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Archived News Release--Caution:
information may be out of date.
For more information call: 202-219-8211
Texaco will pay $3.1 million to 186 women who worked at corporate
offices across the country, in the largest "glass ceiling" settlement ever
reached with the U.S. Department of Labor. The money will go to women in
professional and executive positions who were consistently paid less than their
male counterparts in similar positions.
"Our glass ceiling review found that women in mid-level positions
throughout the company were underpaid as a matter of course for years," Labor
Secretary Alexis M. Herman said. "This should be a wake up call for all federal
contractors to voluntarily audit themselves to resolve these issues. They
should not wait to be scheduled for a review by the Labor Department."
Texaco was cited for inconsistently applying its compensation policies
to women. The $3.1 million includes $2.2 million in back pay and interest,
$816,000 in raises already given and another $84,000 in salary increases.
"We urge other companies to work with the Department of Labor as Texaco
did to ensure that there is no discrimination in pay or advancement," said
Assistant Secretary Bernard E. Anderson, who heads the Employment Standards
Administration. Anderson noted that Texaco's proactive cooperation with Labor
officials allowed the Office of Federal Contract Compliance Programs (OFCCP) to
reach the settlement agreement signed yesterday and to avoid lengthy
litigation.
OFCCP, part of the Employment Standards Administration, enforces equal
opportunity requirements of companies that have contracts with the federal
government. Texaco has a contract with the Department of Defense to supply
petroleum products.
Shirley J. Wilcher, head of the Office of Federal Contract Compliance
Programs, said the agreement with Texaco is the largest pay equity case to
date. In addition to the financial settlement, Texaco will set standard
policies for establishing initial salaries and promotional raises.
"The old biases are still at work against women," Wilcher said, "even as
many of them attain high-level positions. We will continue to review corporate
policies and practices to ensure that women are paid equally with men who have
similar responsibilities."
Previous major "glass ceiling" audits included CoresStates Bank of
Philadelphia, Pa. which settled for $1.5 million in April, 1998; Fairfax
Hospital of Fairfax, Virginia for $600,000 in September, 1993; R.R. Donnelley,
of Chicago, Ill., $425,000 September, 1998; and Allison Engine Company of
Indianapolis, Ind. in March, 1998 for $499,999.
Archived News Release--Caution:
information may be out of date.
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