EQUAL EMPLOYMENT OPPORTUNITY: A STUDY OF
EEO IN FIVE SELECTED MANUFACTURING COMPANIES
by
George Norman Bennett
A Thesis Submitted to the Faculty of the
College of Business
and Public Administration in Partial Fulfillment of the Requirements for the Degree
of Master of Business Administration
Florida Atlantic University
Boca Raton, Florida
August, 1974 EQUAL EMPLOYMENT OPPORTUNITY: A STUDY
OF EEO IN FIVE SELECTED MANUFACTURING COMPANIES
by
George Norman Bennett
This thesis was prepared under the direction of the candidate's thesis advisor, Dr. Jarold G. Abbott, Department of Finance and Assistant Dean. It was submitted to the faculty of the College of Business and Public Administration and was accepted in partial fulfillment of the requirements for the degree of Master of Business Administration.
SUPERVISORY COMMITTEE:
0. . • ~ .
(Director, Executive MBA Programs) . t: ' (Dea~Busines~nd Public Administration) \\ .-r: kii @;an for ~ced Studies)
iii ABSTRACT
Author: George Norman Bennett
Title: Equal Employment Opportunity: A Study of EEO in Five Selected Manufacturing Companies
Institution: Florida Atlantic University
Degree: Master of Business Administration
Year: 1974
This thesis surveys equal employment opportunities in selected manu-
facturing firms since the passage of Title VII of the 1964 Civil
Rights Act and its amendments. Companies who have government contracts
are now required by law to have written affirmative action programs
that outline positive steps in providing equal opportunities in employ- ment for minorities and women. Case studies of the five selected
firm~ are conducted by the author. These studies involve analyzing
and evaluating the affirmative action programs and indic~ting the
changes that have taken place in personnel policies and pract:~e~.
iv TABLE OF CONTENTS
Page
INTRODUCTION • • . • • • • • • • • • • • • • • • • • • • • . • • . • 1
Purpose of Study • • • • • • • • . • • • • • • • • • • • • • • 2 Methodology . . . . . • ...... 4 Survey of Literature • • • • • • • • • • • • • • • • • • • 4 Case Study Approach • • • • • • • • • • • • • • • • • • • • 5 Companies Selected • • • • • • • • • • • • • • • • • • • 6 The Interview ...... 6 Limitations ...... 7 The Equal Employment Problem • • • • • • • • • • • • • • • • • 8 Equal Employment Opportunity Commission • • • • • • 11 The Office of Federal Contract Compliance • • • • • • • • • • 15 Affirmative Action Programs • • • • • • • • • • • • • •• 17
THE HISTORY OF EQUAL EMPLOYMENT OPPORTUNITY • • • • • • • • • • ,. • 22
History ...... 22 Legislative Background • • • • • • • • • • • 22 State FEP Laws • . ~ . . . . . • ...... 25 Representation by Unions • • • • • • • • • • • • • • • • • • 26 EEO Legislation Prior to 1964 • • • . • • • • • • • • • . • • 27 The Civil Rights Act of 1964 • • • 32 The Equal Employment Act of 1972 • • • • • • • • • • • • • • 35
A CASE STUDY • • • • • • • • • • • • • • • • • ""..JO
Company Characteristics • • • • • • • • • • 38 Equal Employment Policies an~ Aff;,.·m::ttion • • • • • • • • • • 39 Responsibilities for Implementation • • • • • • • • • 39 Dissemination of Policy • • • • • • • • • • • • • • • • 40 Utilization Analysis and Goals • • • • • • • • • • • • . • • 42 Identification of Problem Areas • • • • • 47 Sex Discrimination Guidelines • • • • 48 Action Programs • • • • • • • • • • • • • • 48 Internal Auditing and Reporting . 51 Support Action Programs • • • • . • • • • • • . . • 54 TABT.F. OF CONTENTS (rnnt-innPrl'l'------,
Page
SOL~HERN CO}~ANY B: A CASE STUDY ••••••••••••••••• 55
Company Characteristics • • • • • • • • • • • • • . • . • • • 55 Equal Employment Policy • • • • • • • • • • • • • • , • • • • 55 Analysis of Job Categories • • • • • • • • • • • • • . • • • 57 Employment Data ••••••••••••••••••••••. 60 Internal Employee Relations . • • • • • • • • • • • • • • • • 62 Analysis of Underutilization • • • • • • • • • • • • • • • • 63
Act ions and Goals . ~ . • . e • • • • II • • • I c G I • a • • 65
SOUTHERN COMPANY C: A CASE STUDY ••••.•••• , ••••••• 67
Company Characteristics . • • • . • • • • • . • • • • • • • • 6 7 Equal Employment Policy and Reaffirmation • • 68 Dissemination of Policy • • • • • • • • • • • 69 Identification of Problem Areas • • • • • ...... 70 Goals and Timetables • • • • • • • • • • • • • • • • • • • • 74 Action Oriented Programs • • • • • • • • • • • • • • • • , • 77 Auditing and Reporting Svstem • • • • • • • • • • • • • • • • 78
NORTHERN COMPANY A: A CASE STUDY • • • • • • • • . • • . • • • • • 79
Company Characteristics • • • • • • • • • . . . . . • • • • • 79 EEO Policy and Dissemination • • . • • • • • • • • • • • • • 79 Responsibility for Implementation • • • • • • • • • • • • • • 81 Utilization Analysis • • • • • • • • • • • • • • • 82 Goals and Timetables • • • • • • • • • • • • • • • • • • • • 84 Development and Execution of Program • • • • • • • • • • • • 87 Support Action Programs • • • • • • • 89 Internal Audit and Reporting System • • • • • • • . • • • • • 89
NORTHERN COMPANY B: A CASE STUDY ••••••••••••••••• 91
Company Characteristics • • • • • • • • • • • • • • • • 91 Equal Employment Policy and Reaffirmation • • • 91 Dissemination of Policy • • • • • • • 92 Responsibility for Implementation • • • • • • • , ••. 93 Identification of Problem Areas • • • • • • • • 94 Goals and Timetables • • • . . • • • • • • • • • • . • . • . 95
--~ "'-----·~-- _.c T\------1"\(\ "'----1-----.a..1./CVt:.l..V}JW'=llL dllU LJ\.t:\:.U&..J.VU U.L CLU~Li1U1 • • • • • • • • • • • • :1":1 Active Support of Program • • • • • . . • • . • • • . • . • 100
vi TABl.F. OF CONTENTS (,------, rnnt' i n11Prf\ Page
GENERALIZATIONS, EXCEPTIONS AND FUTURE IMPLICATIONS .••..•. 102
Utilization Analysis • • • . • • • • • • • • • • • • • . • . 104 Employment Practices • . • • ~. • • . • • • • . . • • • • . . 107 Recruitment and Selection • • . . . • • • • . • • . . • . 107 Placement and Induction • • • • • • • • • . , • • . • . . 108 Training, Promotions and Transfers •••••••.•.•• 108 Employee Facilities • • • • • • 109 Future Implications • • • • . • • . • • . • . • • • • . . • 110
APPENDIX • • . • • . • • • • • • . • • • • • • • • • • . . . • • . 113
BIBLIOGRAPHY . • • • • • • • • • • • • • • • • • • • . • . • • • • 117
vii LIST OF TABLES
Page
1. Equal Employment Opportunity Utilization Analysis, Goals and Timetables ...... 44 2. Equal Employment Opportunity Utilization Analysis, Goals and Timetables ...... 45 3. Equal Employment Opportunity Utilization Analysis, Goals and Timetables • • • • . • • • • • . • • • 46
4. Employment and Personnel Pract:f.ces Analysis Equal Employment Affirmative Action Program • • • • • • • • . • • • • • • • 52
5. SCB's Form EE0-1 1973 •••• 60
6. Population for Local County • 62
7. SCB 1 s Manpower for Five Years • 64
8. Minority and Female Goals for 1974 • • • • • • • 66
9. Minorities and Females in Work Force •• 71
10. Job Categories for Minority and Female Employees • • • 71
11. Establishment of Goals and Timetables • • • • • • • • • • • • • 76
12. Civilian Labor Force • • • • • • • • • • • • • • • • • • • • 8 2
13. NCA's Form EE0-1 1973 ••••• 84
14. Total Work Force for Local Area • • • 96
1 .. ,. ,. -- ' -. --- 1 .. J.:>. ;:,~.,;n·s rorm t.t.U·J. • • • '71
16. Utilization Analysis by Job Category • 105 INTRODUCTION
There are three major federal laws which prohibit discLimination
in employment or provide equal employment opportunities. These are:
Title VII of the Civil Rights Act of 1964 as amended by the Equal
Employment Act of 1972; the Equal Pay Act of 1963 and the Age Discrimi naUon Act of 1967. 1
Title VII of the Civil Rights Act forbids discrimination in
employment on the basis of race, color, religion, sex and national
origin. The Equal Employment Opportunity Commission (EEOC), which was
created by the 1964 Civil Rights Act, is the enforcement agency for
Title VII. Its authority was further strengthened by the amendments of
the 1972 Act which gave it the authority to enter court actions ~f
settlements could not be reached in order to maintain compliance with
federal regulations.
The Civil Service Commission has the authority under the 1972
amendments, to enforce equal employment regulations in the federal
authority was c~eat€d ty the provisions whi~h gave
federal employees added protection and assured them that all personnel
policies are free from discrimination based on race, color, sex,
religion or national origin.
The Equal Pay Act states that individuals must be paid eoual
pay, regardless of sex, if they perform equal work. The Age
11973 Guidebook to Fair Emplo;;ment Practices, Commerce Clearing l-l'nn
Discrimination Act bans discrimination in employment on the basis of age against persons who are between 40 and 65 years of age. Enforcement powers for both acts come under the Department of Labor. The Wage and
Hour Division of the Labor Department is responsible for administration of the Equal Pay Act while the Secretary of Labor is charged with admin- istration and enforcement of the Age Act.
Title VII of the Civil Rights Act contained one of the first major efforts by Congress to require equal opportunity in employment.
Again, enforcement of such requirements is invested in the Equal Employ- ment Opportunity Commission. Title VII is based upon the commerce power and it extends to any employer engaged in an industry affecting commerce. Reliance upon the commerce clause enables Congress to reach the action of individual employers without being bound by the state action limitations of the enforcement clause of the Fourteenth Amendment.
Purpose of Study
There is a definite need for businesses to understand equal-employ- ment opportunity laws and regulations as controlled and enforced by the
Equal Employment Opportunity Commission, the Office of Federal Contract
Compliance and other federal agencies. Recent decisions of the Com- m; c c; ~n """'"' 1 .oA .-... ~ t-h ---~---._,. - t! .a..l.. ------t"' .... -- ., ...... c;u.u...-uua.u.c;u~o u.&. S..&&C Civil Rights Act of 1964, Title
VII, have sh~~ that the time has come for employers to implement equal employment opportunity programs in order to be in compliance with the law. The Commission or its enforcement agencies will no longer be con- tent with the firm's verbal or written jntentions of equal opportunities.
Results will now be demanded in terms of equal opportunities and rewards for the female and minority group segments of the work force.
It is felt by most employers that a company's personnel program is 3 fundamentally an industrial relations matter, and that policies rest on basic values and objectives of management. Management must develop specific procedures and practices for the implementation of the policies that have been formulated. Although an affirmative action policy has been imposed on management by the government through law, implementation must be planned and executed.
The principal purpose of the research undertaken in this study is to review personnel policies and practices in regard to Title VII of selected manufacturing companies, to examine present affirmative action programs of these firms and to ascertain the effects which Title VII of the Civil Rights Act has had and will continue to have on them. The study will consist of analyzing and evaluating the affirmative action programs of five manufacturing firms who have government contracts and come under the jurisdiction of the Office of Federal Contract Compliance.
Two of the firms are located in the northern states and three of the firms are located in the southern states.
Management is faced with three major proble~ in complying with
Title VII of the Civil Rights Act and its amendments. The first has been to determine which personnel policies and practices are legal under the law and those that are not. The second is to reconcile demands of the law and of various minority group organizations to hire more minori ties and females from less qualified sectors of the population with basic responsibility to staff the organization with the best possible employees from the standpoint of attitude, work history and special skills. The third problem is to meet the requirements of merit employ- ment through affirmative action plans in the local comw2nities ~here the facilities are located based on federal regulations. 4
The author will analyze present trends and attempt to predict future developments in the area of equal employment opportunities for minority and female employees. Since th~ sample firms have much in common in equal employment with other firms throughout the nation, the findings may provide useful insights for otl1er firms in developing and implementing acceptable written affirmative action programs on a nation- wide basis. The paper may also be instrumental in assisting smaller or independent firms in developing programs of this nature since more and more of them are coming under federal regulations and are now having to develop affirmative action programs.
Methodology
Survey of Literature
The first step in this study was a careful analysis of Title VII of the 1964 Civil Rights Act and its amendments and pertinent comments on the law made by authorities in personnel and labor journals and in
Congressional Reports and Hearings. The next step was to review the writing that had a significant bearing on the problem. A careful search of the journals and other publications indicated that there is little published material en the subject of affirmative action involving equal employment in industry. The few studies available consist largely of information collected from large corporations who are members of the government sponsored Plans for Progress Programs. This is an "affirma- tive action" program for companies committing themselves to equality of employment opportunity on a voluntary basis. 2 Other important background
2president's Committee on Equal Employment Opportunity, Imple mentating Plans for Progress, Washington, D. C.: U. S. Government Printing Office, 1964, p. 1. 5
reading was done in the area of opinions, attitudes and beliefs and
their relationship to management practice. These books and articles,
alo~~ with same ~~itings about management changes in the firms, pro~
vided valuable insight into the nature of the problems of equal
employment opportunity and affirmative action programs.
Case Study Approach
The most valuable approach to the research appears to be through
case studies, which permit an intensive investigation of the situation
in different companies. It became apparent in this research that infor mation about most of industry's experience with integration of the work
force is not available in published form. Some companies have had merit
programs in employment for years, but information concerning their ex
perience is not generally available.
There was also a concern at the beginning of the study that few managers would be willing to discuss the sensitive, controversial problem of equal employment. It was learned during the early parts of the study that a request for an interview on this subject by mail would probably be unanswered or refused. However, when the personnel managers were con
fronted face to face, told the purpose of the study, and assured of the confidential nature of their responses, very few declined to participate.
Thus, the first procedure u3ed for the study was to make the first con
tact with a letter (see Appendix A) or by telephone to explain the research in general terms and ask for an interview to explain the re
search more fully. This procedure proved to be very successful with
few managers refusing to discuss the topic. However, there was a variance in the amount of irrformation each Yas Yillirrg to give. 6
Companies Selected
In selecting the companies, the author felt it was desirable to have a cross section of manufacturing firms that produced different pro- ducts and were representative of their particular industry. The five firms surveyed are producers in the areas of paper products, chemicals, metals, automotive parts and aggregates. Other characteristics include number of employees, location of plant and its headquarters and govern- ment con.;;racts. It was concluded that the firms selected should include both larger and smaller firms. By doing this, it was possible to com- pare the development of affirmative action programs of the various size firms. It also seemed desirable to include smaller firms since Title
VII covers all employers with 15 or more employees.
The Interview
The survey of the literature enabled the author to prepare a questionnaire (Appendix B) covering the personnel policies and practice~ and the affirmative action programs which are likely to be affected by
Title VII. These questions were directed, in a personal interview, to the top personnel man or to the manager directly in charge of personnel activities at the local level in the firms studied. These interviews covered all phases of personnel activities directly affected by Title VII and development of affirmative action programs. The interviews were con- ducted with personnel managers because they are considered to be most familiar with all the activities in the personnel area, as well as, with the policy of the home office if the company's headquarters were located in other cities. Not only does the personnel manager devote most of his
._,:_,.. ~,.. __ ._,:,.,..,:..,,:,.. _ _ ,..._,..,.._,....:1 1...... '1"'.: ... 1,... tTTT --..t ..:1,.., •• ,..1-- 1-- ... 1 .... ~.t=.:- ...... : ...... '-.LUSC '-'"' 0\,.ot-.LV.&.'-.LC:.::) \,.oVVC:.&.C:U U:J .l..L\.o.&.C: 'Y .L.L cu.a.u UC:VC:.&..Vt' .L.V'-c&.L. Q.L..&...L&.UlClt...LVC:: action programs, he is, to a large extent, the initiator of these activi- ties. In addition, personnel managers are likely to have looked further 7
into the future concerning the impact of Title VII on personnel policies
and practices.
The interview, along with copies of the firm's affirmative action
program was used as a major source of information because of the flexi
bility and the opportunity it gave to appraise the validity of responses.
It was also possible to repeat or rephrase questions to make certain that
they were understood or to ask further questions in order to clarify the meaning of a response. Also, the interviewer was in a position to ob serve not only what the respondent said but how he said it. The inter view is thought to be a most appropriate technique for revealing detailed information about such a complex, emotion-laden subject.
Limitations
This study is largely limited to treatment of personnel policies and practices and equal employment in general. Also, the study is limited to Title VII of the 1964 Civil Rights Act, its amendments and
Executive Orders affecting equal employmer.t. It does not discuss the other provisions of the 1964 Civil Rights Act.
~~ile Title VII of th~ l&w ~oes not permit discrimination in pay and age, this study does not deal with these provisions in detail. One reason for excluding these provisions was to eliminate a long interview and get the necessary information needed. In addition, the specific regulation covering these provisions are contained in the Equal Pay Act of 1963 and the Age Discrimination Act of 1967.
Although each firm was studied in depth, the sample includes a relatively small number of firms. The findings are representative only of the policies and practice~ in these ~elected companies and may or may not reflect the experience of other companies in the United States. 8
The study was designed to show the thinking, planning and action taken by management. Most of the information was provided by managers, so there is little information on the reactions or planning of non- managers. The interviewer relied heavily on personal knowledge of the personnel and other managers. Therefore, a large part of the survey in- formation is in the form of narrative accounts and subjective appraisals.
Despite these handicaps, the body of information gathered from the inter- views and affirmative action programs appear to be, on the whole, factual and dependable.
