the Virgin Islands is having a problem obtaining liability insurance, although the cost may be very high. Rohn and Nelson have suggested that if Hovensa is having problems getting coverage for its contractors, it is because of unsafe working conditions that have resulted in permanent disability for skilled workers making $25 to $30 an hour.
At the Monday press conference, Thomas said her division "is not required to take regulatory action on Hovensa's insurance situation … It is obvious that Hovensa does not need our assistance."
Thomas also commented on the wider issue of insurance availability. "We have heard that insurance companies do not want to come to or are leaving the territory because of our regulatory style," she said. "I challenge the persons who have made such statements to identify these companies." Division records, she said, "show that from July 1999 to present, 42 insurance companies (includes property and casualty and life and health companies) have applied for licenses or approval to conduct business in the territ ory."
Hundreds of court cases, most of them settled
Rohn said she handles at least 80 percent of workers' liability claims against the refinery and has taken at least 250 such cases to court against in the last 10 years, with most of them settled out of court. Last month, she said, she represented a worker who won a liability case in court with the jury awarding her client $1 million, although a negotiated settlement with the company after the trial resulted in a smaller award.
According to insurance industry executives, aggressive litigation and the excessive damages awarded by juries in the Virgin Islands is the reason that Hovensa can't get insurance. (See "Without tort reform, V.I. could be in big trouble".) "We have reached the point that few insurance companies are interested in writing in the Virgin Islands," David C. Ridgway, president of Marshall & Sterling Insurance, said. "For every $1 million collected in premiums, $10 million is paid out in settlements," Tom Fitzsimmons, president of St. Croix Insurance, said, adding that in the territory, insurance companies often opt to make excessive payments to avoid going to court.
According to Moorhead, American International had been providing coverage for three years. "No reason was given in the notice of non-renewal or in any other written communication," he said.
But he said American and "prospective carriers that have been contacted have expressed concern about the aggregate size of claims pending against the contractors." He added, "This has apparently overshadowed the fact that the rate of injuries among contractors in the refinery has declined in recent years."
Rohn, however, charged that "Hess is not a safe place to work." She said, "I probably get five calls a week from people who get injured at Hess by negligence."
(Hovensa is a joint venture of Hess Oil Virgin Islands Corp. and a V.I. subsidiary of Petroleos de Venezuela, the South American nation's giant state-owned oil company that supplies most of the crude oil processed at the St. Croix refinery.)
Nelson charged that problems occur because the refinery is generally understaffed and "sometimes there seems to be a rush to meet deadlines in projects." He added, "There are over 254 chemicals used there."
Refinery to reimburse companies that find carriers
Moorhead conceded there may not have been clear communication from the refinery about what contractors would be expected to do if efforts to obtain replacement insurance failed, and he said they should not be penalized for that. "If they secure the insurance on their own, we would have to reimburse," he said. "They don't have to dig into their profits to pay the cost for something they didn't have to pay for before."
But he denied that Hovensa either misrepresented or hid its situation. "We had a search made nationally and internationally in order to find replacement insurance," he said.
And, Moorhead said, "We are continuing to solicit proposals from insurance companies nationally and internationally. As soon as Hovensa secures a binder of adequate general and auto liability insurance covering the contractors who do not yet have such coverage, all the remaining contractors will be allowed to resume work in the refinery. Alternatively, if an individual contractor secures such a binder of insurance covering its own employees, that contractor will be allowed to resume work in the refinery."
Rohn said a new problem for the contractors may be one of finding liability coverage at a cost Hovensa will find acceptable. She said Hovensa has already turned down as too expensive some insurance estimates presented by contractors.
"So far as I know, that is not the case," Moorhead said. Costs will be a factor, he said, but individual agreements with the companies will be reached through negotiations.
Hovensa is asking its contractors to provide liability coverage of up to $5 million for any single incident resulting in worker injury or death and $10 million for the life of the policy, he said.
Nelson and Rohn say the timing of the insurance crisis is suspect, suggesting it was planned to coincide with Gov. Charles W. Turnbull's consideration of the Omnibus Act of 2003, part of the territory's budget for the coming fiscal year, which begins on Oct. 1. The voluminous bill, passed by the Legislature on Aug. 28, contains a provision restricting the circumstances under which binding arbitration may be used to resolve labor-management disputes.
The provision apparently is directed against Hovensa, which as of July 1 began requiring applicants for non-union positions to agree in writing to have disputes resolved by arbitration. It instituted the policy after a similar requirement implemented by one its contractors, Wyatt V.I., was upheld in District Court. (See St. Croix Source story "Hovensa hires now must sign arbitration pact".)
Moorhead has issued public statements warning that the arbitration provision of the Omnibus Act would be rejected in court as a violation of the Federal Arbitration Act.
Last weekend, Rohn placed a full-page advertisement in a local print newspaper disputing Moorhead's claims and challenging the validity of Hovensa making agreement to have labor disputes resolved by arbitration a condition of employment. Moorhead responded on Monday, calling Rohn's statements "blatantly false."
Turnbull has not yet acted on the Omnibus bill or other FY 2003 budget bills on his desk.
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
And Hovensa has disputed statements made about the layoffs and about the refinery's recently adopted policy requiring new non-union hires to agree to binding arbitration of disputes between workers and management.
Some 800 workers employed by the seven Hovensa contractors were taken off the job as of midnight last Thursday when their personal injury liability insurance coverage from American International Insurance Co. of Puerto Rico expired.
Hovensa announced the furloughs on Thursday evening, saying the insurance company had given advance notice of its intention not to renew the policy, but that, despite extensive efforts over several weeks, Hovensa had been unable to secure replacement coverage.
The layoffs were of workers for Addison Construction, Best Construction, Jacobs-IMC, Longview Inspection, M&M Construction, Triangle Construction and Maintenance, and V.I. Industrial Maintenance Corp. Four other contractors who also had been covered by American International — CBI, St. Croix Basic Industries, Turner St. Croix Maintenance and Wyatt V.I. — were able to get new coverage for their operators through mainland affiliate companies, a Hovensa release said.
"Although four of the contractors have the word 'construction' in their name, none of them is under a contract to perform construction service," Alex A. Moorhead, Hovensa vice president for government affairs and community relations, said on Tuesday. "They were all providing primarily maintenance services to Hovensa, except Longview Inspection, which provides non-destructive testing of mechanical equipment. The immediate impact will be that work on several projects has been interrupted and certain clerical, janitorial and groundskeeping services will be unavailable."
Longview Inspection has now been successful in obtaining insurance, allowing its equipment inspectors to get back to work.
Leroy Mitchell, general manager for Triangle, said on Wednesday morning he was hopeful that an agreement on coverage could be reached within hours. "I'm very optimistic that either late today or tomorrow, we'll be close to an agreement," he said.
Triangle workers account for 350 of those laid off — pipe fitters, welders, sand blasters, carpenters and masons. Mitchell declined to name the potential insurer but described it as a local company. He said talks have been going on "for over a month."
Once agreement is reached, he said, Triangle management would notify its workers to return to their jobs. Asked about compensation for the time they have been off the job, he said, "I don't know about that. We'll be talking about that later. The first thing is getting them back in the gate."
Severance pay sought for one contractor's workers
According to lawyer Lee Rohn, she has filed a class-action lawsuit in Territorial Court claiming that Hovensa used the insurance situation as an excuse to lay off 450 employees of Jacobs-IMC three weeks in advance of the scheduled end of its contract with the refinery. Rohn said she charged that Hovensa denied the Jacobs-IMC workers some severance pay they were entitled to.
Because of a disagreement between Jacobs and refinery executives, Rohn said, a decision was made well in advance of the layoffs that its contractor would not be renewed. "They were going to lose their jobs, no matter what," she said. Moorhead said on Tuesday that Hovensa's contract with Jacobs expires on Sept. 27 and that Jacobs gave notice to its employees to that effect.
The lawsuit alleges that contractors in the past have acted as "labor brokers" for Hovensa, transferring groups of workers from one company to another as old contracts expired and new ones were created, and that those workers were assured of continuing benefits and seniority. But when the Jacobs-IMC workers were sent home on Sept. 12 instead of Sept. 30 as expected, Rohn said, Hovensa told them they were not entitled to any more benefits. And that, she said, violates the good faith and fair dealing provisions of V.I. labor law.
