India Today WEB EXCLUSIVE
Keep the Union Carbide name alive
An interview by INDIA TODAY Associate Editor N K Singh
"The merger of Dow and UCC imposes the risk of mega-disasters like Bhopal."
The impending merger of Dow Chemical Company (1999 annual turnover US$ 19
billion) with Union Carbide Corporation (1999 annual turnover US$ 4.1 billion) ran into
rough weather last week. Survivors of the Bhopal disaster and green activists teamed up
with a section of Dow shareholders to file a federal lawsuit in New York opposing the
merger.
The Dow shareholders accused their company of withholding financially damaging
information. The loose-knit group of shareholders also said at Dow's annual meeting on May
11 that they weren't aware of what they claimed was Union Carbide's continuing liability
in the Bhopal disaster. Several protesters, speaking through shareholder's proxies, rose
to condemn the company.
Dow officials say they had nothing to do with the Bhopal disaster and that the matter was
seemingly concluded with the Supreme Court's ruling in 1989. "It's not in my power to
take responsibility for an event 15 years ago with a product we never developed at a
location where we never operated," Dow Chairman Frank Popoff said. As for the
question of continuing liability, he said Union Carbide has already settled with victims.
The man who is trying to stop "the second largest chemical behemoth in the
world" from coming into existence sits in distant Bhopal. Satinath Sarangi, 45, of
Bhopal Group for Information and Action, an NGO working among survivors of the gas
disaster, has involved himself with the Bhopal case since the chemical accident 15 years
ago. He spoke to India Today Associate Editor N K Singh on why the activists are opposing
the Dow-Carbide merger.
Q. Why are you against the Dow-Carbide merger?
A. Because this merger will help Union Carbide vanish as an entity. We cannot let Union
Carbide's name disappear before justice is done in Bhopal. The massacre in Bhopal is the
big reason why the name Union Carbide continues to be a burden on the corporation and is
still a source of negative Public Relations. Aware of this, Union Carbide initiated its
vanishing act way back in 1992. First to go was Union Carbide Eastern Hong Kong, one of
the accused in the Bhopal case. This wholly owned subsidiary that served as the conduit of
UCC's control over the Bhopal factory was dissolved and de-registered in Maryland. The
assets and the Board of Directors were reshuffled and given a new name in 1992.
The CBI has said in the court of the chief judicial magistrate, Bhopal, that they have no
means to proceed against a company that has dissolved itself. The Indian subsidiary was
renamed Eveready Industries India Limited after Union Carbide Corporation's shares were
sold off to the Khaitan Group in 1994. UCC's former CEO, Kennedy had proclaimed
"Bhopal is history" in one of their annual meetings. Since public memory did
not/will not allow that to be a reality, it seems the company is now trying to commit
itself to history. Dow Chemical Corporation is aware of the burden of shame.Dow executives
have already begun saying, "we have not done it - that was a different company."
Q. But the way the activists are campaigning against the merger, it would seem that
the target is Dow as much as UCC. Why?
A. Union Carbide and Dow are founders of the "military industrial complex", a
coalition of business, military and politicians, that increasingly threatens global
security. Union Carbide and Dow produced picric acid and mustard gas used in World War I.
In World War II, Dow made magnesium for bombs and Union Carbide produced nuclear materials
as well as chemical weapons. Dow played a principal role in the US military aggression on
Vietnam in the late sixties. The company was the top producer of Agent Orange a toxic
defoliant sprayed over 4.5 million acres of Vietnam to make it harder for the Vietcong
guerrillas to hide. The potential synergy of two corporations dealing with the most toxic
chemicals in the world imposes the risk of mega-disasters like Bhopal.
Both Carbide and Dow share a history of shocking disregard of environmental and
occupational health as well as work safety and human rights. The merged entity threatens
to be the second largest chemical behemoth in the world. Such concentration of toxic
capital is a grave threat to life and health of people all over the world. As the largest
producer of dioxin - the most toxic chemical known to man - Dow Chemical Corporation is
responsible for causing a variety of cancers, endometriosis, declining fertility, immune
system suppression and birth defects all over the world. Union Carbide continues to be one
of the major suppliers of toxic compounds.
