James v. Stockham Valves & Fittings Company Plaintiffs' Reply Brief
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July 29, 1974

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Brief Collection, LDF Court Filings. James v. Stockham Valves & Fittings Company Plaintiffs' Reply Brief, 1974. 31a4de1c-b99a-ee11-be36-6045bdeb8873. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/5c706fc2-f80d-4a5a-a963-bf7bdde58309/james-v-stockham-valves-fittings-company-plaintiffs-reply-brief. Accessed July 05, 2025.
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DISTRICT CCUR'IN THE UNITED STATES FOR THE NORTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION NO. 70-G-17S PATRICK JAMES, et ai., Plaintiffs, - vs STOCKHAM VALVES AND FITTINGS COMPANY, e t a 1 ., Defendants. PLAINTIFFS’ REPLY BRIEF DEMETRIUS C. NEWTON Suita 1722 - 2121 Building 23.21 Eighth Avenue North Birmingl\am, Alafcama 35203 JACK GREENBERG BARRY L. GOLDSTEIN JOHNNY J. BUTLER Suite 2030 10 Columbus Circle New York, New York 10019 JOSEPH F. HUDSON 3 909 30 th A ve n u e Gulfport, Mississippi 39501 Attorneys for r'j.o .i.n hr - .*_s I N D E X Page Note on Form of Citations INTRODUCTION A * IT IS UNLAWFUL FOR STOCKHAM TO IiMFOSE REQUIREMENTS OR QUALIFICATIONS ON BLACKS FOR PROMOTION TO JOBS FROM WHICH THEY HAD PREVIOUSLY BEEN EXCLUDED OTHER THAN THOSE REQUIREMENTS OR QUALIFICATIONS IMPOSED ON THEIR WHITE CONTEMPORARIES .............. 2 B. THE STATISTICAL EVIDENCE INTRODUCED BY STOCKHAM'S EXPERT. DR. GWARTNEY.. DOES NOT IN ANY WAY REFUTE PLAINTIFFS' CLEAR EVIDENCE OF RACIAL DISCRIMINATION....... 10 C. THE COURT CLEARLY HAS JURISDICTION OVER THE UNION DEFENDANTS PURSUANT TO BOTH TITLE VII AND §1981 AND THE COURT SHOULD HOLD THE UNIONS LIABLE FOR ENGAGING IN DISCRIMI NATORY AND UNLAWFUL PRACTICES.......... 2 3 CONCLUSION 30 - l - NOTE ON FORM OF CITATIONS "cx The following citations are used in this brief: exhibit introduced by Stockham "PI. Br." — Plaintiffs Post-Trial Brief "Pi. Prop. Findings" - Plaintiffs Proposed Findings of Fact " PX. - exhibit introduced by the plaintiffs "St. Prop. Findings" - Stockham's Proposed Findings of Fact "St. T. Br." - Stockham's Post-Trial Brief on Testing "T. - Testimony of "U. Br." _ Unions' Post-Trial Brief "U. Prop. Findings" "UX Unions Proposed Findings of Fact exhibit introduced by the Unions - ii - IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION NO. 70-G-178 PATRICK JAMES, et al., Plaintiffs, - vs - STOCKHAM VALVES AND FITTINGS COMPANY, et al., Defendants. PLAINTIFFS' REPLY BRIEF INTRODUCTION The evidence presented by plaintiffs and detailed in their proposed findings and brief demonstrates a straight forward pattern and practice of discrimination. The plaintiffs proved discrimination in the form of segregated facilities, job assignment, promotional policies, training, etc. The Court is already burdened with substantial post-trial briefs and pro posed findings and the plaintiffs do not intend to repeat, once again, in this reply brief, the evidence proving discrimination. In essence, the plaintiffs' reply to the voluminous post-trial briefs and proposed findings produced by Stockham is plaintiffs' brief and proposed findings previously filed with this Court. However, the plaintiffs will herein brief several issues which they have not fully briefed previously: (A) "dis parate treatment"; (B) the utility of Dr. Gwartney's statistical analysis; (C) the Court's jurisdiction over the union defendants and the liability of the union. A. IT IS UNLAWFUL FOR STOCKHAM TO IMPOSE REQUIREMENTS OR QUALIFICATIONS ON BLACKS FOR PROMOTION TO JOBS FROM WHICH THEY HAD PREVIOUSLY BEEN EXCLUDED OTHER THAN THOSE REQUIREMENTS OR QUALIFICATIONS IMPOSED ON THEIR WHITE CONTEMPORARIES Stockham characterizes the plaintiffs' "Disparate Treatment" argument as "an effort to conjure up any impediments to employment testing". [St. T. Br. at 67] The plaintiffs are innocent of any "conjuring" since their argument is soundly 1/based on Griggs v. Duke Power Company, the EEOC's Guidelines on Testing Procedure, closely analogous civil rights decisions, a nd a proper interpretation of Title VII. If any one is guilty of "conjuring" it is the Company": "conjuring" up new procedures, testing and educational, after the passage of Title VII, which 1/ 420 F.2d 1225, 1230-31, 1236-37 (4th Cir. 1970) aff'd in pertinent part, 401 U.S. 424 (1971). 2 serve to do covertly what Stockham had previously done overtly — V segregate Blacks into certain jobs. The practical import of the disparate treatment argument is simple. A company which has previously excluded Blacks from jobs on the basis of race, may not now exclude those Blacks, who had been subject to the discrimination, on the basis of some criteria other than that applied to whites during the period of discrimination. The Company may apply new criteria to Blacks 3/ who were not subject to the discriminatory practices. Decisions involving racial discrimination in voter registration and teachers' dismissals, which have, in effect, ruled that disparate treatment is unlawful, are indistinguishable from the facts before this Court. In Louisiana v. United States, 380 U.S. 145 (1965), the Court considered whether a "citizenship" test, which did not itself discriminatorily prevent the registration of Blacks, could permissibly be instituted when Blacks had previously been denied the opportunity to register. The Court held that since whites who were already registered did not have to take the test, then it could not be applied to Blacks who had previously been dis- 2/ One month after the effective date of Title VII, Stockham introduced the use of the Wonderlic Test. [Ans. to Interrog. No 28, PX18] Also the Company instituted an educational re quirement for the apprentice program, [PX38; T. Given 279-83] and has recently instituted, at least on an experimental basis, a more sophisticated testing program, the Tabaka Tests. 