The Equal Employment Problem
The Civil Rights Act of 1964 and its amendments by the Equal Em- ployment Opportunity Act (EEOA) of 1972 has become a landmark statute in the history of personnel management. The Act has significantly affected the internal personnel management of business and industry in the United States as other acts have, such as the National Labor Rela- 3 tions Act of 1935 and the Fair Labor Standards Act of 1938.
The attempt to establish employment policies and practices which are in compliance with the jungle of laws, executive orders and regula- tions designed to provide equal employment opportunities and fair employ- mcnt pA:'actices for e-veryone is one of the most frustrating aspects of managers today in both large and small businesses.4 Most employers are making some effort to comply to the letter of the law if not the spirit of it, whether out of a sense of social responsibility, fear of reprisal
3tarry E. Short, ''Nondiscrimination Policies: Are They Effective", Personnel Journal, September, 1973, Volume 52, No. 9, p. 786.
4cary D. Thorp, Jr., "Fair Employment Practices: The Compliance Jungle", Personnel Journal, July 1973, Volume 52, No. 7, p. 642. 9 or the good old fashioned profit motive. However, it is difficult to determine actually what the law is with the proliferation of federal, state and local legislation in the area of equal employiment opportunity.
The simple question has become somewhat difficult to answer.-~
The core of the regulations which prohibit discrimination in em- ployment practices based on race, color, sex, religion and national origin is Title VII of the Civil Rights Act of 1964 with the 1972 amend- ments. This Act ls complemented by various state Fair Employment
Practices Acts which are now found in most states. There is a battery of executive orders which include Executive Orders 11246, 11375 and
11478, all of which are aimed at prohibiting discrimination toward minority groups in the federal government and organizations holding federal contracts. Guidelines to eliminate discrimination in this area are enforced by the Office of Federal Contract Compliance (OFCC) and by regulations of those agencies which sponsor government contracts. 6
The perplexity of federal civil rights legislation, often compli- cated by state and local ordinances, constantly presents problems for employers striving to comply in good faith. Dealing with complex techni- cal and legal issues of federal guidelines of employment practices c~n be a never ending situation. It has become a time-consuming, often frus- tratingly unrewarding, endeavor in which even one's best efforts may be compensated with charges of discrimination. 7 This occurs not only in
Srbid.
6rbid.
?David W. Pearson, "OFCC and EEOC Demands-Guidelines to Frustr3- tions", The Personnel Administrator, November-December 1973, Vol. 18, No. 9, p. 21. 10 trying to understand the Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contract Compliance (OFCC), but also in attempting to implement the guidelines that these agencies have estab= lished in order for businesses to comply with the terms of Title VII of the Civil Rights Act of 1964.
The language and the intent of the guidelines often appear contra- dietary and ambiguous, and the standards imposed on businesses to get all aspects of their hiring, transfers, and promotion practices and pro- cedures validated may at a first glance seem impossible to meet. Other significant factors which seem to contribute to the confusion are: the lack of accountability controls over the EEOC and the OFCC, which often results in an abuse of power; the lack of conformity among EEOC and OFCC officials in giving out correct information; and the hesitancy of the government agencies to distribute information that would keep businesses up to date with what is really expected of them. 8
It is almost impossible, at this point of time, to outline specific guidelines supported by landmark decisions of administrative agencies and the courts that would enable employers to be certain of full compliance with all civil rights regulations that would be applicable to their own personnel practices. A decade of experience under the Civil
Rights Act and its amendments is too short 2 ryeriod of time for employers in the private sector to obtain a full grasp of their rights and obliga- tions under these laws. For example, it has been over 35 years since the passage of the Wagner Act. However, the National Labor Relations Board and the courts still wrestle with new issues arising out of sets of 11 government controls established by that law, as amended and supplemented by the Taft-Hartley Act of 1947 and Landrum~Griffin Act of 1959. 9 This is one of the reasons then that many issues involving civil right stat= utes are not fully predictable or well-settled.
Due to the changes in legislation, patterns have progressively changed recently from antidiscrimination measures relating to hire and tenure of employment to much more stringent regulations requiring
"affirmative action" to assure adequate employment and promotional 10 opportunities for minority groups.
Before affirmative action programs are reviewed and discussed, it would perhaps be of importance to discuss the Equal Employment Oppor- tunity and Office of Federal Contract Compliance, at this point, in order to give the reader a better understanding and background about them.
Equal Employment Opportunity Commission
Section 705 of Title VII created a_commission to be known as the
Equal Employment Opportunity Commission. It is composed of five members which are appointed by the President and approved by the Senate.
Members are appointed with staggered terms and are limited to three from the same political party. The salaries are fixed by statute and it is separate from the OFCC.
The President shall also designate one member to serve as Chairman of the Commission and one member to serve as Vice Chairman. The Chairman
9Russell 1. Greenman and Eric J, Schmertz, Personnel Administra tion and the T.aw: (Washington: D. C.; The Bureau of Natio!!al Affairs, 1972), p. 74.
10..-L 'd _ -.,u" ~·• P• 12 has the responsibility for the administrative operation and shall
appoint, in accordance with the civil service laws, such officers,
agents, attorneys and employees as it deems necessary to assist it in
the performance of its functions and to fix their compensation. 11
The Commission now has two main functions. The first is enforce- ment which allows the Commission to enter suit in the U. S. district courts, on its own behalf or for other claimants, when it feels that there has been discriminatory practices. The EEOC has only had this power since the Equal Employment Opportunity Act of 1972. Prior to that it only had the power of conciliation and persuasion efforts. 12
Gathering information is the other main function of the EEOC.
Firms with 15 or more employees must file annually with the EEOC forms which indicate tl1e number of women and members of four different minority groups that are employed in various classifications. There are nine of these job classifications which range from laborers to managers and officials. The minority groups are made up of Negroes, Orientals,
American Indians and Spanish-surnamed Americans. (All persons of Mexi- can, Puerto Rican, Cuban and Spanish origin are included in the last group). The EEOC is having some difficulty in dealing with this data it is collecting since it processes approximately 260,000 forms a year.
However, plans are to develop some type of computerized procedures in order to determine patterns of discrimination according to William H.
llBernard Scl1warts, Statutory History of the United States: Civil Rights Part II, (New York. Chelsea House Publishers, 1970), p. 1042.
12naniel Seligman, '~ow Equal Opportunity Turned into Employment Quotas", Fortune, March 1973, Volume LXXVII, No. 3, p. 161. 13
Brown III, Chairman of the Commission. 13
The EEOC has the right to review this information and an organiza-
tion's employment policies and procedures by notification that it plans
to conduct a compliance review. It also has a right to review an organ-
ization's records and policies when a formal complaint is filed with the
EEOC by an aggrieved individual or group.
If a complaint is filed with the Commission in a state that c?.~
fair employment practices similar to those of the Civil Rights Act, the complaint- i.~ rpferred to the state. Sixty days are allowed to resolve the reatter to everyone's satisfaction. If this is not done, the EEOC will step in and try to reach an agreement through conciliation and negotiations. The EEOC may then bring action against the employer in a
federal district court if this does not solve the problem. The Commis-
sion will work on conciliation for 30 days, and if it is going to sue,
it must do so within 180 days. If it does not sue, the Commission will
sign a waiver. Then the complaining employee (or group of employees) may bring a suit independently.
If the court finds an intentional violation, it can dictate the
necessary revised employment practice. It can also order pay adjust- ments retroactive up to two years. As long as the court's orders are
followed there are no fines, no jail sentences, and no punitive damages.
The employer who thinks he is right may be no worse off if he goes
to court and loses then if he surrenders without a fight. However, a
losing legal battle does not improve employee and community relations.
More importantly, the court order remedy will almost certainly involve
13Thin. n. 162, ~J,.;- 14 more liberalized treatment for the aggrieved employee or group of em ployees. In other words, it may pay to settle for as little as possible and pray that another complaint is not filed.
P¥''Jbably the most renowned and largest payment case is that of the
American Telephone and Telegraph Company. This settlement called for a lump-sum payment of some $15 million to 13,000 women and 2,000 male minority-group members, who had been discriminated against in the past.
It also called for immediate raises, aggregating $23 million, for another 36,000 employees who had been discriminated against. The com pany's goals for hiring male operators and clerical workers and female employees in craft jobs were also approximately doubled.
Another recent case was that of Detroit Edison Company in which it was ordered to pay $4 million in punitive damages to blacks for deliber ate racial discrimination as ruled by Federal District Judge Damon J.
Keith. This award, believed to be the largest settlement for punitive damages under the Civil Rights Act, was ordered paid to the court for distribution to persons denied jobs or promotions due to the company's discriminatory policies. Local 223 of the Utility Workers of America were also assessed $250,000 in punitive damages for aiding the company's policies.
The company was also ordered to (1) promote one black to foreman or supervisor position for every whit.: promoted; (2) hire blacks into high-level, technical, and craftsman positions until 25% of these workers are black; (3) allow transfer to better positions within company without loss of seniority or pay; and (4) halt intelligence and aptitude tests designed tc disqualify blacks without providing valid information on applicant's ability.
Th~ St8t~ Fair Employment Practices Commission o£ California ruled 15
against USA Gasoline in barring women from running a gasoline station
because of sex. A female employee was an attendant of one of its
stations but was denied the chance to become manager. The State FEPC
upheld her position by awarding her $1,725 in lost wages and giving her
a chance to become station manager.
In Connecticut, the state law den~ing unemployment benefits for
pregnant women has been declared unconstitutional following state
General Assembly action abolishing the old law which reduced unemploy ment pay to two months preceding and following birth. The new law which went into effect on October 1, 1973, considers only whether a woman is able to work or not. Wisconsin has also followed this pro
cedure and ruled its state law is unconstitutional.
Goodyear Aerospace Corporation was charged with religious discrim
ina~-ion against a Christian Scientist employee by the Ohio Civil Rights
Commission. The complainant, who was treated by a practitioner of the
Christian Science faith, was denied sick pay benefits. Refusal was based on not having consulted a physician. The Commission ruled unanimously there was probable cause to believe the firm had discrimi nated against the employee and it would seek an agreement with Goodyear
to end tne practice.
The Office of Federal Contract Compliance
Executive Order 11246, which was signed into law by President
Johnson on September 24, 1965, covers nondiscrimination in government
employment, as well as, nondiscrimination in employment of government
contractors. It was amended by Executive Orders 11375 (November 12,
1967) and 11478 (October 13, 1968) to include sex as a prohibited basis of discrimination. 16
The Civil Service Commission is responsible for the administration of nondiscrimination in federal employment while the Secretary of Labor
is responsible for the administration of nondiscrimination provisions
in federally assisted construction contracts.
The Secretary of Labor issued Order No. 15-68 on August 8, 1968, assigning the Office of Federal Contract Compliance the responsibility of administering the equal opportunity programs for federal contractors.
Its jurisdiction included not only policies and practices affecting em- ployment, but those affecting promotion, transfer, rates of pay and termination, as well. The equal opportunity clause must be in each government contract. This is to assure that "affirmative action" will be taken to insure that the contractor will not discriminate in employ- ment, upgrading, demotion, or transfer; recruitment or recruitment advertising; lay off or termination; rate of pay or other forms of com- pensation; and selection for training including apprenticeship.
The OFCC was given the authority and responsibility by the Secre- tary of Labor to: (a) carry out the responsibility of Executive Order
11246 as assigned to the Secretary of Labor; (b) develop and recommend to the Secretary necessary rules and regulations to achieve the purposes of Executive Order 11246; (c) coordinate matters relating to Title VII of the Civil Rights Act of 1967 with the Equal Employment Opportunity
Commission and the Department of Justice; and (d) provide regular reports concerning activities of the Office and point out problem areas that needs the Secretary's attention. 14
The Office of Federal Contract Compliance issued Order No. 4 in
l~abor Relations Reporter, Fair Employment Practices Manual, Bureau of National Affairs, FED. 3, 1973, p. 401:109. 17
February 1970, which covered nonconstruction contractors' bidding for
Federal contracts and described what constituted an affirmative action program in minority group hiring. It required that each prime contractor or subcontractor with 50 or more employees and a contract of $50,000 ~o develop a written affirmative action compliance program for each of the establishments within 120 days from the beginning of the contract. The order was revised by Secretary of Labor, J. D. Hodgron, in December 1971 to include reports on women employees also. This order was a result of
OFCC reviews which indicated that many contractors did not have written affirmative action programs at the time the inspections were made. 15
The Department of Labor's OFCC and EEOC have established routines for communication and coordination in order to minimize duplication of efforts. The EEOC contacts OFCC to obtain review copies of any action against the same contractor. There is also a monthly print-out from
EEOC to OFCC regarding conciliation and settlements. The OFCC is required to transmit complaints filed with it to the EEOC, in cases in- volving federal contractors subject to Executive Order 11246, which treat such complaints as charges filed under Title VII in order for the
EEOC to take jurisdiction.
Affirmative Action Programs
Order No. 4 as issued by the Department of Labor requires that every contractor have a written affirmative action program for each es- tablishment. This program or plan must include a detailed report on the company's utilization of each four basic minorities, as well as, females
l~arvin J. Levine, The Untapped Human Resources (Morristown: General Leartdng Corporation, 1972), p. 112. 18 in each of its own job categories.
Affirmative action plans have been developed in the civil rights field to help minority groups and females achieve equal employment opportunities. It is best described as a program or method used by managers or employers to assure that positive steps have been taken to achieve equal employment opportunity. It may also be defined as a written descri-~ion of a company's promise to improve representation of minority group workers if, according to the OFCC's Order No. 4, they are underutilized.
Equal employment opportunity under federal law not only requires an employer to refrain from deliberate acts of discrimination but also imposes upon him an obligation to take positive steps to assure that current practices are nondiscriminatory and that any continuing effects of past discrimination are remedied. The employer has the responsibility to translate this obligation into specific steps under an affirmative action plan.
The federal government agencies have issued guidelines to help employers develop an affirmative action program. However, there is no single set standard to follow. The details of an affirmative action plan are the responsibility of management. Success of an affirmative action program depends on the employer's committment to take specific affirmative steps, to act upon that committment and to show the results in terms of the number of minority group persons actually being hired, trained, or promoted.
An affirmative action plan should include certain areas of employ- .... ___ 1~-~ .... --'1 __ .,_,_ WC:UI. practices in order to be acceptable, but it is not l..LW.LL.t::U ::iUl.t::l.J to just these items. These areas include: utilization analysis; estab- lishment of goals and time tables; reaffirmation of EEO poiicy; 19 dissemination of policy; responsibility for implementation; identifica tion of problem areas; development and execution of program; internal auditi~~ and reporting; and support action programs.l6
Compliance reviews under executive orders and the contractors re porting system have indicated that minority groups are most likely to be underutilized in departments and jobs shown on the Employer's Informa tion Report (EE0-1) as: officials and managers; professionals; tech nicians, sales workers, (except over the counter sales in certain establishments), and craftsman (skilled and semi-skilled). 17 It is in this area that the contractor must direct his attention for corrective action. This can be accomplished by considering the population and availability of qualified minorities and females in the immediate area.
Goals with timetables should be established in order to correct the deficiencies in the underutilization of the affected class. The goals should be realistic and developed in terms that are attainable; based on actual expectations.
The reaffirmation of policy portion of the affirmative action plan should include the contractor's chief executive officer's statement indicating his attitude, assignment of overall responsibility, and pro viding a reporting and monitoring procedure.
Dissemination of policy should be conveyed both internally and externally. Internally the policy is placed in the policy manual and includes other items such as publicity of EEO in company newspapers, special meetings with supervisory personnel to review EEO policies, etc.
16Lab~r; ~- Cit., P- 401:222
17rbid. 20
Externally it would include notifying all recruiting sources verbally and in writing of the contractor's EEO policy, indicating EEO policy on purchase orders, etc.
Responsibility for implementation should be assigned at the top level with the responsibilities of developing statements, assisting in identifying problem areas, assisting in problem solutions, and design ing and implementing audit and reporting system to measure effective ness of the affirmative action program. Responsibility should also be assigned at the local level of each location in order to carry out the same objective at the local level.
Problem areas should also be identified by organizational units and job classifications. This is done through an analysis of the work force, applicant flow, selection process, transfer and promotion practices, training programs, etc., in order to take necessary correc- tive measures.
Internal auditing and reporting systems should be established to insure nondiscriminatory practices in employment. All records of referrals, placements, transfers, promotions, and terminations should be monitored; formal reports from unit managers on goals and timetables should be required on a schedule basis; reported results should be reviewed with all levels of management; and advice and recommendations should be given to top management in order to improve unsatisfactory performance.
Action programs should be supported by the contractor through appointing key members of management to serve on community employment councils, etc; encouraging minority 2nd fem3le cmplcyc~s to partici- pate in National Alliance of Businessmen programs; supporting vocational guidance iustitutes aud other training programs and other community 21
, 0 relations programs. Lu The change from nondiscrimination to affirmative action has become a significant change as it has been demonstrated in equal employment opportunity duriP~ the Johnson and Nixon administra- tions.
222-224. 22
Chapter II
The History of Equal Employment Opportunity
History
The author feels that special emphasis should be placed on the
history of the equal employment movement. This will enable the reader
to gain a better understanding of equal employment opportunity and why
there is a definite need for the development of affirmative action pro-
grams. The movement began primarily to create equal employment oppor-
tunities in the federal government. Over this span of time, the
federal government has attempted to get its house in order by eliminat-
ing discrimination in employment. The time has now come that govern- ment expects businesses and other institutions to get their houses in
order as has been exemplified in the recent changes of equal employment
opportunity legislation.
Legislative Background
The first efforts of the federal government to legislate in the
area of equal employment opportunity grew out of the World War II Faic
Employment Practice Committees (FEPC). The main objective was to give
the Committees statutory status. One of the first bills of this nature was introduced in 1943 by Congressman Vito Marcantonia (N.Y.). Another
bill to abolish the FEPC was also introduced by Congressman Robert
Ramspeck (D.: Ga.) in the same year with neither propos~l g~tting very
far. 1 1 Legislative History of Titles VII and XI of Civil Rights Act of 1964, U.S. Equal Ewplo;wcnt Opportunity Cuwwissiuu, ("Washington, D. C., T9b4)' p. 7. 23
During the period between 1943 and 1963, bills were introduced in both the house and senate to regulate or at least to conciliate com- plaints involving alleged employment discrimination based on race, creed, color, religion, sex, age, or national origin. Coverage, administration - and enforcement of these bills varied widely.
