Benefits September 17, 2010

Large Trucking Company Settles EEOC Suit for $10M

September 17, 2010 (PLANSPONSOR.com) – A federal judge has granted preliminary approval to a $10 million, five-year settlement which will end the U.S. Equal Employment Opportunity Commission’s (EEOC) race harassment and discrimination lawsuit against Roadway Express and YRC, Inc.
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The EEOC alleged that the company subjected black employees at its Chicago Heights, Illinois, and Elk Grove Village, Illinois, facilities to a racially hostile working environment and racial discrimination in terms and conditions of employment. According to an EEOC press release, Roadway Express operated the facilities until its merger with Yellow Transportation, when the two companies combined operations to form YRC, Inc.  

The agency said it was prepared to present evidence that black employees were subjected to multiple incidents of hangman’s nooses, racist graffiti and racist comments, and racist cartoons. The EEOC also claimed Roadway and YRC subjected black employees to harsher discipline and scrutiny than their white counterparts and gave more difficult and time-consuming work assignments to black employees than white employees.   

The decree also requires YRC to retain consultants to examine the company’s discipline and work assignment procedures and recommend changes to prevent racial disparities, and requires the appointment of a monitor to oversee the company’s response to complaints and to report on the company’s compliance with the decree. The monitor will report semi-annually to the court and to the EEOC.

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