Q. But you seem to be targeting Dow's shareholders for your anti-merger campaign.
A. We are informing them that the merger is based on a lie that Union Carbide has no
criminal liabilities. Union Carbide is liable for killing of thousands of people, for
withholding of vital medical information and impeding medical treatment of the survivors,
for devastation of family economies and for the toxic contamination of the soil and ground
water in the communities next to the Union Carbide factory in Bhopal. These liabilities
are still outstanding because Union Carbide Corporation, USA, is absconding criminal
prosecution in India.
Q. How strong is the opposition to the merger?
A. The opposition to the merger is growing. Three organizations with wide national and
international networks have joined with our International Alliance for Justice in Bhopal,
an international network of enironmental, health, human rights and other activist
groups. These three are ---- Essential Action set up by Ralph Nader, famous US based
activist carrying out international labour, environmental, human rights and other
campaigns; Infact, a US national grassroots watchdog organization campaigning for
corporate accountability; and Association for India's Development, a US based group of
mostly young people of Indian origin supporting campaigns and development work in India.
In addition, Dow shareholders are suing the corporation and its 17 senior officials
alleging potential financial harm caused by Dow's suppression of information regarding
Union Carbide's pending liabilities.
Q. What is the form of your opposition?
A. We have filed complaints before the Securities Exchange Commission and the Attorney
General's office in New York. Led by Irish M P, Patricia Mckenna, the members of the green
caucus have moved a resolution against the merger in the European parliament. We organised
a demonstration at the annual shareholders meeting on 11th May at Midland, Michigan. Three
of the
protesters gave speeches at the annual shareholders meeting.
Q. What about the law suit against Dow?
A. Our legal counsels are also representing Dow shareholders in a class action suit filed
in the District Court for the Southern District Of New York on behalf of all persons who
held the common stock of Dow Chemical since August 13, 1999, when the Dow-Union Carbide
merger was announced. The suit has been filed against Dow Chemical Corporation and its 17
officials.
The complaint says that Dow failed to disclose that Union Carbide is criminally charged in
India for the Bhopal disaster with culpable homicide and other charges, which potentially
exposes it to billions of dollars of liability. We have pointed out that Union Carbide
failed to appear in Indian criminal courts, was proclaimed an absconder and its assets in
India were attached. We have emphasised that Dow 's Indian holdings will likewise be in
danger of attachment by Indian courts and Dow 's plans to expand operations in India will,
therefore, be jeopardized. The complaint also says that Union Carbide remains liable for
damages from environmental contamination from its former Bhopal pesticide plant. The
complaint further alleges that Dow's failure to address these matters has caused Dow to
underestimate the liabilities it stands to assume pursuant to the merger, and that Dow
made an excessive offer for Union Carbide.
Q. You have also filed a suit against the UCC in US. What is that all about?
A. Seven individual victims and five organizations of gas victims have filed a class
action suit against UCC and Warren Anderson on November 15, 1999. The suit mainly alleges
that Union Carbide demonstrated reckless or depraved indifference to human safety and life
in the design, operation and maintenance of its MIC facilities in Bhopal as well as its
safety mechanisms. It pursued a systematic policy of racial discrimination in the design,
construction and operation of the Bhopal
factory. Union Carbide demonstrated reckless or depraved indifference to human life in the
manufacturing, storage, treatment and disposal practices at the UCIL plant, resulting in
severe contamination of the soil and water in and around the UCIL plant. Union Carbide and
Anderson were and are fugitives from the lawful jurisdiction of the Bhopal District Court
where criminal charges remain pending against them. The suit is based on the legal
provisions under US law of Alien Torts Claims Act that provides for civil remedies for
'crimes against humanity'. It seeks the federal court's decree directing UCC and Anderson
to pay exemplary punitive damages.