Senator Robert Taft (R., Ohio) introduced a bill in 1945 which proposed to resolve disputes over such discrimination in employment by voluntary methods. While on the other hand the Dawson-Scanlon bill of
1954 proposed to establish an agency with authority and power of enforce ment similar to those of the National Labor Relations Board. 2 Several other bills would also have made racial, religion, or other areas of discrimination unfair labor practices under the jurisdiction of the
Labor Board.
The McConnell Bill which was introduced by Congressman Samuel K.
McConnell, Jr. (R., Pa.) in 1950 would have set up a Fair Employment
Practice Committee. It would have given the Committee the power to study matters of discrimination and to seek to create employment oppor- tunities for members of minority groups without the use of compulsion.
Discrimination on account of sex, physical ability and political affili- ation were added on the House floor before the substitute submitted by
Adams Clayton Powell (D., N.Y.) was adopted. 3
Further action on equal employment was taken in the 87th and 88th
Congress. Efforts were made with some success after President Kennedy took office to remove some of the congressional obstacles and to adopt
2rb__i_Q.
3rbid., p. a 24
liberal measures such as a fair employment practice law. The membership of the House Rules Committee was increased with new members who were
friendly to the administration being appointed. Rule XXII in the
Senate, the rule governing cloture, was also modified to permit cloture by a vote of two-thirds of the Senators present and voting, rather than two-thirds of all Senators.
Although the Administration made no proposal for fair employment practices in the 87th Congress, there were several bills introduced.
The one that received the most consideration was H. R. 10144 which was introduced by Chairman Powell (D., N.Y.) of the House Labor Committee.
It was entitled the "Equal Employment Opportunity Act of 1962". The bill made it an unlawful practice to discriminate in employment based on race, religion, color, national origin, ancestry or age and was to be administered by a five member Equal Employment Opportunity Commission.
The Commission was to have power to bring civil action to prevent unlaw- ful employment practices. However, the bill failed to clear the House
Rules Committee that year. 4
The controversy over the method of enforcing the equal employment opportunity provisions was finally reached by: (1) There would be a bipartisan Equal Employment Opportunity Commission without enforcement powers, and (2) enforcement would be through suits brought by the Com- mission as aggrieved persons in the federal district courts.
After the assassination of President Kennedy, civil rights legis-
lation was given top priority by President Johnson. The Civil Rights Act of 1964 was finally approved and signed into effect after much debating
..... -.J _ ...... __ , ----..l---•- -- T .... 1 .... 'l 1n1:.1. t...... n---.Z~-- .... ,.._,_ ___ _ auu QC::VC.LQ.I. OUlCllUUlCU\..0 Vll ,JU.L:J ~, .L;!V..,., UJ rJ.Ct)J.UCLlL ,JUllLl:SUll• 25
State FEP Laws
In the mid-1940's, several of the states adopted fair employment
practice laws. New York adopted an enforceable fair employment prac
tice law in 1945 and was the first state to act in this area.
Over half of the states had legislated in the area of equal em
ployment opportunity by the time the Civil Rights Act had been adopted
in 1964. They were divided into three basic groups:
1. Those that provided for an administration hearing and judicial
enforcement of orders of an administrative agency or official.
Those among the 21 states who had laws of this type in 1964
were: Alaska, California, Colorado, Connecticut, Hawaii,
Illinois, Indiana, Kansas, Massachusetts, Michigan, Minnesota,
Missouri, New Jersey, New Mexico, New York, Ohio, Oregon,
Pennsylvania, Rhode Island, Washington and Wisconsin.
2. Those that did not provide for any type of administrative
agency or enforcement of orders but made employment discrimi
nation a misdemeanor. These states included: Delaware, Idaho,
Iowa, and Vermont with Delaware having an established com
mission but no provision for judicial enforcement of its
orders.
3. Those that were strictly voluntary and had no enforcement pro
visions. These states were Nevada, Oklahoma, and West Virginia. 5
Nebraska had a statute in addition to the above forbidding unions
to discriminate in collective bargaining capacities against individuals
on the basis of race or color and also prohibiting such discrimination by suppliers of military goods to the state or federal government.
5rbid., pp. 5-6. 26
Representation by Unions
The doctrine of "fair representation" was enunciated by the courts and National Labor Relations Board during the period in which racial or religious discrimination in employment was being dealt with by state laws and executive orders of the federal government. This was a doctrine developed to deal with discrimination by labor unions.
The U. S. Supreme Court ruled that a statutory bargaining agent must represent all employees in the bargaining unit without arbitrary discrimination under the Railway Labor Act. The courts held specifically in 1945 that the Act requires the bargaining agent "in collective bar gaining and in making contracts with the carrier, to represent nonunion or minority union mernbers of the craft without hostile discrimination, fairly, impartially and in good faith."6
The National Labor Relations Board established, during the same period, a corresponding duty of certified unions to represent the mem bers in their bargaining units equally and without discrimination. The
Board held in a case that was decided in 1945, it would have revoked the certification of a union that placed Negro members in a segregated local if the union had not offered to give up its discriminatory practices.
The NLRB in 1962 repeated that execution of a contract that discrimi nated on the basis of race would endanger the union's certification and added that a contract would not bar an election sought by a rival union.
The NLRB also handed down a three to two decision substantially broadening the doctrine of fair representation. It held that: 7
6Ibid., p. 6.
7 Ibid • , p. 7 . • 27
1. The Taft-Hartley Act gives employees the right to be free from "unfair or irrelevant or incidious treatment by their bargaining agent."
2. If a union treats any worker it represents in this manner, it unlawfully restrains and coerces employees in the exercise of their statutory rights and thereby violates the unfair labor practice provision of the Act.
It also held that an employer committed an unfair labor practice if he participates in such arbitrary action by the union against an employee.
The NLRB did not abandon its doctrine on fair representation and on the same day President Johnson signed the Civil Rights Act, a decision was issued finding a union guilty of unfair labor practices. The union's certification was lifted due to racially discriminatory practices.
EEO Legislation Prior to 1964
Before the New Deal period of the 1930's action by the federal government concerning discrimination in employment was largely confined to government employees. The Civil Service Act of 1883, for example, sought to establish the principle of "merit employment", with one of the first regulations issued under the law, outlawing religious discrimina- tion in federal government. 8
Executive Order 8587, a Civil Service rule which was issued in
1940, eliminated racial as well as religious discrimination in federai employment. Congress also adopted the Ramspect Act in the same year and this Act extended coverage of the Civil Service Act and amended the
Classification Act of 1923. Under this legislation, the principle of
"equal rights for all" in federal employment was established. This Act
8"controversy Over the Enforcement Rule of the Equal Employment Opportunity Conmission," Congressional Digest, Volume 50, No. 11, November 1971, p. 258. 28 declared:9
In carrying out the provision of this title, and the pro vision of the Classification Act of 1923, as amended, there shall be no discrimination against any person on account of race, creed or color.
Congressional and Executive action established a policy of equal employment and training which was financed by federal funds during the early 1930's of the New Deal period. This policy not only covered federal employment and employment by gove~Jnent contractors, but also covered employment and training opportunities provided by grant-in-aid programs as well.
Congress first enunciated the principle of equal job opportunity in the Unemployment Relief Act of 1933 which provided that no discrimi- nation shall be made on account of race, color, or creed when employing citizens for the purpose of this Act. Several other laws were passed under the New Deal with similar provisions, and if they did not bar dis- crimination, the policy to bar discrimination would be put into effect by the Executive Branch.
Presidenc Roosevelt issued Executive Order 8802 on June 25, 1941, which constituted the most important effort, thus far, in the history of the United States to eliminate discrimination in employment by use of governmental authority. The order established a five man Fair Employ- ment Practice Committee (FEPC} as an independent agency with responsi- bility solely to the President. This Executive Order was broad in scope and applied to all defense contractors, to employment by the federal government, and to vocational and training programs which were adminis- tered by the government. The FEPC had the authority to receive and
9rbid. 29 investigate complaints of discrimination, to take "appropriate steps" to redress valid grievances and to recommend to federal agencies and the President necessary measures it deemed proper in order to carry out the purposes of the order. 10 The Committee did not have any enforce- ment powers and concentrated mainly on conducting public hearings and drafting policies.
The FEPC lost its autonomy after it was later transferred to the
War Manpower Commission. After a dispute with the chairman of the Man- power Commission, several of the members resigned and operations of the
Committee were suspended in early 1943.
The second Federal Employment Practice Committee was formed later in that year by President Roosevelt under Executive Order 9346. This
Committee had a broader jurisdiction than its predecessor. It was es- tablished as an independent agency, subject only to the authority of the President, within the Office of Production Management~
Appropriations of a much larger budget gave it the capabilities of a much larger staff and the ability to open 15 field offices throughout the states. Its power was through negotiations, moral suasion, and pressure of public opinion in settling the complaints that arose. Be- fore the expiration of its authority in 1946, the Committee had process ed approximately 8000 complaints and conducted 30 public hearings. 11
The government's role from 1946 to 1964 in equal employment opportunities was mainly in the area of government contracts. President
Truman took a major step in 1951 when he issued several Executive Orders
10_ •.. l.D~o.
llibid., p. 259. 30 directing certain government agencies to include nondiscrimination clauses in their contracts.
The Committee on Government Contract Compliance was created by
Executive Order 10308 on December 3, 1951. It consisted of an eleven man group made up of representatives of industry, the public and the five principal government contracting agencies. After reviewing the existing program, the Committee made several recommendations for im provement. Several of these were aimed at establishing an effective enforcement procedure for the nondiscrimination clauses.
President Eisenhower replaced the Truman Committee with Execu tive Order 10479 on August 13, 1953. This Committee was known as the
President's Committee on Government Contracts. It was comprised of a
15 member group from industry, labor, government and the public. The
Committee had the responsibility of making recommendations to improve nondiscrimination provisions in government contracts; serve as a clearing house for complaints alleging violations and to encourage and assist with educational programs by non-governmental groups. 12 Since the Committee had no power to enforce its recommendations, it had to rely on the procurement agencies to adjust the complaints.
Under the Kennedy administration more teeth were put into non discrimination policies. The President's Committee on Equal Employment
Opportunity was established by Executive Order 10925 issued on March 6,
1961. It was charged with the responsibility of effectuating equal em ployment opportunity both in government employment and in employment on government contracts.
Tht: iiil1jur difft::tt:nct: frliili past practice was that the Kt:Iillt:dy ordt:r 31 required contractors to take affirmative action to make the policy effective while earlier orders had only imposed an obligation on con- tractors not to discriminate on the basis of race, creed, color or national origin.
Government contractors were required to do the following: 13
1. Not to discriminate against any employee or job applicant because of race, creed, color or national origin.
2. To take affirmative action to insure that applicants are employed and employees are treated during their employment without regard to race, color, creed or national origin.
3. To state in all solicitation or advertisements for employees that all qualified applicants will receive consideration without regard to race, creed, color or national origin.
4. To advise each labor union with which they deal of their committments under the order.
5. To include the obligations under the order in every subcontract or purchase order unless specifically exempted.
6. To comply with all provisions of the order and the rules and regulations issued by the Committee; to furnish all information and reports by the Com mittee; to permit access to books, records and accounts for the purpose of investigation to ascertain compliance.
7. To file regular compliance reports describing hiring and employment practices.
The Kennedy order also gave the Committee specific enforcement powers in addition to requiring contractors to file compliance reports.
The Committee could publish names of noncomplying contractors and unions; recommend criminal action by the Justice Department against contractors who furnished false information; recommend suits by the Justice
1 'l ~~Ibid. 32
Department to compel compliance; terminate the contract of a noncomply
ing employer; and for bid contracting agencies to enter into new con
tracts with contractors who were discriminating unless they could show
they had changed their policies. 14
During the 87th Congress bills were introduced pertaining to em
ployment discriminatiou. The one that received the most consideration
was H. R. 10144. It was entitled the Equal Employment Opportunity Act
of 1962 and was introduced by Adams Clayton Powell (D., N.Y.). The
proposal of this bill was to make it unlawful in employment practices
to discriminate on the basis of race, religion,color, national origin,
ancestry, or age. However, the bill failed to clear the House Rules
Committee.
Although President Kennedy stressed the importance of civil
rights legislation in the 88th Congress, there were no major changes
until the Civil Rights Act of 1964 passed.
The Civil Rights Act of 1964
One of the most far-reaching civil rights legislation since the
Reconstruction Era, the Civil Rights Act of 1964, was signed into law
by President Lyndon Johnson on July 2, 1964. The Act contained pro- visions which guaranteed Negroes the right LO VOLe; access to pubiic
accommodations; authorized the federal government to bring suit to
desegregate public facilities and ~s.f.ocls; extended the life of the
Civil Rights Commission for four years and gave it new powers; provided
elimination of federal funds where programs were administered discrimi natorily; required most companies and labor unions to grant equal
14rbid. 33 employment opportunity; established a new Community Relations Service to assist in working out civil rights problems; required the Census
Bureau to gather voting statistics by race and authorized the Justice 15 Department to enter into any pending civil rights case. All of these provisions were covered under eleven different titles of the Act.
Title VII pertained to equal employment opportunity. Its purpose was to eliminate, through the utilization of formal and informal remedial procedures, discrimination in employment based on race, color, religion or national origin. Tne title authorized the establishment of a Federal Equal Employment Opportunity Commission and delegated to it the primary responsibility for preventing and eliminating unlawful em- ployment practices as defined in the title.
It prohibited: 16
failure or refusal to hire or fire any person or discrimina tion against him with respect to pay or terms and conditions of employment; or in the case of an employment agency or hiring hall failure or refusal to refer a worker;
segregation, classification or any limitations of an em ployee in a way that would deprive him of equal employ ment opportunities;
exclusion or expulsion from union membership;
segregation, classification, or limitation in union member ship or failure or refusal to refer for employment;
a union's causing or attempting to cause an employer to discriminate against a worker;
discrimination in any apprenticeship or training program;
discrimination against employees or applicants for employ ment because they have challenged employment practices
15"The Civil Rights Act of 1964," Congressional Quarterly Almanac, u"·---- 1 .,.,.,...... vv , 1_., at:./, ..... -y, .....r-· """-""'•~ ~Q
16Ibid., p. 340 34
allowed by this section;
printing or publishing any job notices indicating prefer ences because of race, color, religion, sex or national origin, unless these are bona fide job qualifications.
The Act provided a one-year delay before any employers would be covered by this section and a five-year period in order to cover all employers who would come under the Act. Employers in industry affect- ing commerce with 100 or more employees for a 20 week period in a year, unions in industry affecting commerce with 100 or more members, union hiring halls and employment agencies were covered in the second yea~ after enactment. In the third and fourth year, it covered industries and unions with 75 and 50 employees respectively while in the fifth year and thereafter it covered those with 25 or more employees or members.
The Act also made the following exemption from coverage: 17
employers' alien workers outside the U.S.;
employment by religious groups of individuals to carry out their religious activities;
hiring for educational activities by educational institu tions;
hiring or classification on the grounds of religion, sex, or national origin where these are bona fide qualifications;
hiring by schools supported, controlled, or managed by a particular religion or persons of that religion;
discrimination against Communists or members of Commu nists-front organizations (or determined by the Federal Subversive Control Board);
preferential treatment for Indians living on or near reservations;
refusing to hire, or firing those who do not meet govern ment security requirements;
,_,__ TT-.:.A..-..1 C"~-,_...,_ ,_._..,..., __ ...,._ ... \..liC: uu..a..~cu ~'-a'-c;;, uvvc::.a. LU.U1CU.'- local ovv-.a.&.&.--·,1"\--
17 ____ --· - ' ..:!:E2:.£. ' p • -' '+ L. 35
ments, government owned corporations, Indian tribes and non-profit private membership clubs (fraternal organi zations, social clubs, country clubs, etc.); however, the section stated that it shall be the policy of the U. S. to insure equal employment opportunities in federal government.
It was also made clear that this section did not outlaw seniority and merit systems, or different standards of compensation or giving pro- fessionally developed ability tests as long as these actions were not intended to be discriminatory because of race, color, religion, sex or national origin. There were other bills introduced after the Title VII of the Civil Rights Act pertaining to equal employment opportunities, however, there were no significant changes made until the passage of the
Equal Employment Act of 1972.
The Equal Employment Act of 1972
The Equal Employment Act of 1972 amended the 1964 equal employment laws and gave the Equal Employment Opportunity Commission new enforce- ment powers and extended coverage of the law to additional employees.
The basic purpose of the law is to equip EEOC with effective enforcement machinery and to strengthen its authority in reducing discrimination in employment. The 1972 amendments also seek to eliminate discrimination by extending coverage to additional employees in private industry, smaller unions, to employees of state and local governments, and to employees of both private and public educational institutions.
The bill, H. R. 1746, cleared Congress and was sent to the White
House on March 8, 1972. Passage of the bill on March 24, 1972, capped a seven-year drive by civil rights groups for legislation to give the EEOC
eliminate discrimination in job practices, the EEOC was given power only to conciliate settlements. !ne new act authorized the EEOC power to take 36 cases, which cannot be settled by conciliation, to federal district courts for determining discriminatory practices. If discrimination is found, the court will issue orders directing an employer to remedy its past actions.
As cleared by Congress, the major provisions of the Equal Employ- ment Act of 1972: 18
(1) Extended coverage of Title VII of the Civil Rights Act to businesses and labor organizations with 15 or more employees or members, to state and local government employees (excluding elected officials, their personal assistants, appointed policy making officials and legal advisers) and to employees of educational institutions.
(2) Established for the EEOC an independent general counsel, appointed by the President for four years with the advice and consent of the Senate, to handle the prosecutions for the EEOC and to argue EEOC cases; specified that the attorney general of the United States would conduct all cases before the Supreme Court to which the EEOC was a party.
(3) Authorized the EEOC general counsel, after full investigation and hearings concerning a charge of job bias filed under oath with the EEOC, to bring a civil suit in federal court against an employer whom the EEOC had found was discriminating and with whom the EEOC has failed to secure a conciliation agreement. (If the employee concerned was a govern mental agency or body, the attorney general would handle the case.)
(4) Required that EEOC cases be expedited in every way.