3/ Of course, this assumes that the criteria have no "adverse impact", or if they have adverse impact they meet the proper re quirements. See Griggs v. Duke Power Company, 401 U.S. 424 (1971) 3 criminatorily denied the right to register, supra at 155-56. The Fifth Circuit in a series of similar voting cases established the "freezing" principle. "This Court has construed . . . the term 'freezing' as keeping in effect, at least tem porarily, these requirements for qualification to vote, which were in effect, to the benefit of others, at the time Negroes were being dis criminated against". United States v. Duke. 332 F.2d 759, 769 (1964). See also United States v. State of Mississippi, 339 F.2d 679 (5th Cir. 1964); United States v. Ward, 349 F.2d 795 (5th Cir. 1965); United States v. Lynd, 349 F.2d 785 (5th Cir. 1965); United States v. Ramsey, 353 F.2d 650 (5th Cir. 1965); United States v. Palmer, 356 F.2d 951 (5th Cir. 1966). Black teachers who have been dismissed during the inte gration of a school district confront similar problems as black workers in industry who have been restricted to low-level jobs. Courts have recognized that these black teachers should not be compared with new applicants for hire, but rather should be evaluated on the same basis as other teachers in the system. Singleton v. Jackson Municipal Separate School District, 419 F .2d 1211 (5th Cir. 1970)(en banc); North Carolina Teachers Ass'n v. Ashboro City Bd. of Education, 393 F.2d 734 (4th Cir. 1968); Wall v. Stanley Bd. of Education, 378 F.2d 275 (4th Cir. 1967); Chambers v. Hendersonville City Bd. of Education, 364 F.2d 189 (4th Cir. 1966); Rolfe v. County Bd. of Education of Lincoln County, Tenn., 391 F.2d 77 (6th Cir. 1968); Moore v. 4 Bd. of Education of Chidester School District No....59, 448 F.2d 709 (8th Cir. 1971). The Fourth Circuit logically reasoned, "[w]hite teachers who met the minimum standards and desired to retain their jobs were not re quired to stand comparison with new applicants or with other teachers in the system. Conse quently, the Negro teachers who desired to remain should not have been put to such a test." Chambers, supra at 192. Similarly, white workers who have promoted to jobs now covered by the Tabaka Tests do not have to take the tests to remain on these jobs, and, of course, they did not have to take the tests to originally qualify for the jobs. Accordingly, black workers who previously were denied access to the jobs solely on account of their race should not be forced to pass a "qualification" obstacle which their white contemporaries oxd not have to pass. The principle inherent in the voting and school teachers cases is apparent: "neutral" standards or criteria may not be instituted to hinder the advancement of a minority group to the place or status which they would have attained but for previous discrimination. This is a well-established principle for the application of fair employment laws. "Under the Act practices,procedures, or tests neutral on their face, and even neutral in terms of intent, cannot be maintained if they operate to 'freeze1 the status quo of prior discriminatory employment practices." Griggs v. Duke Power Company, 401 U.S. 424, 430 (1971). This general principle logically applies to "disparate treatment . In fact, the Fourth Circuit in Griggs held the application of new 5 testing and educational requirements to be unlawful because by instituting these requirements, the Duke Power Company was treating Blacks and whites differently. Griggs v. Duke Power Company. 420 F.2d 1225, 1230-31, 1236-37 (4th Cir. 1970) aff’d 4/ in pertinent part, 401 U.S. 424 (1971). Stockham tried to, as it had to, distinguish Griggs. [St. T. Br. 72-73] The Company argues that the Duke Power tests, unlike the Stockham tests, had an adverse impact and were not Vjob-related. A finding of disparate treatment requires no determination that the requirement will disqualify more Blacks than whites (i.e., have an adverse impact). A common sense analysis of the rule makes this apparent. For years whites 6/ promoted into jobs for which the Tabaka Tests are now required while Blacks were either excluded or severely limited in their opportunity to promote into these jobs. If any Blacks are now disqualified from these jobs on the basis of the tests then they are being treated unfairly and adversely in comparison to their white contemporarties. Stockham's argument that the tests used by Duke Power were not "job-related", as determined by the Supreme Court, misses the point; the Fourth Circuit held that the tests were valid under * 6 4/ See also Watkins v. Scott Paper Co., F.Supp. 6 EPD *[8912 at 5864, 5889 (S.D. Ala. 1973). 5/ For this argument we will assume these contentions are true since they are on their face irrelevant. 6/ See PI. Br. at 39, fn. 46. 6 Title VII but nevertheless held that the test could not be used in a disparate manner. Similarly, this Court should hold, whether or not it finds the Tabaka tests valid under Title VII, that they may not be .used disparately. The unlawfulness of "disparate treatment", clearly in dicated by judicial decision, as discussed supra, is fully Vsupported by EEOC Testing Guideline 1607.11. The Supreme Court has held on numerous occasions that courts should pay great deference to the regulations or guidelines of the commission or 8/ agency charged with implementing the pertinent statute. In Griggs the Supreme Court applied this principle to the EEOC testing guidelines, although not the disparate treatment guide line specifically, supra at 433-36; Cf. Phillips v. Martin Marietta Corp., 400 U.S. 542, 545 (Marshall concurring). The Courts of Appeals have consistently followed EEOC guidelines. United States v. Georgia Power Company, 474 F.2d 906, 913 (5th Cir. 1973); Pettway v. American Cast Iron Pipe Company, 494 F .2d 211 (5th Cir. 1974); Riley v. Bendix Corp., 464 F.2d 1113 (5th Cir. 1971); Bartness v. Drewys U.S.A.. Inc., 444 F.2d 1187 (7th Cir. 1971). When the administrative guideline is con sistent with the purpose of the statute, as it is here, 7/ This Guideline is set out in plaintiffs' brief on pp. 39-40. 8/ Udall v. Tallman, 380 U.S. 1, 16 (1965); United States v. City of Chicago, 400 U.S. 8 , 10 (1970); Trafficante v. Metropolitan Life Inc., 409 U.S. 205, 210 (1972); Mourning v. Family Publications Service, 411 U.S. 356 (1973); NLRB v. Boeing Co., 412 U.S. 67 (1973). 