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Archived News Release--Caution:
information may be out of date.
For more information call: (202) 219-8211
Allison Engine Company, a multi-million dollar federal contractor in
Indiana, has agreed to pay $499,999 in backpay and salary increases to 54
female professionals and managers who allegedly were victims of pay inequities
at its corporate headquarters in Indianapolis, the U. S. Department of Labor
reported today.
The agreement between Allison and the Labor Department's Office of
Federal Contract Compliance Programs (OFCCP) resolves discriminatory pay
practices uncovered during a corporate management review initiated by OFCCP,
November 17, 1996. Corporate management reviews, commonly identified as "glass
ceiling" reviews study the invisible, artificial and attitudinal barriers which
keep minorities and women from upward mobility in upper management levels.
The agreement specifies backpay of $309,859, and first year pay raises
of $190,140. The amounts are above and beyond normal merit and across-the-board
raises planned in the next cycle of pay raises.
U.S. Labor Secretary Alexis M. Herman praised the agreement saying it
shows how effective compliance programs can be. "I am pleased that these women
will be compensated for back pay and receive the pay increases they deserve. As
Secretary of Labor, I am committed to breaking the glass ceiling and opening
wider the doors of opportunity to all Americans. As I travel across the nation,
I meet women of all ages and races who still need help when it comes to finding
and keeping good jobs--who are still struggling with the fundamental issue of
pay equity. This case demonstrates the Labor department's corporate management
review initiative is working and having an impact at the mid-and
upper-management levels."
Under terms of the agreement, the company agrees to implement procedures
that will help identify and eliminate any adverse impact in the selection
process on those groups protected by Executive Order ll246 which prohibits
discrimination in the workplace based on race, national origin, sex, religion,
disability or veteran status. The order is enforced by OFCCP.
Deputy Assistant Secretary Shirley J. Wilcher, head of OFCCP, said:
"This case is another sharp reminder of what can occur without watchful
self-audit and analysis by top management."
Allison manufactures helicopter engines for all of the military's
aircraft, including one contract with the Department of the Air Force for more
than $26 million.
OFCCP is part of the Labor Department's Employment Standards
Administration. It monitors federal contractors and subcontractors to ensure
compliance with applicable equal employment laws and compliance with
affirmative action requirements.
Archived News Release--Caution:
information may be out of date.
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