By Scott Morrison in San Francisco
Published: September 24 2003 19:43
article on-line
Chipmakers will be watching International Business Machines on Friday as Big Blue asks a US judge to dismiss a lawsuit alleging the computer company knew its employees were dying of cancer at higher than average rates.
The case, which features a "corporate mortality file" that IBM used to track employee deaths, could set a damaging precedent for the industry.
Lawyers for the plaintiffs argue that a higher than usual rate of cancer among IBM workers is linked to chemicals used to make semiconductors in a factory in San Jose. IBM dismisses the allegations as "absurd".
Environmentalists have long argued that chemicals used in chip-making contribute to high levels of miscarriages, birth defects, brain cancer and other illnesses. Critics say "clean rooms" where semiconductors are made are designed to protect chips from contamination but do not prevent workers from inhaling fumes.
The "corporate mortality file" is expected to play a prominent role in a jury trial that could begin in mid-October unless the judge dismisses the case.
The file, which tracks 30,000 employee deaths from 1969 to 2000, was reviewed by a medical expert hired by the plaintiffs. Richard Clapp, the Boston University epidemiologist, concluded that IBM employees died of specific cancers more often than the general population and at relatively younger ages.
But Bill Hughes, an IBM spokesman, said the file, designed to provide benefits for the survivors of deceased employees, was "incomplete and inconclusive" and could not be used to track incidences of cancer. He rejected the epidemiologist's finding and argued they were "not supported by the information in the file."
Mr Hughes said many other companies keep similar mortality files to track benefits. But an official at the Semiconductor Industry Association, the trade group, says she was not aware of any other company in the sector that kept so-called mortality files.
The lawsuit, filed by four former Silicon Valley employees and their families, is one of several cases pending against IBM. In total, more than 250 workers at plants in California, New York and Minnesota have sued IBM for failing to protect employees against exposure to carcinogenic chemicals.
In 2001 IBM settled a lawsuit filed by two former workers who claimed they were exposed to chemicals in a New York electronics plant that caused severe birth defects in their son. IBM said it settled to avoid the potential cost of a long-running trial and did not admit liability.
Experts say a decision against IBM in the current lawsuit could put other semiconductor-makers at risk of being hit by contentious and expensive litigation filed by workers. At the very least, said one industry insider, the litigation is forcing companies to reassess their safety procedures.
The SIA echoes IBM's view that there is no scientific evidence linking the chip-making environment to cancer.
The SIA this year commissioned a preliminary investigation into cancer incidences within the industry and will next year decide whether to launch a full epidemiological study, which could take 3-5 years.
Copyright 2003 - Financial Times
