Bayer AG

Last edited by on June 17, 2009 - 11:06pm
Company Snapshot: 

Bayer AG is credited as inventing aspirin as well as many controversial drugs such as heroin, Ciproxin and Baycol. Bayer AG is a massive German based chemicals and pharmaceuticals manufacturer. It has operations in most countries worldwide and had global sales for 2007 of 32.4 billion euro. Its operations are divided into three sectors: Health, Agriculture and Polymers (plastics, synthetic rubber). The company sold its chemicals sector holdings (now Lanxess) in 2005, but is still a major player in the others through Bayer HealthCare, Bayer CropScience and Bayer MaterialScience.

It acquired Aventis' controversial CropScience business in 2001, which made the company a key player in the development, commercialization and sale of GM crops. For over 125 years Bayer has a distinguished history of corporate crimes ranging from the manufacture and sale of controversial drugs (Heroin, Ciproxin and Baycol), the development of chemical warfare agents and poisons (Chlorine Gas, Zyklon B and VX), the use of forced labour during WW2, and numerous cases of poisoning, side-effects and environmental pollution connected to its chemical and pharmaceutical products. In December 2001, Multinational Monitor rated Bayer AG as one of their Top Ten Worst Companies of the year.

Number of employees worldwide: 
106 000
Chief executive officer: 
Werner Wenning
2008 Global Fortune 500 rank: 
155
Total revenue: 
39,899.2
Corporate accountability
Labor: 

The Occupational Safety and Health Administration cited the Bayer Corporation in Baytown, TX (USA) for safety and health violations with penalties totalling $135,900. This investigation began in July 2000 after a contract worker notified OSHA of a methylenedianiline (MDA - a regulated carcinogen) spill and clean up, and subsequent exposures. Bayer failed to alert employees who may have been exposed of an emergency, did not establish regulated areas, failed to ensure that employees use appropriate protective work and clothing, failed to place contaminated clothes and equipment in closed containers and failed to institute exposure monitoring. Bayer did not even record the incident on the log within the appropriate amount of time (six days).

No Employment Rights and Work Related Illness at Bayer factory in Guatemala

Workers in Guatemala are hired without contracts, health benefits or vacation. The workers at the pesticide plant complain about anaemia and damage to their nervous system.

Violations of safety regulations in Indonesia

Kompak has reported mass violations of safety regulations in Indonesia. The ages of young workers have been altered, and often the ages of those hired were not even checked. Young workers were used in all areas of production, including those with occupational hazards. In times of high production, shifts sometimes last as long as 16 hours. Workers were consistently exposed to extreme heat and humidity as well as poisonous gases at the PT Sinar Plataco plant, and workers complained about various health problems including skin diseases, eye problems, asthma, pulmonary disease, coughing and headaches. 90% of employees surveyed considered occupational safety insufficient. Many had received no safety instructions for handling hazardous chemicals, and the few masks distributed were cloth and insufficient to protect from toxic fumes. Half of the workers received no health benefits or social security.

Bayer Call in Brazilian Military Police

Only after prolonged protests did Bayer and BASF grant their employees in Brazil the opportunity of electing a Works Council - with minimal rights. During the strike at Bayer Belford Roxo in 1989, the military police was called onto the scene, and shortly afterwards the head of company security was decorated with a military medal, an event greatly celebrated in the company newspaper. Furthermore, the entire union leadership was fired.

Tibras: No Employment Rights

Bayer's subsidiary plant, Tibras, fires employees suffering from occupational diseases immediately, although the lay-off notification period is one year. Bayer doesn't even pay their entitled one-year wage results of their company medical examinations. 280 employees and ex-employees have not received overtime bonuses and shift payments for fourteen years even after law suits were won on all levels. In addition, long-serving employees have been fired only two or three years before reaching retirement age, thereby losing a large part of their retirement entitlements.

Explosion at Dormagen Plant

Three people died and 10 were critically injured at an explosion in the harbour of the Bayer subsidiary EC ERDOELCHEMIE in Dormagen, Germany. The accident occurred while filling a tanker with gasoline. Local citizens had to keep their doors and windows closed as a giant cloud of black soot filled the air.

