OSHA investigation finds 2 repeat, 15 serious violations at Konz Wood Products
APPLETON, WI – Federal OSHA investigators have concluded that an Appleton pallet manufacturer’s failure to train employees in machine safety procedures — and ensure the procedures were followed — contributed to the fatal injuries suffered by a 57-year-old employee struck by the carriage of a lumber stacking machine in late 2023, according to an OSHA statement.
Investigators with the U.S. Department of Labor’s Occupational Safety and Health Administration responded to a report of a worker fatality at Konz Wood Products on Dec. 5, 2023. They learned the company had not ensured the machine was locked out to prevent movement while the employee removed a board jammed in it. As he freed the board, the metal carriage moved, striking him and causing severe crushing injuries.
The stacker machine’s metal carriage moves boards onto pallets for transport, pushing and lowering each row of wood onto a pallet upon completion.
The fatal incident marked the fifth opening of an inspection since 2016 at Konz’s Appleton plant. The agency cited the company in 2019 after inspectors identified four serious violations, including one related to required lockout/tagout procedures and another related to lack of fall protection.
“Federal safety procedures protect workers from the dangers of coming in contact with moving machine parts, but when employers fail to train workers or ensure procedures are followed, workers are at risk for serious or fatal injuries,” said OSHA Area Director Robert Bonack in Appleton, Wisconsin. “Konz Wood Products and Wisconsin’s entire lumber and wood products industry must work to improve employee safety by guarding machines during normal production and locking out and tagging equipment during the maintenance.”
Federal lockout/tagout procedures are required by law to disable machinery or equipment to prevent the release of hazardous energy while employees perform servicing and maintenance activities.
OSHA inspectors issued Konz Wood Products two repeat violations for lacking lockout/tagout procedures and failing to provide fall protection when employees worked above dangerous machinery. In addition, the agency cited the company for 15 serious violations for lack of point-of-operation and machine guarding on table saws, band saws, shaft ends and chains and sprockets. Inspectors also noted a lack of fall protection — including missing staircase handrails — electrical hazards and oxygen tanks stored unsafely.
For its continued workplace safety failures, OSHA has placed Konz Wood Products in the agency’s severe violator program and proposed $177,453 in penalties.
Commentary: The Importance of Addressing OSHA-Identified Hazards
Generally, failing to address OSHA-identified hazards can lead to significant legal repercussions. OSHA has the authority to issue citations and fines for non-compliance. Penalties can be substantial, with serious violations costing up to $15,625 per violation and willful or repeated violations reaching up to $156,259 per violation. Addressing hazards promptly helps businesses avoid these costly penalties and legal actions.
Workplace accidents and illnesses can also increase workers’ compensation costs, higher insurance premiums, and potential litigation expenses. Moreover, businesses may face indirect costs such as lost productivity, employee turnover, and damage to equipment. By addressing hazards identified during OSHA inspections, businesses can mitigate these financial risks and ensure smoother operations.
Aside from monetary and legal impacts, consider that the primary objective of OSHA is to ensure safe and healthy working conditions for employees. Unaddressed hazards can lead to workplace injuries, illnesses, and fatalities. Ensuring all identified hazards are rectified helps create a safer work environment, reducing the risk of accidents and health issues. This protects employees and fosters a culture of safety within the organization.
A commitment to safety and compliance enhances a company’s reputation among employees, customers, and stakeholders. Businesses that maintain high safety standards attract and retain better talent, foster employee morale, and gain customer trust. Conversely, neglecting safety can damage a company’s reputation, leading to potential loss of business and difficulty in attracting skilled workers.
How to Contest an OSHA Citation
Businesses can be frustrated by regulatory interpretation of risk. For example, bandsaw dismantler safety has been a vexing issue for pallet recyclers, resulting in successful efforts at the industry level to address such concerns and promote best practices.
For an individual business, contesting citations from OSHA involves a structured process. Upon receiving a citation and notification of penalty from OSHA, an employer has 15 working days to file a Notice of Intent to Contest with the OSHA area office. This written notice must explicitly state what aspects of the citation are being contested, such as the citation itself, the penalties, or the abatement dates. Specifying whether the contest is for all violations listed or only particular items is crucial. This clear delineation ensures that OSHA understands the scope of the contest.
The intention to contest must be made in good faith. OSHA does not accept contests filed merely to delay abatement or penalty payments. Once a Notice of Intent to Contest is filed, the employer’s legal obligation to abate the cited conditions and pay penalties is suspended for the contested items until the issue is resolved. However, if only certain items or abatement dates are contested, the employer must still correct the other items by their respective abatement dates and pay any corresponding penalties.
The case moves into litigation after filing the Notice of Intent to Contest. Employers can still settle contested cases by negotiating with OSHA’s assigned attorney. The OSHA area director can provide the contact details of the attorney handling the case. All settlements follow the Occupational Safety and Health Review Commission (OSHRC) rules and procedures. Employers should seek legal counsel to navigate this process effectively and adequately represent their interests. By following these steps, businesses can properly address any disagreements with OSHA’s findings while maintaining compliance with legal requirements.
The bottom line is that businesses have a moral and ethical responsibility to provide a safe working environment. Ensuring the health and safety of employees is not only a legal obligation but also an ethical one. Businesses that prioritize safety demonstrate care and respect for their workforce, which can lead to a more committed and motivated team. Addressing hazards identified in OSHA inspections is vital for legal compliance, employee safety, financial stability, and maintaining a positive reputation. By rectifying safety issues proactively, businesses can protect their employees, reduce financial risks, and enhance overall operational efficiency.
Related Article
Pallet-Related Injury: Bunnings Settles for $1.25 Million after Failing to Provide Contractor Training
Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.