The lawsuit asks the court to order Hovensa to pay severance and punitive damages to the workers.
At a press conference held on Tuesday by Our Virgin Islands Labor Union, Terrence "Positive" Nelson, union president, called the abrupt layoffs an illegal lockout. "Hovensa is ultimately locking out their subcontractors," he said. "It is the union's perspective that this is all politics as big corporations — as they do — bully around small governments."
Our Virgin Islands represents unionized workers employed by Triangle and Addison. Nelson said the contractors were not properly notified what the consequences would be if Hovensa failed to secure replacement insurance. The union wants its workers to be compensated for lost wages. "Our union members want to be paid for their time out, because this is no fault of their own," he said. "And in the future, we would like for this type of activity to be handled more responsibly."
Regulatory officials comment
The territory's two top insurance officials also went public this week with their views of the Hovensa insurance crisis. Lt. Gov. Gerard Luz James II, whose position includes serving as the territory's commissioner of Banking and Insurance, and Maryleen Thomas, director of the Banking and Insurance Division, held a press conference on Monday.
In prepared remarks, James said it was apparent "that until last Thursday, no one outside of Hovensa seemed aware of or concerned about the loss of personal liability insurance."
He added, "If the subcontractors through Hovensa were timely informed of the decision not to renew the policy, it is reasonable to ask if the subcontractors took any steps to seek new carriers. None of the affected subcontractors contacted my office, and no insurance agent sought assistance on behalf of these subcontactors."
His conclusion, James said, is that "One must begin to wonder if the subcontractors were informed of this insurance difficulty prior to Thursday, Sept. 12."
In an interview on Tuesday, James said Hovensa had to know American International was going to terminate its policy at least 30 days in advance of the action. "What happened to Hovensa is they received notice on or about the 11th or 12th of August from their insurance carrier that they would discontinue the coverage," he said. Hovensa executives have not disputed this.
James also said he has no indication that any other company in the Virgin Islands is having a problem obtaining liability insurance, although the cost may be very high. Rohn and Nelson have suggested that if Hovensa is having problems getting coverage for its contractors, it is because of unsafe working conditions that have resulted in permanent disability for skilled workers making $25 to $30 an hour.
At the Monday press conference, Thomas said her division "is not required to take regulatory action on Hovensa's insurance situation … It is obvious that Hovensa does not need our assistance."
Thomas also commented on the wider issue of insurance availability. "We have heard that insurance companies do not want to come to or are leaving the territory because of our regulatory style," she said. "I challenge the persons who have made such statements to identify these companies." Division records, she said, "show that from July 1999 to present, 42 insurance companies (includes property and casualty and life and health companies) have applied for licenses or approval to conduct business in the territ ory."
Hundreds of court cases, most of them settled
Rohn said she handles at least 80 percent of workers' liability claims against the refinery and has taken at least 250 such cases to court against in the last 10 years, with most of them settled out of court. Last month, she said, she represented a worker who won a liability case in court with the jury awarding her client $1 million, although a negotiated settlement with the company after the trial resulted in a smaller award.
According to insurance industry executives, aggressive litigation and the excessive damages awarded by juries in the Virgin Islands is the reason that Hovensa can't get insurance. (See "Without tort reform, V.I. could be in big trouble".) "We have reached the point that few insurance companies are interested in writing in the Virgin Islands," David C. Ridgway, president of Marshall & Sterling Insurance, said. "For every $1 million collected in premiums, $10 million is paid out in settlements," Tom Fitzsimmons, president of St. Croix Insurance, said, adding that in the territory, insurance companies often opt to make excessive payments to avoid going to court.
According to Moorhead, American International had been providing coverage for three years. "No reason was given in the notice of non-renewal or in any other written communication," he said.
But he said American and "prospective carriers that have been contacted have expressed concern about the aggregate size of claims pending against the contractors." He added, "This has apparently overshadowed the fact that the rate of injuries among contractors in the refinery has declined in recent years."
Rohn, however, charged that "Hess is not a safe place to work." She said, "I probably get five calls a week from people who get injured at Hess by negligence."
(Hovensa is a joint venture of Hess Oil Virgin Islands Corp. and a V.I. subsidiary of Petroleos de Venezuela, the South American nation's giant state-owned oil company that supplies most of the crude oil processed at the St. Croix refinery.)
Nelson charged that problems occur because the refinery is generally understaffed and "sometimes there seems to be a rush to meet deadlines in projects." He added, "There are over 254 chemicals used there."
Refinery to reimburse companies that find carriers
Moorhead conceded there may not have been clear communication from the refinery about what contractors would be expected to do if efforts to obtain replacement insurance failed, and he said they should not be penalized for that. "If they secure the insurance on their own, we would have to reimburse," he said. "They don't have to dig into their profits to pay the cost for something they didn't have to pay for before."
But he denied that Hovensa either misrepresented or hid its situation. "We had a search made nationally and internationally in order to find replacement insurance," he said.
And, Moorhead said, "We are continuing to solicit proposals from insurance companies nationally and internationally. As soon as Hovensa secures a binder of adequate general and auto liability insurance covering the contractors who do not yet have such coverage, all the remaining contractors will be allowed to resume work in the refinery. Alternatively, if an individual contractor secures such a binder of insurance covering its own employees, that contractor will be allowed to resume work in the refinery."
Rohn said a new problem for the contractors may be one of finding liability coverage at a cost Hovensa will find acceptable. She said Hovensa has already turned down as too expensive some insurance estimates presented by contractors.
"So far as I know, that is not the case," Moorhead said. Costs will be a factor, he said, but individual agreements with the companies will be reached through negotiations.
Hovensa is asking its contractors to provide liability coverage of up to $5 million for any single incident resulting in worker injury or death and $10 million for the life of the policy, he said.
Nelson and Rohn say the timing of the insurance crisis is suspect, suggesting it was planned to coincide with Gov. Charles W. Turnbull's consideration of the Omnibus Act of 2003, part of the territory's budget for the coming fiscal year, which begins on Oct. 1. The voluminous bill, passed by the Legislature on Aug. 28, contains a provision restricting the circumstances under which binding arbitration may be used to resolve labor-management disputes.
The provision apparently is directed against Hovensa, which as of July 1 began requiring applicants for non-union positions to agree in writing to have disputes resolved by arbitration. It instituted the policy after a similar requirement implemented by one its contractors, Wyatt V.I., was upheld in District Court. (See St. Croix Source story "Hovensa hires now must sign arbitration pact".)
Moorhead has issued public statements warning that the arbitration provision of the Omnibus Act would be rejected in court as a violation of the Federal Arbitration Act.
Last weekend, Rohn placed a full-page advertisement in a local print newspaper disputing Moorhead's claims and challenging the validity of Hovensa making agreement to have labor disputes resolved by arbitration a condition of employment. Moorhead responded on Monday, calling Rohn's statements "blatantly false."
Turnbull has not yet acted on the Omnibus bill or other FY 2003 budget bills on his desk.
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
REFINERY LAYOFFS SPARK CHARGES, RESPONSES
Sept. 18, 2002 – A St. Croix labor leader and a lawyer representing workers furloughed last week from the Hovensa refinery for lack of liability insurance are demanding compensation for their clients. Meanwhile, one of seven companies whose workers were laid off has found insurance on its own and a second is expecting to reach agreement on coverage by Thursday.
And Hovensa has disputed statements made about the layoffs and about the refinery's recently adopted policy requiring new non-union hires to agree to binding arbitration of disputes between workers and management.
Some 800 workers employed by the seven Hovensa contractors were taken off the job as of midnight last Thursday when their personal injury liability insurance coverage from American International Insurance Co. of Puerto Rico expired.
Hovensa announced the furloughs on Thursday evening, saying the insurance company had given advance notice of its intention not to renew the policy, but that, despite extensive efforts over several weeks, Hovensa had been unable to secure replacement coverage.
The layoffs were of workers for Addison Construction, Best Construction, Jacobs-IMC, Longview Inspection, M&M Construction, Triangle Construction and Maintenance, and V.I. Industrial Maintenance Corp. Four other contractors who also had been covered by American International — CBI, St. Croix Basic Industries, Turner St. Croix Maintenance and Wyatt V.I. — were able to get new coverage for their operators through mainland affiliate companies, a Hovensa release said.