(5) Authorized the court, in a finding that an employer had engaged in discriminatory job practices, to order the employer to halt such practices and to remedy his past action by reinstating or hiring the employee concerned with or without awarding them back pay and through any other remedial measures that might be needed. A back-pay award would be limited to the two year perio;' · 'i~ filing of the charge witb ~~
._ ... _,.._~ -.& {:-~ Transferred tc the .a...a..-u.a .... .l.L IL.u.rca.a.""' v .L
l8cor%ressional Quarterly Almanac, Volume XAviii, 1972, p. 247. 37
Justice - over a two year period - the authority to bring suit against an employer or organization engaged in a pattern or practice of employment discrimination.
(7) Established an Equal Employm~nt Opportunity Coordinat ing Council to coordinate and implement all federal equal employment efforts.
(8) Made clear that the Federal government was required to make all personnel action free from discrimina tion on the basis of race, color, religion, sex or national origin; authorized the Civil Service Commission to enforce this policy within the federal bureaucracy; expressly granted individual federal employees the right to seek relief from such discrim ination in the federal courts.
(9) Provided that no government contract could be sus pended or withheld from an employer without a full hearing if that employer had an equal opportunity program already approved by the federal government and from which he had not substantially deviated.
Since these changes and the passage of the bill in 1972, there h~ve been no other significant legislation changes introduced or passed.
The followin~ five chapters, III, IV, V, VI and VII, will cover the case studies of the selected firms. Chapter VIII will list the generalizations, exceptions and future implications of equal employment opportunity policies and affirmative action programs. 38
CHAPTER III
SOUTHERN COMPANY A: A CASE STUDY
Company Characteristics
Southern Company A (SCA) is a manufacturing company which produces
crushed stone and classified sand. Operations are centered in four of
the southeastern United States with headquarters of the company in the
South.
At present, SCA operates 37 quarries and crushing plants. It also
has supporting groups such as maintenance shops, a grading department,
and a construction crew which travels from one location to another as the
need arises. The production department is divided into seven areas of
the four southern states.
SCA is a government contractor and employs approximately 1475 em
ployees. There are 469 minority group employees and 34 female em
ployees respectively of the total employment.
The process of producing crushed stone has several inherent
qualities which, in some cases, tend to make recruitment and retention
of employees difficult. Turnover rates are unusually high and, in some
respects, are considered to be related to these occupational qualities.
Working conditions are sometimes harsh since the work is outside where the workers are exposed to extremes in heat and cold, dirt and
dust. The majority of work is manual and can be very hazardous. Some
operations are transient, moving from one location to another in rela
tively short intervals. Tne nature of this work has made it difficult 39
to attract highly educated people, especially professional and super-
visory people.
Equal Employment Policies and Affirmation
It is SCA's policy to provide equal opportunity to all employees
and to all applicants for employment without regard to race, religion,
color, sex, age or national origin. This policy extends to but is not
limited to: recruitment and employment; promotion; demotion; layoff;
transfer and termination; rates of pay and other forms of compensation;
education and training; and other working conditions. This policy is
also communicated to all employees, unions representing employees, and
sources used in recruiting and hiring new employees. The overall direction and administration of the policy is handled by the Vice Pres-
ident of Industrial Relations with chief executives being responsible
for implementing the policy in their respective units.
The affirmative action program has been developed and is affirmed
in writing by the president down through the chain of command to the operations managers. The program is passed out for all of supervision to review and study. The intent is made very clear that all employees
should have equal employment opportunities.
Responsibilities for Implementation
The president of the company is ultimately responsible for imple- menting affirmative action and the equal employment opportunity policy throughout the company. An Equal Employment Opportunity (EEO) Coordi- nator position has been established with the responsibilities to:
Ac:.c:.11.,.., f'11ll l'nnc:.i c:.f"<>nf" imnl <>m<>nf""t-inn nf' t-h<> f'nmn,nv L -·------""rl ------r------r---J
policy on equal employment opportunity. The EEO Coordinator
.:_ ~""- .c .... __ , _ .... .:_._ .... c ...... : .... .: ...... "'·· ..1...... ------· .:- --·-.:~ •• .L.o::J L.UC .L\.1\...Q~ pv.L.&.U... V.L CH... L.LV..LL..J UJ L.UC \..VLU.tJOU..Y .L.L&. '"''-'UJU.iUULLJ 40
activities directed to solving the problem engendered by past
discrimination against minority persons.
2. Designate a responsible person for each location as the EEO
Officer to be responsible for implementation of the EEO policy.
3. Develop and implement procedures for the periodic analysis of
all emplOYffi~ut and personnel practi~es to identify problem
areas and to monitor progress under this plan.
4. Annually review and evaluate the ~ompany's performance under
the total plan. He shall devise and recommend goals and
criteria for the following year to the president.
5. Prepare and maintain reports required by federal, state and
local laws and regulations.
6. Establish an action plan, including formulation of goals and
timetables for relieving or correcting problem situations, in
the event the analysis of employment and personnel practices
reveal the need for corrective actions in given geographic,
departmental, and/or functional areas.
Area operations managers, plant superintendents and department heads are responsible for the implementation of the company's EEO policies within their areas, plants or departments, respectively.
Dissemination of Policy
Under the dissemination of policy the objectives are broken down into two parts, internal and external. To accomplish the objectives of discrimination, internally, the following methods are used:
1. The policy and procedure manual will contain a statement of
policy with regard to Equal Employment Opportunity practices. 41
2. A copy of the company EEO policy and Affirmative Action Plan
will continue to be sent to all quarry and department super-
visors.
3. The company in-house publication has reflected and will con
tinue to reflect commitment to Equal Employment Opportunity
by fe3turing open letters from the president, articles re
lating to identification of local EEO officers, procedures for
reporting complaints, recognition of minority employees, and
the announcement of training open to and completed by minority
employees.
4. The annual employee relations report to top management in
cludes detail breakdown oi minority turnover, hiring, pro
motion and training.
5. Management meetings include reviews of EEO policy from the
President, EEO Coordinator and EEO Adviser.
6. The EEO policy is discussed with all new employees as a part
of the formal induction and orientation program.
7. The Foreman's Management Training Program includes a section
on the company's EEO policy and federal regulations as they
pertain to EEO.
8. The company policy of non-discrimination is posted, along
with federal regulations, at each operating unit within the
company.
9. The company's Employee Handbook includes a statement of the
policy of non-discrimination. The cover depicts minority as
well as majority employees.
External objectives of the company are: 42
and communicates regarding personnel and employment its policy
on Equal Employment Opportunity and its complete and un-
equivocal intention to carry out this policy. All solicita-
tions, advertisements or requests for employees state that all
applicants are considered without regard to race, religion,
color, sex, age or national origin. All suppliers and sub-
contractors are notified of their EEO responsibilities.
2. All recruiting sources, such as, personnel agencies, colleges,
schools and minority organizations have been informed in
writing of the company's affirmative action program and ad-
vised of the desire to recruit and hire minority and female
employees.
3. Equal Opportunity clauses are included in all purchase orders
and contracts covered and amended by Executive Order 11246
and its implementing regulations.
4. All prospective employees are advised of the company's
affirmative action program in pre-emplo;~ent interviews.
Utilization Analysis and Goals
The population data for the labor areas immediately surrounding
the operating facilities will
analysis sheets for the various operations. Availability of minorities
and women with requisite skills for entry levei positions at the plants
is good. However, in many operating areas the very low unemployment rate makes it difficult to find an adequate number of applicants for openings.
The availability of skilled craftsmen among both minorities and women is limited throughout all operating areas. Training inotituticns 43 are available to produce these skills but the supply falls short of the demand.
Availability of professionally skilled personnel, which arc re cruited on a national basis, has improved among both minorities and women. The total supply is still quite limited which continues to make it difficult to attract and recruit minority an~ women professionals.
There are both minorities and women in SCA's organization who have been identified as having potential for continued advancement.
This was done through reviewing all minorities and female employees within the company for the possibilities of promotability. Both women and minorities currently hold supervisory positions as a result of having been promoted from the ranks.
The following tables are a breakdown by selected locations or units of the company. It is not feasible to list all units since there are over 37 represented. However, the plants selected reflect a repre sentation of the overall company in its affirmative action program.
The summary analysis of the tables include goals for certain job cate gories which are based on the anticipated openings during a twelve month period. It also depicts and identifies problem areas in the various units and the narratives provide work force information. Prob lem areas in the units are pinpointed, and the goals to correct exist ing deficiencies are shown. TABLE I
EQUAL EMPLOYMENT OPPORTUNITY UTILIZATION ANALYSIS, GOALS AND TIMETABLES
Total Minority Females % % Anticipated Minority Goals Female Goals Job Cat:egorx EmEloxed EmEl·~ ~pJgy_ed J1_inority Female Openings Promote Hire Promote Hire Officinls and Managers 37 2 5.4
P:rofes~1 ionals 31 2 1 1
Technicians 11 2 7 18.1 63.6 4 2
Sales t\lorkers 20 Office and Cleric Ell 18 2 15 22.2 83.3 3 2 Skilled: C1~aftsmen Operati.ves St~mi-skilled Laborer·s Unskilled St~rvice Workers
Totals 117 4 24 5.1 20.5 9 5 1
Narrative: The main office in located in a southern state and is headquarters for company management, service and supporting departments. There are no skilled, semi-skilled or service work·ers located in the mailn office.
Problem. Areas: There is unde1~utillzation in Officials and Managers categories and in the professional, technical, saies at'ld office and clerical positions.
Goals and Timetables: Within the next 12 months the goals are to hire at least one minority employee +- in the professional group, to promote at least one female employee into the +-- ProfesEiional Management category and to hire two minority office and clerical employE!es. TABLE II
EQUAL EMPLOYHENT OPPORTUNITY UTILIZATION ANALYSIS, GOALS AND TIMETABLES
Total Min017ity Females % % Anticipated Minority Goals Female Goals Job Categor~ Em~lo~ed Emp lc~ Employed Mi_no_rity Fel:[lllle Open!_ngs Promote Hire Promote Hire Officials and Managers 21 1 4.8 2 1
Professionals 1
Technicians
Sales Workers Office and Clerical 10 2 1 Skilled Craftsmen 60 7 11.6 2 2 Operatives Semi-skilled 67 26 40.0 38 1 17 Laborers Unskilled Service Wo•rkers
Totals 159 34 21.3 44 2 20
Narrative: Western area. Civ·ilian work force is 70,200; 30,060 female, 7,840 non-white. Total employ ed 68,400; 29,070 female, 7,590 non-white. Total unemployment 1,800; 990 female, 250 non white. Unemployment rnte 2.6%; 3.3% female, 3.2% non-white. (Female work force, 42.8%; non white, 11.2%.) Problem Areas: Few minorities apply for these jobs. Underutilization in official and manager categories as well as in offic:e and clerical and craftsmen. Turnover in these classifications is very low. No female applicants. Goals and Timetables: There are a total of 44 anticipated openings for the western area as shown above. ~ Attempts will be made to upgrade minorities in all categories as outlined under U1 promotions cltld hires under goals for minorities. TABLE III
EQUAL EMPLO~~NT OPPORTUNITY UTILIZATION ANALYSIS, GOALS AND TI~~TABLES
Total Minor·ity Females % % Anticipated Minority Goals Female Goals Job Cat·egory Emelo·i:ed Emelc:~ Employed Minority Female Openings Promote Hire Promote Hire Officials and Managers 20
Professionals
Technicians
Sales W1::>rkers Office and Clerical 14 1 1 7.1 7.1 2 1 1 Skilled Craftsrn,an 64 12 18.8 4 4 Operatives Semi-skilled 82 32 40.9 36 17 Laborers Unskill,ad 10 4 40.0 4 4 3 Service Workers
Totals 190 49 1 25.5 .5 46 8 21 1 Narrati've: The eastern area has a civilian work force of 38,700; 15,360 being female and 7,690 non-white. Total employment is 37,120- 14,660 female and 7,200 non-white. Total unemployment is 530, of which 340 are female and 300 non-white. Unemployment rate stands at 6.7%, of which 12.0% are female and 8.6% non-white. (Female work force 40.4%; non-white 19.9%.) Problem Areas: Underutilization in official and manager categories, as well as office and clerical in minorities. Turnover in these classifications is very low. Goals a1~d Timetables: An anticipation of 36 openings in the semi-skilled category and it is expected to fill 17 of these openings with minority applicants. A female white was employed in May 1973 as office clerk and she is expected to be promoted in this category. ~ Other goals are indicated as shown above. 0\ 47
Identification of Problem Areas
In analyzing the job categories of Form EE0-1, there is definitely
underutilization in the job categories of officials and managers, pro-
fessionals, technicians, sales and sales workers, and office and cleri-
cal for both minorities and women. It is in these areas that the
company will have to increase its goals as openings occur.
Officials and managers include company officials, executives,
middle managers and salaried foremen. There is a problem in this cate-
gory since there is very little utilization of minorities and women.
The professional category contains no minority or female per-
sonnel. Included in this category are engineers, accountants, auditors, mathematicians, industrial relations personnel, geologists and area managers of planning and development. Minority candidates in these
areas have been difficult to locate. The company must continue to
actively seek qualified applicants in this area when openings develop.
Definite underutilization exists in the technician category.
This category includes draftsmen, engineering aids, surveyors, electronic technicians, customer service representatives and electrical crew chiefs.
The sales category includes all personnel in the sales operation.
At present there are no minorities or women within this category. Most members of the sales organization are promoted within the company.
There is a need to attempt to upgrade minorities from within or seek both minorities and female applicants from other sources.
There is no underutilization of minorities in the categories of skilled craftsmen, semi-skilled, or iabor. However, there is an under-
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Although it has been difficult to attract women in these categories, the company must continue to actively seek them in order to hir~ some 8nd to 48
be in compliance with federal regulations and the law.
Sex Discrimination Guidelines
The personnel policies and practices of SCA are in compliance with
the Sex Discrimination Guidelines issued by the Department of Labor.
Advertisements for employment in newspapers and in other media are
worded so as not to express any sex preference. The EEO "tag line" is
included in all employment advertising and all such ads are not placed
in columns headed with either "male" or "female". Members of both
sexes are recruited for all open positions with the exception of those
positions for which sex is a bona fide occupational qualification.
Discrimination on the basis of sex in any aspect of employment is
contrary to written personnel policy. There are no distinctions based on sex in the terms and conditions of employment or in the areas of con-
tributions by the company for insurance, pension or other such fringe benefits. Members of both sexes have access to any open position for which they are otherwise qualified. There are no distinctions between married and unmarried persons of one sex that are not made between married and unmarried persons of the opposite sex. There are also no specific differences for male and female employees on the basis of sex in either mandatory or optionai retirement age. Female employees are granted leaves of absence for maternity reasons.
Goals and timetables have been established for hiring and promo- tion based upon the results of the utilization analysis of the work force and consideration to the availability of women with requisite skills.
Action Programs
--- - t= ine cowpany has two gen~ral typ~s of action programs, Ullt:: UL. 49 which is directed toward solution of the problems identified in the problem areas, and the other to establish permanent practices designed to ensure equal employment opportunities for all employees of SCA.
General employment practices consist of recruiting, personnel selection, classification and compensation, training, and company facilities.
In the area of recruiting, employment practices insure that:
1. The recruiting function shall operate so as to assure that
qualified minority group members and women are afforded oppor-
tunities for employment. Sources, including present employ-
ees, which can produce qualified applicants for employment ate
regularly and vigorously encouraged to do so.
2. Participation, cooperation and support are given to activi-
ties in the community designed to improve qualifications of
minority persons and women.
3. Dissemination of job opportunity information is fostered.
Company representatives are sent at the request of interested
organizations to describe such opportunities.
4. Minority and female recruiting sources are utilized in all
speciai (i.e., summer, part-time) employment situations.
5. Intensified recruiting on campuses of black colleges for
management trainees, technical, and professional employees has
taken place in an effort ~o upgrade blacks in these areas.
6. More effort will be made toward recruiting minority and women
employees for clerical positions at the quarry locations.
7. Records fully documenting the processing and final disposition
are maintained and analyzed.
Under personnel selection, all supervisory and management personnel have been thoroughly indoctrinated in all aspects of che company:s EEO 50 policy and affirmative action program. All aspects of the personnel selection process, (including promotion, transfer, shift assignment, layoff, and recall) shall also operate as not to discriminate on the basis of race, religion, color, age, sex or national origin. There are no psychological or intelligence tests being used for selection and hiring of personnel at this time.
The classification and compensation practices state that:
1. All employees shall be classified and compensated without
regard to race, religion, color, age, sex or national origin.
2. All employees shall be given consideration for promotion and
transfers without regard to race, religion, color, age, sex
or national origin.
3. A concerted effort is and will continue to be made to afford
more vertical mobility not only in promoting minority un-
skilled to semi-skilled apd skilled classification, but to
provide mobility to jobs within these classifications to
minority employees. Similar effort will be exerted for fe-
male employees.
4. Periodic analysis and review shall be made of the classifica-
tion and compensation practices and the transfer and promotion
systems to ensure that results produced are not discriminatory.
In the area of training, more intensified company training has taken place to qualify minority and female employees for advancement.
They have been included in all training programs, including formal super- visory training programs.
cu."' as to pre- vent segregation on the basis of race, religion, color, or national origin. Certification of these desegregated faciiities are provided to 51 contracting agencies as required by federal and/or state regulations.
Internal Auditing and Reporting
Periodic reviews of the total company personnel and employment practices have been initiated to assure these practices do not produce discriminatory results. These self audits are designed to reveal trends which may exist that are not evident otherwise. Corporate audits are also conducted periodically by the Director of Urban Rela· tions with results being communicated to top management in the company.
Quarterly reports of progress made against the established goals and timetables are submitted to the president of the company. The pro gress of the program is discussed and reviewed at staff meetings.
The following table lists the analysis, the person responsible and the schedule for accomplishment. A report of the results of each analysis is forwarded to the EEO Coordinator. The report summarizes the findings of the analysis and, in the event of having identified a problem area, will describe the problem and recommend a remedy. The
EEO Coordinator and the individual responsible for the functional area in which the problem exists will define and implement a solution. The
EEO Coordinator will inform the Vice-President of Industrial Relations of all such problem items and progress toward correction. TABLE IV
EMPLOYMENT AND PERSONNEL PRACTICES ANALYSIS EQUAL EMPLOYMENT AFFIRMATIVE ACTION PROGRAM
Analysis ResponsibilitY- Schedule
Review employee population by EEO•l job categories within EEO Coordinator Semi-annually departments and by job cl.assi:fication.