  • Two chemical workers suffered on a tank truck on company premises, and were relocated to a place outside the works by Bayer officials wanting to avoid investigations and compensation claims.
  • Eight people have died in the last six years in this factory with 2500 - 1600 employees, three alone as a result of sulphuric acid burns. There have also been cases of contamination with phosgene, chromium and highly toxic phosphoric esters.
  • In 1996 12 tons of Toluylendiamine (TDA), a carcinogenic substance, spilled out of a pipe at Bayer's Dormagen facility. Two workers were hospitalized.

Dangerous Brazilian Chemical Plant

A man employed in chrome production at the Bayer Belford Rox facility, near Rio de Janeiro, died of burns from hot gas, when production tools were restarted after repairs. Workers at Belford Rox have also complained about ruptured columns of the nose. After several accidents and subsequent complaints, the government conducted an investigation at the plant near Rio de Janeiro A district attorney at the Rio De Janeiro labour court decreed, "The testimony and reports make evident that the company: continuously violated basic regulations on industrial health and safety; refused to recognise occupational diseases and industrial accidents, used the highest limits, and enforced working hours above the legal maximum; contracted specialised and hazardous work to third parties; and restricted inspection and monitoring by authorised commissions."

Environment and product safety: 

Bisphenol A

Bayer is the biggest European producer of this Bisphenol A, according to the Coalition on Bayer Dangers. In April 2008 the Canadian government called Bisphenol A a "dangerous substance", making it the first regulatory body in the world to reach such a determination. The government banned the use of the chemical in baby bottles.

Hive Collapse Disorder

In May 2008 the German Office for Consumer Protection and Food Safety (BVL) ordered the immediate suspension of the approval for eight seed treatment products due to mass deaths of bees. Six of the products were manufactured by Bayer. The risks of ingredients such as imidacloprid and clothianidin for bees are well known. Bayer makes around 800 million Euro (1.25 billion US dollars) per year on imidacloprid and clothianidin combined. In France imidacloprid use has been banned since 1999 for most uses. In 2003 the French government found that imidacloprid use on seeds produces a significant risk for bees. Bayer´s application for clothianidin was rejected by French authorities.

Primodos - The Forgotten Thalidomide

Known as 'the forgotten Thalidomide', Primodos was prescribed as a hormone pregnancy test in the sixties and seventies. Several thousand children were left with deformities after their mothers took Primodos. The drug was produced by the German company Schering which was taken over by the chemical and pharmaceutical producer Bayer in 2006. Valerie Williams, one of the mothers exposed to this drug, was offered a secret settlement by Schering in 1978. However, she rejected it because of the confidentiality clause, and went on to found the Association for Children Damaged By Hormone Pregnancy Testing. After Bayer took over Schering, the Association has pursued its claims with the German multinational. See press release by Coalition Against Bayer Dangers. May 12, 2009. www.cbgnetwork.org. Also attached below, see Bayer Primodos press release.pdf.

Toxic Releases

  • In September 2007 Bayer discharged toxic and carcinogenic chemicals from its Baytown site, sending 22 workers to the hospital and causing the site to be closed for three months. 20 workers were hospitalized the previous year in an explosion at the same plant.
  • Bayer's Institute/West Virginia plant stores the largest stockpile of methyl isocyanate (MIC) in the United States and was previously owned by Union Carbide Corporation. The chemical and the previous corporate owner of the plant are the same ones responsible for the Bhopal disaster in 1984.
  • In December 2007 several drums of the pesticide "thiodicarb" burst. The company denied that this release was harmful, but over 20 people were hospitalized. Several organizations list this chemical as "highly toxic", including the US EPA, the World Health Organization and the European Union.

Pesticide Dependence

The IMF and World Bank convinced farmers (many in developing countries) to abandon traditional agriculture systems and getting in debt to buy 'high yield' seeds and the accompanying agrochemicals in the so-called "Green Revolution." Although yields rose for a time, the chemicals that many farmers now depend on has lead to a massive loss of biodiversity and is poisoning both the land, the water and the farmers that work on it. The Green Revolution, supported by the IMF and World Bank, has promoted higher-yielding varieties of seeds that are dependent on irrigation, fertilizers and pesticides. Corporations such as Bayer have a lot to gain from this manufactured dependence of developing countries on their products. Six companies, including Bayer, are associated with US$3 million or more in Bank-approved agrochemical sales over the three year period between 1993-95.

