Shipp v TN Department of Employment Security Brief for Appellants
Public Court Documents
January 1, 1976

123 pages
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Brief Collection, LDF Court Filings. Shipp v TN Department of Employment Security Brief for Appellants, 1976. 6eddfc35-c49a-ee11-be37-00224827e97b. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/b53c7bfe-484c-451e-a803-73bee2d229ff/shipp-v-tn-department-of-employment-security-brief-for-appellants. Accessed May 07, 2025.
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IN THE UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT No. 76-1515 ERONEOUS SHIPP, et al., Plaintiffs-Appellants, vs . MEMPHIS AREA OFFICE, TENNESSEE DEPARTMENT OF EMPLOYMENT SECURITY, et al., Defendants-Appellees. Appeal From The United States District Court for the Western District of Tennessee, Western Division BRIEF FOR APPELLANTS WILLIAM E. CALDWELL 520 Woodward Bldg. 733 Fifteenth Street, N.W. Washington, D.C. 20005 JACK GREENBERG ERIC SCHNAPPER Suite 2030 10 Columbus Circle New York, New York 10019 ELIJAH NOEL, JR.Ratner, Sugarmon, Lucas & Salky 525 Commerce Title Building Memphis, Tennessee 38103 Attorneys for Plaintiffs-Appellants IN THE UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT No. 76-1515 ERONEOUS SHIPP, et al., Plaintiffs-Appellants, vs. MEMPHIS AREA OFFICE, TENNESSEE DEPARTMENT OF EMPLOYMENT SECURITY, et al., Defendants-Appellees. Appeal From The United States District Court for the Western District of Tennessee, Western Division BRIEF FOR APPELLANTS 1. (a) Did plaintiff demonstrate a prima facie case of unlawful discrimination in referrals, etc., by the defendant employment service? (b) If so, did the defendants adequately rebut that prima facie case? 2. Did the District Court err in failing to enjoin use of the tests relied on by the defendants in hiring and promo tion? 3. Did the District Court err in failing to require the defendants to take additional steps to assure they did not serve employers who engage in unlawful discrimination? 4. Did the District Court err in dismissing plaintiff' individual claim? STATEMENT OF THE CASE Plaintiff is a black citizen who on several occasions in the 1960 's sought the assistance in obtaining employment from the Memphis Area Office of the Tennessee Department of Employment Security ("TDES"). TDES is the Tennessee state agency affiliated with and largely funded by the Federal Employment Service and provides a free employment referral service to Tennessee residents. In the spring of 1969 plaintiff filed a timely charge with the Equal Employment Opportunity Commission alleging that TDES had unlawfully engaged in discrimination on the basis of race. After an investigation the Commission found there was probable cause to believe TDES had engaged in discrimina tion in violation of Title VII of the 1964 Civil Rights Act. In August 1971, the Commission issued to plaintiff a right to sue letter. This class action was commenced on September 16, 1971, in the United States District Court for the Western District of Tennessee. Jurisdiction over this action was alleged to exist under 42 U.S.C. § 1988 to enforce 42 U.S.C. §§ 1981-85, and under 42 U.S.C. § 2000e-5(f). The latter provision, contained in the 1964 Civil Rights Act, applied to state employment services the strictures of Title VII / Complaint, 5 VII, Answer, 5 VII. prohibiting discrimination on the basis of race, sex and national origin. On September 12, 1973, the complaint was also amended to allege with greater specificity the forms of systematic discrimination in which plaintiff claimed TDES had engaged, and to join as defendants the Tennessee Department of Personnel and the Commission of Personnel of Tennessee. On March 20, 1974, the complaint was further amended to allege jurisdiction under Title VI of the 1964 Civil Rights Act, 42 U.S.C. § Extensive discovery was conducted in 1972 and 1973, including depositions of numerous employees of TDES. The defendants furnished to plaintiff's counsel computer tapes containing certain data on referrals between and These tapes were subject to computer analysis and the results embodied in a number of print outs. On March 20-22, 1974, a hearing was held before the Hon. Harry W. Wellford on plaintiff's individual claim; plaintiff also presented his case-in-chief in support of the class action claim. The hearing was then recessed to permit the defendants to prepare their response to the class action aspect of the case. At the conclusion of this March, 1974 hearing the Court indicated that Shipp's individual claim would only be resolved after completion of evidence regarding and in the context of the class action issues. On June 13, 1974, the District Court, Exhibits 80-92 Exhibits 59-69. in declining to grant a defense motion for a directed verdict, cy indicated that it would "consider entering a judgment in the _ / . .Shipp case". On June 18, 1974, counsel for plaintiff wrote Judge Wellford reiterating their understanding and desire . Y * that the individual claim be decided only after and m the context of the decision on the class action. As a precaution counsel expressly asked: If the Court should determine, prior to presentation of the defendants 1 case- in-chief on the class action allegations, to decide the individual plaintiff's claim, we would appreciate an opportunity to present a supporting brief and/or pro posed findings of fact and conclusions of law. The District Judge never responded to this letter, and the defendants made no subsequent request that the in dividual claim be decided prior to the class action claim. On December 20, 1974, without any subsequent proceedings or filings, the District Court entered sua sponte a 5 page decision dismissing Shipp's individual claim. On April 23, 1975, another hearing was held before Judge Wellford on the merits of the class action. The defendants presented their case-in-chief, consisting of the testimony of a single expert and two exhibits, and plaintiff offered additional evidence in rebuttal. There after both parties submitted proposed findings of fact and conclusions of law. Plaintiff moved for reconsideration of / Order of June 13, 1974, p. Order of December 20, 1974. O the December 20, 1974, order dismissing the individual claim. On September 25, 1975, the District Court entered a Memorandum Opinion ruling for the defendants on all clas action issues, and awarding costs against plaintiff. The District Court also reaffirmed its dismissal of the in dividual claim. A timely notice of appeal was filed on , 1975. I. THE DEFENDANTS ENGAGED IN UNLAWFUL DISCRIMINATION IN THEIR TREATMENT OF APPLICANTS FOR REFERRALS, PLACEMENT, AND OTHER SERVICES The complaint in this action alleges that the Memphis Office of TDES discriminated on the basis of race in the services it provided to applicants seeking assistance in finding jobs. The complaint charged specifically that the defendants had, inter alia, (a) classified and referred black applicants for badly paid menial jobs regardless of their actual abilities, (b) applied a more stringent standard to blacks than to whites in making referrals to well paid or interesting jobs, (c) giving preference to less skilled, experienced or recent white applicants over blacks who were more skilled or experienced or who had made application for referral at an earlier date, (d) referred only blacks to certain poorly paid menial jobs. Despite the length and complexity of the record before him, Judge Wellford failed to make with regard to the controlling issues the specific findings of fact and conclusions of law required by Rule 52(a), Federal Rules of Civil Procedures, or to analyze that evidence in the manner prescribed by McDonnell Douglas Corp. v. Green, 411 U.S. 792 (1973); Franklin v. Troxel Manufacturing Co., 501 F.2d 1013 (6th Cir. 1974). Accordingly it is necessary to review the evidence in substantial detail. (1) Plaintiff's Prima Facie Case (a) TDES was first established in 1936 in the wake of the Depression. From the outset it operated on a racially segregated basis. In 1938 the Memphis branch of the service operated three referral offices. There were two white offices on Union Street, one housing the Industrial Division and another the Commercial and Professional Division. A "Colored Office" was established on South Second Street, and housed the Negro Men's Division and the Domestic Service. Racially identified job orders were accepted during this period. Although the South Second Street office was operated exclusive for blacks, TDES did not employ blacks to work at that office until about 1950. In 1958 the white offices were moved to a new building at 1295 Poplar Avenue, which TDES continues to operate. In 1960 the Colored Office was moved to South Main Street, and its name changed to the "Domestic and Labor Office That office handled orders for casual and domestic labor, which in the Directory of Occupational Titles ("DOT") case coded as service jobs (DOT 3); farm jobs were subsequently added. Exhibits 1A, IF. See Exhibit 1 F, p. 24. __/ Exhibit 83, Deposition of Jessie Webb, pp. 3-4 Exhibit 84, Deposition of Cecil McDonald, p. 5; Exhibit 87, Deposition of George Murphy, pp. 3, 12. Exhibit 79, Deposition of Edna Flynn, p. 9-10. 7 CV7? On June 1, 1962, a month prior to scheduled hearings regarding TDES by the United States Commission on Civil Rights, TDES announced that it was ending its policy of discrimination. Under the reorganization plan explained to the Commission, clerical, managerial and professional jobs, as well as skilled and semi-skilled industrial jobs, were to be handled only at the Poplar Avenue office, as in the past, although blacks could now use this service. White unskilled workers, however, could be referred only by the Poplar Avenue office, and black unskilled workers only by the Main Street office. The Main Street office was to handle "labor and domestic job orders." There were no plans to change the office staff assignments, pursuant to which no blacks (other than a janitor and a maid) worked at Poplar Avenue, and the Main Street office was staffed in part by blacks but supervised by whites. In 1967 the Domestic and Casual Labor Office moved to Monroe Street, where it remained until 1969. Despite the 1962 announcement, and the adoption of the 1964 Civil Rights Act, that office continued to serve the "great portion of the black traffic." In 1969 the office on Monroe Street was closed and its functions and employees moved to the Prospect Avenue office. Exhibit 26. Exhibit 79, Deposition of Edna Flynn, p. 13. -v Prior to 1970 the staff at TDES specialized in particular occupations and jobs. When an employer called to place a job order, he would be referred to the inter viewer who handled that type of position. Similarly, an applicant seeking referral would be sent to the interviewer responsible for the type of position sought. The applicant would give the interviewer a written application, and the interviewer file the application and later search his file of job orders for an appropriate vacancy. Then, as now, both applicants and job orders were given a six digit number (e.g. 608.281) corresponding to a particular job description in the Dictionary of Occupational Titles, and these numbers could be used to match applicants to appropriate vacancies. Thie first digit of the DOT code signified a general occu pational classification (e.g. 2 is clerical and sales, 3 is service). In 1970 this procedure was substantially altered. The job order-taking was separated from the interviewing and referral process. Orders were thereafter taken by an employer relations representative, and placed in a computer, known as a Job Bank. Interviewers who had access to the information on the computer, ceased to specialize in particu lar occupation and dealt with any applicants in their office regardless of what position the applicant was seeking. In addition the list of available jobs was made directly avail able to applicants in the Prospect Avenue office, first in the form of a book of computer print outs, and, later, on microfiche cards that were used with a viewer. The print out and cards were organized by DOT code, which the applicant could use to find a vacancy in which he might be interested. Once an applicant has filled out an application and received a DOT code based on his skills and experience, he can either go directly to the Job Bank viewers to look at available openings or seek assistance from a counselor or interviewer. If an applicant finds a job for which he wishes to apply, he goes to an interviewer and asks to be referred to that job. If the applicant is referred to a job he is given a Job Bank referral slip to present to the employer. The employer indicates on the slip what