"Although four of the contractors have the word 'construction' in their name, none of them is under a contract to perform construction service," Alex A. Moorhead, Hovensa vice president for government affairs and community relations, said on Tuesday. "They were all providing primarily maintenance services to Hovensa, except Longview Inspection, which provides non-destructive testing of mechanical equipment. The immediate impact will be that work on several projects has been interrupted and certain clerical, janitorial and groundskeeping services will be unavailable."
Longview Inspection has now been successful in obtaining insurance, allowing its equipment inspectors to get back to work.
Leroy Mitchell, general manager for Triangle, said on Wednesday morning he was hopeful that an agreement on coverage could be reached within hours. "I'm very optimistic that either late today or tomorrow, we'll be close to an agreement," he said.
Triangle workers account for 350 of those laid off — pipe fitters, welders, sand blasters, carpenters and masons. Mitchell declined to name the potential insurer but described it as a local company. He said talks have been going on "for over a month."
Once agreement is reached, he said, Triangle management would notify its workers to return to their jobs. Asked about compensation for the time they have been off the job, he said, "I don't know about that. We'll be talking about that later. The first thing is getting them back in the gate."
Severance pay sought for one contractor's workers
According to lawyer Lee Rohn, she has filed a class-action lawsuit in Territorial Court claiming that Hovensa used the insurance situation as an excuse to lay off 450 employees of Jacobs-IMC three weeks in advance of the scheduled end of its contract with the refinery. Rohn said she charged that Hovensa denied the Jacobs-IMC workers some severance pay they were entitled to.
Because of a disagreement between Jacobs and refinery executives, Rohn said, a decision was made well in advance of the layoffs that its contractor would not be renewed. "They were going to lose their jobs, no matter what," she said. Moorhead said on Tuesday that Hovensa's contract with Jacobs expires on Sept. 27 and that Jacobs gave notice to its employees to that effect.
The lawsuit alleges that contractors in the past have acted as "labor brokers" for Hovensa, transferring groups of workers from one company to another as old contracts expired and new ones were created, and that those workers were assured of continuing benefits and seniority. But when the Jacobs-IMC workers were sent home on Sept. 12 instead of Sept. 30 as expected, Rohn said, Hovensa told them they were not entitled to any more benefits. And that, she said, violates the good faith and fair dealing provisions of V.I. labor law.
The lawsuit asks the court to order Hovensa to pay severance and punitive damages to the workers.
At a press conference held on Tuesday by Our Virgin Islands Labor Union, Terrence "Positive" Nelson, union president, called the abrupt layoffs an illegal lockout. "Hovensa is ultimately locking out their subcontractors," he said. "It is the union's perspective that this is all politics as big corporations — as they do — bully around small governments."
Our Virgin Islands represents unionized workers employed by Triangle and Addison. Nelson said the contractors were not properly notified what the consequences would be if Hovensa failed to secure replacement insurance. The union wants its workers to be compensated for lost wages. "Our union members want to be paid for their time out, because this is no fault of their own," he said. "And in the future, we would like for this type of activity to be handled more responsibly."
Regulatory officials comment
The territory's two top insurance officials also went public this week with their views of the Hovensa insurance crisis. Lt. Gov. Gerard Luz James II, whose position includes serving as the territory's commissioner of Banking and Insurance, and Maryleen Thomas, director of the Banking and Insurance Division, held a press conference on Monday.
In prepared remarks, James said it was apparent "that until last Thursday, no one outside of Hovensa seemed aware of or concerned about the loss of personal liability insurance."
He added, "If the subcontractors through Hovensa were timely informed of the decision not to renew the policy, it is reasonable to ask if the subcontractors took any steps to seek new carriers. None of the affected subcontractors contacted my office, and no insurance agent sought assistance on behalf of these subcontactors."
His conclusion, James said, is that "One must begin to wonder if the subcontractors were informed of this insurance difficulty prior to Thursday, Sept. 12."
In an interview on Tuesday, James said Hovensa had to know American International was going to terminate its policy at least 30 days in advance of the action. "What happened to Hovensa is they received notice on or about the 11th or 12th of August from their insurance carrier that they would discontinue the coverage," he said. Hovensa executives have not disputed this.
James also said he has no indication that any other company in the Virgin Islands is having a problem obtaining liability insurance, although the cost may be very high. Rohn and Nelson have suggested that if Hovensa is having problems getting coverage for its contractors, it is because of unsafe working conditions that have resulted in permanent disability for skilled workers making $25 to $30 an hour.
At the Monday press conference, Thomas said her division "is not required to take regulatory action on Hovensa's insurance situation … It is obvious that Hovensa does not need our assistance."
Thomas also commented on the wider issue of insurance availability. "We have heard that insurance companies do not want to come to or are leaving the territory because of our regulatory style," she said. "I challenge the persons who have made such statements to identify these companies." Division records, she said, "show that from July 1999 to present, 42 insurance companies (includes property and casualty and life and health companies) have applied for licenses or approval to conduct business in the terri tory."
Hundreds of court cases, most of them settled
Rohn said she handles at least 80 percent of workers' liability claims against the refinery and has taken at least 250 such cases to court against in the last 10 years, with most of them settled out of court. Last month, she said, she represented a worker who won a liability case in court with the jury awarding her client $1 million, although a negotiated settlement with the company after the trial resulted in a smaller award.
According to insurance industry executives, aggressive litigation and the excessive damages awarded by juries in the Virgin Islands is the reason that Hovensa can't get insurance. (See "Without tort reform, V.I. could be in big trouble".) "We have reached the point that few insurance companies are interested in writing in the Virgin Islands," David C. Ridgway, president of Marshall & Sterling Insurance, said. "For every $1 million collected in premiums, $10 million is paid out in settlements," Tom Fitzsimmons, president of St. Croix Insurance, said, adding that in the territory, insurance companies often opt to make excessive payments to avoid going to court.
According to Moorhead, American International had been providing coverage for three years. "No reason was given in the notice of non-renewal or in any other written communication," he said.
But he said American and "prospective carriers that have been contacted have expressed concern about the aggregate size of claims pending against the contractors." He added, "This has apparently overshadowed the fact that the rate of injuries among contractors in the refinery has declined in recent years."
Rohn, however, charged that "Hess is not a safe place to work." She said, "I probably get five calls a week from people who get injured at Hess by negligence."
(Hovensa is a joint venture of Hess Oil Virgin Islands Corp. and a V.I. subsidiary of Petroleos de Venezuela, the South American nation's giant state-owned oil company that supplies most of the crude oil processed at the St. Croix refinery.)
Nelson charged that problems occur because the refinery is generally understaffed and "sometimes there seems to be a rush to meet deadlines in projects." He added, "There are over 254 chemicals used there."
Refinery to reimburse companies that find carriers
Moorhead conceded there may not have been clear communication from the refinery about what contractors would be expected to do if efforts to obtain replacement insurance failed, and he said they should not be penalized for that. "If they secure the insurance on their own, we would have to reimburse," he said. "They don't have to dig into their profits to pay the cost for something they didn't have to pay for before."
But he denied that Hovensa either misrepresented or hid its situation. "We had a search made nationally and internationally in order to find replacement insurance," he said.
And, Moorhead said, "We are continuing to solicit proposals from insurance companies nationally and internationally. As soon as Hovensa secures a binder of adequate general and auto liability insurance covering the contractors who do not yet have such coverage, all the remaining contractors will be allowed to resume work in the refinery. Alternatively, if an individual contractor secures such a binder of insurance covering its own employees, that contractor will be allowed to resume work in the refinery."
Rohn said a new problem for the contractors may be one of finding liability coverage at a cost Hovensa will find acceptable. She said Hovensa has already turned down as too expensive some insurance estimates presented by contractors.
"So far as I know, that is not the case," Moorhead said. Costs will be a factor, he said, but individual agreements with the companies will be reached through negotiations.
Hovensa is asking its contractors to provide liability coverage of up to $5 million for any single incident resulting in worker injury or death and $10 million for the life of the policy, he said.
Nelson and Rohn say the timing of the insurance crisis is suspect, suggesting it was planned to coincide with Gov. Charles W. Turnbull's consideration of the Omnibus Act of 2003, part of the territory's budget for the coming fiscal year, which begins on Oct. 1. The voluminous bill, passed by the Legislature on Aug. 28, contains a provision restricting the circumstances under which binding arbitration may be used to resolve labor-management disputes.