7 then the Court should follow the guideline. The Company advances one last argument why the Court should not rule Stockham's use of the Tabaka tests as unlawful disparate treatment: that the jobs from which Blacks were excluded have changed during the 1960s and 1970s and new re- 9/quirements are necessary. [St. T. Br. 69] The Company only provides conclusionary statements and does not detail any specific need for the drastic increase in requirements for pre viously all-white jobs. [Id.] Statements by Company supervisors clearly dispose of this argument. Despite the supposed need for the Tabaka Tests the Company at least until the date of trial never used the tests in any way in the selection process. The Company imaginatively in terprets Mr. Adamson's testimony to indicate that the tests were used in the selection process. [St. T. Br. 46-47] This is just wrong as the following selections from Mr. Adamson s testimony reveal. Q. Mr. Adamson, does anybody who has any responsibility for promotion at the Company to evaluate an employee's Tabaka scores as a judge of his abilities or in anyway use those scores in a determination of whether he'll get the promotion? A. Not to my knowledge in anyway, sir. 9/ Thus, it must be inferred that the Company seeks to justify the use of these tests under the businsss necessity rule. Of course, the defendant has a heavy burden to meet in order to justify a discriminatory policy on the basis of business necessity. See Pettway v. American Cast Iron Pice Co., supra at 245-47; United States v. Jacksonville Terminal Company, 451 F .2d 418, 451 (5th Cir. 1971) cert, denied 406 U.S. 906 (1972). 8 Q. It hasn't been used yet? A. No, sir. Q. As far as — A. No, sir. Q. As far as you know, they have just been used to accumulate data? A. They have not been used in employment has not been used in transfer; and it been used in promotion. ; it has not Q. So, as far as you know, they are just used now to accumulate data which has accumulated in the log, is that true? being been A. Yes, sir, I told you this earlier. Q. Okay. And there's no exception to that that you know of? A. No sir, none that I know of. Q. Okay. A. And I'm responsible for it. I think I would know it. [T. Adamson 626—67; See also 623-24, 634, 642-43 and see T. Tabaka 1541-42]. Moreover, a Company superintendent, Mr. Ferrell Burt, did not perceive any difference which the use of testing made in the selection of qualified personnel from 1965 through 1971. [T. Burt 1646-50] 9 B. THE STATISTICAL EVIDENCE INTRODUCED BY STOCKHAM'S EXPERT, DR. GWARTNEY, DOES NOT IN ANY WAY REFUTE PLAINTIFFS 1 CLEAR EVIDENCE OF RACIAL DISCRIMINATION The Company through Dr. Gwartney made attempts through various indices to "measure" discrimination, or rather the lack thereof. Dr. Gwartney did not study any of the employment practices at Stockham; he was simply given certain data by Stockham. Dr. Gwartney did not study the following: that Blacks were 10/ excluded from the formal training programs at Stockham;. [T. Gwartney 2020-21] that Blacks were assigned on the basis of race to certain jobs,which were generally in the lower-paying job 11/classes; [Id.] that the seniority system at Stockham had a "lock- in" effect which clearly inhibited Blacks from transferring out of the lower-paying production departments into which they were traditionally assigned and into departments which offered train- 12/ ing and higher-paying jobs; [T. Gwartney 2027] that the Company 13/maintained unlawful tests and educational requirements; 10/ Bl.acks were excluded from the apprenticeship program until April, 1971. [See PI. Prop. Findings, pp. 56-60] 11/ All the jobs at Stockham were rigidly segregated, as admitted by Stockham supervisors until 1965; the evidence demon strates that the segregation of jobs, except for token exceptions remains. [See Pi. Prop. Findings, pp. 33-55] 12/ It is now commonplace that a seniority system like Stockham which is based on previous segregated job assignment is unlawful. See Pettway v. American Cast Iron Pipe Co., 494 F.2d 211 (5th Cir. 1974) [Pi. Br. Section II] 13/ Dr. Gwartney is "uninterested" in tests. [T. Gwartney 2032] Of course, unlawful testing is a major Title VII issue and is a considerable issue in this action. It is interesting that Dr. Gwartney did not investigate testing at Stockham even though one • of the articles relied on by Dr. Gwartney in his testimony re ferred to discriminatory testing in private employment. [T. Gwartney 2119-21] 10 [T. Gwartney 2031-32] and that the Company regularly excluded 14/ Blacks from on-the-job training programs. [T. Gwartney 2073-74] Dr. Gwartney's testimony is based on a faulty assumption: "Employment discrimination is not something that we can directly observe. . . . 11 [T. Gwartney 1870] The Courts have disagreed with Dr. Gwartney: a "lock-in" seniority system, unlawful tests, subjective use of discretion among white supervisors which serves to exclude or' limit black advancement, and segregated or nearly-segregated initial assignment policies, 15/ etc., are all directly observable employment discrimination practices. While the discrimination in employment may be directly observable the exact economic measure of that discrimination may be difficult to determine. See Pettway v. American Cast Iron Pipe Co., supra at 260-61. The Fifth Circuit has made it clear that any doubts as to the amount of back pay should be resolved in favor of the discriminatee rather than the lawbreaker. Johnson v. Goodyear Tire & Rubber Co., 491 F.2d 1364, 1380 (5th Cir. 1974); Pettway v. American Cast Iron Pipe Co., supra at 260-61; Baxter v. Savannah Sugar Refining Corporation, 495 F.2d 437, 445 (5th Cir. 1974). 14/ See Pi. Prop. Findings at 60. 15/ See PI. Br. Sections II-IV, for a description of the unlawful practices. 11 Stockham by use of testimony of an economist Dr. Gwartney, resolves difficulties in the "measure" of economic harm against the discriminatees; the Company further disregards the applicable judicial decisions by then arguing that the results of its approx imation of the "measure" of discrimination indicate that, in fact, there is no discrimination. Plaintiffs' statistics are not "manipulative" such as Dr. Gwartney's. Rather, plaintifffs' statistics simply describe factual situations in numerical terms: in June, 1965 not one black worker of the 505 Blacks who were still working as of August, 16/ 1973 was in JC7 or above; in June, 1968, there were still no Blacks (at least of those Blacks working as of August, 1973) 17/ working in JClO-13; until May, 1971 there was not one black foreman; [PX 11; T. Marsh 879-80] no Black has finished the apprentice program at Stockham, nor was a Black even enrolled in the apprentice program until April, 1971; [PX 12a] no Blacks was selected for any of the training programs for supervisors intil 18/ 1970. [See Plaintiffs' Prop. Findings, Section VIII, paras. 