action he took on the referral and returns it to TDES. (b) A systematic analysis was made of all referrals made by TDES from July 1972 through June 1973. Because of the volume and complexity of this data a series of tables summarizing the information therein is set out in the appendix to this brief. A total of 51,955 referrals were made by the defendant during this period; of those 35,358, or 68.1%, were black. The average hourly wage of the jobs to which blacks and women were referred was substantially below those of the jobs to which whites and men were referred. Average Wage of Job To Which Referred__/ Type of Applicant Average Wage Whites Blacks Difference $2.47 2.09 .38 White Males Black Males Difference 2.56 2.25 .31 White Females Black Females Difference 2.25 1.77 .48 Men Women Difference 2.35 1.89 .46 This 38 cents an hour overall disparity between black and white applicants was the result of four specific disparities. __/ Exhibit 39, p. 2. Since some applicants were referred to more than 1 job, and there were cases in which more than one applicant was referred for a single vacancy, the number of applicants seeking the assistance of TDES during this period, and the number of job orders received by TDES, was substantially less than 51,955. Exhibit 39, p. 3. First, black applicants with a particular 6 digit DOT code were consistently referred to jobs which paid less than the jobs to which whites with the same DOT code, and skills, were being referred. Typical examples of differing wage rates for males with the same occupation included the following: Average Wage of Referrals __/ Selected Major Male Occupations White Black Applicant Occupation Males Males Difference Shipping and Receiving Clerk $2.53 $2.36 $.17 Commodities Salesmen 3.06 2.61 .45 Arc Welder 3.37 3.06 .31 Carpenter 3.21 2.79 .42 Trash Collector 2.44 2.25 .19 Loader 2.41 2.26 .15 A similar pattern existed among women with the same DOT code: Average Wage of Referrals _ Selected Major Female Occupations White Black Applicant Occupation Females Females Difference Secretary $2.62 $2.25 $ .37 Key Punch Operator 2.42 2.23 .19 Record Clerk 2.17 2.02 .15 Char Woman 1.98 1.56 .40 Hand Packer 2.05 1.81 .14 Electrical Unit Assembler 2.42 2.10 .32 Since under the TDES system an applicant could not be given the DOT code for a carpenter unless "fully experienced," no legiti mate explanation for these differences is readily apparent. __/ See Table __/ See Table _/ See Exhibit 82, Deposition of Evelyn Ryan., pp. 20-23. Anapplicant who lacked the requisite experience would be given a different code with an X in it. \ There were 16 occupations involving over 40 referrals in which the average hourly wage for white males exceeded that for black males by more than $.50. There were no such occupations in which the wages of black males enjoyed such an advantage. The few instances in which black wages were higher were generally poorly paid jobs to which over 90% _ /of the referrals were black. A similar pattern emerged when a comparison was made of blacks and whites who worked in the same industry. In virtually every major industry the wages of the jobs to which blacks were referred was lower than that of white jobs. Average Wage of Referrals Selected Major Industries Amount By Which Average White Wage Exceeded Average Black Wage Industry Building Construction Other Construction Food Manufacturing Chemical Manufacturing Wholesale trade Retail - General Retail - Restaurants Business Services Males Females $.33 $ .48 .15 .38 .31 1.02 .48 .22 .17 .28 .01 .16 .16 .04 .42 .20 See Table __/ E.g. porter (410 blacks, 12 whites), janitor (206 blacks, 10 whites), waitress (819 blacks, 88 whites) and hotel maid (177 blacks, 4 whites). The average wage for all of these jobs was under $2.00 an hour. truck The sole exceptions were maids and, drivers. inexplicably, female See Table A similar pattern existed with the groups. Such disparate treatment the same skills and occupations is 10 major DOT occupation of blacks and whites with among the .practices for bidden by the Department of Labor. Second, there are 13 major jobs to which over 90% of the referrals were black. These included domestic worker (100% black, laundress and laundryman (99.73% black), clothes presser (98.27% black), hotel maid (97.86% black), short order cook (97.33% black) and janitor (95.41% black). Approximately 1 out of every 6 black applicants was referred to one of these black jobs. The average wage of the vacancies in these jobs __/ Table __/ The Solicitor's Analysis of 29 C.F.R. part 31 cites as an example of impermissible "Discrimination in Selection and Referral to Job Openings": "Minority Applicants are referred to auto mechanic's jobs paying $4.50 an hour whereas white applicants are referred to auto mechanic's jobs paying $5.75 an hour." Exhibit 8, p. 9. At TDES the average re ferral rates for auto mechanics (DOT 620, 281) was $2.50 for white males, $2.42 for black.males, and $2.17 for black females. __/ I.e., involving at least 40 referrals. __/ Among the 18,155 black applicants with DOT codes 3,619 were referred to these 13 jobs. The referral rate among applicants without DOT codes is not known. See Table to which blacks were referred was a mere $1.60 an hour. The handful of whites referred to these jobs, however, were sent to jobs averaging $1.92 an hour. Third, whites were referred in disproportionate numbers to highly paid jobs and occupation groups, and blacks were referred in disproportionate numbers to poorly paid jobs and occupation groups. Among men the two highest paid occupation groups are structural work ($2.69 an hour) and professional, technical and managerial $$3.21 an hour); 35.7% of all white men were referred to jobs in these occu pations, compared to only 13.6% of black men. Conversely, 14.7% of black men but only 4.8% of white men are referred to the worst paid occupation group, service jobs ($2.00 an hour). A majority of all jobs to which women were referred were either service jobs ($2.14 an hour) or clerical and sales jobs ($1.53 an hour). 68.3% of white women were referred to clerical and sales jobs, compared to only 21.4% of black women; 57.5% of black women were referred to service jobs, but only 11.7% of white women. A similar pattern of re ferral exists among high and low paid jobs within the same occupation groups../ __/ Table . 207 blacks were referred to general cook jobsaveraging $1.73 an hour; the 15 whites referred to such jobs averaged $2.19 an hour. Forty blacks were referred to jobs as car wash attendants averaging $1.67 an hour; the 3 whites re ferred to such jobs averaged $2.02 an hour. Fifty-seven blacks were referred to jobs as clothes pressers averaging $1.71 an hour; one white was referred to such a job at $2.00 an hour. / See Tables See Tables Fourth, there is a clear pattern of discrimination against women which, because of the proportionally larger number of black women, has a particularly adverse impact on blacks. As was noted, supra, average male wages exceed average female wages by $.46 an hour. Out of 64 DOT jobs in which more than 40 referrals were made, men received a higher average wage in 58. The most important occupation groups for women are service, clerical and sales, which account for 79.2% of all female referrals. Among the 17 jobs in these categories with over 100 referrals, the average wage rates for men made more in every category. The jobs in which men were referred to higher paying posi tions included the following: Average Wage of Referrals __/ Selected Service, Clerical and Sales Jobs Average Male Average Female Description Waqe Waqe Difference Secretary $3.08 $2.50 $ .58 Typist 2.77 2.11 . 66 File Clerk 2.90 2.52 .38 Clerk Typist 2.47 2.00 .47 Salesperson - general 2.86 1.89 .97 Cashier-checker 2.80 1.87 .93 Waiter-Waitress 1.74 1.51 .23 Cook - general 2.18 1.59 .59 Switchboard Operator 2.43 2.05 .38 Similarly, among industrial jobs where a majority of the appli cants referred were women, men consistently were referred to See Exhibit 67. Table better paying jobs. As the defense expert witness noted, this disparate treatment of women has the effect of widen ing the gap between black and white wages because of the disproportionate number of blacks who are women. _/ Thus male sewing machine operators were referred to jobs averaging $2.22 an hour, and women were referred to jobs averaging $1.71 an hour. Table See p. n. infra. Among applicants with DOT codes 38.4% of the blacks were women, but only 22.9% of the whites were women. See Table & m (c) This pattern of disparate treatment was directly 8related to the structure and procedures at the TDES office. y- (1) The 1969 merger of black and white offices was neither complete nor permanent. In the Prospect Avenue office the old distinctions remerged as a separation of the office in to three functional divisions: (i) Casual, Domestic and Farm Labor, which handles the jobs that were the traditional j i j ' /tj y/' Pj responsibility of the black office on Main and Monore Streets, _ cpA (ii) Commercial, Professional and Technical, which handles the jobs that were traditionally the exclusive province of the white Prospect Avenue office,— ■ and (iii) Industrial, which handles the remaining jobs. Functional divisions soon became physical. The Casual, Domestic and Farm Labor section was^ located in a separate building known as the Poplar Annes. The 1969 merger, which for the first time brought large numbers of black and white applicants into the same office, provided _ / a "noticeable loss of white applicants." and in 1973 the Commercial, Professional and Technical division was moved out of the Prospect Avenue office to a new office on North Cleveland _/ This apparently corresponds, roughly, to DOT codes _/ This apparently corresponds, roughly, to DOT Codes 0, 1 and 1. _/ Whether this was so even in 1969, or occurred only later, is unclear. / Exhibit 88, Deposition of Raymond Neal, p.53. Street. The three divisions, thus separated, serve clientels of differing racial composition. The North Cleveland office serves an applicant group which is equally divided between whites and blacks, and which includes about three-fourths of all white females and one third of all white males who come to TDES The Poplar Annex serves a group that is 99% black, including one _ /half of all black females. The main Poplar office is about two-thirds black. This physical separation has a critical impact on referral patterns Despite the basic purpose of the Job Bank system, to make all jobs readily available to all applicants, the three offices maintain separate lists of jobs. Orders for Casual, Domestic and Farm labor go directly to the Poplar Annex, and information about their jobs are not sent to the Job Bank computer "until all the people have been referred and the order is closed or filled" The Annex does not have a viewer which would permit applicants _ / there to consider jobs saved by the other offices. The TDES Equal Employment Opportunity representative asked that a viewer with commercial, professional and technical jobs be kept at Prospect Avenue when that division moved to North Cleveland Street/ _/ Exhibit 91, Deposition of Charles Rudford, p.88. Of 1407 white females with DOT codes, 1035 are in DOT codes Q 1 and 2. _/ Exhibit 91, Deposition of Charles Radford, p.90. Of 6981 black females with DOT codes, 4022 are in DOT codes 3 and 4. See Table. _/ Exhibit 88, Deposition of Raymond Neal, p.62. This is done solely for record keeping purposes. _/ Exhibit 84, Deposition of Cecil McDonald, p.28. / Exhibit 88, Deposition of Raymond Neal, p.29. but the Prospect Avenue office did not in fact have copies of the microfiche cards describing those jobs. Since each office keeps its own applications there are thus three sets of job orders and three sets of applications. The referral patterns described supra, pp. stem in large measure from this division of offices, orders, and applications. If a black woman goes to the Poplar Annex she is not referred to a clerical or sales job because that office has no such orders. If a white woman goes to North Cleveland Street she knows she will not be referred to a job as a maid or a laundress because that office has no such orders. Blacks who file applications at the Poplar office or Annex are not considered for commercial, professional or technical jobs that may subsequently arise because the interviewers at North Cleveland Street do not have those files. The job bank system functions only within the main office for industrial jobs; otherwise the system remains as segregated as it was prior to the 1969 merger. Although there is evidence suggesting that TDES officials may steer black and whites to the Annex and North Cleveland offices, __/ Exhibit 