SHEET METAL WORKERS (SMW)
New York Local Puts $2.6 Million in Escrow for Discrimination Suit
Sheet Metal Workers Int'l Ass'n Local 28 in N.Y.C. must set aside $2.6
million to compensate minority workers subjected to discriminatory practices
since 1975, the U.S. Court of Appeals for the Second Circuit ruled Apr.
16. The court found no abuse of discretion by the district court and affirmed
the escrow order.
Under the terms of the district court decision, Local 28 must place $1 million in an escrow fund immediately and an additional $1.6 million in the fund within six months. In addition, Local 28 must place $900,000 per year in the escrow fund, starting Dec. 31, 2001, for a period to be determined by the court following individual back-pay hearings. Although the total amount of the back-pay award has not been determined, "It is likely that this amount will be in excess of what the union is able to pay at present and could even exceed $12 million," the court said. The court established the schedule for escrow payments to meet possible employment discrimination liabilities.
The litigation dates back to 1971, when the EEOC brought charges against Local 28 alleging violations of Title VII of the Civil Rights Act of 1964. The local was found to have discriminated against nonwhite workers in its admission and job referral policies, was subjected to a series of affirmative action plans and orders and amended affirmative action plans and orders, and held in contempt of court. [BNA 4/23/01]
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