34-50] The Fifth Circuit's remark that ”[n]othing is as emphatic as zero" is certainly applicable to this action. United States 16/ 154 or 92% of the 162 whites who were still working in August, 1973, were in JC7 and above in June, 1965. [PX 1; PL Prop. Findings pp. 34-35] 17/ 85 whites were working in JClO-13 in June, 1968 who were still working there in August, 1973. 18/ The number of Blacks in these supervisory training, and high-paying positions has improved only marginally. [See P. Br. 33-34] 12 v. Hinds County Board of Education, 417 F.2d 852, 858 (1969). While these statistics were emphatic in themselves, plaintiffs did not, as defendant Company repeatedly asserts, rely solely on the statistics; the plaintiffs repeatedly demonstrated the various unlawful practices engaged in by the defendants by 19/ testimony, example and statistics. Dr. Gwartney's faulty underlying assumption and his dis regard for the application of judicial definitions of discrimina tory practices makes the statistical analysis he prepared irre levant at best and misleading at worst. Dr. Gwartney used four factors to "evaluate" discrimi nation at Stockham: (1) comparison of relative earnings at Stockham with local, regional and national labor markets and with the federal government; (2) relative changes in the earnings of employees from 1965 to 1972; (3) relative earnings of employees recently hired; and (4) regression analysis. [See St. Br. p. 34] The first point, the comparison of employment at Stockham to labor markets and to the government is both plainly irrelevant and misleading. The labor market figures, derived from census data, include everyone who had any ($1 or more) earnings. [T. Gwartney 2100] Black unemployment is almost twice as great as 20/ that of whites. Clearly the disparity in average earnings 19/ See Pi. Br. and Prop. Findings, passim. 20/ In 1960 black unemployment was 2.1 times white unem ployment. In April, 1972 it was still 1.8 times greater than white unemployment. See U.S. Census Bureau, Statistical Abstract of the United States (Washington, D.C.: 1972), p. 221. 13 between Blacks and whites in the labor markets was partly due to the general problem of refusal to hire Blacks, which is not at issue in this action, and partly due to discriminatory oppor- 21/ tunities within firms, which is at issue. However, Dr. Gwartney does compare employment at Stockham to another firm - the United 22/ States government. Dr. Gwartney labelled the United States government as generally recognized as a "low discrimination firm". [T. Gwartney 1908-09] Dr. Gwartney reasons that since the disparity between black and white earnings at Stockham was somewhat lower than the dispartiy in the Federal government (only for blue collar workers,) then this indicates that Stockham doesn't discriminate. Even if Ty.g ignore the non—sequitor in this reasoning, the whole concept falls on the basis of a faulty assumption — that there is real equal employment opportunity in the federal government. Unfortunately, as Senator Williams, a chief sponsor of 23/ the Employment Opportunity Act of 1972, stated 2 1/ The greater amount of Black unemployment obviously increases the disparity between blacks and whites in labor markets; a second factor and the only one that is comparable to the issue here is the disparity in "firms". 22/ We will ignore employment to private the difficulties employment. in comparing government 23/ This Act amended Title VII, providing, inter alia, for private litigation against the federal government. 42 U.S.C. §2000e-16. The reason for this amendment was the failure of the government to achieve equal employment opportunity. 14 "equal employment opportunity in the federal Government is still not a reality for all of its workers. Some of the relevant statistics tell the story all too clearly. For example, minorities represent 19.4 percent of the total employment of the Federal Government, but their concen tration in grades GS-1 through GS- 8 indicates that their ability to advance to the higher levels has been severely restricted." =~z/ 118 Cong. Rec. 4492 (1972) At most, Dr. Gwartney's method of comparison may be interpreted to mean that the economic results of discrimination is somewhat less at Stockham than in some private firms and maybe in the federal government. This is of no significance. The Fifth Circuit has plainly held that even if an employee in "good faith" intended a policy of no discrimination if, in fact, the practices discriminated then the employer violated Title VII and is responsible for back pay. Johnson v. Goodyear Tire & Rubber Company, supra at 476; Pettway v. American Cast Iron Pipe Company, supra at 251-63; Baxter v. Savannah Sugar Refining Corporation, supra at 442-43. The argument advanced by Stockham is not even one of "good faith" - just that they may be a little less guilty than some. The second method used by Dr. Gwartney was the relative change in earnings of black and white workers employed at Stockham during 1965 and 1972. Dr. Gwartney assumes that since earnings of Blacks increased more than earnings of whites, that 24/ See"Analysis of Federal Employment," 118 Cong. Rec. 4492-93 (1972). 15 this indicates that Stockham did not discriminate since 1965. There are just numerous problems with this analysis. Actually there is little relative improvement in earnings of Blacks compared to earnings of whites from 1965 to 1972. In 1965, according to Dr. Gwartney, Blacks earned on the average $4,720 or $961 less than the $5,681 earned.by whites; in 1972 blacks earned $ 6,937 or $979 less than the $7,916 earned by 2 Vwhites. [CX 19] Dr. Gwartney, however, reads these stark figures as indicating no (or less?) discrimination because the black earnings as a percentage of white earnings rose from 83.1% in 1965 to 87.6% in 1972. Even this small change in relative earnings should be in terpreted carefully. In 1965 it is admitted by Company managers that the Company engaged in a complete and utter job segregation. [See Pi. Prop. Findings, pp. 33-35] Obviously when you begin from a system of total job segregation, any tokenism will result in some relative improvement. Of course, Title VII requires 26/ affirmative relief and not just mere tokenism. Moreover, the small relative change in earnings at Stockham is due, to a sig- 25/ In CX19, Dr. Gwartney transforms the 1965 dollars into "constant" 1972 dollars. Besides showing the inflation in the country since 1965, this transformation indicates that back pay should be calculated in constant 1974 dollars. 