The provision apparently is directed against Hovensa, which as of July 1 began requiring applicants for non-union positions to agree in writing to have disputes resolved by arbitration. It instituted the policy after a similar requirement implemented by one its contractors, Wyatt V.I., was upheld in District Court. (See "Hovensa hires now must sign arbitration pact".)
Moorhead has issued public statements warning that the arbitration provision of the Omnibus Act would be rejected in court as a violation of the Federal Arbitration Act.
Last weekend, Rohn placed a full-page advertisement in a local print newspaper disputing Moorhead's claims and challenging the validity of Hovensa making agreement to have labor disputes resolved by arbitration a condition of employment. Moorhead responded on Monday, calling Rohn's statements "blatantly false."
Turnbull has not yet acted on the Omnibus bill or other FY 2003 budget bills on his desk.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
And Hovensa has disputed statements made about the layoffs and about the refinery's recently adopted policy requiring new non-union hires to agree to binding arbitration of disputes between workers and management.
Some 800 workers employed by the seven Hovensa contractors were taken off the job as of midnight last Thursday when their personal injury liability insurance coverage from American International Insurance Co. of Puerto Rico expired.
Hovensa announced the furloughs on Thursday evening, saying the insurance company had given advance notice of its intention not to renew the policy, but that, despite extensive efforts over several weeks, Hovensa had been unable to secure replacement coverage.
The layoffs were of workers for Addison Construction, Best Construction, Jacobs-IMC, Longview Inspection, M&M Construction, Triangle Construction and Maintenance, and V.I. Industrial Maintenance Corp. Four other contractors who also had been covered by American International — CBI, St. Croix Basic Industries, Turner St. Croix Maintenance and Wyatt V.I. — were able to get new coverage for their operators through mainland affiliate companies, a Hovensa release said.
"Although four of the contractors have the word 'construction' in their name, none of them is under a contract to perform construction service," Alex A. Moorhead, Hovensa vice president for government affairs and community relations, said on Tuesday. "They were all providing primarily maintenance services to Hovensa, except Longview Inspection, which provides non-destructive testing of mechanical equipment. The immediate impact will be that work on several projects has been interrupted and certain clerical, janitorial and groundskeeping services will be unavailable."
Longview Inspection has now been successful in obtaining insurance, allowing its equipment inspectors to get back to work.
Leroy Mitchell, general manager for Triangle, said on Wednesday morning he was hopeful that an agreement on coverage could be reached within hours. "I'm very optimistic that either late today or tomorrow, we'll be close to an agreement," he said.
Triangle workers account for 350 of those laid off — pipe fitters, welders, sand blasters, carpenters and masons. Mitchell declined to name the potential insurer but described it as a local company. He said talks have been going on "for over a month."
Once agreement is reached, he said, Triangle management would notify its workers to return to their jobs. Asked about compensation for the time they have been off the job, he said, "I don't know about that. We'll be talking about that later. The first thing is getting them back in the gate."
Severance pay sought for one contractor's workers
According to lawyer Lee Rohn, she has filed a class-action lawsuit in Territorial Court claiming that Hovensa used the insurance situation as an excuse to lay off 450 employees of Jacobs-IMC three weeks in advance of the scheduled end of its contract with the refinery. Rohn said she charged that Hovensa denied the Jacobs-IMC workers some severance pay they were entitled to.
Because of a disagreement between Jacobs and refinery executives, Rohn said, a decision was made well in advance of the layoffs that its contractor would not be renewed. "They were going to lose their jobs, no matter what," she said. Moorhead said on Tuesday that Hovensa's contract with Jacobs expires on Sept. 27 and that Jacobs gave notice to its employees to that effect.
The lawsuit alleges that contractors in the past have acted as "labor brokers" for Hovensa, transferring groups of workers from one company to another as old contracts expired and new ones were created, and that those workers were assured of continuing benefits and seniority. But when the Jacobs-IMC workers were sent home on Sept. 12 instead of Sept. 30 as expected, Rohn said, Hovensa told them they were not entitled to any more benefits. And that, she said, violates the good faith and fair dealing provisions of V.I. labor law.
The lawsuit asks the court to order Hovensa to pay severance and punitive damages to the workers.
At a press conference held on Tuesday by Our Virgin Islands Labor Union, Terrence "Positive" Nelson, union president, called the abrupt layoffs an illegal lockout. "Hovensa is ultimately locking out their subcontractors," he said. "It is the union's perspective that this is all politics as big corporations — as they do — bully around small governments."
Our Virgin Islands represents unionized workers employed by Triangle and Addison. Nelson said the contractors were not properly notified what the consequences would be if Hovensa failed to secure replacement insurance. The union wants its workers to be compensated for lost wages. "Our union members want to be paid for their time out, because this is no fault of their own," he said. "And in the future, we would like for this type of activity to be handled more responsibly."
Regulatory officials comment
The territory's two top insurance officials also went public this week with their views of the Hovensa insurance crisis. Lt. Gov. Gerard Luz James II, whose position includes serving as the territory's commissioner of Banking and Insurance, and Maryleen Thomas, director of the Banking and Insurance Division, held a press conference on Monday.
In prepared remarks, James said it was apparent "that until last Thursday, no one outside of Hovensa seemed aware of or concerned about the loss of personal liability insurance."
He added, "If the subcontractors through Hovensa were timely informed of the decision not to renew the policy, it is reasonable to ask if the subcontractors took any steps to seek new carriers. None of the affected subcontractors contacted my office, and no insurance agent sought assistance on behalf of these subcontactors."
His conclusion, James said, is that "One must begin to wonder if the subcontractors were informed of this insurance difficulty prior to Thursday, Sept. 12."
In an interview on Tuesday, James said Hovensa had to know American International was going to terminate its policy at least 30 days in advance of the action. "What happened to Hovensa is they received notice on or about the 11th or 12th of August from their insurance carrier that they would discontinue the coverage," he said. Hovensa executives have not disputed this.
James also said he has no indication that any other company in the Virgin Islands is having a problem obtaining liability insurance, although the cost may be very high. Rohn and Nelson have suggested that if Hovensa is having problems getting coverage for its contractors, it is because of unsafe working conditions that have resulted in permanent disability for skilled workers making $25 to $30 an hour.
At the Monday press conference, Thomas said her division "is not required to take regulatory action on Hovensa's insurance situation … It is obvious that Hovensa does not need our assistance."
Thomas also commented on the wider issue of insurance availability. "We have heard that insurance companies do not want to come to or are leaving the territory because of our regulatory style," she said. "I challenge the persons who have made such statements to identify these companies." Division records, she said, "show that from July 1999 to present, 42 insurance companies (includes property and casualty and life and health companies) have applied for licenses or approval to conduct business in the terri tory."
Hundreds of court cases, most of them settled
Rohn said she handles at least 80 percent of workers' liability claims against the refinery and has taken at least 250 such cases to court against in the last 10 years, with most of them settled out of court. Last month, she said, she represented a worker who won a liability case in court with the jury awarding her client $1 million, although a negotiated settlement with the company after the trial resulted in a smaller award.
According to insurance industry executives, aggressive litigation and the excessive damages awarded by juries in the Virgin Islands is the reason that Hovensa can't get insurance. (See "Without tort reform, V.I. could be in big trouble".) "We have reached the point that few insurance companies are interested in writing in the Virgin Islands," David C. Ridgway, president of Marshall & Sterling Insurance, said. "For every $1 million collected in premiums, $10 million is paid out in settlements," Tom Fitzsimmons, president of St. Croix Insurance, said, adding that in the territory, insurance companies often opt to make excessive payments to avoid going to court.
According to Moorhead, American International had been providing coverage for three years. "No reason was given in the notice of non-renewal or in any other written communication," he said.
But he said American and "prospective carriers that have been contacted have expressed concern about the aggregate size of claims pending against the contractors." He added, "This has apparently overshadowed the fact that the rate of injuries among contractors in the refinery has declined in recent years."
Rohn, however, charged that "Hess is not a safe place to work." She said, "I probably get five calls a week from people who get injured at Hess by negligence."
