East TX Pallet Co. to Pay OSHA Fines for Violations

The Latest OSHA Fine Comes on the Heels of a 2022 OSHA Penalty of $248k

A crate and pallet manufacturer in Jacksonville, Texas, has failed to address several serious safety violations for more than a decade, federal regulators say. Those failures have persisted since 2012, despite warnings and a handful of investigations.

Now, the manufacturer —M&H Crates Inc. — must pay more than a quarter of a million dollars in OSHA penalties and rectify several hazards at its facility.

Safety Violations Found in the 2024 OSHA Inspection

In February 2024, regulators kicked off a 3-part investigation into M&H Crates, with 2 investigations stemming from complaints while the other one was a follow-up to a prior inspection that found 15 safety violations.

In August 2024, OSHA reported its findings, which included:

• 12 serious violations, meaning 3 more violations than inspectors had previously uncovered
• 2 “other” violations, the same as the last inspection
• No repeat or willful violations
• A total of 14 safety violations

Some of the OSHA violations found in the most recent inspection of M&H Crates included:

• Failures to establish or ensure lockout/tagout (LOTO) procedures
• A lack of rules, training, and controls related to the use of high-powered, heavy machinery, including nail machines, bandsaws, and sawmills
• Failures to train employees on how to recognize “hazardous energy sources,” as well as “type and magnitude of energy”
• Several exposures to electrical hazards, including in cabinets, raceways, and auxiliary gutters
• A lack of sufficient space around electrical equipment to access for maintenance and emergency purposes
• Failures to ensure sawmill workers wore safety glasses to protect them from molten liquid and toxic chemicals
• A lack of fall protections

M&H Crates was fined $254k for the safety violations regulators encountered in their latest visit to the Jacksonville manufacturer. Remarkably, that means this company has paid more than half a million in OSHA fines since 2022.

History of OSHA Inspections & Safety Violations at M&H Crates

Over the past 12 years, federal regulators have conducted numerous investigations at M&H Crates. Many of them are featured in the table below.

Commenting on this manufacturer’s continued safety failures, in 2022, OSHA Area Director in Dallas, Basil Singh, stated:

M&H Crates Inc. continues to expose its employees to dangerous workplace hazards by ignoring required federal safety standards… These safeguards can be the difference between ending a shift safely and suffering a serious and life-altering injury. M&H Crates must develop and implement a company culture where worker safety and health is a priority.

In 2024, Singh’s successor, OSHA Area Director Greg Wynn (Dallas), piggybacked on his predecessor’s statements, explaining how:

M&H Crates Inc. continues to ignore its legal responsibility to comply with federal workplace safety standards… We will use all measures available to us to hold this company accountable for its continued willingness to expose employees to the serious dangers that exist in manufacturing workplaces.

The Dangers of Overlooking  Lockout/Tagout Procedures

Of the many risks workers have been exposed to at M&H Crates over the past decade, lockout/tagout (LOTO) procedures are particularly key to workplace safety.

Specifically, LOTO procedures are designed to ensure that dangerous machinery and equipment are properly shut off, so they cannot be accidentally restart during maintenance or repair work. Consequently, LOTO procedures are in place to prevent the unexpected release of hazardous energy that could cause catastrophic accidents and injuries.

When employers fail to establish or enforce LOTO procedures, they create unnecessary risks of severe and even deadly injuries, including (but not limited to):

• Amputations: Fingers, hands, feet, and/or limbs can get caught up in machinery that instantly starts moving during maintenance or repair service.
• Electrocutions: If machinery is not properly de-energized, workers can be electrocuted while working on wiring systems or electrical components.
• Other severe injuries: Unexpected movements of machinery can trap or strike workers in its path, causing broken bones and crushing injuries. In some cases, sudden energy surges can lead to the release of hot, high-pressure fluids, resulting in severe burns, explosions, and/or toxic chemical exposures.

To try to prevent these injuries, OSHA has established a Lockout/Tagout Program, with training materials, guidelines, and other resources for employers and workers nationwide.

Despite this and OSHA’s continued efforts, the latest safety investigation into M&H Crates seems to indicate an ongoing lack of concern for worker safety.

How Workers Can Push Back & Protect Their Rights

As another example of Texas companies failing to prioritize worker safety, the OSHA investigations into M&H Crates will likely continue in the years ahead, unless the manufacturer can reverse course for good.

Whether or not that happens, workers have the right to a safe workplace and to hold reckless employers accountable for their accident-inducing safety failures. If you or a loved one has been hurt on the job and safety violations may have been involved, the sooner you find out about your rights and legal options, the sooner you take action to recover and seek justice.