Ford Motor Company – Race Discrimination

Case Summary

M&S and the Equal Employment Opportunity Commission (“EEOC”) each filed lawsuits challenging Ford’s procedures for selecting apprentices nationwide. These suits alleged that, since 1997, Ford discriminated against African Americans on the basis of race in selecting apprentices. The two cases were consolidated in front of Senior Judge S. Arthur Spiegel in the Southern District of Ohio.

After extensive negotiations, the parties arrived at a settlement. The settlement resolved all claims in both lawsuits and provided monetary benefits to the class and substantial systemic relief.

Judge Spiegel approved the settlement in June 2005. He said, “The settlement provides substantial monetary and non-monetary benefits to the class as well as extensive systemic relief. The new testing procedures will benefit not only the class members, but potentially also all employees and future employees of Ford.”

PROGRAMMATIC RELIEF

The terms of the settlement mandated that Ford discontinue the previous apprenticeship test for use in selecting apprentices at Ford facilities in the U.S. The parties jointly selected Kathleen Lundquist, president of Applied Psychological Techniques in Darien, Connecticut, as an independent industrial psychologist to serve as an expert to construct new apprenticeship selection procedures that were neutral on the basis of race.

Ford also agreed to select 279 members of the Settlement Class, along with three Charging Parties, to be placed on an apprenticeship program eligibility list. This aspect of the settlement agreement was designed to remedy claims for lost job opportunities for those previously rejected for apprenticeships.

FINANCIAL COMPENSATION

To remedy monetary damage suffered by the class, the settlement agreement provided $2,400 to each Settlement Class Member who submitted a properly executed Claim and Release Form and did not opt-out of the lawsuit.