(Hovensa is a joint venture of Hess Oil Virgin Islands Corp. and a V.I. subsidiary of Petroleos de Venezuela, the South American nation's giant state-owned oil company that supplies most of the crude oil processed at the St. Croix refinery.)
Nelson charged that problems occur because the refinery is generally understaffed and "sometimes there seems to be a rush to meet deadlines in projects." He added, "There are over 254 chemicals used there."
Refinery to reimburse companies that find carriers
Moorhead conceded there may not have been clear communication from the refinery about what contractors would be expected to do if efforts to obtain replacement insurance failed, and he said they should not be penalized for that. "If they secure the insurance on their own, we would have to reimburse," he said. "They don't have to dig into their profits to pay the cost for something they didn't have to pay for before."
But he denied that Hovensa either misrepresented or hid its situation. "We had a search made nationally and internationally in order to find replacement insurance," he said.
And, Moorhead said, "We are continuing to solicit proposals from insurance companies nationally and internationally. As soon as Hovensa secures a binder of adequate general and auto liability insurance covering the contractors who do not yet have such coverage, all the remaining contractors will be allowed to resume work in the refinery. Alternatively, if an individual contractor secures such a binder of insurance covering its own employees, that contractor will be allowed to resume work in the refinery."
Rohn said a new problem for the contractors may be one of finding liability coverage at a cost Hovensa will find acceptable. She said Hovensa has already turned down as too expensive some insurance estimates presented by contractors.
"So far as I know, that is not the case," Moorhead said. Costs will be a factor, he said, but individual agreements with the companies will be reached through negotiations.
Hovensa is asking its contractors to provide liability coverage of up to $5 million for any single incident resulting in worker injury or death and $10 million for the life of the policy, he said.
Nelson and Rohn say the timing of the insurance crisis is suspect, suggesting it was planned to coincide with Gov. Charles W. Turnbull's consideration of the Omnibus Act of 2003, part of the territory's budget for the coming fiscal year, which begins on Oct. 1. The voluminous bill, passed by the Legislature on Aug. 28, contains a provision restricting the circumstances under which binding arbitration may be used to resolve labor-management disputes.
The provision apparently is directed against Hovensa, which as of July 1 began requiring applicants for non-union positions to agree in writing to have disputes resolved by arbitration. It instituted the policy after a similar requirement implemented by one its contractors, Wyatt V.I., was upheld in District Court. (See "Hovensa hires now must sign arbitration pact".)
Moorhead has issued public statements warning that the arbitration provision of the Omnibus Act would be rejected in court as a violation of the Federal Arbitration Act.
Last weekend, Rohn placed a full-page advertisement in a local print newspaper disputing Moorhead's claims and challenging the validity of Hovensa making agreement to have labor disputes resolved by arbitration a condition of employment. Moorhead responded on Monday, calling Rohn's statements "blatantly false."
Turnbull has not yet acted on the Omnibus bill or other FY 2003 budget bills on his desk.
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ELECTION EVENT CALENDAR 2002
SUPERVISOR OF ELECTIONS: John Abramson Jr.
ELECTION SYSTEM OFFICES:
On St. Croix: #4 Sunny Isle Shopping Center (Annex), Christiansted.
P.O. Box 1499, Kingshill, St. Croix, U.S. Virgin Islands 00851-1499
Telephone (809) 773-1021 / Fax (809) 773-4523
Office Hours: 8 a.m.-5 p.m. Monday-Friday
Registration Hours: 9 a.m.-4 p.m. Monday-Friday
On St. Thomas:#22 Crystal Gade (two streets north of and parallel to Main Street), Charlotte Amalie.
P.O. Box 6038, St. Thomas, U.S. Virgin Islands 00801-6038
Telephone(809) 774-3107 / Fax (809) 776-2391
Office Hours: 8 a.m.-5 p.m. Monday-Friday
Registration Hours: 9a.m.-4 p.m. Monday-Friday
On St. John:The Battery, Cruz Bay.
P.O. Box 6038, St. Thomas, U.S. Virgin Islands 00801-6038
Telephone (809) 776-6535 / Fax (809) 776-2391
Office Hours: 9 a.m. to 4 p.m. Tuesday and Thursday
Registration Hours: 9 a.m. to 4 p.m. Tuesday and Thursday
JANUARY 15, 2002
"Notice of Registration" published monthly notifying general public of the times and places fixed by the board for registration in each election district, notices shall be in Spanish and English (18 VIC 96(a))
MARCH 15, 2002
Prepare and publish at least twice prior to June 15 election year calendar. (18 VIC Sec 4(b)(10)).
JUNE 9, 2002
First day to receive application for absentee ballots for primary election. (Note: This is a Sunday)
JUNE 30, 2002
The District Boards of Elections prepare and submit an annual report to the Supervisor of Elections. (18 VIC Sec 47(11)) (Note: This is a Sunday)
JULY 1, 2002
Forms for filing nomination petitions / papers available at all Election System Offices.
JULY 15, 2002
First day to circulate nomination petitions / papers. (18 VIC 345(d))
AUGUST 6, 2002
First day on which nomination petitions / papers may be filed, after 12:00 noon. (18 VIC 410)
AUGUST 13, 2002
LAST DAY to file nomination petitions / papers, 5:00 p.m. (18 VIC 410)
AUGUST 15, 2002
Last day for registration. (18 VIC 94)
AUGUST 15, 2002
First day for examination of voting machines and instruction in use of electronic voting machines. (18 VIC 504)
AUGUST 15, 2002
Last day to investigate all questions relating to registration of electors. (18 VIC 92(1)
AUGUST 15, 2002
Last day for changes of enrollment of political party and cancellation of party enrollment. (18 VIC 108)
AUGUST 15, 2002
Deadline for persons whose application to be registered has been denied to petition the Board of Elections for review of the matter. (18 VIC 103)
AUGUST 15, 2002
Deadline for qualified electors to petition the Boards of Elections to cancel the registration of any registered elector for cause shown. (18 VIC 113)
AUGUST 15, 2002
Appointment of election officers (18 VIC 151(a))
AUGUST 15, 2002
Deadline for receipt of removal notices and transfer of registration. (18 VIC 106 & 107)
AUGUST 18, 2002
Deadline for withdrawal of nominated candidates. (18 VIC 413). (Note: This is a Sunday)
AUGUST 21, 2002
Casting of lots for position of names upon the official primary ballot. (18 VIC 351)
AUGUST 21, 2002
Deadline for receipt in writing by the Supervisor of Elections of their shortened form on which candidates whose name contains more than twenty-two (22) letters should be listed in the ballot. (18 VIC 501)
AUGUST 21, 2002
Deadline for candidates for the same office with similar last surnames to request in writing that the occupation or residence be printed opposite his/her name on the ballot. (18 VIC 511).
AUGUST 23, 2002
Notice of primary election due. (18 VIC 551)
Certification of nominees by the Supervisor of Elections (18 VIC 420)
AUGUST 28, 2002
Deadline for filing substitute nomination certificates and papers. (18 VIC 416)
SEPTEMBER 3, 2002
Last day for examination of voting machines and instruction in use of electronic voting machines. (18 VIC 504).
SEPTEMBER 3, 2002
Deadline for receipt by the Supervisor of Election of applications for absentee ballots for the primary election. (18 VIC 664)
SEPTEMBER 6, 2002
First day to receive application for absentee ballots for the general election.