Review employment appliclltions and hires and effectiveness EEO Officers Quarterly of recruiting sources.
Re·.ric~w records of sun:mer hiritlg. EEO Officers Annually
Re·riew records of transfE!r, promotions, and salary. Personnel Director Semi-annually
Review records of employE!e separations including discharge Personnel Director Quarterly and layoff.
Review records of supervtsory and management selection. EEO Coordinator Semi-annually
Review personnel records to dt~termine evidence of employee EEO Officers Annually potential for higher work.
Re•.riew records of employE!e participation in training and EEO Coordinator Annually development programs; other cc>mpany sponsored or subsidized edl!Cation programs, and tlcholarship programs for dependents.
Review (sample in cases ~There number is great) job Personnel Director Annually deHcriptions to ensure adequac~y and currency.
Review job classifications versus job performance to Personnel Director Annually ensure compensation is appropriate (sample in cases where number is great:). VI (Cant inued) N TABLE IV (Cont 1d)
Analysis Responsibilit:i, Schedule
Review job qualification requirements to ensure they are EEO Officers Annually reasonable.
Review sub-contracts to t:!nsure that EEO clause has been Purchasing Agent Semi-annually inserted as required and that certifications of desegregated facilities have been obtained.
Review facilities to ensure that they are not segregated. EEO Coordinator Continuously
w\.11 54
Support Action Programs
In addition to the internal affirmative action program of the company, it also supports activities of minority oriented groups in the community. Following are activities in which the company has engaged in supporting these programs:
1. The Director of Personnel has participated as a panel member
in a conference at a local university geared to advising
minorities in seeking employment.
2. The company utilizes one of the first minority oriented em
ployment agencies in the state to enlist their help in securing
qualified minority candidates for employment.
3. Deposits funds in black controlled national bank.
4. Made building fund contributions to a local black college.
5. Supports black day care center.
6. Contributes to black community churches.
7. Provides educational loans to children of minority employees
interest free as long as they are in school, with low rate
repayment schedule after graduation. 55
CHAPTER IV
SOUTHERN COMPANY B: A CASE STUDY
Company Characteristics
Southern Company B (SCB) is a manufacturing company which pro duces propylene oxide and propylene glycol. These are substances that are used in the production of urethane foam and other urethane appli cations.
The company was formed through a joint venture of two national companies and it is located in the south. It employs approximately 186 employees with an anticipated expansion to about 250 by the end of 1974.
At present, there are 25 minority and 14 female employees working with in the company. There are 57 of these employees who are salaried and wor~in_positions of office and clerical, supervisory and managers.
The remaining 129 work in capacities of such jobs as operators, instru ment, and laboratory positions.
The operation of the plant is of a highly sophisticated and auto mated nature and also requires a maintenance force to maintain the equipment. The company elected to contract all maintenance work at the beginning of operations rather than hire its own crew. There are 42 maintenance employees of a private contractor who perform all of the maintenance work for the facility.
Equal Employment Policy
The company;s EEO policy is set forth by the president. It is 56
the policy of SCB to insure that there is no discrimination in employ-
men.t wi::h respect to economic opportunity within the company because of
race, color, creed, sex, age, or national origin.
All units and components of the corporation are responsible for
the consistent application and administration of the policy that race,
color, creed, sex, age or national origin will not be a factor in
connection with hiring, placement, promotion, transfer or demotion; re-
cruitment, advertising, or solicitation for employment; treatment
during employment, rates of pay or other forms of compensation; selec-
tion for training and layoff or termination. Each unit or component is
also responsible for affirmative action taken and periodically conducts
an analysis of all personnel actions to insure the consistent and
effective administration of the policy.
The company's Equal Employment Policy is disseminated to employees
through:
1. SCB's employee handbook
2. Bulletin board notices
3. Safety and training meetings
4. Equal Employment Opportunity job reports
5. Letters to employee's homes
6. Pictures in company publications
The Industrial Relations manager for the facility is the manager
for the company's equal opportunity program. His responsibilities in-
elude but are not limited to, the development and implementation of an
affirmative action program, policy statements as necessary and communi-
with all problems in the area and will serve as lia:i~.:..;,1 between the 57
community organizations. He renders personnel services and supervises
a thorough review of the applications of prospective employees to in
sure that minorities and females are given full opportunities within
the company. He is also available for career counseling for all em
ployees including the minority and female groups.
The Industrial Relations Manager is also responsible for quarter
ly reports which will expand and include:
1. A breakdown of applicant flow, interviews and hires during
the quarter showing minority and female comparisons against
the totals.
2. An analysis of promotions or upgrades.
3. A narrative report of affirmative action conducted during the
quarter in accordance with the affirmative action program.
4. A breakdown by occupational category showing total employment
by category with minority and female comparisons.
Analysis of Job Categories
The job categories for SCB consist of officials and managers, pro
fessionals, technicians, office and clerical, craftsmen (skilled) and
operatives (semi-skilled). There are no sales workers, laborers, or
service workers in the work force at the present time.
The officials and managers category includes 26 employees who have management, administrative, or supervisory responsibilities. Of
these positions, there are 14 employees who hold at least a bachelor's degree in a related area. These positions require extensive knowledge within each area of responsibility, most of which is gained through
first hand experience. This category also includes six first line operation:s supervisors and two instrument and elecLrical supervisurs 58 who were promoted from the operator or skilled categories at this plant.
There is underutilization of minority and female personnel in this category. Minority and female r?oresentation will be established
in this category as qualified and experienced personnel become avail- able and openings occur. Emphasis has been placed upon securing qualified minorities and females in positions which permits promotional opportunities into this category.
The professional category is comprised of those employees who through academic accomplishment or extensive on-the-job training have been placed in staff positions emphasizing technical, scientific or specialized skills. There are 19 employees currently in this category and 18 of these hold at least a bachelor's degree in related areas.
The candidate input for these positions is direct hiring of degreed individuals through employment agencies, field recruiting and promotion within the plant from other job categories. This category is also underutilized. Non-discriminatory recruitment for educationally qualified professionals is being pursued and qualifiable minority and female employees are being encouraged to take job positions which will prepare them for future professional positions in order to correct these deficiencies.
The technician category contains 18 employees. rt1ese positions require on-the-job technical training from past experience or appro- priate educational requirements such as twelve hours college chemistry to qualify for this category. This category is not underutilized with m1nority employees. The current minority percentage shows 22.2% in rcl~ticn tc the 21% minority work force in the surrounding area of the plant. There is an underutilization of females in this category.
~'L.- ___ ., _ _ c &.L- Direct hiring LUC l5Vd L~ UJ.. L1J1'; 59 affirmative actfon program, as vacancies occur, to maintain the 22% minority ratio and to attract female applicants for this category.
The office and clerical category also has 18 employees in this classification. These positions require minimal clerical skills and generally involve neither manual or production work. There is an underutilization of minorities in this category.
Employees enter this classification through direct hiring. When vacancies occur in this category, efforts are being made to recruit minority group candidates who have the requisite skills and abilities.
Minority employees are also being encouraged to improve their skills and experience in order to be considered for promotion in this area.
The company's tuition assistance policy is available to provide financial support to employees securing additional clerical and other skills necessary in qualifying for promotional opportunities.
There are 55 employees in the craftsmen (skilled) category.
Employees enter this classification on a non-discriminatory basis either through transfer from other jobs or by direct hire from external sources. On-the-job training is provided on a non-discriminatory basis to employees in the operation's group. This category is under utilized.
The operative (semi-skilled) has 50 employees in this category.
Employees also enter this category through the non-discriminatory
transfer from other job classifications or by direct hire from external
sources. Employees in this category perform semi-skilled production
oriented work. On-the-job training is provided to all transferees and
direct hires on a non-discriminatory basis~ This category is net under- utilized with minority employees. The current minority ratio is 28% 60 for the plant in relation to the 21% minority work force for the surrounding area. The category is underutilized for female employees since there are none in this category. As vacancies occur, better utilization will be attempted through direct hiring in accordance with the goals of the affirmative action program in seeking female employees for this category.
TABLE V
SCB's FORM EE0-1 1973
Job Total Minority % Female % Category Employed Employed Minority Employed Female
Officials and Managers 26 0 0 0 0
Professionals 19 0 0 2 10.5
Technicians 18 4 22.2 0 0
Office and Clerical 18 1 5.5 12 66.7
Craftsmen (skilled) 55 6 10.9 0 0
Operatives (semi-skilled) so 14 28.0 0 0
Laborers * 0 0 0 0 0
Service Workers * 0 0 0 0 0
Totals 186 25 13.4 14 7.5
*These classifications do not exist in SCB Company.
Employment Data
Entry level jobs consist primarily of operator trainees, labora- tory trainees and clerk-typists. The basic qualifications, except for the clerk-typist category, required for these positions are: an interest
.,_ ...... l.:_..__ ---.l in the type of work involved; the ability tc h~ndlc the J.WiWC::U J.CL'C pu;:, L- tion following a relatively short familiarization and orientation 61 process; basic intelligence with which to qualify for future promotions and the ability and willingness to work shift assignments. Related ex- perience is also helpful in each instance. Laboratory trainees gen- erally have completed twelve hours of college chemistry or had previous laboratory experience. Operator trainees usually have worked in a plant non-related to SCB's process or they have held similar jobs re- quiring mechanical abilities, or possess mathematical comprehension of past math or trigonometry courses taken which would qualify them as trainees for this group. Generally, these positions are filled with candidates who have a high school or G.E.D. diploma, however, SCB does not require this as a condition of employment.
The clerk-typist position requires some familiarity with office practices and a moderate achievement in typing skills.
Although the company cannot technically include the contracted maintenance service employees in its EE0-1 report, it is aware of the contractor's employment and racial mix. There are nine minority em- ployees out of a total of 42 contract employees which represents a per- centage of 21.4% of the contractor's work force. SCB's management en- courages the contracting company to hire minority and female employees and to upgrade those presently employed to more responsible, more skilled and higher paying jobs in order to maintain compliance with federal regulations.
The employment work force for this facility is primarily drawn from the local county which represents five local cities within the county. Table VI shows the breakdown of total population including
-~---~~~~-LU.LLLV.&. .LLJ..C~ auu--~ .LCWCI.LC.,~~--1-- CIUU--~ ------~---pc.L'-Cll\,.ClOC V.I.-~ ~~-t...llC ~-~-1\..ULa.L L---~Ud=::tt:U Vll-- ~L-Lllt:! ,n~nJ.";J/V census. 62
TABLE VI
POPULATION FOR LOCAL COUNTY
% % Total Minority Female Minority Female
1,741,912 351,113 888,375 21% 51%
There are no jobs at this location specifically designated as male or female jobs. However, due to the nature of production, mainte- nance, etc., all such jobs are presently filled by male employees.
There have been no female applicants make applications for employment in these ereas. In order for the company to be in compliance they are going to have to actively seek qualified female applicants for these areas.
Local hiring procedures provide supervisors, department managers, and industrial relations to make hiring decisions. Rejection of any minority or female applicant is reviewed by the Manager of Industrial
Relations to assure the equity of the basis for rejection. In each case, the applicants are exposed to a minimum of two or three in-depth interviews by experienced non-biased employment interviewers and the department manager in which the opening occurs.
SCB provides a method for consideration of employees who wish to transfer to other departments of the plant. The administration of this policy is the responsibility of the Manager of Industrial Relations in conjunction with departm~nt managers.
Internal Employee Relations
Hourly employees progress in th~ ar~as of Operations, Laboratory, and Instrument-Electrical classifications. They are usually hired into a 90 day training program. If they are proven satisfactory, they are 63
then promoted to a higher permanent classification. The Operative per
sonnel are retained in this classification and work toward a higher
classification. These promotions are based on vacancies only after the
initial training and selections involve job performance, qualifications
and seniority.
There is no set job or salary progression for salaried employees.
Each employee may progress co-incidental with his or her abilities and
experience. Progress review (merit) programs are utilized and every
salaried employee receives a progress review annually. Discussions be
tween the individual employee and his supervisor take place at the time
of the review in order to discuss the employee's strengths and weak
nesses in his job with expectations that the employee will become motivated for greater achievement in his job duties for promotion. In
addition training programs, such as, AMS seminars; supervisory develop ment courses; etc., are offered in plant and at the local university
to improve promotional opportunities on a non-discriminatory basis.
Tuition assistance is also available to encourage all employees
to undertake courses of outside study at local schools and colleges.
The company assists in payment of tuition and the course must be related
to the employee's present or potential job.
All company facilities (locker room, lunch room, work areas,
etc.); sports programs; and social events are fully integrated. These
are available to all employees and their families.
Analysifi of Underutilization
Table VII shows the manpower status for SCB for the past five years and based on the percentage of the minorities and females within
the company and those in the surrounding work force, the company appears 64 to be underutilized.