26/ "This Court [the Fifth Circuit] has always recognized the importance of granting full relief in Title VII cases. E.g., United States v. Georgia Power Co., supra, 474 F.2d at 927; Voqler v, McCarty. 451 F.2d 1236, 1238-39 (5th Cir. 1971)." Pettway v. American Cast Iron Pipe Co., supra at 243, n.82. 16 nifant extent, to the hiring of whites for the first time into laborer positions and not to any real black advancement into 27/ higher-paying jobs. See Pettway v. American Cast Iron Pipe Company, supra at 228. The third criterion relied on by Dr. Gwartney involved the comparison of earnings of recently hired workers (those hired since 1965). Dr. Gwartney purports to find less earnings dis parity with this group of employees than with older employees; Dr. Gwartney infers that this indicates that Stockham has not dis criminated since 1965. This argument falls on both the appli cable legal principles and the facts. Dr. Gwartney's refusal to analyze the various forms of discrimination repeatedly ruled unlawful by courts causes serious difficulty with his analysis. Stockham engages in several dis criminatory practices which logically affect longer-term employees more than recent employees: (1 ) the "lock-in" effect of the departmental seniority system is a serious inhibition to older employees transferring departments because the longer-service employees stand to lose more departmental seniority, job security and pay than do new employees; (2 ) the institution of the Wonderlic Test in 1965 and the high school education requirement for the apprentice program restricted the advancement of Blacks hired prior to 1965 into jobs which they had previously been 2 7/ For example, Mr. Otto Carter, the Superintendent of the Grey Iron Foundry indicated that it was not until 1968 - 1969 that whites were first hired in the laborer positions in that foundry. [T. Carter 653-54; D. Carter 17, PX63] 17 contemporaries had freely moved without having to take the Won— derlic Test or have a high school diploma; [See Section A, supra] and (3 ) the institution of an age limit of thirty for entrance into the apprentice program directly excluded the long-service black employees who had previously been excluded on the basis 28/ of race. Accordingly, the slightly smaller disparity in earnings between recently hired black and white employees as compared to the older employees is a function of the very nature of the dis crimination practiced at Stockham and is not a function of any significant amelioration of Stockham1s harsh discriminatory practices. Moreover, the disparity in the departmental placement and earnings between Black and white workers has remained sub stantial since 1965. Stockham continued to overwhelmingly assign white employees hired after 1964 into the predominantly white maintenance departments and the Blacks into the predominantly black foundry departments. [See P. Br. 10-11] The following chart clearly indicates the continued gross disparity in earnings between Blacks and whites. [PX 95; Appendix D. to Pi. Br.] excluded from solely on the basis of race and to which their white 28/ The Company incredibly argues that the plaintiffs have not shown that the age requirement has no adverse impact on Blacks. [St. Br. 85086] Obviously if, as here, Blacks are for many years excluded from an apprentice program and then an employer, as Stockham did, institutes an age requirement for this lily-white program, then that requirement is going to perpetuate the exclusion of certain Blacks (those who are too old). Pettway v. American Cast Iron Pipe Company, supra at 250. 18 MTIMRER AVE. RATE GROSS/REG. HRS . YEAR B w B W B W 1965 106 31 3.17 3.91 3.97 4.47 1966 70 13 3.14 4.10 3.96 4.46 1967 25 20 3.18 3.80 3.93 4.40 1968 36 18 3.11 3.64 3.90 4.30 1969 72 24 3.10 3.68 3.76 4.18 1970 28 34 3.07 3.80 3.69 4.16 1971 125 77 3.07 3.56 3.68 3.96 1972 100 70 3.00 3.32 3.37 3.65 1973 273 127 2.89 3.19 3.16 3.44TOTALS AND 835 414 3.03 3.49 3.56 3.87AVERAGES Dr. Gwartney's final method of comparison is regression analysis: an attempt to isolate the effect of various factors on earnings. Dr. Gwartney determined that race (considered alone) influenced earnings - Blacks had lower earnings than whites. [See, e.g., DX34] However, when other factors were included into 29/ the analysis, the effect of race on earnings was diminished. Of course, the regression analysis, the analysis of the effect on earnings-of various "factors", depends for its use fulness upon the appropriateness and reasonableness of the definition of the factors evaluated. Here again, Dr. Gwartney s failure to review the employment system (and discrimination practices) at Stockham creates fatal flaws in his analysis. The factors "skill level" and "merit rating" were the major variable which "explained" the disparity between the earnings of Blacks and whites as a result of causes other than discrimination. This analysis, is a sham, no matter how unintended. Both these factors, themselves, are based on discrimination. 29/ According to Dr. Gwartney, only one factor, seniority, indicated an increase in the effect of race on earnings. Of course, in a system based on seniority one would expect that seniority would be an important and crucial factor in determining earnings. Interestingly, this factor, the only one used by Dr. Gwartney in his regression analysis which had a direct relation ship to the employment system at Stockham, was the single factor which when analyzed with the racial factor increased the "adjusted" dispartiy in earnings between Blacks and whites. 20 job class an employee worked. If an employee worked in job class 10-73 he had "skill", if he did not then he lacked "skill". is [T. Gwartney 2117] This analysis, apart from being simplistic,/absurd because of one overlooked fact: Blacks have been systematically 30/ excluded from jobs in job classes 10-13. What a wonderful tautology! Blacks are excluded on the basis of race from jobs in job classes 10-13; an analysis is then made which defines"skilled" employees as those who are in job classes 10-13; the analysis concludes that Blacks do not earn as much a s whites, not because of their race, but because they are 31/ not "skilled". The use of the factor "merit rating" is almost, but not quite,as misleading as the use of the factor "skill level". Dr. Gwartney's figures which he used for his regression analysis indicate that Blacks averaged a 71.