SEPTEMBER 9, 2002
Deadline for appeals to the District Court by persons whose claim for registration were denied or whose previous registration was canceled and who has exhausted all administrative remedies. (18 VIC 119)
SEPTEMBER 9, 2002
Testing of electronic voting machines and tabulating equipment, certification by Boards. This event is open to the general public and the media. (18 VIC 506)
SEPTEMBER 14, 2002
Primary election day. (18 VIC 232)
SEPTEMBER 16, 2002
Casting of lots for position of names upon the official election ballot. (18 VIC 419)
SEPTEMBER 19, 2002
Deadline for political parties to submit to the Supervisor of Election a party emblem to be entered on the format of the ballot as it shall appear on the electronic voting machine. (18 VIC 491)
SEPTEMBER 19, 2002
Registrars in the Election System of the Virgin Islands, commence registration. (18 VIC 91)
SEPTEMBER 19, 2002
In case of a tie vote at the primary election, the candidate receiving the tie vote shall cast lots before the Supervisor of Election at 12:00 noon. (18 VIC 358)
OCTOBER 6, 2002
Last day for registration. (18 VIC 94) (Note: This is a Sunday)
OCTOBER 6, 2002
First day for examination of voting machines and instruction in use of electronic voting machines. (18 VIC 504) (Note: This is a Sunday)
OCTOBER 6, 2002
Last day to investigate all questions relating to registration of electors. (18 VIC 92(1)) (Note: This is a Sunday)
OCTOBER 6, 2002
Deadline for receipt of removal notices and transfer of registration. (18 VIC 106 & 107) (Note: This is a Sunday)
OCTOBER 6, 2002
Last day for change of enrollment of political party and cancellation of party enrollment. (18 VIC 108) (Note: This is a Sunday)
OCTOBER 11, 2002
Deadline for persons whose application to be registered has been denied to petition the Board of Elections for review of the matter. (18 VIC 103)
OCTOBER 11, 2002
Appointment of election officers (18 VIC 151(a))
OCTOBER 11, 2002
Deadline for qualified electors to petition the Boards of Elections to cancel the registration of any registered elector for cause shown. (18 VIC 113)
OCTOBER 14, 2002
Official public notice of general election due. (18 VIC 551)
OCTOBER 16, 2002
Last day for examination of voting machines and instruction in use of electronic voting machines. (18 VIC 504)
OCTOBER 17, 2002
Deadline for receipt by the Supervisor of Election of applications for absentee ballots for the general election. (18 VIC 664)
OCTOBER 21, 2002
Deadline for appeals to the District Court by persons whose claim for registration were denied or whose previous registration was canceled and who has exhausted all administrative remedies. (18 VIC 119)
OCTOBER 21, 2002
Testing of electronic voting machines and tabulating equipment, certification by Boards. This event is open to the general public and media. (18 VIC 506)
NOVEMBER 5, 2002
General election day. (18 VIC 231)
NOVEMBER 19, 2002
Run-off election day if needed. (Revised Organic Act of 1954, Sec., 11 re: Gov.-Lt Gov.; P.L. 92-271 re: Delegate to House of Representatives)
NOVEMBER 24, 2002
Registrars in the Election System of the Virgin Islands, commence registration. (18 VIC 91) (Note: This is a Sunday)
ELECTION SYSTEM OFFICES:
On St. Croix: #4 Sunny Isle Shopping Center (Annex), Christiansted.
P.O. Box 1499, Kingshill, St. Croix, U.S. Virgin Islands 00851-1499
Telephone (809) 773-1021 / Fax (809) 773-4523
Office Hours: 8 a.m.-5 p.m. Monday-Friday
Registration Hours: 9 a.m.-4 p.m. Monday-Friday
On St. Thomas:#22 Crystal Gade (two streets north of and parallel to Main Street), Charlotte Amalie.
P.O. Box 6038, St. Thomas, U.S. Virgin Islands 00801-6038
Telephone(809) 774-3107 / Fax (809) 776-2391
Office Hours: 8 a.m.-5 p.m. Monday-Friday
Registration Hours: 9a.m.-4 p.m. Monday-Friday
On St. John:The Battery, Cruz Bay.
P.O. Box 6038, St. Thomas, U.S. Virgin Islands 00801-6038
Telephone (809) 776-6535 / Fax (809) 776-2391
Office Hours: 9 a.m. to 4 p.m. Tuesday and Thursday
Registration Hours: 9 a.m. to 4 p.m. Tuesday and Thursday
JANUARY 15, 2002
"Notice of Registration" published monthly notifying general public of the times and places fixed by the board for registration in each election district, notices shall be in Spanish and English (18 VIC 96(a))
MARCH 15, 2002
Prepare and publish at least twice prior to June 15 election year calendar. (18 VIC Sec 4(b)(10)).
JUNE 9, 2002
First day to receive application for absentee ballots for primary election. (Note: This is a Sunday)
JUNE 30, 2002
The District Boards of Elections prepare and submit an annual report to the Supervisor of Elections. (18 VIC Sec 47(11)) (Note: This is a Sunday)
JULY 1, 2002
Forms for filing nomination petitions / papers available at all Election System Offices.
JULY 15, 2002
First day to circulate nomination petitions / papers. (18 VIC 345(d))
AUGUST 6, 2002
First day on which nomination petitions / papers may be filed, after 12:00 noon. (18 VIC 410)
AUGUST 13, 2002
LAST DAY to file nomination petitions / papers, 5:00 p.m. (18 VIC 410)
AUGUST 15, 2002
Last day for registration. (18 VIC 94)
AUGUST 15, 2002
First day for examination of voting machines and instruction in use of electronic voting machines. (18 VIC 504)
AUGUST 15, 2002
Last day to investigate all questions relating to registration of electors. (18 VIC 92(1)
AUGUST 15, 2002
Last day for changes of enrollment of political party and cancellation of party enrollment. (18 VIC 108)
AUGUST 15, 2002
Deadline for persons whose application to be registered has been denied to petition the Board of Elections for review of the matter. (18 VIC 103)
AUGUST 15, 2002
Deadline for qualified electors to petition the Boards of Elections to cancel the registration of any registered elector for cause shown. (18 VIC 113)
AUGUST 15, 2002
Appointment of election officers (18 VIC 151(a))
AUGUST 15, 2002
Deadline for receipt of removal notices and transfer of registration. (18 VIC 106 & 107)
AUGUST 18, 2002
Deadline for withdrawal of nominated candidates. (18 VIC 413). (Note: This is a Sunday)
AUGUST 21, 2002
Casting of lots for position of names upon the official primary ballot. (18 VIC 351)
AUGUST 21, 2002
Deadline for receipt in writing by the Supervisor of Elections of their shortened form on which candidates whose name contains more than twenty-two (22) letters should be listed in the ballot. (18 VIC 501)
AUGUST 21, 2002
Deadline for candidates for the same office with similar last surnames to request in writing that the occupation or residence be printed opposite his/her name on the ballot. (18 VIC 511).
AUGUST 23, 2002
Notice of primary election due. (18 VIC 551)
Certification of nominees by the Supervisor of Elections (18 VIC 420)
AUGUST 28, 2002
Deadline for filing substitute nomination certificates and papers. (18 VIC 416)
SEPTEMBER 3, 2002
Last day for examination of voting machines and instruction in use of electronic voting machines. (18 VIC 504).
SEPTEMBER 3, 2002
Deadline for receipt by the Supervisor of Election of applications for absentee ballots for the primary election. (18 VIC 664)
SEPTEMBER 6, 2002
First day to receive application for absentee ballots for the general election.