TABLE VII
SCB 1 s MANP Total % 'i'. Year Employment Minority Female Minority Female 1969 54 2 5 3.7 9.3 1970 73 5 5 6.8 6.8 1971 101 8 7 7.9 6.9 1972 174 19 11 11.5 6.3 1973 186 25 14 13.4 7.5 The majority of SCB's entry level jobs in the technical, mainte- nance, operative, and professional categories require higher than normal entry level skills. This is particularly the case in the opera- tive category where the bulk of employees are recruited and where, after a brief training period, new employees must operate equipment, machinery and a process consistent with product quality standards and within safety requirements of the industry, state, and federal govern- ment. During the past five years the minority percentage for the com- pany has increased, however, it is stiii below the work force popula- tion. The female percentage has remained approximately the same or slightly declined over the past five years as employment rose. Al- though entry level jobs require higher skills, SCB must continue to seek more minority and female applicants for employment in order to in- crease its percentage of both and be in compliance with the law. 65 Actions and Goals In order to insure proper action and attain company goals, the company's EEO policy is being emphasized and thoroughly explained to the General Manager's staff. The staff is made fully aware of the affirmative action plan. Quarterly meetings are being held with all department heads to review the progress of the affirmative action pro- gram in light of its goals and objectives. Regular meetings are also being held with all supervision to explain the company's EEO policy and the individual's responsibility for effective implementation, making clear the Chief Executive's attitude. Detailed statistics are kept on applicant flow and analyzed, and the company's EEO policy is discussed with all new employees. All training opportunities have been expanded to include minori- ties and females on a completely non-discriminatory basis. Training assignments are based upon current job responsibilities and future pro- motional potential. Pertinent magazine and news articles are circulated among mana- gerial and supervisory personnel to keep them advised of current developments and activities in the field of minority and female em- ployment, affirmative action programs and applicable regulations. All information required by federal and state Executive's orders and laws will be properly posted throughout the plant. The equal opportunity clause will be placed after all advertising and will be included in all purchase orders. The following goals are outlined in Table VIII in order to con- tinue i~~~~o~z beth wino~ity and fc~ale employees in the plant work force. 66 TABLE VII MINORITY AND FEMALE GOALS FOR 1974 Job Present Minority Present Female Category Total Minority 7-1-74 Female 7-1-74 Officials and Managers 26 0 1 0 1 Professionals 19 0 2 2 3 Technicians 18 4 5 0 1 Office and Clerical 18 1 3 12 12 Craftsmen 55 6 10 0 1 Operative 50 14 17 0 2 Total 186 25 38 14 20 The attainability of these goals are based directly upon future economic conditions, the availability of qualified minority and female applicants and the actual manpower needs of the organization. 67 CHAPTER V SOUTHERN COMPANY C: A CASE STUDY Company Characteristics Southern Company C (SCC) is a local plant of a large multi- national corporation. The parent company is headquartered in the north central states and employs approximately 70,000 people nationally. It had sales of 1.8 billion doll~rs during 1973 and has 6 operating divi- sions which includes an international division that is responsible for its overseas operations. The local facility is located in the southern states. It em- ploys approximately 507 employees of which 91 are minority and 32 are female employees, respectively. The plant is part of the company's paper products division and it manufactures kraft linerboard which is used in making corrugated shipping boxes. There are two fourdrinier paper machines and the mill produces in excess of 900 tons of paper on a daily average. The in 1954 and became organized by three different international unions. There were segregated facilities and a separate union for the Negroes. Full integration was implemented in 1966 after agreements had been made with the EEOC in order to resolve deficiencies found from a compliance review. Prior to that time the Negroes had only worked in two areas of the operation. They were now given the opportunity to be considered for all areas or lines of pro- gression fer jobs throughout the plant. Since that time continuous 68 progress has been made in the area of equal opportunity employment. However, due to the low turnover in personnel that is prevalent in the paper industry, underutilization of both minority and female employees is still a problem. Equal Employment Policy and Reaffirmation It is SCC's policy to provide equal opportunity in employment to all employees and to all applicants without regard to race, religion, color, sex, age or national origin. This policy is extended to but is not limited to: recruiting and employment; promotion; demotion; lay off; transfer and termination; rates of pay and other forms of compen sation; education and training; and other working conditions. The policy is reaffirmed in writing in the affirmative action program by the President of the company, the Vice President for the division, and the manager of the facility. Special emphasis is being placed on the concern for the little progress that has been made in either the upgrading or recruiting minority individuals and women into supervisory, management, and professional positions. It also stresses the importance of and seeks the full support of all management in attaining outlined goals and meeting these objectives. The Assistant to the Director of Human Resources serves as the Equal Employment Opportunity Coordinator. His responsibilities include coordinating, gathering data, monitoring, training, and advising all units in the proper implementation of equal opportunity affirmative action programs. The senior officers for operations (vice presidents) and for corporate staff functions are held principally accountable for the im plementation of EEO goals in their areas of responsibility. They 69 report to the president as well as the EEO Coordinator, on a quarterly basis, the progress of all units under their jurisdiction and, if goals are not met, explain in detail reasons for lack of achievement. The Manager of Personnel Administration acts in the same capacity as EEO Coordinator for the respective divisions while the Industrial Relations Director is the person responsible for the local units. Each person is designated in the affirmative action program and again in the Opera tions Manager's letter of reaffirmation. Dissemination of Policy Dissemination of policy for each unit is broken down into two parts, internal and external. Internally the program includes: 1. A section in the Personnel Manual on Equal Employment Oppor tunity which gives the background and guidance on the necessary steps to be taken. 2. Posters on Equal Employment Opportunity are placed on all company bulletin boards. 3. Several times a year stories on affirmative action and equal employment are placed in the company "Newsletter", a company newspaper, Which is made avaiiabie to ail employees. 4. Equal Employment Opportunity and affirmative action programs are discussed at supervisory meetings several times each year. These meetings are held at least quarterly with department heads and all supervision to review affirmative action reports. These reports cover the progress being made in equal employment opportunities for minority and female employees and the action plans in how to continue to improve 70 or correct any deficiencies. 5. All union officers are informed in writing about the company's policy on EEO and their help is solicited in carrying out the program. 6. All newly hired employees are advised of the company's policy on equal employment opportunity and they are given a copy of the company's statement on EEO as a part of their orientation program. 7. Non-discrimination clauses are included in the Labor Agree ment. Externally the affirmative action program lists the following: 1. All local recruiting sources are notified on an annual basis in writing of the company's policy on equal employment oppor tunities and their efforts are solicited in order to obtain qualified minority and female applicants for job openings. 2. All purchase orders and contracts carry the standard EEO clause. 3. All advertising for applicants contain an Equal Opportunity clause and good will advertising is done in local Black pub lications and news media as an equal opportunity employer. 4. Publicity about company events, with pictures, includes, when possible, people of recognizable minorities. Identification of Problem Areas The minority and female populations within the city-county area for the location of the facility are 15,930 or 29.0% and 28,263 or 51.0% respectively of the 55,112 total population. The latest unem ployment data from the local state employment office indicates there is 71 a total of 558 unemployed or a 2.8% for the area. These figures in- elude unemployment of 197 or 3.6% for minorities and 356 or 4.3% for women. Of the 23,230 making up the civilian work force, 8,580 are female and 6,350 are minority. This represents a percentage of 41.2% female and 29.2% minority in the area. These figures are outlined in Table IX below. TABLE IX MINORITIES AND FEMALES IN WORK FORCE % % Total Minority Minority Female Female 23,230 6,350 29.2 9,580 41.2 There is also a total of 2,677 skilled workers in the work force surrounding the local facility. Of this total, there are 157 or 5.9% women and 582 or 21.7% minority group classifications. Some of the problems that are identifiable from Table X below are: the ratio of minority employees is below the local county area, there are no minority employees presently in a salaried supervisory position and there are no female employees in the hourly or production rated jobs. Table X also lists the employees by job categories with the minority and female employees being identified separate. TABLE X JOB CATEGORIES FOR MINORITY AND FEMALE EMPLOYEES Job Total Minority % Female % Categori Em}!loied Emploied Minoriti Emplo::t:ed Female Officials and Managers 52 0 0 1 1.9 Professional 15 1 6.6 6 40.0 Technicians * 0 0 0 0 0 Sales Workers * 0 0 0 0 0 Office and Clerical 27 2 7.4 24 88.8 *Tht::re cit'~ no technicians or sales workers categories at this location. 72 - TABLE X (continued) Job Total Minority % Female % Emnloyed Emnloved Category . d Minority Employed Female Craftsmen 202 15 7.4 0 0 Operative 152 43 28.4 0 0 Laborers 54 28 51.9 0 0 Service Workers 5 2 40.0 1 20.0 Total 507 91 17.9 32 6.3 The officials and managers category includes 52 employees who are in classifications such as mill manager, department superintendents. supervisors and foremen. This category is underutilized since there are no minority employees and only one female employee in this category. These classifications require extensive knowledge within each area of responsibility and most of the vacancies are filled through transfers from other locations with the supervisors and foremen being set up from the ranks. Turnover in this area is low, however, there has been some activity of setting minority group employees up to a temporary supe~risor as the occasion arises fer vacations, etc. Plans are to actively seek qualified minority and female candidates in this area as the openings develop. The professional category is comprised of accountants, labor re- lations, personnel, registered nurses, and engineers. Qualifications for t~.~~~ ~usitions usually require ~n academic background in related areas or extensive on-the-job training. There is underutilization in ~n~s categcrJ as related to the minority group employees since there is only one out of fifteen. However, the category is not underutilized as far as the female aspects are concerned. These vacancies are also 73 filled through transfers from other plants or promotion from other de- partments. Qualified minority applicants are being sought as the openings occur. The office and clerical category has 27 employees. Of these there are 24 females and two minorities. The minority portion is underutilized. These employees are hired direct as openings occur, however, due to the low turnover there has been little hiring activity in this area which has made it difficult to increase the minority per- centage in this category. There are 202 craftsmen or skilled employees in this category. Only 15 of these are minority and there are no females in this cate- gory. This category is underutilized. These classifications consist of maintenance men, electrical and instrument classification, and skilled operators in various departments in lines of progression. These individuals are hired directly or transferred from other depart- ments provided they have the necessary qualifications for the mainte- nance and electrical-instrument openings. The skilled operators are promoted on a seniority and qualifications basis up a line of pro- gression as the opening occurs. This plus the lack of qualified applicants for craftsmen in the maintenance area has made if difficult to hire into this category and increase the percentage of minorities and females. In the operative or semi-skilled category there are 152 employees with 43 of them being minorities. This represents a 28.4% of these classifications and they are not underutilized for minority employees, but it is The laborer classification has 28 minority employees for 51.9% --.3 ClUU it is nut und~rutilized. iuere is an underutilization of females 74 in the laborer classification since there are none employed. The service worker classification has a total of five with two minority and one female. This category includes guards and attendants. There is no underutilization of minorities or females in this category. There have been significant changes in the upgrading of minority group employees in all areas of employment over the past five years. However, the facility has become a marginal mill and plans have been made to reduce the overall work force ten percent or approximately 100 people over the next five years. This along with the low t~rnover that the plant has always had is going to adversely affect the continued implementation of the affirmative action program. Goals and Timetables The long range objective is to obtain at least the minority and female level equal to the area ratio. This has been temporarily hampered by the low turnover and a reduction of the work force in ex cess of ten percent. Those on layoff are eligible for recall, which will substantially delay sec's objective. sec is, at present, into the second year of a five year plan to modernize its operations and stream line its work force, both hourly and salaried. As mentioned earlier this will have a profound effect on the company's efforts to meet ics goals and the results of the layoffs must be considered when evaluating the objective of an affirmative action plan. Promotion to salaried jobs is normally achieved through in-line progression. sec has plans to continue making temporary promotions of minority personnel to supervisory jobs until there is an opportunity for a permanent promotion. Plans to upgrade the job status of the female employees has 75 continued as the opportunity arose. Definite progress has been made in the accounting and supervisory areas. The goals for SCC 1 s plant are outlined in Table XI on the follow ing page. TABLE XI ESTABLISHMENT OF GOALS & TIMETABLES GOAL GOAL ~LINE AFFIRMATIVE ACTION FOLLOO-UP REQUIRED The Administ·rative Department 6/15/74 Consider all promotable and Review the dec is ion mad•e to will have an opening for a qualified employees. insu1:e that all qualifi·ed Janttor/Services Clerk in candidates were considered J\Jne, 1974, due to retirement. and document necessary records if female or minor Entry Level Jobs ity is not promotable. A five year plan has been pro j•:!cted to reduce manpower in the SCC Mill. The need for employees 'Ln the entry level jobEJ will be minimized due to tl1e roll back in personnel and the recall rights of those on layoff. However, we will cont: iuue tel r~view the qua 1 i ftcations of our female and mtnority employees for up g:cading or promotion when the opportunity arises. ...... IJ' 77 Action Oriented Programs "In training" is provided through on-the-job training by promo- tions to higher jobs in a line of progression or by transfer to other departments. Assistance is also provided through the company's educa- tional assistance programs for individuals who enroll in outside courses of study. Transfer lists are maintained (for review when openings occur) for those who desire to transfer from one department to another. Em- ployees who express an interest in specific job categories are given detailed information about the job and suggestions for preparing them selves to be qualified when openings occur. Each minority group indi- vidual's previous work history has been reviewed with them to determine if additional skills have been acquired elsewhere that could be uti- lized at this plant. Job application forms have been reviewed in order that they meet requirements of federal regulations. Although most recruiting activity is conducted by the corporate college recruiting department, a relationship with an area predomi- nantly black college has been maintained for the past several years for local needs as well as to assist t' ~ corporate recruiting department in meeting EEO objectives. Relationships have also been established with the local state employment offtce, local colleges and the local trade school. Several professors and classes from the schools and individuals from the state employment office have toured the plant facilities and are familiar with the operations. Application blanks, the interview procedure, referral procedures, r.•--1 --'1--•·'------'f _____ t ____ ---- -'-----' ---1 -----..l------&..-L1~-L. c:tnd J:~Ul:IJ. St:J.t:Cl:~OU proct:SS Ul:IVt: Ut:t:U rt:Vl.t:Wt:O l:IUU prO\.:t:UULt::S t::l:ll.l:IUJ.J.l:lll- ed to eliminate discrimination. All personnel involved in recruiting, screening, selection, promotions, disciplinary and related processes 78 have been trained to insure elimination of bias in all personnel actions. Facilities, company sponsored recreation and social events and special programs such as educational assistance are open to all em ployees without regard to race, religion or national origin. Policies and practices have insured that segregation of these programs do not occur. A moratorium on testing at all sec units has been declared and no entry level testing is being conducted at the present time at this location. Files of rejected applicants are retained on file for one year and filed in order to determine minority and women applicants. The company policy on Equal Employment Opportunity is promulgated through union-management meetings, supervisory meetings, bulletin boards and through company announcements at various times during the year. Auditing and Reporting System In addition to the normal records kept for all employed person nel, records are kept of applicants interviewed with notations about minority and female status and reasons for rejection if not hired. Other records such as termination lists, etc., will be maintained in order to assure compliance with equal employment opportunities. Copies of the local plant's affirmative action program are filed with the division Industrial Relations Department and with the corporate Human Relations Department. The affirmative action program is reviewed and updated for internal information purposes at the end of each quarter during the year. It is also audited by the internal auditors on an annual h~~;~ t~ ~ssure compliance with affirmative action plans. 79 CHAPTER VI NORTHERN COMPANY A: A CASE STUDY Company Characteristics Northern Company A (NCA) is a wholly owned subsidiary of a north- ern firm, a manufacturer of diesel engines with annual sales in excess of 500 million dollars. The company is located in a rural area of the north central states in a city of 17,000 population. NCA manufactures engine components for the parent company as well as for other automo- tive customers. Products include crankshafts, camshafts, gears, valves, piston pins, and capscrews. The most of the factory work consists of machining and heat treating operations. NCA has annual sales of approximately 60 million dollars and em- ploys 1,053 people. There are 48 minority and 38 female employees in the total work force. The 867 hourly employees are represented by an international union. EEO Policy and Dissemination In recognition of its role as a contributing "Corporate Citizen" and its sincere and effective effort to provide equal opportunity, the NCA corporation has adopted all programs and procedures contained in its affirmative action program as a matter of company policy. It is the policy of this company to take whatever affirmative action _,,..,.... necessary to offer equal emplcj~nt opportunity without reg8rd to 40 ..... ~, creed, age, color, sex or national origin, and to insure that all personnel actions such as recruitment, selection, placement, testing, 80 training programs, promotions and transfers, layoff and recall, termina- tions, disciplinary actions, social and recreational programs, all employee benefits and compensation are equally applied. Dissemination of the policy is communicated both internally and externally. Internally specific reference is made on the status of goals at least monthly to the Operating Committee. Documentation of these goals and reports are maintained. The EEO policy has been stated in vertical meetings with company personnel and is part of the manage- ment-labor contract. A reiteration of the policy is also circulated annually to all personnel and to the bargaining unit representing NCA employees. Pertinent EEO data has been and will continue to be distri- buted as necessary to all supervisors and to all personnel engaged in employment, placement, and training processes. Information relating to Equal Employment Opportunity is included in the agenda of management conferences as required. Conferences that have been called specifically to deal with the subject of EEO reflects the reason for the meeting, the names of those present and the assess- ment of the results. The minutes of the meeting are signed by a desig- nated official and dated and filed. Externally the Equal Employment Opportunity policy is communi- cated to all recruiting sources, requesting their assistance in the implementation of the affirmative action program. These sources in- elude but are not limited to the following: 1. Private employment agencies used by the Company. 2. State Employment Services. ~n~ ~~0~ nion Q~hnnlQ t-o~hni~.<~l inc:t-it-11t-oc 3. Local ...... - ---- ··-o·· - -·-----' ---··------·------, business schools and colleges having predominantly minority enrollments. I ._,. a I ,... T"'o '+ • t'i • .t\. • t\ • \.., , r , 81 Where applicable, the EEO clause and certification of nonsegre gated facilities requirements are incorporated in purchase orders necessary for the completion of a government contract. Responsibility for Implementation The Manager of Personnel and Labor Relations has been appointed EEO Coordinator by the direction of the General Manager with direct responsibilities to insure that the company is !n compliance with the affirmative action program with full support of management. He and his staff are responsible for: 1. Developing and recommending policy programs and procedures to implement the affirmative action commitment required by policy and various legal obligations arising out of the Federal Civil Rights Act, Executive Orders and Fair Employment Practices legislation. 2. Continually developing all recruiting sources to maintain a continuous drive to obtain qualified minority group appli cants for all job classifications. 3. Maintaining channels of communication by attending confer ences, workshops, and meetings where persons from minority groups are participating in order to obtain reliable and current information regarding the needs, attitudes, skills and availability of minority applicants for employment. 4. Representing the company in necessary meetings with enforce ment agencies, minority organizations, community action groups, etc., to coordinate EEO efforts. 5. Investigating and resolving any EEO complaints including those raised directly through internal channels or that may 82 originate through State or Federal sources. 6. Measure effectiveness of the company's EEO program and indi- eating the need for remedial action. 7. Maintaining and reporting all information legally required for EEO reports or minority employment. 8. Keeping management informed on all developments in the EEO program areas. 