-3 merit rating whereas whites averaged 79.3. [DX 55] When the merit rating factor is used to to adjust the earning disparity between Blacks and whites, the result indicates that some of that difference is the result of "merit" as revealed by the ratings and not by discrimination. "Skill level" was determined solely on the basis of the 30/ Until 1965 company managers admitted to total job segre gation; of course, no "black" jobs were in job class 10-13. [See PI. Prop. Findings, Section VI] This practice, except for some tokenism continues. In 1973 221 whites were in JC 10-13 and only 6_ Blacks. Only 2 . 6% (not the 5% referred to in the Stockham's Post-Trial Brief) of workers in JC 10-13 were Black. [PX 94, Appendix E] 31/ Moreover, Blacks have been discriminatorily excluded from the training programs which prepared workers for the more skilled jobs. [Pi. Prop. Findings 56-60] 21 But the question which Dr. Gwartney did not answer was whether racial bias accounted for the lower black merit scores Dr. Gwartney admitted both, that 32/ "[it] was simply not the focus of my study as to whether or not there were a bias on the basis of race in terms of merit rating. . . . " and that, "if your statement were true that there is, you know, blacks randomly at least score lower because of having lower rating and merit rating is positively influencing earn- ings, that this factor would tend to reduce the adjusted black-white earnings ratio." [T. Gwartney 2157-58; 2160-61] It is noteworthy that Mr. Tabaka refused to rely on the merit ratings as a basis for his evaluation of testing at Stockham because he realized the possible bias in such ratings. Mr. Tabaka's refusal was justified - the ratings which he super vised indicated that, for all practical purposes, black and white workers were rated equally. [PX 32] Thus, the professionally supervised ratings resulted in an equal evaluation of Blacks and whites; whereas, the unsupervised ratings resulted, as Courts have regularly perceived (See fn. 32, supra). in Blacks being evaluated substantially lower than whites. 32/ ̂ This is a very pertinent question. Courts have re cognized that discretion cn the part of a white supervisory staff is a "ready mechanism" for discrimination. See Rowe v. General Motors Corp.. 457 F.2d 348, 359 (5th Cir. 1972). Until May, 1971, there was not one black foreman (foremen prepare the merit ratings). [PX 11; T. Marsh 879-80] In fact, discriminatory use of supervisory discretion is an issue in this action. [See Pi. Br., Section III] C. THE COURT CLEARLY HAS JURISDICTION OVER THE UNI§§/ DEFENDANTS PURSUANT TO BOTH TITLE VII AND §1981^^ AND THE COURT SHOULD HOLD THE UNIONS LIABLE FOR ENGAGING IN DISCRIMINATORY AND UNLAWFUL PRACTICES The defendant Unions, Local 3036 and the Steelworkers, do not contend that there were no unlawful employment practices at Stockham; rather, they contend that (1) the Court does not have jurisdiction over the defendant unions because of the failure of the plaintiffs to expressly name the unions in the original charge to the EEOC, and (2) that, in any case, the unions should not be held liable for the discriminatory policies at Stockham. The defendant Unions base their jurisdictional argument on the fact that plaintiffs did not expressly name the Union defendants in their original charge to the EEOC, dated October 34/5, 1966. [PX. 56; See U. Br. at 4-5] The Unions state that plaintiffs received their Notice of Right to Sue letters in February 1970 and that this was prior to the filing of plaintiff James' amended charge, which specifically named the Unions, on June 35/ 1970. Thus, the Unions conclude that, since the plaintiffs did 33/ The Union defendants are also liable pursuant to duty of fair representation, 29 U.S.C. §§151 et seg., National Labor Relations Act. However, Title VII and §1981 plainly are sufficient bases for liability. 34/ Plaintiffs have consistently asserted that this Court has jurisdiction over the Unions pursuant to Title VII, §1981 and 29 U.S.C. §§151 et_ seg. See para. 2 of the Pre-Trial Order. 35/ This action was filed in March, 1970 within thirty days of the receipt of the Notice of Right to Sue letter. 23 not request a second Notice of Right to Sue letter based specifically on the amended charge, the Court has no juris diction. This argument is a misapplication of the appropriate 36/ law. The defect in the exhaustion of the EEOC proceedings, if, in fact there was a real defect, was one of form, which did not in any way adversely affect the substantive or procedural rights of the defendant unions. The original charge filed by the plaintiffs detailed, as one might expect, practices which the complainants thought were discriminatory. [PX 56] The plaintiffs alleged, inter alia, that the "Company has a dual line of promotion"; the Unions' argument would be obviated if the complainants had added the words "which are established or maintained by the collective bargaining agree ment entered into by the Steelworkers and Local 3036". Courts have not required laymen, unassisted by counsel, 37/ to file charges which meet the standards of pleadings. The charges should be read in a reasonable manner by both the EEOC and the Courts to include matters "reasonably related" to the specifics which are alleged. See Sanchez v. Standard Brands, Inc. , 431 F.2d 455 (5th Cir. 1970). 36/ The prerequisites to a Title VII suit are the filing of a charge with the EEOC and the receipt of a statutory right to sue letter. McDonnell-Douglas v. Green, 411 U.S. 792, 798 (1973); Alexander v. Gardner-Denver Co., 39 L.ed2d 147, 157 (1974). See Beverly v. Lone Star Lead Const. Co., 437 F.2d 136, 140 (5th Cir. 1971) . 37/ See infra for a discussion of Love v. The Pullman Company, 404 U.S. 522 (1972). 24 The EEOC gave the'October, 1966, charge a reasonable interpretation: that the practices complained of by the plaintiffs included allegations of unlawful union conduct. Accordingly, the EEOC investigation included Union activities. [PX 55] Mr. Erdreich in response to the EEOC investigation supplied a state ment of the union position on March 20, 1967. [PX 60; PX 55] The EEOC served a copy of their February 26,. 