Bayer's pesticides Baycor and Nemacur, labelled as "extremely hazardous," are constantly sprayed in banana plantations in the Philippine village of Kamukhaan. The strong fumes create nausea, weakness, suffocation as well as itchy skin and painful stinging eyes. Skin diseases, abnormalities and various illnesses and ailments (such as asthma, thyroid cancer, anaemia, diarrhoea and goitre) have grown in both infants and adults. Many have died from contaminated water after the pesticides seep into the soil supply. In addition the pesticides have also stopped coconut trees from bearing coconuts, and the soil has become infertile. Each time a spraying occurs, many animals die. Many people have died from drinking or playing in water, and the pesticides have also seeped the soil. In 1995, Bayer declared that they would withdraw their most dangerous pesticides. This promise, of course, has not been kept.

PCB and Mercury

Greenpeace sampling results show toxic chemicals slated for ban including toxic Persistent Organic Pollutants (POPs) such as PCBs and heavy metals such as mercury, are being released from the Bayer plant in Rio de Janeiro. PCBs are industrial chemicals (used mostly in electrical equipment) which harm the environment and have been classified by the UN Environment Program as a persistent global pollutant. Mercury is an extremely toxic metal. It is bioaccumulative and in organic form can permanently damage the nervous system, kidneys and developing fetus.

Human rights: 

Bayer, IG Farben and World War II: Slave Labor and Deadly Gas

Bayer (along with BASF and Hoechst) was an original member of the IG Farben group. During WWII, IG Farben built a synthetic rubber and oil plant complex called Monowitz close to the Auschwitz concentration camp. Inmates worked as slave labour for IG Farben, (Surviving Auschwitz) and when they were too weak to work they were killed in the gas chambers. IG Farben subsidiary Degesch manufactured Zyklon B, the gas used in the concentration camp gas chambers.

Bayer head Carl Duisberg personally propagated the concept of forced labour during WW1. The company placed itself under a large burden of guilt due to its heavy involvement in the planning, preparation and implementation of both world wars. The International War Crimes Tribunal pronounced the company guilty for its share of responsibility in the war and the crimes of the Nazi dictatorship.

On 29 July 1948, sentences for mass murder and slavery were handed down at the Nuremberg trials to twelve Farben executives. The longest sentence of only seven years was dealt out was to Dr. Fritz ter Meer, a top executive and scientist on the IG Farben managing board.

After the war, IG Farben separated into three giant corporations: Bayer, Hoechst and BASF. On 1 August 1963, Bayer celebrated its 100th anniversary at the Cologne fairgrounds. The opening speech was delivered by Dr. Fritz ter Meer, not only out of prison but - a convicted mass murderer - elevated to the position of Chairman of the Supervisory Board of Bayer.

More than eight million people had to do slave work for the Nazi war industry, and none ever received compensation from the companies or the government. David Fishel, one of the few survivors of the camp, sued the companies for compensation. When he was 13 he was forced to work for IG Farben carrying 50-kilo bags of coal and cement when he weighed only 75 pounds.

Bayer, IG Farben and Human Experiments

IG Farben also conducted experiments on humans. Eva Mozes Kor, among the 1,500 sets of twins experimented on by the infamous Dr. Josef Mengele, claims that IG Farben monitored and supervised medical experiments at the Nazi concentration camp where she was interned. She claims the experiments involved toxic chemicals that IG Farben (Bayer) provided. In some of the experiments, the lawsuit states, prisoners were injected with germs known to cause diseases, "to test the effectiveness of various drugs" manufactured by IG Farben. Mengele conducted genetic experiments there in an effort to create a super race of blonde, blue-eyed Aryans who would be born in multiple births. Both Kor and her sister survived their 10-month ordeal in the concentration camp and were liberated by Soviet troops in January 1945. They were nearly 10 years old. According to Irwin Levin (Kor's Lawyer), IG Farben paid Nazi officials during World War II for access to those confined in the camps and collaborated in Nazi experiments as a form of research and development. The lawsuit sought unspecified punitive damages and the recovery of profits it maintains IG Farben (Bayer) earned as a result of such research.