9. Developing and maintaining affirmative action programs with- in legal framework provided by applicable Executive Orders and Rules and Regulations. The Manager of Personnel and Labor Relations also insures that all employees are given proper consideration for promotions, upgrading, transfers, and other actions without regard to race, creed, age, color, sex or national origin. Utilization Analysis The labor area for the work force is generally considered to be drawn from three counties surrounding the local facility. Table XII is a breakdown by county based on the 1970 U. S. Census. It consists of the total labor force and indicates the number of minorities and females within the work force. TABLE XII CIVILIAN LABOR FORCE Total % % Countx Work Force Minoritx Minority Female Female A 23,345 906 3.9 8,594 36.8 B 25,065 589 2.3 9~334 37.2 c 36,188 733 2.0 132409 37.1 Total 84,598 2,228 2.6 31,337 37.0 83 There are no other nearby communities having significant popula- tions from which the company can reasonably recruit hourly employees. The nearest minority population concentration is located over 40 miles to the north of the plant. Of the females referred to in Table XII only a negligible number have experience in machining trades which has made it difficult to upgrade or hire females for the operation. The company presently has six minorities in salaried classifica- tions that are promotable. Two hold supervisory positions, one is a computer operator and the other three are female clerical employees. Within the bargaining unit covering hourly production employees, there are 42 minority employees. All of these employees have com- pleted their probationary period and are qualified to bid on posted jobs as outlined in the Labor Agreement. In considering female employees, the company has 29 female em- ployees in non-exempt salaried positions. One female has been set up to an exempt management position. There are eight female employees in the bargaining unit for hourly production employees. All of these em- ployees have completed their probationary period and are qualified to bid on posted jobs as outlined in the Labor Agreement. The only training or vocational education programs offered in the immediate area are the normal programs offered through the local high schools and a newly structured vocational school. Few applicants for factory jobs have the requisite machining skills needed, and the com- pany provides practically all of the training through on-the-job train- ing with some classroom instruction. The selection process has been reviewed to insure that standards are job related and necessary to performance. All pre-employment test- -fno 'h~a hoon rl-fc:l"'nn.,..-lnno,-1 ovt"'ont- fn.,.. .,..,7n;no ~nrl .,..ol ~f-'orl r-1 o.,..;,..~1 -··o ...... ---·· -----··--··--- - .. ·--r- --- -Jr-.. ·o _ ...... ------84 performance tests for office clerical applicants. Review of applicants for salaried and hourly positions does not indicate that a disproportionately large percentage of minority or female applicants are being screened out. However, recruiting efforts have been expanded through established referral sources to increase the flow of qualified minority and female applicants for salaried openings above the clerical classification since some of the classifications are underutilized. Salaried promotion and transfer is based on merit and demon- strated ability. In the past year, there were 14 promotions in the salaried categories. Of these, one was a minority and two were female. Promotions and transfers of hourly employees are governed by seniority in accordance with the Labor Agreement. Problem areas are underutilization in the skilled classifications and apprentice program as will be shown in the company goals. Goals and Timetables Table XIII is an example of NCA's EE0-1 form and shows a break- down of job categories with the number of minorities and females in the categories and percentage of each. TABLE XIII NCA's FORM EE0-1 1973 Job Total Minority % Female % Category Employed Employed Minority Employed Female Officials and Managers 100 2 2.0 0 0 "' Professionals .}If v" "v "v 0 Technicians 15 0 0 3 20.0 Sales Workers 2 v" 0 "v v" 85 TABLE XIII (continued) NCA's FORM EE0-1 1973 "1 Job Total Minority IO Female % Category Employed Employed Minority Empl..2I,ed Female Office & Clerical 35 4 11.4 27 77.1 Skilled 215 6 2.8 0 0 Semi-skilled 503 23 4.6 5 1.0 Unskilled 136 13 9.6 3 2.2 Apprentices 13 0 0 0 0 Total 1,053 48 4.6 38 3.6 The officials and managers category is made up of the general manager, department heads, supervisors, foremen: and staff members. The composition of this group reflects two minority employees in admin- istrative positions and no female employees. This category is an area of underutilization. The department heads are normally filled by promotion from the professional or technical group who have acquired experience and know- ledge in their particular vocation. The supervisors and foremen class- ifications are almost always filled from the hourly bargaining unit. Due to the ages of i.:he incumbents and recent corporate transfers that have filled these positions, only two vacancies are expected in this group for 1974. There are no minorities or female employees presently in assign- ments from which these positions are normally filled, except for those in the bargaining unit who could be promoted to the foreman level. Plans are to give openings in this area close attention in attempting to promote minorities to the foreman ievel as weii as hire minorities 86 and females who may eventually be considered for a position at manage ment levels. The professional category consists of accountants, engineers, in- dustrial engineers, personnel and support staff classifications. There are no minority or female employees in these classifications and this category is an area of underutilization. Due to no anticipated vacancies in these classifications, there are no established goals for this category. The technician category includes draftsmen, lab technicians, time study observer, product engineer, industrial nurse and programmer analyst classifications. There are no minority employees presently em ployed in the job classifications in this category. Female employment represents 20% of the work force in this category which indicates there is no female underutilization. Minority persons possessing potential for these job classifica tions should be available in numbers approximating the area minority population. This category is an area of minority underutilization. There are four projected vacancies in these classifications for 1974. However, the company has not been able to find qualified minority appli cants for an industrial nurse or product engineer. The product engineer classification requires an associate degree plus experience and the industrial nurse requires an R.N. degree in nursing. Thus far no minority group applicants have been available. The sales workers category has a sales manager and sales engineer. It is underutilized since there are no minority or female employees in this classification. There are no projected goals fer the nc~t t~elve months since there are no anticipated vacancies in these classifications. Manp~~er s~hed~lcrs, keypuuch operators, secr€tari~s, computer 87 operators, clerk typists, accounting clerks, general clerks, and telephone operator make up the office and clerical classification. The minority employees represent approximately 11.4% of the total work force in this category and the percentage of female employees is 77.1%. There is no underutilization of minority or female employees in the office and clerical category. In the apprentice category, one opening is projected for this classification during 1974. Plans are to utilize every means possible to obtain a minority person to fill this vacancy in order to begin off setting the underutilization in the skilled trades area. However, the scarcity of minority candidates in this area has made it difficult to secure minority apprentices in prior attempts. CUrrent projections indicate there will be no significant in crease in the total factory work force during 1974. Further, in com parison with the local labor force availability, the hourly classifica tions are not underutilized. However, there is an underutilization of female employees. The company has committed to hire four minorities and four females for anticipated openings in the hourly work force for 1974. As for the opportunity afforded all employees Which includes females and minorities to upgrade to higher skilled jobs, the on-the job training and experience is conducive to acquiring the necessary ability required to perform skilled jobs. In addition, in-plant class room training is being provided through additional educational courses. Development and Execution of Program The following steps have been taken to develop and execute the affirmative action program: 88 1. An analysis of position descriptions is conducted to insure that they accurately reflect the function of each position before recruiting for any openings. 2. Position descriptions and skill requirements are carefully considered in the recruiting, screening and promotion process. 3. The total selection process has been evaluated to insure freedom from bias as a necessary condition to attainment of stated goals. 4. All personnel involved in screening, selection, promotion or any other related process have a primary involvement in the affirmative action plan for the company. 5. Pre-employment aptitude testing is no longer conducted by the company except to measure typing and related clerical skills. 6. To improve the flow of minority and female applicants in the effort to meet the stated goals, recruitment sources have been contacted to stress the urgency of complying with the request to increase the number of minority and female candi dates in their referrals. 7. The company has taken advantage of and utilized the partici pation of the Corporate Office in special programs which are designated to benefit the minority groups and females. 8. Minority employees have been and are being contacted and en couraged to refer other minorities for vacancies. This is another means of attracting minorities to the work force as opportunities arise. 9. The comp~ny has t~ken advantage of the Corporate program which consists, in part, of visits to predominantly black colleges for recruit~nt. 89 Support Action Programs NCA has had special contact with community action programs at the local level. ~uring the past two years, it has participated in the Migrant Workers Organization and the N.A.A.C.P. Programs and has placed several minorities within the bargaining unit through cooperative efforts with these groups. Special meetings with officials of the local N.A.A.C.P. have also been set up by top management to discuss mutual problems and to insure that lines of communication are kept open. The company has and continues to encourage top level and middle level management to participate in local community organizations and advisory board councils. Internal Audit and Reporting System Data is compiled by the Personnel Department on a monthly basis which includes, but is not necessarily limited to, the following personnel areas: 1. Applicant flow, hires and rejection ratio. 2. Upgradings and promotions. 3. Terminations. 4. Layoff and recall. 5. Recruitment. 6. Affected classifications. Quarterly reports are broken down by major job categories, which reflects the progress of each category tvward meeting its goal. These reports are sent to all department heads for review of their areas of responsibility prior to the holding of a quarterly Operating Committee meeting, to discuss the progress or lack thereof. As Chairman of the Committee, the General Manager is present during the review of these 90 meetings. Recommendations for program change is the primary responsibility of the Personnel Dep3rtment. ~~ere affirmative action goals and time tables are not being met without satisfactory reasons, corrective steps are to be initiated for prompt achievement of full and equal opportunity. 91 CHAPTER VII NORTHERN COMPANY B: A CASE STUDY Company Characteristics Northern Company B (NCB) is located in the northeastern part of the United States. It is a subsidiary of a large metal manufacturing corporation which has approximataly 30,000 employees on a national basis. The parent company's corporate office is also located in the northeastern states. NCB is a manufacturer of copper products and precious metals. It employs approximately 1900 employees which in cludes 428 Negroes and 506 Spanish Americans or minorities and 57 females in its work force. Equal Employment Policy and Reaffirmation NCB has adopted an EEO policy to provide equal employment oppor tunities in employment to all employees and applicants without regard to race, religion, color, sex, age or national origin. This policy in cludes but is not necessarily limited to: recruiting and employment, promotion, demotion, layoff, transfer and termination, rates of pay and other forms of compensation, education and training, and other working conditions. The policy is reaffirmed in writing in the affirmative action pro gram which is communicated downward to all managerial and supervisory employees stressing the importance of meeting the cbjcctiv~s of equal employment opportunity. It is signed both by the Vice-President and General Manager of the local facility and the President of the 92 corporation. The responsibility of implementing the program has been assigned to the Director of Equal Opportunity Programs. He is held accountable for monitoring the effectiveness of the program and report ing the progress of the program on a monthly basis to the Vice-Presi dent and General Manager. Dissemination of Policy The Director of Equal Opportunity Programs provides for the dis semination of policy in accordance with Executive Order 11246 and Order No. 4. Such dissemination includes: 1. Conducting meetings with executive, management and super visory personnel to explain the intent of the policy and emphasizing the individual responsibility of all personnel for its effective implementation. 2. Discussing the policy thoroughly in both employee orientation and management training programs. A =opy of the policy statement is issued to each new hire and the subject of EEO is in all management training programs. 3. Posting the policy on all company bulletin boards. 4. Notifying union officials in writing on an annual basis the company policy on EEO. The non-discrimination clause is also included in the Labor Agreement. 5. Informing all recruiting sources verbally and in writing of the company policy on an annual basis, stipulating that these sources actively recruit and refer minority and female candi dates for all positions listed. 6. Incorporatir~ the Equal Opportunity clause in all purchase orders, leases, contracts, etc., covered by Executive Order ii246, as amended, and its implementing regulations. 93 7. Notifying, in writing, minority and female organizations, community agencies, community leaders, secondary schools and colleges of company policy. 8. Sending written notification of company policy annually to all sub-contractors, vendors, and suppliers requesting appro priate action on their part. 9. Promoting newsworthy items in local news media and the corpo rate magazine on minority and female employees within the company. Responsibility for Implementation The Director of Equal Opportunity Programs is responsible for the continued implementation of the affirmative action program. He is responsible for developing policy statements, affirmative action plans, and internal and external communications. He also assists in the iden tification of problem areas and helps line management in arriving at solutions to the problems. He designs and implements audit and reporting systems that: 1) measures the effectiveness of the affirmative action program, 2) indi cates the need for remedial action, and 3) determines the degree to which goals and objectives are being attained. The Director serves as liaison between the company and enforcement agencies, minority organi zations and community action groups. He keeps management informed of the latest developments in the equal employment opportunity areas and conducts periodic audits of hiring and promotion patterns to remove im pediments to the attainment of goals and objectives. The Director also ensures that all minority and female employees are afforded a full opportunity and are encouraged to participate in all company sponsored 94 educational, training, recreational and social activities. Line managers are specifically charged with the responsibility for: 1. Assisting the Director in the identification of problem areas and in the establishment of departmental goals and responsi bilities. 2. Active involvement with local minority organizations and community action groups. All activity is coordinated with and scheduled through the Director's office. 3. Career counseling with all employees upon their request. 4. Conducting annual audits to ensure that pertinent posters are displayed and that minority and female employees are given full opportunity and encouraged to participate in all company programs. Identification of Problem Areas In order to identify potential problems, various areas such as, racial composition of work force, applicant flow, selection process, transfers and promotions, company facilities, etc., are analyzed. This enables a company to determine if it is meeting its outlined or estab iished objectives. As of the last EE0-1 report the racial composition of the work force included 428 Negroes and 506 Spanish surnamed Americans or 50.8 percent of the male minorities which reflects a continued increase of minorities over the past four years. The applicant flow for the past 12 months shows 526 Negroes and 819 Spanish surnamed job applicants which represents 31.3 percent and 48.3 percent respectively of the total applicant flow. The percentage of minorities hired during that 95 same period was 28.5 percent and 48.1 percent Spanish-Americans. In the selection process, position descriptions are being review ed and an in-depth analysis, including examination of man specifica tions is being made concurrent with each revision. This review indi cates that the total female force in most job categories are under utilized. Transfer and promotion practices are governed, prllnarily, by an agreement between the company and the international union. There is specific language in the Labor Agreement that determination of qualifi cations shall not be made in an arbitrary, unreasonable or discrimina tory manner. The company's facilities are completely and totally desegregated. Company sponsored recreation and social events are open to all employ ees and attendance of minority employees at these events have been documented. Educational assistance and scholarship programs are avail able and well publicized. The apprenticeship program dates back to 1968. At the present ttwe, there are 11 Negro and 26 Spanish-American apprentices which represents 57.5 percent of the registered apprentices in the program. This program has been approved by the Bureau of Apprenticeship and Training Department of the U. S. Department of Labor. All company training programs, both formal and informal, are con ducted on a strict non-discriminatory basis. Most of these training programs are on-the-job training programs and there has been signifi cant participation in these programs by minority employees. Goals and Timetables Goals and timetables have been established to correct deficiencies 96 that have been determined in the various job categories. These goals have been set as targets which are reasonably attainable rather than becoming rigid and inflexible quotas which must be met. The Director of Equal Opportunity Programs has the responsibility of establishing tne goals. He involves both the Personnel Department staff, as well as, line and staff management in the goal setting process in order to effectively involve all concerned parties and carry out the companyrs objectives. In determining the goals, factors such as, minority population; size of minority unemployment; percentage of minority work force; size of female unemployment; availability of minorities and females having requisite skills; availability of promotable minority and female em- ployees; and existence of training institutions, are considered to establish the necessary goals. Table XIV shows the breakdown of the total work force including minorities and females and percentage of the total work force based on the 1970 census. TABLE XIV TOTAL WORK FORCE FOR LOCAL AREA % % Total Minority Minority Female Female 345,300 15,200 4.3 113,200 32.8 Since NCB does not feel it is underutilized in the minority groups for the various categories of the affirmative action program, it has not established any goals or timetables for minorities in these cate- gories: NCB has set goals in the f~male area of hirir~ t~n, tw~rtty and two females in the respective job categories of semi-skilled, laborers -~--1 .. --- WU.Ll\.t::Lt:t. Tabl~ AV represents NCB:s Form EEO-l and shows 97 the total employment in the different job categories. It also indi- cates the percentage of minority and female employees within each category. TABLE X.V NCB's FORM EE0-1 Job Total Minority % Female % Category Employed Employed Minority Employed Female Officials and Managers 174 30 17.2 1 .6 Professionals 58 7 12.1 1 1.7 Technicians 63 4 6.3 11 17.4 Office and Clerical 96 13 13.5 44 45.8 Skilled 293 88 30.1 0 0 Semi-skilled 912 583 63.9 0 0 Laborers 261 210 80.5 0 0 Service Workers 37 11 29.7 0 0 Totals 1,894 946 49.9 57 3.0 The category of officials and managers are made up of executives, department heads, puchasing agents, buyers, foremen and general fore- men. An analysis of these classifications under this category reveals no underutilization of minorities since there are 30 minority employ- ees or 17.2% in these classifications. It would appear that there is definitely an underutilization of females since there is only one or .6% in these categories. The professional category consists of accountants, chemists, engineers, personnel, technical assistants and other job classifica- tions. There appears to be no underutilization of minorities in this 98 category as indicated by the 12.1% of minority employees in Table XV. However, there appears to be an underutilization of female employees in these classifications since there is only one ~ut of 58 or 1.7% in this category as compared to the 32.8% of women in the work force. There are too many job titles under the technician category to list separately. The classification will be broken down, instead, by major distribution which includes technicians, laboratory; technicians, research and development and technicians, other. There are four minor- ity and eleven female employees out of a total of 62 in these classifi- cations which represent 6.3% and 17.4% respectively. It appears that there is no underutilization of minority or female employees in this category. In the job category of office and clerical, there are 16 job classifications which consist of secretaries, various clerical posi- tions, timekeepers, cost analyst, key punch operators, typists, etc. The 13.5% minority representation is greater than the county work force population of 4.3%. Additionally, the 45.8% female representa- tion is also greater than the 32.8% of women in the work force in the surrounding area. Therefore, there is no underutilization of minority or female employees in the office and clerical category. The job categories of skilled, semi-skilled, laborers, and service workers have a percentage of minority employees well above the percentage of the local county population and there is no underutiliza- tion in these categories for minorities. However, there are no female employees in these categories and there is an underutilization of females in these areas. hourly work force and this is where NCB is most vulnerable in meeting requirements for meeting goverr~eut regulations. NCB has realized this 99 and is taking steps to correct the inequities in these categories that exist for female employees. Goals have been established for this and it appears that they will continue to be established and upgraded in order to meet these requirements. Development and Execution of Program The Director of Equal Opportunity Programs is responsible for the development and execution of the affirmative action program. Develop- ment of the program includes but has not been necessarily limited to: 1. Conducting detailed analysis of position descriptions to in- sure that they accurately reflect position functions. 2. Validating man specifications by department and job category using job performance criteria. 3. Making position descriptions available to all members of management who are involved in the recruiting, screening, selection and promotion process. 4. Evaluating the total selection process to insure freedom from bias. 5. Ensuring that all personnel involved in the recruiting, screening, selection, promotion, disciplinary and related processes are carefully selected and trained to insure elimi- nation of bias in all personnel actions. 6. Increasing the flow of minority and female applicants through liaison with minority and female organizations, community leaders, etc. 7. Making minority and female employees available for participa- tion in career days, youth motivation programs and related activities in the community. o.<> Carrying out active recruiting p~og4awE 100 junior colleges, and colleges with minority enrollments, at such time as recruiting activities are required. 9. Expandir~ help wanted advertising to include the minority news media on a regular basis. 10. Reviewing seniority practices and seniority clauses in union contracts to insure such practices or clauses are non-dis- criminatory and do not have discriminatory effect. 11. Making certain that facilities and company sponsored social and recreation activities are desegregated and actively en- courage minority employees to participate. 