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September 7, 2008    DOL Home > News Release Archives > OSEC/OPA 1996   

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Archived News Release--Caution: information may be out of date.

U.S. DEPARTMENT OF LABOR

Office of Public Affairs

OPA Press Release: Reich Announces Settlement Of "Egregious" Sexual Racial Discrimination Case Against Federal Contractor Department also releases list of Egregious Discrimination Cases-- [11/20/1996]

For more information call: (202)219-8211

 
	 

Department of Labor officials announced today they have reached a settlement in a case that involves "some of the most egregious and offensive" incidents of racial discrimination and sexual harassment uncovered in recent history.

TIMCO, a North Carolina aviation contractor, will pay $242,600 for back wages and corrective measures in a settlement worked out with the department's Office of Federal Contract Compliance Programs. Although a number of women quit their jobs because of the hostile atmosphere at TIMCO, the company failed to act until the Labor Department intervened.

Former employees of TIMCO have alleged that the following incidents occurred: One employee raffled off a knife engraved with the Ku Klux Klan insignia. Another employee turned the company uniform hood around to mimic a Ku Klux Klan hood. In one incident, a male employee threatened an African American woman with rape and beating. Another woman told of an incident where a company official grabbed her in an elevator.

Women and African Americans were subjected to other forms of harassment and overt discrimination including being by-passed for promotions, being subjected to racial slurs, sexually inappropriate statements, graffiti on the bathroom walls (which cost $30,000 to remove), all of which resulted in a pervasively hostile work environment.

"Outrageous racial and sexual discrimination will persist unless employers send a clear, strong signal that discrimination and harassment will not be tolerated in the workplace," Labor Secretary Robert B. Reich said. "Corporate executives and managers across the country must become active participants in ensuring equal opportunity and advancement for all workers."

The company has agreed to pay $140,000 for back wages and interest, and $102,600 for training and other corrective measures. TIMCO has also agreed to take disciplinary action against certain employees who were found directly culpable in creating the hostile climate. The company will also require training for its employees and revise its handbook to reflect issues affecting its diverse workforce.

These alleged violations were revealed during a routine compliance review by the Department of Labor Office of Federal Contract Compliance Programs (OFCCP). It should be noted that no formal sexual or racial discrimination complaints had been filed prior to the review. The compliance review was scheduled in accordance with OFCCP's regular procedures.

Shirley J. Wilcher, Deputy Assistant Secretary for Federal Contract Compliance at the Department of Labor, released a list of the most egregious cases the OFCCP has uncovered at a Town Hall meeting in Birmingham, AL.

Speaking at the meeting, Wilcher said: "If the employer had taken its contractual obligation seriously, these incidents probably would not have occurred. Affirmative action prevents discrimination," she added, "and as these egregious cases clearly demonstrate, affirmative action in the workplace is still needed today."

OFCCP is responsible for enforcing Executive Order 11246 and other laws requiring federal contractors to guarantee equal employment opportunity without regard to race, gender, religion, color, national origin, disability or Vietnam-era status. It is a part of the department's Employment Standards Administration.

U.S. Labor Department news releases are accessible on the Internet at: http://www.dol.gov/

 


Archived News Release--Caution: information may be out of date.




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