82, Deposition of Evelyn Ryan, p. 42. respectively, those officials are no less culpable if applicants are merely following the patterns established in years of overt segregation or choosing to mix with the applicant group of their own color. In either case TDES has failed to establish a unitary employment service. Green v. County School Board of New Kent County, 391 U.S. 430 (1968). (ii) If a black applicant at the Prospect Avenue office finds on a microfiche card a job order in which he is interested, he cannot simply apply to the employer in volved. The microfiche card available to applicants does not disclose the identity or address of the employer who placed the order; that information is found on a separate set of cards to which only the interviewers virtually all of whom are white, have access. The applicant must there fore ask an interviewer to tell him the identity of the employer and refer him to the job. The interviewers, however, do not refer to a vacancy all applicants who want to apply. On the contrary, the general practice is to refer only those applicants whom the _/ See testimony of Emma Batchlor, March 22, 1974, pp. 4-8. interviewer believes are "qualified". Thus the inter viewer has a veto over who will and will not be able to apply to an employer for a particular job. In exercising that control the interviewer is, as a paratical matter, free to apply the standards strictly to one applicant and to decide for another applicant, to disregard a re quirement or call the employer and try to persuade him to __/ Hearing of March 20, 1974, p. 172; Hearing of March 21, 1972, pp. 110-111; Exhibit 81, Deposition of Leland Dow, pp. 20, 23; Exhibit 88, Deposition of Raymond Neal, p. 20; Exhibit 91, Deposition of Charles Radford, pp. 65, 70-71. Jessie T. Webb, an employment counsellor, testified she tried to persuade applicants that they should not seek referrals to jobs for which they were un qualified. She indicated she would refer an applicant she believed unqualified if he insisted on it despite her attempted persuasion, but she could recall no in stance in which this actually occurred. Exhibit 83, pp. 20-24. waive it. In some cases, such as a requirement of experience, the interviewer exercises broad and un reviewed subjective judgment as to whether a previous job is sufficiently recent and similar to the vacancy to qualify. In plaintiff's individual case, for example, the interviewer referred to two hites who did not meet the age or education requirements and then refused to refer Shpp on the ground his experience in shpping did not include knowledge of local shpping rates. See pp. , infra. Analysis of the TDES referral data revealed that employer education requirements were in fact being applied in an unequal manner. Interviewers chose to disregard those requirements and refer undereducated whites in far greater proportions than they did for blacks. Thus, approximately 7.0% of whites with less than ninth grade education were referred to jobs requiring 9-11 years, com pared to only 2.7% of blacks. About 15.0% of whites who See had not graduated from high school were referred to jobs requiring a high school diploma, compared to only 6.2% of the blacks without degrees. Conversely, the proportion of blacks referred to jobs for which they had more education than required was several times greater _ /than the proportion of whites so referred. Such unequal application of job requirements is clearly unlawful. Sims v. Sheet Metal Workers. 489 F.2d 1023, 1026 (6th Cir. 1973); Wade v. Mississippi Cooperative Extension Service, 11 EPD 510,770, p. 7236 (5th Cir. 1976). (iii) An applicant can only use the Job Bank system to pick a possible job if there is a vacancy in his field on the day he visits TDES. Some jobs or industries place such a large number of job orders that there is likely to be one on a microfiche card when the applicant is at the office. For other jobs and industries this is not the case; the applicant leaves his application form on file in the hope that an appropriate order will be received. Each interviewer spends a certain amount of See tables time each week conducting file searches, trying to locate an applicant who has or approximates the qualifications for hard to fill or less common jobs. The assistant manager of the Memphis office conceded there was a "possibility for discrimination in this situation. That is partic ularly so because there is no standard for determining which of the qualified applicants an interviewer will con tact about or refer to the job. One official said the interviewer would "try to match up the best applicant" but that there was "no standard procedure'.' Other witnesses __/ Hearing of March 20, 1974, pp. 110, 176-78; Hearing of March 22, 1974, Testimony of Emma Barchlor, pp. 22, 40- 43; Exhibit 81, Deposition of Leland Dow, pp. 23-27, 30- 34; Exhibit 82, Deposition of Evelyn Ryan, pp. 29-31, Exhibit 87, Deposition of Lois B. Farmer, pp. 29, 30-31. Exhibit 91, Deposition of Charles Redford, p. 129. Exhibit 81, Deposition of Leland Dow, p. 30. said they believed the practice would be to give priority to someone the interviewer had seen personally and remembered. This Court has repeatedly condemned election processes which thus place the critical decision in the hands of a largely white group bound to apply no fixed standard. Afro American Patrolmens League v. Davis, 503 F.2d 294, 303 (6th Cir. 1974); Senter v. General Motors Corp., 11 EPD 110,841, p. 7094 (6th Cir. 1976). The danger of this system is well illustrated by plaintiff's first visit to TDES in 1964, when all orders were filled by file search. Plaintiff had completed several years as an Air Force officer, had several years' experience managing a large air cargo terminal and supervising a score of employees, and had just received a Masters degree in Business Administration from Columbia University. His education alone put him in the top 1% of all TDES applicants Had plaintiff been white, his degree, combined with his mana gerial experience, would have made him one of the most sought after and easily placed applicants in TDES' filed. Plaintiff was never referred to a single job. __/Exhibit 82, Deposition of Evelyn Ryan, p. 30; Exhibit 87, Deposition of Lois B. Farmer, p. 30. (iv) Even if a file search, or approval of request for referral, are conducted in a non-discriminatory manner, they both depend for their fairness on the accuracy of the DOT code assigned to the applicant. If a black em ployee with skill and experience was mistakenly coded for a job below his actual abilities, his application would not be picked out on a file search and an interviewer would conclude he was unqualified for work which he was in fact able to do. The DOT classification which the white inter viewers gave to black applicants was thus critical to the integrity of the entire referral process; given the sub jective and unreviewed nature of that classification decision, it was also one fraught with potential for discrimination. See Afro American Patrolmens League v. Davis, 503 F.2d 294, 300 (6th Cir. 1974); Rowe v. General Motors Corp., 457 F.2d 348, 358-59 (5th Cir.); United States v. Hazelwood School District. 11 EPD 510,854, p. 7577 (8th Cir. 1976). The pattern of classifications clearly suggested that this subjective discretion had been misused. Among car penters, for example, 76.6% of the blacks were classified as "carpenter helpers" compared to 53% of the whites. Similarly, 52.6% of blacks, with experience in sheet metal working were classified a helpers, compared to only 27.2% of the whites. Maintenance men employed in buildings earn substantially less than maintenance men in factories; of black maintenance men only 25% were classified for factory maintenance work, compared to 46% of whites. Only about half of all applicants were assigned DOT codes, and the use of those codes tended to increase the disparity in referral wages. Blacks with DOT codes were referred to jobs paying $.54 an hour less than whites with DOT codes, a differential substantially greater than the differential for all applicants. ^ Table _/ Compare Table with Table (d) Plaintiff also introduced evidence showing that these disparities could not be explained in terms of either education or training requirements. The difference between black and white wages re mained even when education was taken into account. Differences in Average Wage of Referral By Education__/ Education White Males v. Black Males White Females v. Black Females Males v. Females 0-8 years $ .23 $ .10 .54 9-11 years .34 .23 .47 High School Graduate .23 .52 .39 Over 12 years .03 .13 .45 Total .31 .48 .46 Although whites on the average had more years of education than blacks, the wage disparity existed at every level. Moreover an increase in education did not necessarily guarantee a significant increase in wages. Although females had, on the average, more education than males, they earned less, and the disparity existed at all levels of education. Females with more than 12 years of education averaged about the same referral wage as males of the same race with 0-8 years. Exhibit 39. Black males with 0-8 years of education averaged only an hour less than black males with 9-11 years. White who had more than 12 years of education made only average than white male high school graduates. And females who had more than 12 years of education averaged than white female high school graduates. Id. See Exhibit 66. __/ Exhibit 39, p. 3. White females over 12 years averaged $2.20, compared to $2.25 for white males with 0-8 years. Black females with over 12 years averaged $2.07, compared to $2.02 for black males with 0-8 years. Plaintiff also showed that the referral wage dis parity between blacks and whites existed even among appli cants to jobs for which no experience of any kind was required. Exhibit 43 revealed the average wage rates for trainee jobs requiring no experience in 11 major DOT occu pation groups. The average referral wage for whites was $.31 higher than for blacks, only slightly less than the difference referrals to all jobs. Moreover the same pattern of referring whites to better paying industries emerged. 56.2% of all white females were referred to trainee jobs in stenography, typing and filing, compared to only 17.0% of black females. 47.3% of black females were referred to jobs _ / in food and beverage preparation and service, compared to only 14.6% of white females. This evidence was far more than required to establish a prima facie case of discrimination. The $.38 an hour dif ference in average black and white referral rates might alone have been sufficient to meet plaintiff's burden. United States v. Masoning Contractors Ass'n of Memphis, F.2d , 875 (6th Cir. 1974); E.E.O.C. v. Detroit Edison, 515 F .2d 301, 313 (6th Cir. 1975. An employee is at an inherent DOT 20, average female wage $2.13 an hour. DOT 31, average female wage $1.28 an hour. Exhibit 43. disadvantage in gathering hard evidence of employment dis crimination, particularly when the discrimination is plant wide in scope. It is for this reason that we generally acknowledge the value of statistical evidence in establishing a prima facie case." Senter v. General Motors Co., 11 EPD S 10,741, p. 7093 (6th Cir. 1976). In this case plaintiff not only proved this overall wage difference, but unearthed a detailed and systematic pattern of disparities in the type of jobs to which blacks and whites were referred and in the wages of jobs for blacks and whites in the same occupation, pp. - , supra, explained the various opportunities for discrimination which had been used to produce this pattern, pp. - , supra, and showed that the disparities could Not be explained by possibly legitimate considerations. In the face of this showing the District Court had no choice but to hold the defendants guilty of discrimination unless they could, by clear and convincing evidence, rebut in all relevant particulars this palpable violation of Title VII. (2) The Evidence In Rebuttal Plaintiff having established a prima facie case of discrimination, the burden of persuasion shifted to TDES to demonstrate that there were nondiscriminatory reasons for the observed disparity. Watkins v. Scott Paper Co., 530 F.2d 1159, 1192 (5th Cir. 1976). To meet that burden an employer (or referral service) must show (1) that the disparity was due to differences in skills, experience, or other criterion, (2) that the factor was job related, and (3) that the use of these criterion in no way perpetuates the effects of past discrimination. Pettway v. American Cast Iron Pipe Co., 494 F.2d 211, 225 n.34 (5th Cir. 1974); Brown v. Gaston County Dyeing Machine Co., 457 F.2d 1377, 1382 (4th Cir.) cert. denied 409 U.S. 982 (1972); Carter v. Gallagher, 