Mass-Producing Heroin

In 1898, Bayer trademarked the opiate diacetylmorphine, giving it the name heroin. Although the chemist C.R. Wright discovered the mixture of morphine and acetic acid, Bayer was the first company to mass-produce it. Bayer began an advertising campaign in 1900, praising the product across the globe in 12 languages, and sending thousands of free samples to doctors. Bayer advertised heroin as a cough medicine for children, saying it was harmless and even that it helped cure colic. Ironically, methadone the synthetic morphine substitute commonly used to treat heroin addiction was developed by Hoescht branch of IG Farben during the WW2 as Dolophine.[244]

Ciproxin and Dangerous Human Trials

Bayer placed hundreds of patients at risk of potentially fatal infections by failing to disclose crucial safety information to six hospitals at the start of a UK drug trial. Bayer's own research as early as 1989 showed that the antibiotic ciproflaxin (sold as Ciproxin) reacted badly with various opiate-based sedatives or "pre-meds" commonly given to patients ahead of surgery. Research showed that the drug was not properly absorbed by many patients, impairing its ability to kill bacteria and placing the patients at risk of sometimes fatal infections.

This information was not revealed to the hospitals before up to 650 people had undergone surgery, violating their human rights. The trials resulted in nearly half of the people at one test centre in Southampton developing potentially life-threatening infections. At least one patient died, and another developed an infection so severe that his relatives were initially told he would not survive. Nearly half the patients at Southampton Hospitals Trust developed post-operative wound infections requiring emergency therapy. Infection and mortality rates at the five other trial sites were never revealed on grounds of "confidentiality"

Stephen Karran, a retired consultant surgeon from Southhampton, was concerned about the trial. He pointed out the flaw in the earliest possible stage, and contacted the press after the trial went ahead unaltered anyway. Bayer has confirmed that it knew of absorption problems with the drug before the study began. However, they still used the dangerous drug for two years, are still keeping trial results secret, and have not paid compensation to the relatives of patients injured or killed in the course of its unapproved trials.

Meanwhile, Ciproxin has been found to lead to tendon disorders or ruptures. The FDA staff stated that the agency "will update the labeling [package insert] for all marketed fluoroquinolones to include a warning about the possibility of tendon rupture." However, this has not been done.

Bayer also continues to offer aspirin packaged specifically for children in the 3rd World, despite the fact that experts warn of the many risks involved in the use of acetylsalicylic acid for children. The safety warnings recommending limited use to children, found in Germany and other countries, are not found in developing countries. Bayer even sells "Children's Aspirin." Bayer has announced that although the claims could not be proven, they have "made changes" where the impression could be given that it is a consumer advertisement. In a letter from Bayer to the Medical Initiative in July 1997, Bayer insisted that there was no more consumer advertising for children's aspirin in South America. However, in October 1997 a one page, colour advertisement for aspirina para ninos (aspirin for children) appeared in the daily newspaper Prensa libre of Guatemala.

HIV and HEP C Contaminated Blood Preparations

Bayer's American subsidiary, Cutter, has been sued for infecting haemophiliacs with HIV and hepatitis C with contaminated blood preparations. The contraction of these diseases by thousands of people in the USA, Germany and Japan could have been prevented, if the companies had used precautionary tests and had heated the blood. In the US, 6200 haemophiliacs contracted HIV through contaminated blood and eventually received $100,000 each.

Bayer paid 10 Taiwanese citizens, who were infected with the HIV virus via Bayer blood products, a total of $60,000 each. 43 other victims turned down the offer with the claim that Bayer had paid higher amounts in other countries.

Many lawsuits have been filed by those who contracted hepatitis C, including the mother of a 12-year-old boy who sought $143 million in damages and alleged that the defendants knew they were providing risky coagulants to her son and other haemophiliacs more than a decade before their infections. The suit states that the defendants improperly collected plasma from groups at high risk for hepatitis C contamination, including prison inmates, drug users and gay men.

Eventually Eva Kor and various others were paid out of a fund put up by the German government and the companies. Bayer gave 100 million German Marks to the fund. The entire fund (totalling 10 billion German Marks) was a result of various American lawsuits - without the loss of reputation in the US the companies would never have agreed.

Bayer and Apartheid-Era South Africa

One of the largest chrome factories in the world began production as a joint company of Bayer and Dow Chemicals. Bayer, the second largest chrome manufacturer in the world, closed its chrome processing plant in Leverkusen, Germany. Due to the country's large chrome deposits, the company has processed this raw material in South Africa since 1973, and it even has its own mine. The idea of an apartheid government apparently did not present any problems to Bayer, as the government provided many black workers who were cheap and had no rights. The workers suffered many health risks during chrome production, including respiratory illnesses, skin tumours and even lung cancer.