12. Conducting exit interviews with employees in order to deter- mine if any minority or female problems exist. Internal Auditing and Reporting System Procedures for the monitoring of records of referral, placements, promotion and terminations at all levels are maintained by the Director of Equal Opportunity Programs to insure that non-discriminatory policies are carried out. The Employment Supervisor submits monthly LECaps en records of referrals and the applicant flow. Reports of trans- fers, promotions and terminations are also maintained in the employment office and monthly recap of these administrative actions are submitted to the Director. The Director has also established a quarterly report- ing system on the status of previously established goals and timetables. He advises management on a quarterly basis of the program effectiveness and makes recommendations for changes as necessary. The Director of Equal Opportunity Programs actively supports local and national community action progr~ms in promoting equal 101 employment opporturities. In addition, he gives consideration to the following: 1. Making recommendations for the appointment of other key mem= hers of management to serve on community relations boards. 2. Supporting vocational guidance institutes, training programs and similar activities. 3. Assisting secondary schools and colleges with significant minority enrollment in programs designed to enable graduates of these institutions to compete in the open employment market on a more equitable basis. 4. Publicizing achievements of minority and female employees in local and minority news media. 5. Supporting programs developed by the National Alliance of Businessmen, Urban Coalition and similar organizations. 102 CHAPTER VIII GENERALIZATIONS, EXCEPTIONS AND FUTURE IMPLICATIONS The traditional approach to research in the social sciences is to corroborate or reject one or more prestated hypothesis. This study is not based on such an approach, but rather it is designed to determine the effects of Title VII and its amendments on personnel policies and practices and the necessity to develop positive affirmative action pro- grams in order to be in compliance with federal regulations. Chapter I covers the introduction and outlines the objectives of the Equal Employment Opportunity Commission and the Office of Federal Contract Compliance and defines affirmative action. In Chapter II, the history of the equal employment legislation and movement is brought out. The movement began and primarily dealt with equal employment opportunity in the federal government, Equal employment opportunity is a major personnel program in federal government and it has rapidly developed from insignificant statements of policy on non-discrimination to an affirmative action program intended to insure equality of opportunity. By analyzing the historical development of equal employment opportunity in the federal government, there is an indication that policies of non- discrimination and affirmative action have been followed by changes in the employment and advancement of minority and female employees. Since the federal government is one of the leaders in equal employment oppor- t-un1t-u it-Cl ~vno..-;ont"'o ..-on..-oconr on ov~o11o~~ ~nAnl ~n------J' --- -··["------should --r--... -·•- -·· -~- ...... I.&&~~"'"~ .~...... , .... institutions or private firms. This does not mean they should simply ewulate the federal experience. Rather, th€ f~d~ral model could 103 provide both a basis for comparison and insights into the effect of different strategies. Chapters III, IV, V, VI and VII deal with the actual case studies of the selected manufacturing firms. Numerous and far-reaching changes in employment and the interrelated policies and practices have occurred since the enactment of the Civil Rights Act of 1964. The nature and extent of the changes vary from firm to firm, but all companies in this survey have been affected. In general, all five manufacturing companies have contracts with the federal government and have developed a written affirmative action program as required under the guidelines of the Office of Federal Con- tract Compliance. As stated in the introduction chapter of the paper, an affirmative action program should include certain areas of employ- ment policies and practices. However, the program does not have to be solely limited to just these items. These areas included: utilization analysis; establishment of goals and timetables; reaffirmation of EEO policy; dissemination of policy; responsibility for implementation; identification of problem areas; development and execution of program; internal auditing and reporting and support action programs. Four of the five firms appear to have met or exceeded the minimum requirements of the affirmative action program. Company SCB's program seems to be lacking in the areas of support action and internal auditing and reporting. Company SCA appears to have exceeded the necessary requirements through having a section in the program covering sex discrimination guidelines. All the other com- cate where female employees are underutilized. However, they do not have written guideline~ covering sex discrimination. 104 The written policy statements also appeared in the company personnel manual. These manuals, or affirmative action programs, how- ever, are not readily available to all emplcyees. In most cases a rank-and-file employee only has access to the personnel manual through his supervisor or the personnel department. Thus, even written policy statements are not likely to be read by many non-managerial employees or by anyone outside the firm. In addition to written policies, a substantial increase was evi- dent in over-all communications of equal employment opportunity poli- cies. The extent of policy communication varied from firm to firm covering employees within the firm, as well as, outside organizations and agencies. Communication systems were both formal and informal, but it was felt that communications, in general, did not seem adequate when they were unde.rtaken on an informal basis with no specific plan of action. Utilization Analysis One of the major items that the OFCC reviews during a compliance review and one that measures a firm's effectiveness in equal employment opportunities is that of utilization of minority and female employees in .: ..... \...... ~-- ______.._,_- z:~ -- vaLicus JVU ._C2\..Cij,VL.LC~e Table X'JI is a comparison of Lilt:: l.l.Vt:: selected firms and indicates whether or not the firms are underutilized in the respective categories. Underutilization is defined as having fewer minorities or females in a particular job category or classifica- tion than would reasonably be expected based on their availability. All five companies are underutilized in the production or hourly classification which includes such categories as skilled, semi-skilled, etc., as far as female employees are concerned. Four of the companies TABLE XVI UTILIZATION ANALYSIS BY JOB CATEGORY SCA SCB sec NCA NCB Comeanl: Min. Female Min. Female Min. Female Min. Female Min. Female Officials and Managers Yes Yt~S Yes Yes Yes Yes Yes Yes No Yes P:rofessionals Yes Yt~S Yes Yes Yes No Yes Yes No Yes T•achnicians Yes No No Yes 0 0 Yes No No No Sales Workers Yes Yes 0 0 0 0 Yes Yes 0 0 Office and Clerical Yes No Yes No Yes No No No No No C:raftsmen (Skilled) No Yes Yes Yes Yes Yes Yes Yes No Yes S•ami-skilled No Yt~s No Yes No Yes No Yes No Yes Laborers No Yt~S 0 0 No Yes No Yes No Yes S•arvice Workers 0 0 0 0 No No 0 0 No Yes Apprentices 0 0 0 0 0 0 Yes Yes No Yes "Yes" indicates that there is an underutilization and "no" indicates that there is no under- utilization of minorities or females in the various job categories. A zero indicates there are no employees in this category. t-' 0 V1 106 do not have any female employees. NCA only has a total of eight women in these categories out of a work force of approximately 967. However, all of the companies are not underutilized in the same classification in the case of minority employees. NCA and NCB are the only compa~ies that have apprentice programs and NCA is underutilized in this category. SCB, SCC and NCA are underutilized in the craftsmen or skilled cate- gories. The skilled category is one area that all the firms have had difficulty in recruiting and hiring in both the North and South. One of the main reasons appears to be due to the lack of qualified minori- ties and females with these skills. It would also appear that the minority employees have had an edge on the females. Basically this is due to minorities being covered under the law since 1964 while the Executive Order for sex discrimination did not come about until 1967. In the category of office and clerical, there is no underutili- zation for female employees. In fact, this category seems to be top heavy with females. The northern companies are not underutilized as far as minorities are concerned. However, all three southern firms are underutilized. It would appear that in the southern firms there is a lack of qualified candidates for these jobs or possibly the barrier toward discrimination has not been fully lowered. There are only two firms who had e~loyees in the sales or sales workers categories, one is in the North and one in the South. Both firms indicated it has been difficult to find qualified minotities and females for sales classifications. However, they have established goals for future openings and are actively seeking these candidates. Four of the five firms have technician categories. Onlv- .I onP- --- (NCB) is not underutilized while the other three are underutilized in either the minority or fe!!!ale :!!'e:!. 107 In the professional category most of the companies were under utilizeo. The only exceptions were; SCC is not underutilized in the female area and NCB is r.ot in the minority area. Although most of the firms have made some gains in promoting or hiring minorities and females in the officials and managers, all of them are still underutilized in case of both females and minorities. NCB is the only firm that is not underutilized as far as minorities are concerned. However, most of the minorities in this classification are in the lower level of foremen or supervisor classifications. In general, it appears to have been more difficult for minorities and females to enter certain salaried job classifications including both the southern and northern firms. Employment Practices Recruitment ~ Selection Two personnel managers, both in the South, reported some centra lization of hiring authority bece·.:.~~ cf Ti~ ,_;: '?"?:-:.. .\11 employers re ported changes in activities concerning recruitment of Negroes, partly in an effort to employ more Negroes, but also to eliminate practices in violation of Title VII. Most changes resulted in improving the person- n.:l p:rog:rams. Char~es made in the role of job descriptions and specificatlons in three of the companies, for instance, made hiring more efficient by providing a better basis for screening applicants. All five of the firms indicated they have contacted new sources to obtain more qualified minority and female applicants. However, none of the employers seeking more qualified Negro applicants appeared to have been very successful; qualified Negroes were reported to be sca:rce, and the demand too great for the few available to successfully 108 attract these qualified Negroes in the white-coll£r n.r high skilled jobs. The fi·Je personne 1 managers, who were interviewed, reported formalizing the interview process in their companies. Revisions in- eluded keeping detailed records of interviews, centralization of interviewing and changes in the situations in which applicants are interviewed. All these modifications have probably improved the inter- view process. Applications have changed in all five of the firms since the enactment of Title VII. These changes primarily eliminated information prohibited by the new law. The five firms surveyed reported changes in the testing proce- dure. None of the firms were using tests for the entry level jobs. Only two of the firms were using any testing at all and this was in the area of clerical and typing skills. One of the firms had been utilizing the state employment service for testing applicants. How- ever, this was discontinued after a compliance review by the EEOC. It appears that the difficulty in using tests is establishing the validity of employment tests. If management wishes to continue test- ing, the validity must be established so the practice can be defended. Placement and Induction The three southern firms reported changes in orientation and placement for minority group employees. All five firms had included a statement of equal opportunity in their orientation programs. Most of the personnel managers felt that special induction and placement pro- cedures would become less important as equal employment opportunity progressed. Training, Promotions and Transfers their "----~4V(:J4QLU.:I... -,.. 109 been upgraded and opened to minority and female employees. Only the two northern firms had apprentice programs and NCA had found it diffi- cult to locate qualified minority group applicants for this program. The southern firms were utilizing on-the-job training programs and in some instances local trade or vocational schools. All firms had made available to minority and female employees some type of reimbursement program for outside courses of study. It is difficult to generalize about the promotion aspect of the personnel programs of the sample firms because of the varying prac- tices. Four of the five firms are unionized and promotions and trans- fers are governed somewhat by seniority and job posting or bidding. Changes in the programs and procedures for transfers and promotions in- eluded some modification of employee appraisal system. Generally, this involved establishing criteria for performance evaluation and in- volved keeping additional records on employee performance. The emphasis which had been placed on seniority seemed to be somewhat lessened. One firm (SCC) had an agreement with the union that minori- ties who had not had opportunities to go to segregated lines of pro- gression previously could take their plant seniority with them. This enables them to leave lower jobs and enter new lines of progression without giving up accumulated seniority. The primary reason for these changes appears to be a management effort to obtain carefully recorded, objective criteria to serve as justification for personnel decisions in case of questions from government agencies. Employee Facilities ,...~- .... -~,..,,.. • 1 1 The facilities fer 311 five ...... , ...... t""' .... '"'-'-..:1 nLL employees are eligible to participate in any company sponsored program -- ... _J __ ~ ..... -- vr- :recreation di.;LJ.Vl.LY• n.e two northern firms had integrated 110 facilities prior to the Civil Rights Law. One of the southern firms began operations after the law came into effect and was fully inte grated at the start up. The other two firms were fully integrated approximately two years after the law had passed. Future Implications Inroads have been made by minorities and females in tradition ally white or male jobs since the passage of the Civil Rights Law covering equal employment. In the opinion of public and private civil rights groups, changes have been less than adequate. However, if viewed from the frame of reference of a southern employer who has hired a minority group employee as a supervisor, the change has been profound. Although the number of new job opportunities for minorities and females may seem small, the effects of these changes may be great. Employing one Negro or one female in a non-traditional job may encour age others to apply, and should encourage more minorities and females to prepare themselves for new opportunities. Of course, some of these changes will occur even in the absence of pressure, as is evidenced by progress made by minorities before passage of the Act. Nevertheless, it appears that employers use a great deal more creativity and ingenui~y ~o find qualified minority and female employees in response to pragmatic imperatives from govern ment or civil rights organizations than otherwise. It is also evident that some employers succeed in attracting and recruiting qualified minorities and women while other employers in the same area feel that this is an unsolvable problem. Employers left to their own devices probably continue to do what they have always done unless their policy is unprofitabie or uniess pressure is exerted on them for change. 111 The Equal Employment Opportunity Commission is now equipped with the proper tools in its ability to take companies into court in settle ment of discrimination cases. The EEOC's strategy for the coming year is to focus enforcement attention on four to six large national corpo rations and between 20 to 40 smaller companies that are allegedly among the nation's most biased employers. These companies are being selected for priority attention on the basis of 1) total number of individual complaints received by the EEOC, 2) inability of agency to conciliate and settle past complaints, 3) number of persons employed in the company and in the industry it represents and 4) growth poten tial of the company and its industry. The EEOC was also assured additional money totaling approximately $43,000,000 in the latter part of 1973 when Congress approved this amount for the Commission's new obligational authority. The stage has been set. There are deficiencies in employment opportunities of the five companies surveyed. The companies have es tablished goals and timetables to eliminate these deficiencies through an affirmative action program. Although the affirmative action pro gram may not be the final answer, it does provide the machinery for facilitating the achievement of tangible results. Of course, this machinery becomes meaningless without management's commitment and desire to make these goals and strategies operational. On the other hand, management's commitment to equal employment opportunity without defined means for attaining it is likely to lead to "lip service" and to be perceived as mere rhetoric. 112 APPENDIX 113 APPENDIX A (Letters to Personnel Managers) Dear ------As I discussed with you on the phone the other day, I am con ducting a case study on equal employment opportunity in selected manufacturing firms. This letter will confirm the interview that we set up on The interview will only take approximately 45 minutes and the information provided will be held in strict confidence. There will be no identification of individual firms made in this study. Again, I appreciate your firm's participation and I am looking forward to meeting with you. Sincerely yours, G. Norman Bennett 114 APPENDIX B SURVEY Q!JESTIONNAIRE A. Identifying information 1. Name of company. 2. Official interviewed. 3. Type of manufacturing operation. 4. Nature of operation at this location. 5. Name and location of corporate headquarters. 6. Government contract. 7. Number of employees within company. 8. Number of employees at this location. 9. Number of minority and female employees. (Ask for copy of EE0-1.) B. Policy on equal employment 1. What is company policy on equal employment opportunity? 2. Is it in writing? (Ask for policy statement.) C. Employment 1. wnat has been the general level of personnel requirements since July, 1964? 2. What is the forecast of personnel requirements for the current "t7&:J!lT"? J ---. 3. Has the company made any changes in its programs of job analysis recently? 4. From what sources do you recruit personnel? 5. To what extent are minorities and females available through these sources? 6. Have new sources of minority and female applicants been con sidered since July, 1964? 7. What instructions have been given employment agencies concern ing minorities and female job applicants? 115 8. Do ads contain a statement of equal employment opportunity? 9. Are ads placed in minority newspapers? 10. Has there been any changes in the number of minority and female applicants and the job for which they applied since July, 1964? 11. Have you given any special training to your employees who are concerned with selection because of Title VII?' 12. What changes have taken place in the use of testing as a part of the selection program? 13. What changes have taken place in the maintenance of selection records because of Title VII? 14. How does the percentage of minority applicants hired compare with the percentage of white hired? D. Induction and placement 1. Does your company have a special orientation program for minority and female employees? 2. What approach is used in the placement of minority and female employees? E. Training, Promotion and Transfer 1. Have any changes been made in company training programs? 2. What changes have been made in the program for promotion and transfers? 3. Has the company made any special studies of the skills and experience of present minority and female employees that may be promotable? F. Employee facilities 1. wnat changes have taken place in the integration of employee facilities since July, 1964? 2. What changes have taken place in company-sponsored recreation programs? G. Public and union relations 1. Has your company worked with any community group in dealing ~ith the problem of mirrority employment? 2. What changes have taken place in union-management relations because of empioyment integration? 116 H. Affirmative action 1. Does your firm have a written affirmative action program? (Ask for copy.) 2. What is the number and percentage of minority and female employees in the EE0-1 job categories? 3. What will be the long-run effect of Title VII and its amend- ments on employment policies and practices in your company'? 117 BIBLIOGRAPHY Books Brooks, Alexander. A Bibliography of Civil Rights and Civil Liberties. New York: Civil Liberties Educational Foundation, Inc., 1962. Bullock, Paul. Merit Employment: Non-discrimination in Industry. Los Angeles: University of California, 1960. Cousens, Frances and others. A Study of Patterns of Discrimination in Employment. Detroit, Michigan: University of Michigan, 1966. Doriot, Georges. The Management of Racial Integration in Business. New York: McGraw-Hill Book Company, 1964. Greenman, Russell L. and Schmertz, Eric J. Personnel Administration and the Law. Washington, D. C.: Bureau of National Affairs, 1972. Hiestand, Dale L. Econamic Growth and Employment Opportunities. New York: Columbia University Press, 1964. Hunter, Guy. Industrialization and Race Relations. New York: Oxford University Press, 1965. Keel, Theodore w. 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The Negro and Employment Opportunity. Ann Arbor, Michigan: University of Michigan, 1965. Perkin, Dean B. The Building Blocks of EEO. New York and Cleveland: The World Publishing Company, 1971. Ruchames, Louis. Race, Jobs and Politics. New York: Columbia University Press, 1953. Schwartz, Bernard. Statutory History of the United States: Civil Rights Part II. New York: Chelsea House Publishers, 1970. Selltiz, Claire and others. Research Methods in Social Relations. New York: Holt, Rinehart and Winston, 1963. The Civil Rights Act of 1964, Operations Manual. Washington, D. c.: BNA, Inc., 1964. Articles and Periodicals Boyle, M. Barbara. "Equal Opportunity for Women Is Smart Business." Harvard Business Review, May-June, 1973, pp. 85-95. Buel, William D. "An Alternative to Testing." Personnel Journal, May, 1972, pp. 336-341. r.icP'!:"O?l!i, Fr<=d. "Discrimination: A Prisoner of the Mind." The Personnel Administrator, November-December, 1973, pp. 26-27. Congressional Quarterly Almanac, Volume XXVIII, 1972. "Controversy Over the Enforcement Rule of the Equal Employment Oppor tunity Commission." Congressional Digest, November, i97i, pp. 254-260. Epstein, Stanley M. "Increasing Management Acceptance of EEO Programs." Personnel Journal, October, 1973, pp. 901-906. "Forced Hiring of Negroes - How It Would Work." U. S. News and World Report, July 29, 1963, pp. 83-84. "Hiring Under the New Civil Rights Law." Administrative Management, September, 1964, pp. 41-45 Kothari, Vinay. "Successful Integration of Minority Workers." The Personnel Administrator, July-August, 1973, pp. 35-38, Mayfield, Harold. "Equal Employment Opportunity; Should Hiring Standards Be Relaxed." Personn.:l, Septembe-r, 1964, pp. 8-12. l.l9 Nason, Robert W. "The Dilemma of Black Mobility in Management." Business Horizons, August, 1972, pp. 57-68. Pearson, David w. "OFCC and EEOC Demands - Guidelines to Frustra tions." The Personnel Administrator, November-December, 1973, pp. 21-25. Petersen, Gary G. and Bryant, Linda. "Eliminating Sex Discrimina tion- Who Must Act." Personnel Journal, August, 1972, pp. 587-591. Pollitt, Daniel. "Racial Discrimination in Employment: Proposals For Corrective Action." Buffalo Law Review, Fall, 1963, pp. 59-92. Rennie, Donald K. "Coming to Grips with Affirmative Action." The Personnel Administrator, September-October, 1973, pp. 29-33. Rosen, Sanford Jay. 'The Law and Racial Discrimination in Employ ment." California Law Review, August, 1965, pp. 729-799. Schein, Virginia Ellen. "Fair Employment of Women Through Personnel Research." Personnel Journal, May, 1972, pp. 330-335. Seligman, Daniel. "How Equal Opportunity Turned into Employment Quotas." Fortune, March, 1973, pp. 160-168. Short, Larry E. ''Nondiscrimination Policies: Are They Effective." Personnel Journal, September, 1973, pp. 786-792. "The Civil Rights Act of 1964." Congressional Quarterly Almanac, Volume XX, 1964. "The New Civil Rights Law." Personnel Policies and Practices, July 14, 1964, pp. 3-10. Thorp, Gary D., Jr. ::Fair Employment Practices: The Compliance Jungle." Personnel Journal, July, 1973, pp. 642-648. Government Reports President's Committee on Equal Employment Opportunity. Implementing Plans for Progress. Washington, D. C.: U. S. Government Printing Office, 1964.