SEPTEMBER 9, 2002
Deadline for appeals to the District Court by persons whose claim for registration were denied or whose previous registration was canceled and who has exhausted all administrative remedies. (18 VIC 119)
SEPTEMBER 9, 2002
Testing of electronic voting machines and tabulating equipment, certification by Boards. This event is open to the general public and the media. (18 VIC 506)
SEPTEMBER 14, 2002
Primary election day. (18 VIC 232)
SEPTEMBER 16, 2002
Casting of lots for position of names upon the official election ballot. (18 VIC 419)
SEPTEMBER 19, 2002
Deadline for political parties to submit to the Supervisor of Election a party emblem to be entered on the format of the ballot as it shall appear on the electronic voting machine. (18 VIC 491)
SEPTEMBER 19, 2002
Registrars in the Election System of the Virgin Islands, commence registration. (18 VIC 91)
SEPTEMBER 19, 2002
In case of a tie vote at the primary election, the candidate receiving the tie vote shall cast lots before the Supervisor of Election at 12:00 noon. (18 VIC 358)
OCTOBER 6, 2002
Last day for registration. (18 VIC 94) (Note: This is a Sunday)
OCTOBER 6, 2002
First day for examination of voting machines and instruction in use of electronic voting machines. (18 VIC 504) (Note: This is a Sunday)
OCTOBER 6, 2002
Last day to investigate all questions relating to registration of electors. (18 VIC 92(1)) (Note: This is a Sunday)
OCTOBER 6, 2002
Deadline for receipt of removal notices and transfer of registration. (18 VIC 106 & 107) (Note: This is a Sunday)
OCTOBER 6, 2002
Last day for change of enrollment of political party and cancellation of party enrollment. (18 VIC 108) (Note: This is a Sunday)
OCTOBER 11, 2002
Deadline for persons whose application to be registered has been denied to petition the Board of Elections for review of the matter. (18 VIC 103)
OCTOBER 11, 2002
Appointment of election officers (18 VIC 151(a))
OCTOBER 11, 2002
Deadline for qualified electors to petition the Boards of Elections to cancel the registration of any registered elector for cause shown. (18 VIC 113)
OCTOBER 14, 2002
Official public notice of general election due. (18 VIC 551)
OCTOBER 16, 2002
Last day for examination of voting machines and instruction in use of electronic voting machines. (18 VIC 504)
OCTOBER 17, 2002
Deadline for receipt by the Supervisor of Election of applications for absentee ballots for the general election. (18 VIC 664)
OCTOBER 21, 2002
Deadline for appeals to the District Court by persons whose claim for registration were denied or whose previous registration was canceled and who has exhausted all administrative remedies. (18 VIC 119)
OCTOBER 21, 2002
Testing of electronic voting machines and tabulating equipment, certification by Boards. This event is open to the general public and media. (18 VIC 506)
NOVEMBER 5, 2002
General election day. (18 VIC 231)
NOVEMBER 19, 2002
Run-off election day if needed. (Revised Organic Act of 1954, Sec., 11 re: Gov.-Lt Gov.; P.L. 92-271 re: Delegate to House of Representatives)
NOVEMBER 24, 2002
Registrars in the Election System of the Virgin Islands, commence registration. (18 VIC 91) (Note: This is a Sunday)
SOURCE IS THANKED FOR UP-TO-DATE V.I. NEWS
Dear Source,
I would like to personally thank St. Thomas Source for its online publication of up-to-date news in the Virgin Islands. I am a St. Thomian who has relocated to the mainland.
Every week I log on to The Source to get updated information as to happenings in the Virgin Islands. Although I have moved away from home, I still stay informed as to what goes on in my native land.
Edward Lake
Silver Spring, Md.
We welcome and encourage readers to keep the dialogue going by responding to Source commentary. Letters should be e-mailed with name and place of residence to source@viaccess.net.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
I would like to personally thank St. Thomas Source for its online publication of up-to-date news in the Virgin Islands. I am a St. Thomian who has relocated to the mainland.
Every week I log on to The Source to get updated information as to happenings in the Virgin Islands. Although I have moved away from home, I still stay informed as to what goes on in my native land.
Edward Lake
Silver Spring, Md.
We welcome and encourage readers to keep the dialogue going by responding to Source commentary. Letters should be e-mailed with name and place of residence to source@viaccess.net.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
VOTER REGISTRATION RESUMES
Voter registration begins again, following suspension during the primary election time.
Oct. 6 is the last day to register to vote in the general election.
Oct. 6 is the last day to register to vote in the general election.
VOTER REGISTRATION RESUMES
Voter registration begins again on Sept. 19, following suspension during the primary election time.
Oct. 6 is the last day to register to vote in the general election.
Oct. 6 is the last day to register to vote in the general election.
TRASH HAULERS BACK TO WORK – CONDITIONALLY
Sept. 18, 2002 – St. Croix trash haulers were back on the job Wednesday after a two-day work stoppage stemming from the Public Works Department's failure to pay for collection services since the end of July.
The Senate Finance Committee, in response to earlier talks of an impending strike, voted on Tuesday for a plan to come up with the cash needed to keep mounds of garbage around the island from growing.
The committee's strategy turned out to be the same one it had rejected on Sept. 4 — thus fueling the work stoppage: an appropriation transfer of almost $1 million from a utilities fund within Public Works to another fund that would facilitate making payments to the St. Croix and St. Thomas haulers.
On Sept. 4, Sen. Alicia Hansen, the committee chair, and Sen. Norma Pickard-Samuel voted against DPW's request for the funds transfer after finding that at least part of the money in the utilities fund was earmarked for street light repairs. Sens. Norman Jn Baptiste and Carlton Dowe voted in favor of the motion, and Sen. Donald "Ducks" Cole abstained.
"I made a motion to approve [the transfer] then, and I don't regret it," Dowe said Tuesday, according to The Avis. "It was a personal decision as to whether or not we're going to do what is happening now and allow the garbage to pile up. It was right two weeks ago, and it's right today."
The 24th Legislature transferred responsibility for the territory's street light maintenance from Public Works to the Water and Power Authority last year. However, much needed maintenance work has gone undone, as money appropriated to help start up the initiative has yet to be released.
Hansen said the Finance Committee met extensively with DPW officials in efforts to find alternative funding for the garbage haulers but concluded that the only solution was to take $1 million from the utilities fund.
"Everyone in this community knows we have a crisis with street lighting," Hansen said.
"Darkness breeds crime. But we agreed that the $1 million will not affect the street lighting funding."
Hansen, along with Finance Commissioner Bernice Turnbull and Ira Mills, director of the Office of Management and Budget, assured the garbage haulers their checks will be cut by Friday.
She said the funding was upped by more than $80,000 to guard against a shortfall next year.
Public Works Commissioner Wayne Callwood said the lag in payments came about because only $4.9 million of the $6.4 million DPW requested last year to cover trash collection costs was allotted.
Even after it was apparent the haulers could expect payment this week, there was a question as to whether they would return to work. The government owes the island's four contracted trash collection companies an accumulated debt of around $775,000 for services in years past.
Fergutrax owner Dwayne Fergus, who oversees collections at the Anguilla landfill, is owed the bulk of that debt — $649,000 for services since 2000.
Fergus said he wants a note "with some good signatures" from government officials that would prove to tax collectors and those he owes that the money is on its way.
Gary Thomas, owner of Paradise Waste, pointed out that even though the government owes some of them money from as much as six years ago, the companies get no interest or tax breaks on the debt. In contrast, he noted, "Whenever the haulers owe the V.I. government money, they are assessed penalties and interest."
James Bates of Bates Trucking told the committee the haulers were prepared to go back on the job Wednesday — conditionally. "We agree to go back to work with the money you paid us here today," he said. But, he added, by the end of September, they expect to see another Senate committee session that will spell out when the old debts will be paid.
Lloyd Daniel, owner of Dan's Trucking, stressed that the haulers' strike was not politically motivated. "We're not political," he said. "We would like to think our purpose is trash collecting."
Hansen pledged her commitment to come up with money to clear up the debt, noting that she has some ideas. "I already think in my mind where it can come from, but we'll have to analyze it well," she said, adding, "I don't see another dime coming from within Public Works."
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
The Senate Finance Committee, in response to earlier talks of an impending strike, voted on Tuesday for a plan to come up with the cash needed to keep mounds of garbage around the island from growing.
The committee's strategy turned out to be the same one it had rejected on Sept. 4 — thus fueling the work stoppage: an appropriation transfer of almost $1 million from a utilities fund within Public Works to another fund that would facilitate making payments to the St. Croix and St. Thomas haulers.
On Sept. 4, Sen. Alicia Hansen, the committee chair, and Sen. Norma Pickard-Samuel voted against DPW's request for the funds transfer after finding that at least part of the money in the utilities fund was earmarked for street light repairs. Sens. Norman Jn Baptiste and Carlton Dowe voted in favor of the motion, and Sen. Donald "Ducks" Cole abstained.
"I made a motion to approve [the transfer] then, and I don't regret it," Dowe said Tuesday, according to The Avis. "It was a personal decision as to whether or not we're going to do what is happening now and allow the garbage to pile up. It was right two weeks ago, and it's right today."
The 24th Legislature transferred responsibility for the territory's street light maintenance from Public Works to the Water and Power Authority last year. However, much needed maintenance work has gone undone, as money appropriated to help start up the initiative has yet to be released.
Hansen said the Finance Committee met extensively with DPW officials in efforts to find alternative funding for the garbage haulers but concluded that the only solution was to take $1 million from the utilities fund.
"Everyone in this community knows we have a crisis with street lighting," Hansen said.
"Darkness breeds crime. But we agreed that the $1 million will not affect the street lighting funding."
Hansen, along with Finance Commissioner Bernice Turnbull and Ira Mills, director of the Office of Management and Budget, assured the garbage haulers their checks will be cut by Friday.
She said the funding was upped by more than $80,000 to guard against a shortfall next year.