452 F.2d 315 (8th Cir. 1971) cert, denied 406 U.S. 950 (1972). TDES' defense consisted of the testimony of Dr. Bernard Siskin, an associate professor of statistics at Temple University. That testimony, accompanied by a written statement and several tables, consisted of his own explana tion of some of the data introduced by plaintiff, a commen tary on the testimony of Dr. Ullman, and a statistical analysis of some of the plaintiff's data. Dr. Siskin never / Exhibits 94 and 95. _ /visited the TDES office, did not examine the original individual records of referrals, and made no inquiry into the history of TDES itself. He was offered and accepted only as "an expert in the area of the statistical analysis and inferences that may be drawn from statistical data. Siskin's testimony dealt with three major issues. First, he explained he had performed a "regression analysis" on the referral data to determine what applicant characteristics correlated significantly with differing levels of wages. This was done by (a) computing, with all other characteristics fixed, the difference in wage rate associated with a given variable, characteristic e.g., how much more men's rate was than women's among white, college educated, 25-30 year old non-veterans; and then (b) averaging this difference for all combinations of the fixed characteristics. The resulting figure represented, loosely speaking, how much the wages varied with the variable characteristic all other (specified) things being equal. The analysis could not, of course, explain why there was a correlation _ / between the varying characteristic and referral wages. Plaintiff's data had showed that, on the average, white applicants had been referred to jobs paying $.36 an hour more than __/ Hearing of April 23, 1975, p.152 __/ Id., p. 159 _/ See Exhibit 95, "Wage Rates of Referrals;" Exhibit 94, pp. 9-6; Hearing of April 23, 1975, pp. 252-258. those to which blacks were referred. Siskin testified his analysis yielded the following results: Effects of the Given Variables Upon the Waqe of Referrals _/ Variable Effect Sex -$.41 Education +$.14 per year of education Veteran -+-$. 12 Age ■+■$.06 per year old -$.0008 per year old squared Race -$.18 Siskin explained this meant, that, with the other variables held constant, referral wage rates were higher for men than for women (by $.41 an hour), for Whites than for blacks (by $.18 an hour), for veterans than for non-veterans (by $.12 an hour), and for the better educated (at a rate that rose with education). Wage rates rose with age until the applicant reached 38, and then declined. Siskin urged that real difference is wages between blacks and whites was really only $.18; blacks did worse than that, overall, not because they were black, but because they had "less education, they are more likely to be female and less likely to be veterans. Siskin concluded that it was "reasonable" __/ Exhibit 94, p.5; Exhibit 95, Wage Rates of Referrals, p.5. __/ Hearing of April 23, 1975, p.189; Exhibit 95, "Wage Rates of Referrals," pp. 4-6. M" and "logical" to conclude that the remaining $.18 differ ential was due, not to discrimination, but to differences in skill and experience. Second, Siskin reviewed the wages differences in Exhibits 40-43, pertaining to referrals to trainee jobs, and concluded that these differences as well were probably due to differences in "education, experience, veterans benefits," and the other variables noted above. He explained that, statistically speaking, the wage dif ferences of from $.11 to $.41 an hour revealed by these tables, was not significant. And he argued that, even though there were jobs for which no experience was required, the employees would "really prefer" an experienced applicant. Third, Siskin emphasized that plaintiffs data had showed that, for the year in question, the referral-to- placement ratio for blacks, the number of blacks referred out compared to the number who got jobs, was higher than for whites. Siskin offered two conflicting explanations, that blacks are given greater exposure to employment possibilities or opportu nities by the Employment Service than are whites; / or that blacks referred to jobs by the Employment Service are rejected by employers at a dis proportionate rate relative to whites and __/ Hearing of April 23, 1975, pp.190, 191, 256; Exhibit 95, "Wage Rates of Referrals, p. 7. __/ Hearing of April 23, 1974, pp. 168-190 Exhibit 95, pp. 3-5, _/ Exhibit 95, p. 2-4. and racial disparity evidently exists in the occupation structure of the Memphis labor market. These facts suggest that the employers may be practicing racial discrimination Siskin insisted, however, that such discrimination by employers was none of the defendants' concern. This evidence was insufficient to rebut plaintiff's prima facie case for several distinct reasons. (1) The evidence adduced by defendants was limited to certain types of disparate treatment in the tyoes of jobs to which blacks and whites were referred. Siskin's testimony neither bore on nor offered any defense to the fact that blacks and whites with the same DOT code and skill were being referred to jobs with different wage levels. See pp. , supra. While Siskin argued that a randomly selected black was less likely to be qualified for a skilled job such as a shipping clerk or carpenter, he never suggested that those blacks who were ship ping clerks and carpenters would be less skilled or experienced than whites. The evidence revealed that whites were better paid than blacks in the same DOT category regardless of whether the category was predominantly white (e.g. professional, technical and clerical) or predominantly black (e.g. service). The evidence Id., "Wage Rates of Referrals," pp. 8-9. , see also Hearing of April 23, 242-48. 1975, pp. 166-67, __/ Indeed, given the historic barriers that have existed to minority entry into these jobs, it would be reasonable to expect those blacks who had entered them to be unusually skilled and motivated adduced by defendants suggested no legitimate explanation for this disparity. Nor did the defendants offer any legitimate explanation for a variety of other discrimina tory practices, including referring only blacks to certain types of jobs, referring disproportionate numbers of whites to jobs for which they were educationally unqualifed, re ferring disproportionate numbers of blacks to jobs for which they were educationally over qualified, etc. See pp. , supra. (2) There was no conclusive evidence that black applicants at TDES actually had a lower leval of skills and experience than white applicants. Siskin suggested this might be the case if one assumed the distribution of skills and experience among black and white applicants was exactly the same as among the Memphis labor force as a whole. But as Siskin himself recognized, that assumption is without founda tion. Siskin noted that professionals and managers, the major high skill white category, are "considerably less likely to _ /use Employment Security" than others. Equally important, proportionally speaking blacks are over 7 times as likely as whites to use TDES, and thus the sample of the workforce doing so is skewed in some unknown manner. Beyond his hypothesis concerning the Memphis work force Siskin could offer no reason for believing black applicants were less skilled or experienced; Id., n.l. __/ Nonwhites constitute approximately 30% of the work force in the Memphis area, and 69.8% of the TDES applicants. Exhibit 39. Black females are over 10 times as likely to apply to TDES as white females. 7 a he had deliberately refrained from conducting any studying of the defendants' records to see if there were actual dif ferences in skills or experience. accepted as proof of the skills of actual applicants, it would constitute a defense to every case of discrimination in hiring. There is not a major city in the country in which blacks as a whole are not significantly less trained and experienced than whites. No court has ever suggested that an employer could justify or explain disparate treatment of black applicants on such a flimsy basis. mised on the assumption that jobs for which experience was helpful would be better paid, and that this difference in wage level accounted for the difference in the wages of the jobs to which blacks and whites were referred. If that were so wages for trainiee jobs requiring no experience would be far lower than wages for all jobs, since the latter group includes large numbers of jobs which are not open to trainees and for which experience is necessary. And, if the proportion of blacks without experience is lower than among whites, the difference between black and white wages should be far smaller among trainees than among total referrals. In fact, however, neither hypothesis is supported by the data. _/ Trainee jobs requiring no experience accounted for only 40% of the jobs in the 11 DOT categories which are covered by Exhibits 43 and 55. If the composition of the regional work force were (3) Siskin's explanation of Exhibits 41-43 was pre- Average Wage Rates Selected DOT Codes All Referrals Trainee Jobs No Experience Reauired White Males $2.40 $2.41 Black Males 2.16 2.17 Difference .24 .24 White Females 2.13 2.05 Black Females 1.64 1.64 Difference .49 .39 All Whites 2.34 2.33 All Blacks 2.01 2.03 Difference .33 .30 Contrary to Siskin's assumption, inexperienced trainee wages were equal to or greater than ordinary referral rates; those for all groups other than white females, and removing ex perience requirements had only a marginal effect on the gap be tween black and white wages. (4) In explaining the substantial wage difference for whites and blacks referred to trainee jobs requiring no experience, Siskin hypothesized that, although the employers involved did not require experience, large numbers of the _ /employers involved in fact desired experience. Although Exhibits 43, 55. fs7 there were 11,748 referrals to such jobs the only evidence offered in support of this hypothesis was a sample print out showing 2 instances in which such a desire had been expressed. The defendants offered no testimony by TDES employees with personal knowledge as to the frequency of such requests. Although the records of the job orders in question were in the defendants' possession, TDES did not offer into evidence either the records themselves, a sum mary of their content, or a computer analysis thereof. Such a selective presentation was clearly insufficient to meet the defendants 1 burden of establishing that experience or skill was actually desired by the employers. (5) Siskin speculated that the difference the referral ratio revealed by plaintiff's study might have been caused by a systematic TDES practice of trying to assist blacks by referring them to high paying jobs for which they were not qualified. He hypothesized that, a black applicant would receive a series of progressively less attrac tive referrals until a position was found for which the appli cant's qualifications were adequate. On this hypothesis, it was noted, the wages of the jobs in which blacks were placed would be substantially lower than the average rate for the positions to which they were referred, and the gulf between black and white placement wages significantly greater than that for referral wages. Not a shred of evidence was introduced __/ Exhibits 72(A) and (B). The two trainee jobs involved were for a janitor (DOT 382.884) and a security guard (DOT 372.868). Blacks constitute 95.4% of the referrals to the jobs with the former code and 76.9% of the referrals to jobs with the latter. See Exhibit 67, pp. 067, 068. _/ Hearing of April 23, 1975, pp. 166-67, 220-21. to support this hypothesis, and the defendants did not produce from their files a single instance in which a black had re ceived a series of referrals in the manner theorized. Documents in the possession of the defendants belied this speculation. The TDES computerized report for the year ending January 31, 1972, showed that well educated applicants required more referrals than the uneducated, that clients sent to TDES were placed very easily, and that applicants classified as lacking minimal amounts of education, skill or experience required fewer referrals than ordinary clients. Although plaintiff's study showed blacks had a higher referral to placement ratio for the year ending June 1973, the TDES report showed whites had a higher ratio for the year ending January, 1972; the variation suggesting the difference is of little significance. The difference between the wages of blacks and whites actually placed was slightly smaller than the difference in the rates of the jobs to which they were referred. (6) The regression analysis prepared by Dr. Siskin was legally inadequate