1968 Decision to the 38/ Local 3036 president, with a copy to counsel. [UT 1] Finally, the EEOC sent a Notice of Right to Sue letter to the plaintiffs 39/ which listed both Stockham and Local 3036 as respondents. [See Exhibit "B" to Amended Complaint] The policy behind the requirements that a charging party file with the EEOC and receive a Notice of Right to Sue is to encourage the use of the conciliation process. See cases cited in fn. 36, supra. Clearly, there was ample opportunity for all the defendants to conciliate this action. As described above the Unions were aware of the charges before the EEOC, participated in the investigation and received a copy of the EEOC decision. 38/ The EEOC did not find reasonable cause to believe that Local 3036 had violated Title VII; however, a finding of reason able cause is not a prerequisite to suit. McDonnell-Douglas v. Green, supra at 798-99; Alexander v. Gardner-Denver Co., supra at 158, n.8 . 39/ Judge Pointer has clearly held that an international union, need not be named in the charge to the EEOC in order to be pro perly before the Court in a Title VII action. Terrell v. United States Pipe and Foundry Co., 7 EPD [̂9055 (N.D. Ala. 1973). 25 Moreover, on September 10, 1971 Judge Lynn ordered that 40/ this case be referred to the EEOC for conciliation. The case ramined with the EEOC for conciliation for almost two years, until plaintiffs motion to set aside the stay of proceedings, which was unopposed by defendants, was granted on June 26, 1973. The defendant Unions rely on a dry and technical argu ment to defeat this Court's jurisdiction under Title VII; the Supreme Court in similar situation strongly rejected this type of formalistic reasoning. "The respondent makes no showing of prejudice > to its interests. To require a second 'filing' by the aggrieved party after termination of state proceedings would serve no purpose other than the creation of an additional procedural technicality. Such technicalities are particularly in appropriate in a statutory scheme in which lay men, unassisted by trained lawyers, initiate the process." (footnote omitted) Love v. The Pullman Company, 404 U.S. 522, 526-26 (1972). Under the Love standards the procedural "defect" raised by the Unions is devoid of substance. Since the Unions were in cluded in the initial investigatory and decision process, the Unions were expressly named in an amended charge and the Unions were parties to the action when it was remanded to the EEOC. See also Local 179, United Textile Workers v. Federal Paper Stock Company, 461 F.2d 849, 850-51 (8th Cir. 1972); Norman v. Missouri 41/ Pacific Railroad, 414 F.2d 73-85 (8th Cir. 1969). 40/ Of course named in an EEOC , as of this time the Unions had been specifically charge filed by plaintiff James. [PX 57] 41/ The Eighth Circuit suggested that if joinder of additional parties was warranted the appropriate administrative procedure could be complied with on remand, Id. Of course, plaintiffs herein cured any possible defect in administrative procedure shortly after filing suit. 26 Finally, the plaintiffs have an independent right of 42/ action against the Union defendants pursuant to §1981. Caldwell v. National Brewing Co., 443 F.2d 1044 (5th Cir. 1971) cert. denied, 405 U.S. 916 (1972); Sanders v. Dobbs Houses, Inc., 431 F.2d 1097 (5th Cir. 1970), cert, denied 401 U.S. 948; see also Alexander v. Gardner-Denver Co., supra at 158 & n.7, 9. The Unions further contend that they should not be found liable simply because they signed an unlawful and discriminatory contract. The Unions further buttress this argument by pointing out that they attempted to remove discriminatory sections from 43/ the contract. 42/ This Court is fully aware of the applxcabxlxty so plaintiffs will not further brief the matters. See Alpha Portland Cement Company, Civ. Action No. 73-611 Opinion) (N.D. Ala. Nov. 14, 1973). 0 -F f O l Q l Reese v. (Memorandum However, it should be noted that the Supreme Court has granted certiorari on the question of whether an EEOC charge tolls the statute of limitations for a §1981 action. Johnson v. Railway Express Agency, Ing,., petition granted on June 3, 1974. 4 3/ There is some dispute as to the extent of these attempts. Stockham maintains that there was "no serious proposal made by Local 3036 during the 1970 contract negotiations". St. Prop. Findings p. 158. (Stockham ignores the 1967 negotiations). The Unions maintain that in the 1967, 1970, and 1973 negotiations they re- . quested plant-seniority provisions. Unions' Prop. Findings, p. 3. The Unions also maintain that they requested a Joint Apprenticeship program, job posting, and elimination of tests. Unions' Br. p. 8 . Stockham does not suggest any findings on these matters. See Plaintiffs' Proposed Findings, pp. 31-33, 57. The plaintiffs suggest that the resolution of these dis putes does not affect the basic liability of the Unions but the allocation of the liability between the parties. See, infra. 27 It is plain that the collective bargaining agreements signed by the Unions contain discriminatory seniority provisions which unlawfully limit the promotional opportunities of Blacks. While it is true that, beginning in 1967, the Union attempted during the negotiation proceedings to alter the discriminatory provisions, these attempts may not be used by the Unions to in sulate themselves from all liability. The Unions - interpret Johnson v. Goodyear Tire & Rubber Company, 491 F.2d 1364 (5th Cir. 1974) as supporting their position The Unions interpretation is mistaken. They rely on one sentence of Johnson which they read out of context; the Fifth Circuit noted that the union was "more than a passive participant in the con tractual arrangements which furnished a sub stantial contribution to the discriminatory results evident here." Id. at 1381-82. However, it is clear that the Fifth Circuit found the union liable because it was a signatory to the unlawful contract and not because the Court scrutinized union's positions during the negotiation process. "The Union's liability was based on the fact that it is a party to the collective bargaining agreement which contained the provisions re quiring departmental seniority. * * * * Common sense demands that a union be held to the natural consequences of its labors in negotiating a collective bargaining agreement . Guided by the facts of this case it would be difficult to fasten liability on one party to the labor contract which was a substantial cause of the discriminatory employment practices and grant total immunity from such liability to the other party." (footnotes omitted) _Id. at 1381. 