EEOC And Ford Sign Multi-Million Dollar Settlement Of Sexual Harassment Case

Cheryl Mabry-Thomas, EEOC's lead investigator of the charges filed against Ford, said, "By entering into this very significant settlement, we are sending a strong message to the business community that EEOC is committed to vigorously pursuing allegations of harassment wherever and whenever they may arise. At the same time, we hope this action makes a statement to employees who believe they have been the victims of this kind of conduct, that EEOC is capable of firmly remedying such situations, regardless of the size of the employer."

According to the terms of the main agreement, which will remain in effect for three years, Ford will pay $7.5 million, to be distributed among a class of eligible claimants as defined in the agreement. Under a related confidential agreement, Ford will pay a total of $250,000 to two female employees to resolve their individual charges. In addition, Ford agreed to undertake efforts to increase the level of female representation in the first line supervisory cadre over the term of the agreement. A goal has been set to place females in 30% of the entry supervisory openings at its Chicago Stamping and Assembly Plants.

Ford agreed to the appointment of a three-person panel of independent monitors to oversee the execution of the terms of the agreement. The company will submit to the panel for its approval policies prohibiting sexual harassment, harassment on the basis of sex, and racial harassment, along with its revised internal complaint procedures designed to encourage workers to come forward with complaints of harassment. Once the policies have been approved, the panel will be responsible for overseeing Ford's implementation and enforcement of those policies. All compensation and expenses of the panel in carrying out its responsibilities will be paid by Ford, according to the agreement.

The agreement also calls for Ford to provide training on the prevention of discrimination and the panel-approved policies and procedures. Ford projects that it will spend $10 million to provide the training to all its employees. The agreement requires that Ford provide such training, as well as the implementation of the revised policies and procedures, not only at the Chicago-area plants, but at certain other Ford facilities.

Sexual harassment refers to hostile or offensive conduct of a specifically sexual nature, such as making unwelcome sexual advances or comments, sexual assault/touching, etc. Harassment on the basis of sex refers to adverse or demeaning language or conduct generally indicating hostility to the presence of persons in the workplace because of their sex. Under the law, both are considered forms of sex discrimination prohibited by Title VII of the 1964 Civil Rights Act.

The claims against Ford were brought under Title VII of the Civil Rights Act of 1964, as amended, which prohibits employment discrimination on the basis of sex, race, religion, color or national origin. The EEOC is also responsible for enforcing the Age Discrimination in Employment Act of 1967, as amended, which prohibits discrimination against persons age 40 and over; the Equal Pay Act of 1963, which prohibits wage discrimination based on sex; and the Americans with Disabilities Act of 1990, which prohibits employment discrimination based on disability.