for several reasons. __/ The report in question was disclosed to plaintiffs as part of discovery and is reprinted as Tables See Table __/ The difference in the average placement wage, as revealed by Table , was approximately $.34. The difference in the average referral wages, as revealed by Table , was $.36. The change may be due to inflation, since the first figure is for the year ending in January, 1972, and the latter for the year ending in June, 1973. (a) The major independent variable used by Siskin to reduce the difference between black and white applicants was sex. Siskin's analysis showed that, all other things being equal, female applicants were referred to jobs paying $.41 an hour less than males. Since there was a dispropor tionate number of black females, this "explained" a large part of the apparent difference between blacks and whites. While this exercise was technically interesting, from a legal perspective it was simply an assertion that the de fendants were really discriminating on the basis of sex rather than race, and that this merely happened to have an adverse impact on blacks. That is not a defense cognizable under Title VII. (b) The second variable relied on by Siskin was education, which his analysis suggested increased referral wages at the rate of $.18 per year of education. Since, as Siskin stressed, black applicants tended to be less well educated than whites, this also helped to "explain" the lower wages paid to blacks. That explanation is precisely the adverse impact which under Title VII triggers a require ment that the defendant prove the use of an education standard is job-related. Griggs v. Duke Power Co., 401 U.S. 424 (1971). Dr. Siskin expressly noted that his analysis, Exhibit 95, p. 5. does not imply validity to the education requirement. However, the employment Service simply makes referrals to employers it does not hire. The question of the validity of education must fall on the employer not the Employment Service which tries to fill a job order.__/ There was, however, no evidence that less educated applicants were referred to poorly paid jobs due to employer requirements rather than criterion formulated by TDES employees. Even if that were the case, Siskin was wrong in his assumption that TDES could serve with impunity employers which used education requirements that violated Title VII. See pp. , infra. The reliance of this state agency on the inferior education of blacks must be considered in light of the role of other arms of the state in maintaining a segregated and inferior black school system throughout most of this century. See Northcross v . Board of Education of Memphis City Schools, F.2d (6th Cir. 197 ); Gaston County v. United States, 395 U.S. 285 (1969). Similarly, in view of the defendant's admitted past discrimination, and of its importance to the black community in Memphis, it would at the least be difficult for TDES to establish it was in no sense responsible for the allegedly lower levels of black skills and experience. The sole defense witness conceded he had no idea what role TDES might have had "in the past in perpetuating or establishing discrimination [or a] discriminatory pattern in the labor market." Id., n. 9.Hearing of April 23, 1975, pp. 261-62. (c) The regression analysis was able to "explain" only half of the $.36 an hour wage difference between black and white referrals. It still revealed that, even holding constant sex, education, veteran status, and age, blacks still were referred to jobs paying $.18 an hour less than whites. Although Siskin believed this difference was due to differences in skill, experience, and "special education," there is nothing in the record to support such a belief. The evidence offered by TDES in defense of this action was palpably inadequate to meet its "burden of per vasion that there were nondiscriminatory reasons for the observed disparity. (3) The Opinion of the District Court The Memorandum Opinion of the District Court failed to resolve the controlling factual and legal issues, or to make the structural analysis of the evidence required by McDonnell Douglas Corp. v. Green, 411 U.S. 792 (1973). The only reference to the possible existence of a prima facie case was the following statement; There was a significant dispute between sincere experts who testified in this cause as to the effect of statistical studies and analysis and not only whether they indicated a prima facie case of employment discrimination, but also whether they indicated racial discrimina tion at all as to the effect of TDES services when factors of skill, education and experience were taken into account.__/ The opinion is devoted largely to an incomplete and not entirely consistent summary of the evidence. The limited findings of the District Court were equivocal, inconsistent, and tangential to the central issues of the case. The court noted there had been some "good faith" Memorandum Opinion, September 25, 1975, pp. 15-16. _/ The opinion, at page 12, relies on Dr. Siskin for the proposition that "it is almost three times more likely that a white applicant is high-skilled than a black is high- skilled." Two pages later the opinion states, "whites who apply at the Memphis Office of TDES are almost twice as likely to have high skill experience than blacks." P. 14. The record in fact contained no evidence as to the actual skills and experience of black and white applicants. efforts by management "although not entirely effective, to alleviate effects of past discrimination within the internal structure of the office and in its impact on the Memphis employment community," and "to eradicate past effects of segregation and discrimination." Manifestly the existence of such ineffective good faith efforts was not a defense to the underlying cause of action. See Griggs v. Duke Power Co., U.S. , (197 ); Albemarle Paper Co. v. Moody, U.S. (1975). Paradoxically, having thus noted the existence of past discrimination by TDES and its impact on the community, the court also stated it could "not find any basis to attribute to the Memphis Office of TDES a realistic causative force" in the alleged differences in experience and education, which the court blamed instead on "the community itself, and the private sources of em ployment." The impact of TDES1s discrimination on community employment patterns, noted on page 14 of the opinion, was forgotten by page 15. And the wodespread private discrimina tion relied on at p. 15 was forgotten when the court, con fronted by evidence that TDES had terminated service to only two or three employers in recent memory, failed to compel TDES to comply with its statutory duty not to do business with dis criminatory employers. See pp. , infra. Id., pp. 15-16. Id., p. 16. > The class action portion of the opinion concludes with the statement: Plaintiff has failed to show that present referral policies and practices of the defendants have an unlawful discriminatory impact upon black applicants now, or that they perpetuate past effects of racial discrimination for which defendants may be deemed responsible.__/ This is precisely the sort of general conclusive holding, inextricably intertwining questions of law and fact, which Rule 52(a), Federal Rules of Civil Procedure, was adopted to avoid. It is impossible to determine what legal standard the District Court applied in determining what impacts were sufficiently discriminatory to be 'bnlawful" and when an employment service which had engaged in past discrimination could be "deemed responsible" for differences in experience between blacks and whites. It does not reveal what the District Court thought about the complex patterns of dif ferences in referrals revealed above. The failure of the District Court to make specific and detailed findings of fact would alone require reversal of the judgment below. See pp. , infra. In the instance case, however, the record consists largely of evidence of disparate treatment which was essentially uncontested. The controlling question on appeal is what con clusions must, as a matter of law, be drawn from that record. Palmer v. General Mills, Inc.,513 F.2d 1040, 1043 (6th Cir. 1975) ? Sims v. Sheet Metal Workers, 489 F.2d 1023, 1027 (6th Id., p. 17. •S Cir. 1973). For the reasons noted above, plaintiffs clearly met their burden of establishing a prima facie case, and the defendants failed to rebut it in any relevant particular. Under these circumstances the ultimate question of whether the defendants were guilty of unlawful discrimination must be resolved in favor of plaintiffs. Wade v. Mississippi Cooperative Extension Service, F.2d , /II E?D 5 10,770, p. 7234 (5th Cir. 1976); United States v. Jacksonville Terminal Co., 451 F.2d 418, 423-24 (5th Cir. 1971) ; Causey v. Ford Motor Co., 516 F.2d 416, 420-21 (5th Cir. 1975). The decision below should be reversed and the case remanded to the District Court with instructions to fashion appropriate relief. 4- II. THE DEFENDANTS ENGAGED IN UNLAWFUL DISCRIMINATION IN THE HIRING AND PROMOTION OF EMPLOYEES AT THE MEMPHIS AREA OFFICE OF TDES Because of the nature of the referral system operated by the defendants, particularly the broad and often standardless discretion accorded to interviewers, see pp. , supra, the identity and attitudes of TDES personnel, especially interviewers, was and is of paramount importance to individuals seeking non-discriminatory treatment of their applications for referral. Plaintiff's Complaint and Amended Supplemental Complaint both specifically alleged that the defendants had engaged in racial discrimination in the hiring and promotion of TDES personnel, and that this was a major cause of the discrimination in referrals described above. Compare Sims v. Sheet Metal Workers, 489 F.2d 1023, 1026 (6th Cir. 1973). __/ The Complaint after alleging in detail discrimination in referrals, claimed the defendants were "discriminating against Negro applicants for employment by or promotion with, Tennessee Employment, and thereby establishing and maintaining an employment service whose employee's are prejudiced against Negro applicants and therefore engage in or permit other discriminatory practices described hereinabove." Complaint, 5 V(l). __/ The Amended and Supplemental Complaint alleged: "The racially discriminatory policies and practices of defendant . . ., are the direct and proximate result, in part of the exclusion of black persons from, or the limitation of black persons in, employment in certain critical positions within the Memphis Area Office. For example, of the office's approximately 50 interviewers, many of whom are directly responsible for the referral of applicants to job openings and others of whom (all of these are white) are responsible for dealing with employers placing job orders, over 90% are white, although numerous black persons, both within and without the Memphis Area Office, are equally or more qualified to perform the same duties. Other positions within the Office are occupied exclusively or almost so by blacks." A. 5 pp. 2-3 \ In 1962, although TDES claimed to have ended its practice of operating separate offices for white and black applicants, the staffs remained essentially segregated. At the "formerly" white Prospect Avenue office, all 82 employees, other than the maid and janitor, were white. At the "formerly" black South Main Street office there were 24 black employees and 10 whites. At the Prospect Avenue Office all 48 full and part-time interviewers were white; at the South Main Street office 19 of the 25 full and part _ /time interviewers were black. Despite the segregation, blacks constituted 26.0% of the interviewers employed by TDES in Memphis in 1962. In 1966 whites were still 46 of the 48 Prospect Avenue employees. In 1967 the South Main Street Office was replaced by an office of equal size at 1328 Monroe Street; the new office was staffed with employees from Poplar Avenue, newly hired individuals, and only "part of the staff of Main Street." __/ Exhibit 26, Hearings Before the United States Commission on Civil Rights, p. 234 (1962). When asked whether in 1962 TDES intended to assign blacks to the Poplar Avenue office, Mr. Dow answered, "I cannot state that because I do not know what the policy or the plan is in that regard." Id., pp. 220- 221. __/ Exhibit 29, p. 41. _/ Exhibit 81, Deposition of Leland B. Dow, Jr., pp. 7-8 In 1969 the Monroe Street office was merged into the Prospect Avenue office. By 1974, as a result of these mergers, only 15.7% of the black interviewers employed in 1962 were still working for TDES, compared to 50.0% _ /of the white interviewers. Cf. Singleton v. F . 