Clapper, Patti, Schweizer and Mason

The Oregon Employees Federal Credit Union was fined $21,000 by the Oregon Department of Environmental Quality (DEQ) for violations stemming from the demolition of a 90 year old house that the credit union owned.

The property in Salem, Oregon, contained asbestos-containing sheet vinyl flooring, heat duct insulation, vinyl floor tile, and roofing adhesive which was illegally removed and stored upon the ground at the jobsite.  The materials were later ground up for transport leaving a thin layer of asbestos dust coating nearby homes and automobiles—potentially exposing hundreds of people to unsafe levels of the powerful carcinogen.

Asbestos removal projects, including the demolition of houses constructed wtih asbestos containing materials, are heavily regulated.  Local, state, and federal authorities have placed safeguards on the removal, transport, and disposal of asbestos because the danger to the public health is so high. 

Asbestos, even in small amounts, can cause deadly cancers, mesothelioma, and asbestosis.  Even small amounts of the naturally occurring material can lead to the development of painful, incurable, and fatal diseases. 

The Oregon Employees Federal Credit Union violated state and local regulations when they hired Cascade Paving, a Salem company, to destroy the property.  The company was not licensed or authorized to engage in asbestos abatement or demolish building containing the material. 

Once the company had removed and ground the material, it was transported to a local landfill which was not authorized or licensed to handle such toxic materials. 

While Cascade Paving was fined $27,000 for creating an unnecessary health hazard, the credit union was fined $21,000 for their part in the debacle.  They were held liable because they failed to order asbestos testing before the demolition took place and failed to hire a properly licensed company to do the work. 

The credit union’s fine broke down as follows:

• $10,800 for hiring unlicensed parties to remove asbestos
• $10,200 for allowing the asbestos material to be openly stockpiled at the worksite (all asbestos containing materials must be stored and transported in closed containers)
• Failing to have the property inspected before the demolition project began (for which they were not fined)

These penalties were made all the more egregious because the credit union had been issued a warning in writing that the house likely contained asbestos but they proceeded with the demolition anyway without testing to be sure. 

Federal credit unions  are member-owned organizations, meaning that no matter how the fines are paid, the debt will—at least in some small way—be passed on to the people who put their trust in the company.

It is too soon to know if the careless handling of the material actually caused any damage—though countless members of the construction crew, landfill workers, and the general public were put at a severe health risk.  Asbestos diseases such as mesothelioma may take decades to cause any noticeable symptoms at all.  That means those put at risk by the careless actions of the Oregon Employees Federal Credit Union and Cascade Paving may not know anything is wrong for another fifty years.