Bayer and the Congo War

A report commissioned by the UN Secretary General stated that the civil war in the Democratic Republic of Congo (DRC) centered on the control of five mineral resources, including colombite-tantalite or coltan. Coltan is a hardening agent for metal used in the manufacture of electrical products. In October a report listed H.C. Starck (a then wholly owned subsidiary of Bayer AG, sold in 2007), as the buyer of over 80% of the coltan originating in the DRC.[225] By purchasing coltan from one or other of the warring factions in the DRC, H.C. Starck have been fuelling the two-year conflict. The fighting has killed over 250,000 people, and a million people have been displaced in East Congo.

Anti-competitive and consumer protection: 

Bayer has manufactured and marketed numerous drugs throughout its history, long after internal company research had discovered that the drugs were dangerous and potentially lethal.

Dangerous Drugs

A heart surgery drug called "Trasylol" has been sold by Bayer since the 1970's and was only discontinued in 2007. The company had evidence of the lethal side effects of this drug since the '70s, but failed to recall it or stop production until ordered by the German Federal Institute for Drugs and Medical Devices (BfArM), the Colation for Bayer Dangers reports.

Price Fixing

  • A world bank report cited that Bayer acted as a member of a cartel while bidding on contracts in India for an anti-malarial pesticide that kills mosquitoes known as a "pyrethroid"(p. 436). The report names, "Aventis, Bayer, BASF, and Zeneca (later awarded contracts as Syngenta)" as making identical bids or fixing bids within 0.5 percent of each other, colluding to lock out other competitors.
  • Germany's anti trust agency fined Bayer subsidiary, Bayer Vital 10.3 million euros ($16 million) for price fixing aspirin and other products. The subsidiary had made deals with over half of Germany's 21,000 pharmacies to illegally inflate prices, and had subsequently had their offices searched by the government as a part of the investigation.
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History

For over 125 years Bayer has been a major player in four controversial business areas, they have a long and interesting history of corporate crime. The first incarnation of what is currently Bayer AG was born out of the rush by European industrialists to develop and manufacture synthetic dyes in the second half of the 19th century. Friedrich Bayer and Johann Friedrich Weskott opened a dye factory in 1863 in Wuppertal, Germany. The company Farbenfabriken vorm. Friedr.

Bayer & Co. was launched in 1883. Bayer quickly diversified their activities into other areas of chemical manufacture, including photography and pharmaceuticals. Bayer also established operations throughout Europe and the US. Early Bayer discoveries included Antinonin (synthetic pesticide, 1892), Aspirin (1897), Heroin (1898) and Buna (synthetic rubber 1915). During WWI Bayer, along with other chemical manufacturers (both Allied and German), turned their attention to the manufacture of chemical weapons including chlorine gas used to horrendous effect in the trenches.

During WWI Bayer had formed a close association with other German chemical companies including BASF and Hoechst. This relationship was formalized in 1925 with merger of these companies as well as AGFA, and others, to form the IG Farben Trust. IG Farben continued to grow during the inter-war period as one of the most powerful chemical and pharmaceutical companies in the world. Products included polyurethanes and the first 'sulpha' drugs.

It is during Nazi-era Germany and WW2 that IG Farben (Bayer) entered its most sinister phase. IG Farben as the leading chemical company in Nazi Germany took over chemical plants across Nazi occupied Europe, used slave-labour in their factories (including operating their own concentration camp), conducted medical experiments on those held in the concentration camps and manufactured the poison gas used to kill thousands. At the end of the war the 1945 Potsdam Agreement called for the break up of IG Farben into its constituent companies. Twelve IG Farben employees and directors were jailed for war crimes at the Nuremburg Trials.

Bayer was re-established as Farbenfabriken Bayer AG in 1951, changing its name to the current Bayer AG in 1972. Although the post-WW2 Bayer is a different legal entity to the Bayer that pre-existed IG Farben, and that which formed part of IG Farben, a direct line of continuity can be traced between the personnel, infrastructure and technology of these three incarnations.

Financial information
Stock ticker symbol: 
ISIN: DE0005752000; TYO: 4863
Fiscal year: 
2007
AttachmentSize
Bayer Primodos press release.pdf78.45 KB