2d (5th Cir. 19 ) . When this case came to trial in March, 1974, the TDES employees in Memphis were, for the most part, segre gated into identifiably white and black jobs. Job Assignments Memphis Office Employees of TDES, 1974 Jobs Categories With More Than .5 Employees__/ Job Category White Employees Black Employees Managerial 15 2 Interviewer 45 4 Employer Relations Representative 10 1 Counselor 18 9 Employment Agent 1 17 Interviewing Clerk 1 5 Typist 5 12 Since 1962 blacks had fallen from 26.0% of the interviewers (19 of 73) to 8.2% (4 of 49) This decline was the result, not only of the loss of the particular black interviewers, __/ Of the 54 full and part time 1962 white interviewers, 16 were still employed as interviewers and 11 held higher positions. Of the 19 full and part time 1962 black inter viewers, only 3 remained with TDES. Exhibit 2B. __/ Exhibit 3, Analysis of Appendix D to Interrogatory Answers, Managerial includes supervising interviewer. but also of a clear pattern of discrimination in hiring and promotion into the various job categories in the years immediately prior to trial. Promotions and Hires After January 1, 1970 _______Memphis Area Office of TDES / Job Category White Employees Black Employees Managerial 9 1 Interviewer 17 1 Employee Relations Representative 7 1 Counselor 8 7 Employment Agent 1 12 Interviewing Clerk 0 1 Typist 3 8 From September 16, 1969, when this action was filed, until the close of discovery, the defendants hired 20 interviewers, _ /of whom only 1 was black. The exclusion of blacks from the ranks of interviewers guaranteed similar exclusion from jobs as managers and employer relations representatives which are traditionally filled by promoting interviewers. This hiring pattern was clearly aggravating rather than reducing the exclusion of blacks from jobs as managers, interviewers and __/ Exhibits ID, 2 B. Although the trial of plaintiff's case was held in March, 1974, the discovery was completed earlier and includes hire and promotion data only through 1973 . Exhibit 2B. __/ Exhibit 2 B. 85.0% managers, 72.7% of the employer relations representatives, and 56.5% of the counselors had earlier served as interviewers. 4 employer relations representatives. Selection of employees for all of those predomi nantly white jobs is made on the basis of tests prepared by the Tennessee Department of Personnel. The test for interviewer positions consists solely of a written exam ination; the score of applicants for other positions is a combination of the result of such a written test plus a certain number of additional points based on their education and experience. When a vacancy arises within TDES the Department of Personnel provides certified lists of individuals with high enough scores to be eligible for the job. TDES may then appoint any person on a list of eligibles; TDES is not obligated to consider or interview all of the eligibles, and there are no written standards delineating how the choice among the eligibles is to be made. _/ Because a majority of counselors jobs have in the past been filled by former interviewers, the declining number of black interviewers will inevitably lead to a reduction in the number of black counselors. Since 1970 5 of the 7 blacks named as counselors had previously served as interviewers; during this same period only 1 new black interviewer was hired. Since there are now only 4 black interviewers left in TDES, the number of blacks promoted from interviewer to counselor is certain to decline. This was not always so. See pp. infra. _/ See generally Transcript of Hearing of March 20, 1974, pp. 88-132; Exhibit 92, Deposition of Robert Chaffin. The Department of Personnel keeps no records of the test scores by race of black and white applicants^ The Department's Director of Intergovernmental and Employee Relations, however, candidly conceded "the top end of the score system to be disproportionately white". Because of this acknowledged impact of the written tests state personnel officials steer qualified minority applicants who are unable to pass the tests to lower paid though closely related jobs such as employment agent for which no written test is re- y \ \ w f c quited. Even if the adverse impact of the Department's ‘ p tests had not been conceded, the existence of such an impact on minority group members was otherwise established by the t record. at least in tne aosence of records of the race and scores of the applicants who took the tests, adverse impact \T ------------------------------- Transcript of Hearing of March 20, 1974, p. 126. __/ Id., p. 122. The Director took a similar position inhis deposition. "Q. Has it been your observation, generally that you do have a greater majority of minority applicants . . . falling below the top three or top five on any particular list? A. That is definitely true that that does occur, and that is going to be true anywhere where a group of people have had a poor education and a poor opportunity for education that others have." Exhibit 92, p. 37. must be inferred if the proportion of minority employees hired on the basis of the test was significantly smaller than the proportion of minority employees in agency jobs below those in question or than the proportion of minority employees in the area. Afro-American Patrolmen's League v. Davis, 503 F.2d 296, 300 (6th Cir. 1974); Bridgeport Guardians v. Members of Bridgeport Civil Service Commission, 482 F.2d 1333, 1335-36 (2d Cir. 1973); United States v. Georgia Power Co. ., 474 F.2d 906, 910 (5th Cir. 1973); League of United Latin American Citizens v. City of Santa Ana, 11 EPD 5 10,818, p. 7419 (C.D. Cal. 1976). In the instant case only 8.3% of the applicants selected since 1970 for jobs as managers, interviewers, or employer relations representatives were non-white. Blacks constituted 34.0% of the Memphis TDES employees, 55% of the TDES employees outside these three categories, approximately 30% of the labor force in the Memphis Area, and over 69% of the job seekers whom TDES was supposed to serve. The undisputed evidence revealed that the tests at issue were fashioned and used in a manner entirely con trary to the applicable legal requirements. Exhibit 3. Exhibit 39. Id. 7 (1) The written tests were, to a large degree, general intelligence tests used, with slight modification, for a variety of positions. The interviewer test was described by the WIN counselor as "comprehensive," covering "every thing from psychology, through, it seemed, math, through logic, any type of reasoning." The content of the inter viewer written examination was essentially the same as that for employment counselor I, and, apparently, for jobs _ /in other state agencies. Because of the content of the examinations, a white applicant with neither experience nor training in either interviewing or counseling was able to score above the cut off on written examinations for both interviewer and counselor I, while a black applicant who Exhibit 86, Deposition of Mary Beth Wallace, p. 7. Id., p. 8; Exhibit 80, Appendices 2 and 3. __/ Exhibit 92, Deposition of Robert Chaffin, p. 19. "[W]e would have one test that is know[n] among the people in state government as the Big Five Test . . . . If the test is passed by an applicant, it would qualify that applicant for five different jobs within state government that are jobs, for example, and I'm not sure these are included in the Big Five, like welfare worker, interviewer in Employment Security, coun selors in Welfare and Employment Security, and this sort of thing. See also Exhibit 80, Validation Studies for Job Classes in the Department of Employment Security, pp. 3-4. _/ Exhibit 86, Deposition of Mary Beth Wallace, pp. 2-8. Miss Wallace's training was in elementary education; prior to passing the tests she had taught school for a year and worked as a sales manager for Welcome Wagon, International. c? o had several years of experience assisting with referrals at TDES, and had taken 24 weeks of specialized training sponsored by TDES, was unable to do so. Test scores of successful applicants bore no comprehensible relationship to their education. Such a use of a generalized test for a variety of different positions was precisely the defect condemned in Griggs v. Duke Power Co., 401 U.S. 424 (1971) and Albemarle Paper Co. v. Moody, U.S. (1975). (2) The Department of Personnel fixed the passing score on these tests at 70, or, for the 4 digit score in Exhibit 2B, 7000, which it viewed as corresponding to the level sufficient to enable the applicant to completely perform the job at issue. The Department of Personnel believed that all applicants with such a score should, as a practical matter, be considered for each vacancy. __/ Testimony of Emma Batchlor, March 22, 1974, pp. 12-23. The term "pass" is used in the sense of scoring high enough to be considered for the job (in the top 3 or 5), not merely above 70. __/ The average testscores of successful applicants for interviewer jobs, by education, was as follows: Years of Education Average Score Less than High School Degree 7287 High School degree 7969 High School and some college 8102 College degree 7981 College degree and graduate work 7939 Exhibit 2-B. __/ Transcript of Hearing of March 29, 1974, p. 120; Exhibit 92, Deposition of Robert Chaffin, pp. 36-37. Tennessee statutes, however, require the use of a different cut-off. To be eligible for consideration for a promotion, and applicant's score must be among, or equal to, the top 3 scores of other employees seeking a promotion. If the position is to be filled by either promotion or hiring a new employee, the applicant's score must be among, or equal to, the top 5 scores. Thus the operative passing schore varies in three independent ways. First, it depends on the scores of whatever other individuals happen to be seeking the job at the same time. Thus between December, 1969, and June, 1972, the "passing" score on the interviewer test varied from a high of 9000 to a low of 7799. The employees at the top of the eligible list one month might be ineligible for the same job a few weeks later. Second, the passing score depends on what other individuals happen to be seeking the job in the same geographical area. Thus applicants who might be at the top of the eligible list if they lived in Memphis could be ineligible for the same job because they lived in Nashville. Third, when an agency such as TDES wishes to _/ Tenn. Code Anno. §§ 8-3208, 8-3209. The different rules for promotions and hires apparently derives from the whim of an irate Tennessee legislator. See Transcript of Hearing of March 20, 1974, p. 121. _/ The Manual for Test Administrators and Monitors prepared by the Tennessee State Department of Personnel, notes, "The score required to be among the top 5 applicants on a register varies considerably, depending upon the number of vacancies which are filled from the register and the number of applicants for the position. In some cases, there are so many applicants relative to the number of vacancies that scores in excess of 80 are required in many locations before an individual is likely to be considered. In other cases, particularly outside urban areas of the State, individuals obtaining scores as low as 70 may have a good opportunity for employment." P. 15, Exhibit 80. The higher standard for urban areas has an adverse impact on blacks. Blacks are over 37% of the population in the Memphis area, but only __% of the state population. Exhibit 39, p. 1. fill a vacancy, it can ask for and use either a promotion list, consisting solely of present employees, and choose among the top 3, or an "area" list including non-employees and choose among the top 5. Thus a current employee might be eligible if the first list is used but, because there were higher scoring non-employees, ineligible on the second TDES is free to ask for and use either a promotion or an area list. Even if the content of the examinations is related to job performance, the cut-off score used to determine eligibility must correspond to the skill level necessary to "perform adequately" the job at issue. Watkins v. Scott Paper Co., 530 F.2d 1159, 1180 (5th Cir. 1976). The courts have repeatedly struck down hiring or promotion procedures where the minimum standard was unjustifiably high. Thus, though height and weight are relevant to the work of police men or firemen, in the sense that a midget could not handle the job, the courts have repeatedly invalidated height and weight requirements which went beyond a level of adequacy and thus eliminated disproportionate numbers of women or Mexican-Americans. See League of United Latin American Citizens v. City of Santa Ana, 11 EPD 5 10,818, pp. 7425-27 __/ Transcript of Hearing of March 20, 1974, pp. 116-119; Exhibit 92, p. 15. In December, 1968, Mary Ann Richardson ranked 7th on the area list and 1st on the promotion list. There is also a variation in the geographic region covered by the area lists, some being denoted (Memphis) "Area," District and State. The reason for this variation is unknown. See Exhibit 45; Exhibit 92, Deposition of Robert Chaffin, pp. 24-25. __/ See also American Psychological Association, Standardsfor Educational and Psychological Tests, p. 66. w (C.D. Cal. 1976), and cases cited. Similarly, while both experience, and intelligence may bear on an applicant's ability, an employer cannot require greater experience or intelligence than is actually necessary to do the job. Afro-American Patrolmen's League v. Davis, 503 F.2d 294, 302 (6th Cir. 1974) (experience requirement excessive); E.E.O.C. v. Detroit Edison Co.. 515 F.2d 306 313 (6th 1975) (test scores cut off unnecessarily high). In Walston v. County School Board of Nansemond County, 492 F.2d 919, (4th Cir. 1974), Mr. Justice Clark condemned as arbitrary a cut-off score of 500 on the National Teacher Examination which had been established, not because it corresponded to the needed skill level, but to avoid attracting teachers who had not met a similar cut off in other school districts. 