Public Works Commissioner Wayne Callwood said the lag in payments came about because only $4.9 million of the $6.4 million DPW requested last year to cover trash collection costs was allotted.
Even after it was apparent the haulers could expect payment this week, there was a question as to whether they would return to work. The government owes the island's four contracted trash collection companies an accumulated debt of around $775,000 for services in years past.
Fergutrax owner Dwayne Fergus, who oversees collections at the Anguilla landfill, is owed the bulk of that debt — $649,000 for services since 2000.
Fergus said he wants a note "with some good signatures" from government officials that would prove to tax collectors and those he owes that the money is on its way.
Gary Thomas, owner of Paradise Waste, pointed out that even though the government owes some of them money from as much as six years ago, the companies get no interest or tax breaks on the debt. In contrast, he noted, "Whenever the haulers owe the V.I. government money, they are assessed penalties and interest."
James Bates of Bates Trucking told the committee the haulers were prepared to go back on the job Wednesday — conditionally. "We agree to go back to work with the money you paid us here today," he said. But, he added, by the end of September, they expect to see another Senate committee session that will spell out when the old debts will be paid.
Lloyd Daniel, owner of Dan's Trucking, stressed that the haulers' strike was not politically motivated. "We're not political," he said. "We would like to think our purpose is trash collecting."
Hansen pledged her commitment to come up with money to clear up the debt, noting that she has some ideas. "I already think in my mind where it can come from, but we'll have to analyze it well," she said, adding, "I don't see another dime coming from within Public Works."
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
TRASH HAULERS BACK TO WORK – CONDITIONALLY
Sept. 18, 2002 – St. Croix trash haulers were back on the job Wednesday after a two-day work stoppage stemming from the Public Works Department's failure to pay for collection services since the end of July.
The Senate Finance Committee, in response to earlier talks of an impending strike, voted on Tuesday for a plan to come up with the cash needed to keep mounds of garbage around the island from growing.
The committee's strategy turned out to be the same one it had rejected on Sept. 4 — thus fueling the work stoppage: an appropriation transfer of almost $1 million from a utilities fund within Public Works to another fund that would facilitate making payments to the St. Croix and St. Thomas haulers.
On Sept. 4, Sen. Alicia Hansen, the committee chair, and Sen. Norma Pickard-Samuel voted against DPW's request for the funds transfer after finding that at least part of the money in the utilities fund was earmarked for street light repairs. Sens. Norman Jn Baptiste and Carlton Dowe voted in favor of the motion, and Sen. Donald "Ducks" Cole abstained.
"I made a motion to approve [the transfer] then, and I don't regret it," Dowe said Tuesday, according to The Avis. "It was a personal decision as to whether or not we're going to do what is happening now and allow the garbage to pile up. It was right two weeks ago, and it's right today."
The 24th Legislature transferred responsibility for the territory's street light maintenance from Public Works to the Water and Power Authority last year. However, much needed maintenance work has gone undone, as money appropriated to help start up the initiative has yet to be released.
Hansen said the Finance Committee met extensively with DPW officials in efforts to find alternative funding for the garbage haulers but concluded that the only solution was to take $1 million from the utilities fund.
"Everyone in this community knows we have a crisis with street lighting," Hansen said.
"Darkness breeds crime. But we agreed that the $1 million will not affect the street lighting funding."
Hansen, along with Finance Commissioner Bernice Turnbull and Ira Mills, director of the Office of Management and Budget, assured the garbage haulers their checks will be cut by Friday.
She said the funding was upped by more than $80,000 to guard against a shortfall next year.
Public Works Commissioner Wayne Callwood said the lag in payments came about because only $4.9 million of the $6.4 million DPW requested last year to cover trash collection costs was allotted.
Even after it was apparent the haulers could expect payment this week, there was a question as to whether they would return to work. The government owes the island's four contracted trash collection companies an accumulated debt of around $775,000 for services in years past.
Fergutrax owner Dwayne Fergus, who oversees collections at the Anguilla landfill, is owed the bulk of that debt — $649,000 for services since 2000.
Fergus said he wants a note "with some good signatures" from government officials that would prove to tax collectors and those he owes that the money is on its way.
Gary Thomas, owner of Paradise Waste, pointed out that even though the government owes some of them money from as much as six years ago, the companies get no interest or tax breaks on the debt. In contrast, he noted, "Whenever the haulers owe the V.I. government money, they are assessed penalties and interest."
James Bates of Bates Trucking told the committee the haulers were prepared to go back on the job Wednesday — conditionally. "We agree to go back to work with the money you paid us here today," he said. But, he added, by the end of September, they expect to see another Senate committee session that will spell out when the old debts will be paid.
Lloyd Daniel, owner of Dan's Trucking, stressed that the haulers' strike was not politically motivated. "We're not political," he said. "We would like to think our purpose is trash collecting."
Hansen pledged her commitment to come up with money to clear up the debt, noting that she has some ideas. "I already think in my mind where it can come from, but we'll have to analyze it well," she said, adding, "I don't see another dime coming from within Public Works."
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The Senate Finance Committee, in response to earlier talks of an impending strike, voted on Tuesday for a plan to come up with the cash needed to keep mounds of garbage around the island from growing.
The committee's strategy turned out to be the same one it had rejected on Sept. 4 — thus fueling the work stoppage: an appropriation transfer of almost $1 million from a utilities fund within Public Works to another fund that would facilitate making payments to the St. Croix and St. Thomas haulers.
On Sept. 4, Sen. Alicia Hansen, the committee chair, and Sen. Norma Pickard-Samuel voted against DPW's request for the funds transfer after finding that at least part of the money in the utilities fund was earmarked for street light repairs. Sens. Norman Jn Baptiste and Carlton Dowe voted in favor of the motion, and Sen. Donald "Ducks" Cole abstained.
"I made a motion to approve [the transfer] then, and I don't regret it," Dowe said Tuesday, according to The Avis. "It was a personal decision as to whether or not we're going to do what is happening now and allow the garbage to pile up. It was right two weeks ago, and it's right today."
The 24th Legislature transferred responsibility for the territory's street light maintenance from Public Works to the Water and Power Authority last year. However, much needed maintenance work has gone undone, as money appropriated to help start up the initiative has yet to be released.
Hansen said the Finance Committee met extensively with DPW officials in efforts to find alternative funding for the garbage haulers but concluded that the only solution was to take $1 million from the utilities fund.
"Everyone in this community knows we have a crisis with street lighting," Hansen said.
"Darkness breeds crime. But we agreed that the $1 million will not affect the street lighting funding."
Hansen, along with Finance Commissioner Bernice Turnbull and Ira Mills, director of the Office of Management and Budget, assured the garbage haulers their checks will be cut by Friday.
She said the funding was upped by more than $80,000 to guard against a shortfall next year.
Public Works Commissioner Wayne Callwood said the lag in payments came about because only $4.9 million of the $6.4 million DPW requested last year to cover trash collection costs was allotted.
Even after it was apparent the haulers could expect payment this week, there was a question as to whether they would return to work. The government owes the island's four contracted trash collection companies an accumulated debt of around $775,000 for services in years past.
Fergutrax owner Dwayne Fergus, who oversees collections at the Anguilla landfill, is owed the bulk of that debt — $649,000 for services since 2000.
Fergus said he wants a note "with some good signatures" from government officials that would prove to tax collectors and those he owes that the money is on its way.
Gary Thomas, owner of Paradise Waste, pointed out that even though the government owes some of them money from as much as six years ago, the companies get no interest or tax breaks on the debt. In contrast, he noted, "Whenever the haulers owe the V.I. government money, they are assessed penalties and interest."
James Bates of Bates Trucking told the committee the haulers were prepared to go back on the job Wednesday — conditionally. "We agree to go back to work with the money you paid us here today," he said. But, he added, by the end of September, they expect to see another Senate committee session that will spell out when the old debts will be paid.
Lloyd Daniel, owner of Dan's Trucking, stressed that the haulers' strike was not politically motivated. "We're not political," he said. "We would like to think our purpose is trash collecting."
Hansen pledged her commitment to come up with money to clear up the debt, noting that she has some ideas. "I already think in my mind where it can come from, but we'll have to analyze it well," she said, adding, "I don't see another dime coming from within Public Works."
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