28 Moreover, the Court quoted with approval the Fourt Circuit's explicit language: Id_. at 1381-82, n.57 "The rights assured by Title VII are not rights which can be bargained away - either by a union, by an employer, or by both acting in concert. Title VII requires that both union and employer represent and protect the best interests of minority employees. Despite the fact that a strike over a contract pro vision may impose economic costs, if_ a_ dis criminatory contract provision is acceded to the bargainee as well as the bargainor will be held liable." Robinson v. Lorillard, 444 F.2d 791, 798 (4th Cir. 1971) (emphasis added by the Fifth Circuit). Thus, as clearly stated in Johnson and Robinson the union's negotiation position may not be used to defeat liability if, as here, the union is party to an unlawful contract. See also Bush v. Lone Star Steel Company, 373 F.Supp. 526, 536 (E.D. Texas 1974). However, while the negotiation positions taken by the unions may not result in removing all liability, they may pro perly be considered in allocating the burden of liability among the defendants. Bush v. Lone Star Steel Company, supra at 537; United States v. United States Steel Corporation, 371 F.Supp. 1045, 1060 n.39 (N.D. Alabama 1973); Sabala v. Western Gillette, 372 F.Supp. 1142, 1155-56 (S.D. Texas 1973); See Johnson v. Goodyear Tire and Rubber Company, supra at 1382 (remand to the district court for a distribution of back pay among union and company according to the "principle of equity"). 29 C O N C L U S I O N The plaintiffs have not attempted to refute each of the myriad "facts" set forth by Stockham; rather the plaintiffs rely on their original brief and proposed findings which detail the evidence relating to each pertinent issue. However, there are several recent opinions and one factual matter which plaintiffs would like to call specifically to the Court's attention. In their brief, plaintiffs requested the court to order strong affirmative relief in the form of goals and timetables. PI. Br. 34-35. The Fifth Circuit in three, recent unequivocal opinions has strongly approved this form of relief. Franks v. Bowman Transportation Company, 495 F.2d 398, 418-20 (1974); NAACP v. Allen, 493 F.2d 614, 618-22 (1974); Morrow v. Crisler, 491 F.2d 1053, 1056-57 (1974) (en banc). Similarly, three recent Fifth Circuit opinions follow the earlier decisions of Johnson and Pettway which mandate that district courts award back pay when employment discrimination and resultant financial harm are demonstrated. Baxter v . Savannah Sugar Refining Company, supra at 442-44; Franks v. Bowman Transportation Company, suora at 421-22; Duhon v. Goodyear Tire & Rubber Company, 494 F.2d 817, 819 (1974). See Pi. Br. 44-46. In their proposed findings Stockham asserts, on the basis of Mr. Adamson's testimony, that Stockham maintained differential 30 cut-off scores for Blacks and whites on the Bennett Mechanical Comprehension test for qualification for the apprentice program. The plaintiffs in their proposed findings ignored this testimony by Mr. Adamson because it was so incongrous and incredible for several reasons. Firstly, Mr. Adamson's testimony conflicted with the testimony of other Stockham supervisors. Mr. Given answered under oath, dated January 10, 1974, plaintiffs' first interrogatories. Interrogatory 29(d) requested what the passing score was for any test used for "promotion", advancement, or transfer". [ PX 17] Mr. Given's answer was "[P]assing score is ambiguous. . . . A good score would be to 44/ answer 75% of the questions correctly." [PX 18] There was no mention of any lower score for Blacks in the answer to the interrogatory. [Id.] Mr. Edward Glenn was the supervisor of employment from January, 1969, to February, 1970; during this period Mr. Glenn administered the Bennett Test1 in the manner in which he had been instructed by Mr. Adamson. [T. Glenn 926-27, 929-30, 935-36] Mr. Glenn testified unequivocably that there was no dual scoring 43/ 4 3/ Mr. Adamson testified that the lower score for Blacks was put into effect in 1968 or 1969. Blacks were required to score 35, while whites were required to score 45. [T. Adamson 572-73] This dual scoring system would have remained in effect until April, 1971 when all testing at Stockham was halted. 44/ There are sixty questions on the Bennett Test. [T. Adamson 570] 31 system for the Bennett Mechanical Test. [T. Glenn 933 35] Secondly, Mr. Adamson's testimony is incongrous in light of clear evidence. In 1969 Stockham reviewed their training programs. A general report was approved on September 25, 1969 and a special report on apprentice training was issued at a later date. [PX 38, 43] Neither of these reports mention any con sideration of or recommendation for a dual scoring system. [Id.] In addition to the Bennett Mechanical Test an employee had to attain a specific score on the Wonderlic Test. [T. Adamson 579] Mr. Adamson testified that he never considered establishing a dual scoring system for the Wonderlic; [T. Adamson 582-83] Although Mr. Adamson, stated that he made such consideration for the Bennett. It is clear that the first Black did not enter the apprentice program at Stockham until April, 1971, when the Company halted all testing. [PX 12, 12a; See T. Given 283084] Finally, Mr. Adamson's assertion that Stockham established a special policy to assist Blacks to enter the apprentice program just does not conform to the Company's lack of any program 32 to terminate the or their effects, program. continuing discriminatory employment practices or of course, of any affirmative action Respectfully submitted, DEMETRIUS C. NEWTON Suite 1722 - 2121 Building 2121 Eighth Avenue North Birmingham, Alabama 35203 JACK GREENBERG BARRY L. GOLDSTEIN JOHNNY J. BUTLER 10 Columbus Circle Suite 2030 New York, New York 10019 JOSEPH P. HUDSON 1909 - 30th Avenue Gulfport, Mississippi 39501 Attorneys for Plaintiffs 33 CERTIFICATE OF SERVICE This is to certify that I served a copy of PLAINTIFFS' REPLY BRIEF upon counsel for defendants, Benjamin L. Erdreich, Esq., Cooper, Mitch & Crawford, 409 - 21st Street, Birmingham, Alabama 35203 and John J. Coleman, Jr., Esq., Bradley, Arant, Rose and White, 1500 Brown-Marx Building, Birmingham, Alabama 35203, by mailing copies of same in the United States mail, postage prepaid on the 29 day of July, 1974. Attorney for Plaintiffs