492 F.2d at 925. A fortiori a cut off score that varies cannot meet the statutory requirement. Sims v. Sheet Metal Workers, 489 F .2d 1023, 1026 (6th Cir. 1973). In the instant case there is no claim that the test is used to eliminate only those applicants who are unqualified to perform the given job. On the contrary, though the defendants maintain that any applicant scoring over 70 (7000) is in fact qualified, applicants are ineligible for consideration unless they score far higher. The use of a widely varying cut-off score that can change according to a variety of factors, none of them related to the skill of the applicant or the demands of the job, is nothing less than arbitrary capricious. If Tennessee had established a height or weight requirement for state troopers, fixing the minimum standard at whatever the 3 tallest and 5 heaviest applicants happened to stand and weigh from day to day, this Court would not hesitate to strike down such a rule. The instant variable cut-off is equally unlawful. The use of even a fixed cut-off score that purports to eliminate all but the "best qualified" has been widely condemned. Watkins v. Scott Paper Co., 530 F - 2d 1159, 1180-81, n. 29 (5th Cir. 1976). Such a use of an examination to exclude all but one, or a handful, of the qualified applicants, in volves an excessive reliance on the test expressly disapproved by the United States Civil Service Commission, see p. , infra,and the American Psychological Association. Standards for Educational and Psychological Testing, p. 61. The best professionally validated test or standard can indicate no more than whether or not a single skill is present at a leval suf ficient for adequate job performance and the fashioning of even such a test is invariably difficult and often impossible. A test or other mechanical procedure which purported to select the "best" individual or individuals from a group of eligibles would have to take into consideration all relevant factors and accord to each a numerical score and weight. A truly exhaustive list of relevant considerationswould often be virtually endless. Most relevant human traits, unlike typing speed, cannot be _ /assigned a numerical value in any meaningful manner. And no __/ This problem is well illustrated by the defendant's method of quantifying education for certain scores. Each year of high school is worth 10 points, each year of college 36 points, a bachelor's degree is worth 2 points and a master's 3. No con sideration is given to the applicant's grades or major or the scientific method now or ever likely to be known to man would provide a basis for assigning relative numerical weights to education experience, dedication or compassion. Relative rankings on a test of a specific skill may well provide assistance to the employer in making an employment decision, but a test which purported to make that decision _ /for him would be inherently incapable of validation. (3) Title VII forbids the use of a test or other selection procedure, even if job related, it it establishes a standard of eligibility that was not in fact applied to and met by all white applicants in the past. Section 1607.11 of the E.E.O.C. Guidelines on Employment Selection Procedures expressly condemn the use of such new standards. continued school attended. Thus an applicant who attended junior college for 5 years and never graduated would outrank one who graduated at the top of his class at the University of Michigan after 4 years. See Exhibit 80. __/ In Commonwealth of Pennsylvania v. Flaherty. 11 EPD f 10,624 (W.D. Pa. 1975), the court noted that " [Wjhile the content of the test 'has been shown to be job related, there is no evidence that a higher score on the test is any better measure of successful performance of the duties of a police officer than a lower score." P. 6602. w c This Court disapproved the application to blacks of standards more stringent than met by existing white employees in Sims v. Sheet Metal Workers, 489 F.2d 1023, 1026 (6th Cir. 1973). Such an increase in standards is inherently discriminatory in and of itself, and, since whites who do not meet the new standard are already performing satisfactorily the job at issue, conclusively demonstrates that the test is not required by business necessity. Stamps v. Detroit Edison Co., 365 F.Supp. 87, 118 (S.D. Mich. 1973). The cut-off score now required for applicants for appointment as a TDES interviewer is substantially higher than those in the past. During the most recent six month period for which lists of eligibles were provided, the minimum score for an interviewer was 8700; among the more than 40 interviewers now employed by TDES in Memphis only 4, all white, could have met this standard. Among the 14 white interviewers promoted prior to 1964 the average test score was 7867; none of them could have met the standard being applied in 1972. Moreover, the test for interviewers has changed significantly in recent years. Prior to 1964, and for an undetermined number of years thereafter, the "test" for interviewers was a combination of a written test and a score based on education and experience. The written test accounted __/ Exhibit 45, Requests Nos. 7907, 8203, 7828, 8377, cover the period from June to December, 1972. _/ Exhibit 2-B. These S for half of the score and education and experience for the rest. At some later date, not revealed by the record, the interview test was made entirely written. Virtually all other jobs at TDES are based, at least in part, on ex perience and education. Prior to 1964 a substantial majority of all interviewers were drawn from lower ranking jobs at TDES, a pattern readily attributable to the nature of the test. Since TDES at that point was segregated, the pool of employees at the Prospect Avenue office which most _ /promotions were made was all white. But by 1970 the pool of employees at TDES below the rank of interviewer was over 50% black. At that point TDES altered its previous practice and began to hire virtually all its interviewers from outside the agency. This was accomplished both by excluding experience as part of the interviewer test and by using area rather than promotion lists. In jobs above See Exhibit 80, Appendix 2. See Exhibit 6. __/ Exhibit 2-B. Among the 18 TDES interviewers originally appointed as interviewers prior to 1964, 13 had held lower jobs at the agency. See p. , supra. __/ Among the 18 TDES interviewers named to that position since 1970, only 3 had previously held any position with the agency. Exhibit 2-B. See Transcript of Hearing of March 20, 1974. __/ See Exhibit 45. interviewer experience continues to be a , and often the critical, factor in selection, but the use of area lists based on a purely written test prevents blacks from ac quiring the needed experience at the entry level interviewer position. This change in the nature and use of the test effectively cut off to lower ranking black employees the opportunity to promote to interviewer and above which had long been enjoyed by whites. (4) Even if the written tests employed by TDES were job related, their use would still be unlawful if other "selection devices, without a similarly undesirable racial effect, would also serve the employer's legitimate interest in 'efficient and trustworthy workmanship'". Albemarle Paper Co. v. Moody, U.S. , , (1975); Officers for Justice v. Civil Service Commission, 11 EPD 5 10,618, pp. 6576-78 (N.D. Cal. 1975). In the instant case such an alternative selection procedure was both familiar and of proven effectiveness — promotion of experienced lower level personnel into positions as interviewers and up the line of progression to higher paying jobs. This alternative was well known to the management at TDES; of the 20 supervisory personnel, 10 had begun at TDES below the rank of interviewer, working as clerks, typists, or interviewing clerks. The jobs of lower ranking, and largely black, personnel clearly provide experience and skills in the day- to-day operators of TDES which no outside applicant could Exhibit 2-B, pp. 6-8. possess. Interviewing clerks work with and under the supervision of interviewers,assisting applicants, helping to conduct aptitude tests, and, when necessary, "taking orders for job placements from employers, interviewing, coding, and referral of applicants, and supervising other personnel." Employment agents assist interviewers and other professional staff in a variety of ways, advising applicants on the nature of the TDES programs and collect- _ /ing information on applicant training and needs. The employment agent positions were established with a federal grant for the express purpose of providing on-the-job and other training to individuals who could not meet the usual testing requirements, so that they could be promoted into higher skill jobs. Since 1970, however, only 2 interview ing clerks have been promoted into interviewer jobs; although interviewer clerk is now a predominantly minority job with only 1 white to 5 blacks, both the promoted interviewing clerks were white. No employment agent has ever been pro moted to a position as an interviewer, counselor, employer relations representative, or supervisor. __/ Exhibit 6(a). __/ Id. Transcript of March 20, 1974, p. 93. Exhibit 2-B. __/ The only job into which employment agents have been promoted is typist. Id. A This unexplained abandonment of the past practice of internal promotion was clearly unlawful. The sole defense suggested by the defendants to these discriminatory practices was an assertion that Tennessee officials, although wishing to authorize consideration of any applicant with a score over 70, had been advised by unnamed officials of the United States Civil Service Commission that they must continue to use the variable top 3-5 cut-off rule. The District Court properly attached no significance to this purported defense. The alleged direction from the Civil Service Commission officials was inadequate to explain the use of unvalidated tests, the alteration of the interviewer test, or the abandonment of in-office promotions. Moreover any such direction by a Civil Service official clearly was neither authorized nor binding. The Intergovernmental Personnel Act of 1970, U.S.C. § , which gives the United States Civil Service Commission limited authority over federally funded state agencies, authorizes the Commission to "issue such standards and regulations" as are necessary to carry out the statutory purposes of the Act. Those purposes include selecting and advancing employees on the basis of their ability and "assuring fair treatment of applicants and employees in all aspects of personnel administration without regard to political affiliation, race, color, national origin, sex, or religious creed." U.S.C. Neither the __/ Transcript of Hearing of March 20, 1974, pp. 120-121; Exhibit 92, Deposition of Robert Chaffin, pp. 9-10. statute nor the regulations issued thereunder, 5 C.F.R. §§ 900, et seq., require a state agency to refuse to con sider for promotion qualified applicants who do not fall in the top 3 or 5 or any other group on a test. The Com mission’s Guidelines for Evaluation of Employment Prac tices (1974), expressly warns against such excessive reliance on tests. Tests, like any other measure, should be used as only one indicator of com- petance . . . . In the final analysis, selection from a number of job applicants is a matter of judgment based upon all the information about the applicant's qualifications relative to the job re quirements . You must remember to look at the whole individual, not just one specific characteristic. 