During the night of December 3rd of 1984, the Bhopal incident –one of the world’s worst industrial catastrophe- occurred; in fact the gas leakage of methyl isocyanate at a Union Carbide plant killed thousands of people and left many others to deal with disabilities, birth defects and many others diseases. It is needless to say that this disaster led to very serious consequences to all Union Carbide’s stakeholders in terms of legal lawsuits, financial recovery, toxic waste cleaning, and illnesses of victims.
It is interesting to see that 28 years after the incident the Bhopal issue is still a sensitive subject as the long terms consequences remain of major importance.
We would agree to say, “Industrial crises do not end. They simply change form and content.”
Who are Union Carbide’s stakeholders?
1-Union Carbide Corporation
2- The Bhopal community (victims)
3- The Indian government
- The long terms consequences for Union Carbide Corporation:
After the disaster the corporation was in a real financial distress and opted for a survival strategy pushing them to restructure the company. In 1987, Union Carbide changed to three divisions- Chemicals and Plastics, Industrial Gases, and Carbon Products.
UCC then sold its most profitable segment (consumer goods) to buy more stocks. In 1988 they made a come back which did not last long. In 1990 they tried out diversification in pharmaceuticals and consumers with a strategy that pretty much looked like the pre-Bhopal era. “At the end of 1991, debt still remained at 50 per cent of capitalization and sales were $7.35 billion. In 1992, UCC sold its Linde Gas Division for $2.4 billion, leaving the company at less than half its pre-Bhopal size.”(Shrivastava)
“Union Carbide Corp. sold its holding in the unit involved in the leak — Union Carbide India Ltd. — in 1994. The unit was then renamed Eveready Industries India Ltd.“( WJS)
After the Bhopal incident, the Indian subsidiary for Union Carbide decided not to get involved in other businesses not related to the pesticides industry and tried to stay out of lawsuits.
- Government versus UCC:
The major long-term effect UCC faces is the lawsuit with the government of India. The company first claimed they were not liable for the accident, for they were the result of sabotage. Since then it has been long dispute between the parties and many cases have been filed, dismissed and appealed.“The first major judgment in the Bhopal issue came in 1989 when India’s Supreme Court asked Union Carbide to pay $470 million in damages to the victims.”(WSJ) Despite appeals by victims’ organizations for a higher compensations, until now the court did not review its decision.
In June 2012, a case outraged the victims when in New York a judge held the following decision:
“New York federal court has dismissed all claims by Indian plaintiffs against Union Carbide Corp. for any environmental fallout of a gas leak which killed thousands of people in the Indian city of Bhopal 28 years ago.”
Giving his reasons for the order, the judge said “it is beyond dispute that Union Carbide India” — and not the U.S.-based parent — “generated and disposed of the waste which allegedly polluted plaintiffs’ drinking water.”
The court added that since Union Carbide sold its stake in the India unit, it’s not liable for the clean-up.”( WSJ)
- 28 years later the Bhopal Community has to live to the toxic waste:
The exact number of people who died from this incident and who are affected from its consequences remain unknown. Its hard for officials to estimate the real damages. There are records from hospitals saying that 20,000 people died and nearly 600,000 were left with physical damages.
Also, Dow Chemical maintained its position for more than 16 years after the catastrophe: they cannot be held liable for Union Carbide. For many victims , organizations defending them as well as organizations protecting the environment, Dow Chemical has miserably failed regarding its moral obligations of giving adequate payout and cleaning up the site of the disaster.
Not only Dow Chemical , but the government of India has been held responsible by activists for inadequate compensation of victims, and for the steps not taken to hold a party responsible for cleaning up of toxic wastes. Activists blamed the government for its “perennial inaction”.
Unfortunately, late November 2012 “tests reveal the groundwater near the plant, which has yet to be dismantled, is laced with carcinogens, and there is increasing evidence that this has caused birth defects and chronic illnesses.” ( the Guardian)
28 years later we can say the ecological footprint left by Union Carbide definitely have changed Bhopal forever. And the vestiges of such catastrophe will continue to mark the Bhopal soil and community for many more years and generations. In fact, The legal battle for justice between victims, the government and Union Carbide is far from being over.
This blue link gives further details on the types of physical effects the gas leak cause.
Source:
– Shrivastava, Paul. N.p.. Web. 25 Apr 2013. <http://archive.unu.edu/unupress/unupbooks/uu21le/uu21le0d.htm>.
Bhattacharya, P. n.d., n. pag. <http://online.wsj.com/article/SB10001424052702303561504577493642502980690.html>.
Ramesh, Randeep. N.p.. Web. 25 Apr 2013. <http://www.guardian.co.uk/world/2009/dec/03/bhopal-anniversary-union-carbide-gas>.