Baldor to Pay $2 Million in Back Wages, Offer Jobs in Discrimination Settlement
by July 6, 2012 9:49 am 202 views
The U.S. Department of Labor said June 25 it has reached a $2 million agreement with Baldor Electric Co. of Fort Smith to settle a hiring discrimination case.
The settlement agreement includes back wages, interest and some job offers for 795 women and minority applicants who were denied positions at the company, which makes electric motors and drives and is owned by ABB Ltd. of Zurich, Switzerland.
In a news release, the Labor Department’s Office of Federal Contract Compliance Programs said its investigators had determined Baldor’s applicant screening process created “a disparate impact on women and minorities.”
“As a result, 795 qualified women, African-Americans and job seekers of Asian and Hispanic descent were denied the opportunity to advance to the interview stage when applying for production and laborer positions,” the Labor Department said.
Baldor told The Associated Press that it was easier to settle than continue to fight the allegation.
The Arkansas Economic Development Commission lists Baldor as the state’s 26th largest employer with between 2,000 and 2,500 workers.
Under terms of a conciliation agreement negotiated by the OFCCP, Baldor will pay $2 million in back wages and interest to the affected individuals and make at least 50 job offers to members of the original class action lawsuit as positions become available.
“I am pleased with this settlement, which reflects a mutual commitment between the Department of Labor and the leadership of Baldor to ensure that all workers have a fair and equal shot at competing for good jobs,” Secretary of Labor Hilda L. Solis said in a news release.