Mitsubishi and EEOC To Settle Harassment Suit
11 June 1998
Mitsubishi Motor Manufacturing and EEOC Reach Voluntary Agreement To Settle Harassment Suit
NORMAL, Ill. and CHICAGO, June 11 -- Mitsubishi Motor
Manufacturing of America, Inc. (MMMA) and the U.S. Equal Employment
Opportunity Commission (EEOC) announced today that they have reached a $34
million settlement, subject to court approval, that resolves all claims in the
lawsuit filed on April 9, 1996 by the EEOC on behalf of a class of current and
former MMMA employees who were subjected to an alleged pattern or practice of
sexual harassment at MMMA's Normal, Illinois manufacturing plant since 1990.
The terms of the settlement are in a proposed Consent Decree to be
submitted to the U.S. District Court for the Central District of Illinois, and
will be in effect for three years from the date of final Court approval.
At the joint request of the parties, U.S. District Court Judge Joe Billy
McDade appointed a "special master," Judge Abner Mikva, on April 16, 1998, to
facilitate settlement discussion which led to the proposed Consent Decree.
Judge Mikva said: "This is a fair settlement designed to accelerate the
creation of a workplace that is free of sexual harassment. The lawyers
representing Mitsubishi and the EEOC did an outstanding job of representing
their interests. They insisted on principle, but recognized the need to find
common ground. This is a win-win situation for the company, for the EEOC and,
most of all, for the employees."
Kohei Ikuta, Executive Vice President of MMMA, said: "MMMA and the EEOC
share the same goal -- to have a harassment-free workplace for our employees.
Over the last 20 months, we have been instituting best practices and training
programs to further our commitment to address and prevent harassment in the
workplace. With today's settlement, our company takes significant further
steps to accelerate the progress toward the type of workplace environment we
have been working to create, free of harassment or discrimination of any kind.
We are moving forward -- women and men, management and employees -- to work
together to have the best possible workplace and to build the best cars
possible for our customers."
Continued Mr. Ikuta: "We want to reaffirm today what we have said
previously: we have had problems involving sexual harassment which required
correction and we extend our sincere regret to any woman who has been harmed.
But today we are moving forward. The goal of today's settlement with the EEOC
is to enhance our commitment that our workplace environment achieves our goal
of zero tolerance of sexual harassment. We acknowledge and respect the EEOC's
authority to pursue equal employment opportunity and we look forward to
working with the EEOC as a partner in our progress."
Paul M. Igasaki, chairman of the EEOC, said: "The people of the United
States have looked to all of their institutions -- the government, our
employers, and our labor unions -- to act decisively to stop the serious
problem of sexual harassment. By now agreeing to pay $34 million, the largest
amount ever paid in resolution of a sexual harassment case, and to work with
the panel of Decree Monitors, MMMA is demonstrating that it stands ready to so
act. Perhaps the most important aspect of this settlement is what happens
from this day forward. On that score, I am hopeful that with continued effort
and vigilance the problems at Mitsubishi will be a thing of the past."
Katsuhiko Kawasoe, president of Mitsubishi Motors Corporation, the parent
company of MMMA, said: "We are pleased that MMMA has reached a resolution with
the EEOC in this matter. This is the right business decision in order to be
able to move forward. We support MMMA's future efforts in working with the
EEOC to carry out the terms of the Consent Decree."
EEOC General Counsel C. Gregory Stewart said: "The importance of the
injunctive, non-monetary relief elements in this settlement -- whether the
monitors, the 'zero tolerance' policy, the training, or other items -- cannot
be over estimated. We have all been around too long to believe that anything
is absolutely certain, but we at EEOC are optimistic that MMMA's agreement to
the terms of the proposed consent decree announced today will make concrete
differences in the day-to-day life of the dedicated line workers at
Mitsubishi. If we are right about this, then the consequences for both the
mission of our agency and the objectives of the business community can be
huge."
John C. Hendrickson, EEOC's Regional Attorney in Chicago and lead counsel
for the government, said: "The litigation of this case and the negotiations
which produced today's settlement have been as tough and rigorous as any I
have experienced. But just as the heat of fire tempers the strongest steel,
the rigor of this litigation has forged a decree with real strength. It
provides immediate compensation to women who suffered discrimination, it
provides protection for them inside the work place, and it ensures fairness
and cooperation and dignity for everybody on the line at Mitsubishi. These
are the things that the federal employment discrimination laws and the public
interest are all about. This is a good result."
According to the proposed Consent Decree, MMMA will pay $34 million, which
will be distributed among all eligible claimants, as defined in the proposed
Consent Decree. In the proposed Consent Decree which MMMA entered into
voluntarily and which formally enjoins MMMA, MMMA agreed that it will revise
as necessary its existing sexual harassment policy and complaint procedure to
ensure that it continues to encourage employees to come forward with
complaints about violations of MMMA's Statement of Zero-Tolerance Policy and
Equality Objectives. MMMA further agrees that it will continue its best
efforts to investigate all complaints of sexual harassment within three weeks
and prepare its written findings of the results of each investigation and
remedial actions proposed seven days thereafter. As part of the settlement,
MMMA will continue to provide mandatory sexual harassment training to
employees.
The Company has voluntarily agreed to the appointment of a three-person
panel of Decree Monitors to oversee the execution of the steps included in the
settlement for the duration of the proposed Consent Decree. The Decree
Monitors will work as a team to review the policies and practices to ensure
that they meet MMMA's Statement of Zero-Tolerance Policy and Equality
Objectives. The Decree Monitors will complete their review and evaluation
within one year after their appointment and will provide continuing review and
evaluation of ongoing employment policies and practices related to the Zero-
Tolerance Policy and will provide a final written report to MMMA, the EEOC and
the Court.
Additionally, one of the three Decree Monitors will serve as the Complaint
Monitor who will monitor, for the duration of the proposed Consent Decree, the
investigation and resolution of complaints alleging violations of MMMA's
sexual harassment policy.
Mitsubishi Motor Manufacturing of America, Inc., a subsidiary of
Mitsubishi Motors Corporation, manufactures the Mitsubishi Eclipse, Eclipse
Spyder convertible and Galant, and the Dodge Avenger and Chrysler Sebring.
The EEOC is the federal agency responsible for enforcing the federal
statutes which prohibit employment discrimination, including Title VII of the
Civil Rights Act of 1964, which prohibits discrimination based on race, color,
sex, national origin, or religion; the Americans with Disabilities Act, which
prohibits job discrimination based on the existence or perception of a
disability; the Age Discrimination in Employment Act, which prohibits
discrimination against persons age 40 and over; and the Equal Pay Act, which
prohibits wage discrimination based on sex.