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DaimlerChrysler Corporation to Appeal Michigan Verdict

20 July 1999

DaimlerChrysler Corporation to Appeal Michigan Verdict

    AUBURN HILLS, Mich., July 19 -- The following was released by
DaimlerChrysler Corporation :

    A Wayne County, Michigan jury today rewrote the rules on sexual harassment
law by levying a $20 million dollar verdict against DaimlerChrysler
Corporation in a lawsuit filed by an employee at the company's Jefferson North
Assembly Plant (Detroit).  The jury held DaimlerChrysler liable despite the
fact that the company took prompt action to investigate the employee's
allegations even though she refused to cooperate.  The company pledged to
appeal.
    "Holding a company liable for the isolated acts of anonymous co-workers
sets an impossible standard and a dangerous precedent," said Judith Pickering,
DaimlerChrysler's Assistant General Counsel.  "Under these new rules, every
bad joke or overheard remark can become the basis for a multi-million dollar
lawsuit.  Ironically, verdicts like this weaken public support for sexual
harassment laws, undermining the very protections they were meant to
provide."
    The plaintiff, Linda Gilbert, is currently a millwright at the Jefferson
North Plant, one of the largest employers in the city of Detroit.  She was
hired in 1992.
    The 1994 lawsuit stems from five discrete incidents of inappropriate
comments or pictures of a sexual nature over the course of almost five years.
In all but one instance, Ms. Gilbert refused to name the employee she either
knew or suspected had undertaken the offensive actions.  "She should not be
able to both shield the offender and be compensated for the offense," said
Pickering.  The employee she did single out, who apparently told a tasteless
joke, received a written reprimand, and was put on official notice that a
repeat could lead to dismissal.
    Despite Ms. Gilbert's failure to fully disclose the facts, in each other
case, DaimlerChrysler, in keeping with the company's strict sexual harassment
guidelines, fully investigated the complaint and put employees on notice that
this type of behavior would not be tolerated.  In addition, the corporation
agreed to transfer Ms. Gilbert, at her request, to another work area in the
plant on a different shift.
    "There is no doubt that the actions Linda Gilbert complained about would
be considered offensive or inappropriate in the work place," said Monica
Emerson, Director of Diversity and Work/Family at DaimlerChrysler Corporation.
"However, the company took prompt, effective remedial action to address the
issues of her complaints."
    Of all auto manufacturers, DaimlerChrysler Corporation has the highest
percentage of women in the work force (20.1% -- totaling almost 20,000 female
employees).  "These numbers continue to grow, in large part because we have
a very strong policy prohibiting sexual harassment and an extremely effective
process to address complaints," said Emerson.
    Throughout the five week trial, Ms. Gilbert's attorney argued that she was
forced to turn to alcohol and drugs as a result of these incidents.  However,
medical records and police reports indicate that Ms. Gilbert was abusing both
alcohol and drugs long before her employment with the corporation.
Psychological and medical treatment for these problems also pre-dated her
employment.
    "The plaintiff's attorney did not want the facts to get in the way of a
good story," said Pickering.  "Over the course of her employment, this
corporation has done everything in its power to help Ms. Gilbert overcome her
substance abuse problems.  We care about her and we are concerned about her
welfare, but we cannot let this verdict stand."