5 5(b)(1). The Guidelines enunciate a strong preference for promotion on the basis of on the job performance. The Commission's Guide for Affirmative Action (1972) urges that, Career ladders be established whenever possible to permit movement of capable lower level employees to positions of greater responsibility as the employees develop. The system should be designed so that unnecessary barriers do not impede the progress of clerical or other nonprofessional employees who are capable of performing at a higher nonprofessional level or at the technical or professional level. P. 3. This is precisely the sort of promotional opportunity that has been eliminated at TDES over the last decade. Although the defendants urged that the 70 cut-off was appropriate to distinguish between applicants who were and were not qualified to perform a given job, they made no claim that differences in test scores above 70 bore any re lation whatever to the comparative abilities of qualified applicants to perform that job. Under such circumstances the Civil Service Commission regards the use of relative rankings as improper. The Commission's Memorandum on Federal Policy on Remedies Concerning Equal Employment Opportunity in State and Local Government Personnel Systems states: The terms "less qualified" and "better qualified" as used in this memorandum are not intended to distinguish among persons who are substantially equally well qualified in terms of being able to perform the job successfully . . . . In some job classifications . . . many applicants will possess the necessary basic qualifications to perform the job . . . . The selection procedure should be as objective and job related as possible, but until it has been shown to be valid for that specific purpose, it must be recognized that rank ordering does not necessarily indicate who will in fact do better on the job. Exhibit 19, pp. 4-5. Under the undisputed facts of this case the use of the vary ing cut-off rule was clearly contrary to Commission policy. _/ Indeed, the desire of the Department of Personnel officials to use only the 70 figure as a cut-off suggests they held the contrary view. _/ Admittedly policies stated in such memorandum and publications are of less force than formal regulations. The informal advice of Commission officials is of no legal significance. Of course, in the event of a conflict between Commission policy or regulations and the strictures of Title VII, the latter must prevail. ~L< t Since the adverse impact of the defendants' test was not disputed, the burden was on the defendants to establish that the tests had "a manifest relation to the employment in question." Griggs v. Duke Power Co., 401 U.S. 424, 432 (1971); Albemarle Paper Co. v. Moody, U.s. , (1975). "The Equal Employment Opportunity Act of 1964 is concerned with the consequences of employment practices, and a test which is designed and intended as a neutral measure of job—related skills and knowledge may violate the Act if its actual use furthers racial discrimina tion." Sims v. Sheet Metal Workers, 489 F.2d 1023, 1026 (6th Cir. 1973). The defendants thus were required to show that their tests were "demonstrably a reasonable measure of job performance." Griggs v. Duke Power Co., 401 U.S. 424, 436 (1971); Douglas v. Hampton, 512 F.2d 976, 984-85 (D.C. Cir. 1975) . The defendants, however, offered no evidence whatever to establish that their tests were in any way job-related. / The Defendants 1 Proposed Findings of Fact and Conclusions of Law was silent on this issue. _/ This appears to be a regrettably common problem among state and local governments. In 1975 the United States Commission on Civil Rights noted that "A 1970 National Civil Service League survey of the state of the art of civil service showed that almost no civil services had ever validated any, selection process to determine if, in fact, there was a direct relationship between test results and job performance. The Federal Civil Rights Enforcement Effort — 1974 V.5. To Eliminate Employment Discrimination, p. 179, n. 552. Although the defendants had a full thirteen months to prepare their defense after the March,1974 hearing at which the plaintiffs' case-in-chief was presented, the evidence adduced by the defendants at the April, 1974, hearing dealt solely with the question of discrimination in referrals. A report prepared by the defendants in 1973 indicated a study was being prepared of the validity of some of the tests for the _ /jobs in question, but no validation studies were ever sub mitted. In a 1973 deposition the Director of Intergovernmental and Employee Relations for the Department of Personnel stated that "we have not been completely satisfied with the validity of some of our tests," and that the Department had hired a testing expert to head a group of 17 to inquire into the validity of the Department's tests, but no evidence was ever offered as to the progress or results of this inquiry. _/ Exhibit 80, portion entitled "Validation Studies for Job Classes in the Department of Employment Security." Re garding the tests for interviewer and employment counselor I positions, the report stated that the design for the study was "not complete" and that there was no target date for completion of the study itself. P. 3. The design for a study of the tests for supervisory positions was still in complete, and no target date established for the study itself. P. 4. No validation study was apparently contem plated for the positions of employer relations representa tive or employment counselor II and III. Id. _/ The District Court, in its opinion of September 25, 1975, noted that "Validation studies in connection with these tests were being made at time of trial." P. 10. Since the defendants had made no effort to validate the tests whose adverse impact on minorities was acknowledged, Griggs and Moody required that the further use of those tests be enjoined. The failure of the District Court to enjoin the disputed tests in compliance with Griggs and Moody was neither excusable nor intelligible. Judge Welford acknow ledged the adverse impact of those tests, the failkre of the defendants to validate the tests, and " [n]eed for improvement . . . in the positions of manager, interviewer and ERR." The District Court's refusal to act appears to have rested in large measure on its belief that the tests _ /had not been deliberately designed to exclude blacks; the Supreme Court in Griggs, however, expressly rejected the contention that the use of a test was only unlawful if the test were devised or employed with an intent to discriminate. 401 U.S. 424, 432. The District Court also expressed a hope Memorandum Opinion, September 25, 1975, pp. 4, 15. __/ Id., pp. 15 ("There was no bad faith indicated by TDES with regard to black employment opportunities following a seasonable opportunity to comply with the provisions of Title VII enacted in 1964."), 17 ([It has not in any event, been demonstrated that blacks have been, for racial reasons, de liberately or by design omitted or eliminated from qualified eligibility lists by any of the defendants.") __/ "[G]ood intent or the absence of discriminatory intent does not redeem employment procedures or testing mechanisms that operate as 'built-in headwinds' for minority groups and are unrelated to measuring job capability. . . . Congress directed the thrust of the Act to the consequences of employment practices, not simply the motivation." "l/Mr that the defendants would take voluntarily action to so modify the test procedure as to give blacks an opportunity to advance into positions from which they had previously been excluded; such a hope, no matter how well founded, cannot relieve a federal court of its responsibility to enjoin unlawful conduct. On the admitted facts the use of the tests for the positions of interviewer, manager and employer rela tions representative, was in clear violation of Title VII; the District Court should be directed on remand to prohibit the use of those tests and to fashion an appropriate non- discriminatory procedure for filling vacancies in those positions. _ J Id., pp. 16-17 ("The court would hope and expect that state civil service procedures might be liberalized so as to afford still greater opportunities to qualified state employees of TDES to advance and to be hired in the first instance). _/ in this case it was entirely without foundation. Although this action had been pending for six years when it was finally decided by Judge Welford, the defendants had not modified in any manner the disputed selection process. The proportion of blacks hired since 1970 as managers, interviewers, and employer relations representa tives (8.3%) was lower than the proportion of blacks in those jobs prior to 1970 (9.7%). III. THE DISTRICT COURT ERRED IN FAILING TO DIRECT THE DEFENDANTS TO TAKE EFFECTIVE ACTION TO DISCOVER, AND WITHHOLD SERVICE FROM, EMPLOYERS WHICH ENGAGE IN UNLAWFUL DISCRIMINATION Title VI of the 1964 Civil Rights Act prohibits any form of racial discrimination in federally assisted programs. The Department of Labor specifically prohibits any discrimination on the part of federally assisted em ployment services. 29 C.F.R. part 31. The Department's implementing instructions absolutely forbid a state employ ment service to make referrals to or assist any employer which engages in discrimination. The Memorandum of the Solicitor provides: Making selections and referrals, even on a non-discriminatory basis, on any orders placed by employers who discriminate is a violation. No referrals of any kind can, therefore, be made to an employer who wont hire minorities in any particular jobs, or to employers who discriminate in any of their employment practices. Exhibit 18 57. Section 1294 of the Federal Employment Security Manual similarly admonishes: It is a violation of title VI of the Civil Rights Act and its implementing Regula tions (29 C.F.R. part 31) for the State employment security agency to refer an applicant to an employer who the State knows or has reasonable grounds to believe is engaged in discriminatory employment practices. . . . It does not matter that __/ "No person in the United States shall, on the ground of race, color, or national origin, be excluded from par- tocipation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance." the local office makes the referrals on a non-discriminatory basis to such employers, nor does it matter that the employer may only have discriminatory employment practices in certain jobs. Local offices are prohibited from serving such employers in any manner. Exhibit 16, p. 1294. The Complaint alleged that the defendants had continued to provide services to discriminatory employers and had failed to comply with the procedures mandated by section 1294. The undisputed evidence in the court below revealed that the TDES enforcement program consisted of little more than soliciting an unsubstantial promise of nondiscrimina tion from employers who had expressly asked for referrals of a particular race or sex. Section 1294 provides that an interviewer must refuse to accept a job order which contains _ vsuch a discriminatory specification. At TDES, however, interviewers will accept such orders, but are instructed to bring them to the attention of the Director of the Employer Services Unit. This procedure is preferred by TDES because it is "tactful" and keeps down "misunderstanding and irritation." If such a report were made to the Director the employer would be placed temporarily on a controlled list and further handling of its job orders would be temporarily suspended. Thereafter one of the employer relations representatives, all of them white, would confer with the employer about the problem caused / Complaint, V(h) and (i) __/ Exhibit 16, p. 1294 (2) . __/ Transcript of Hearing of March 20, 1974, pp. 181-200; Exhibit 90, Deposition of George Murphy, pp. 25 et seq. by the request. To remove his name from the control list and assure renewed processing of his job orders the employer need only withdraw the discriminatory order and promise orally not to discriminate. Although the Federal Employment Security Manual requires a vigorous and detailed scrutiny of the subsequent behavior of employers who have filed discrimina tory orders, the Directors of the Employment Services Unit conceded there were "only one or two cases where we have done Then Mr. Murphy or someone might go out and the employer says 'Well, I won't do that any more,' or something, and, then, he gets put back on or gets taken off the controlled list, in other words? Yes. " Exhibit 91, Deposition of Charles Radford, p. 79, "A: . . . The employer calls back further on and tells our visiting man 'I didn't understand, and I know it is a violation of the law, and so forth,' and then we re-instate him." Exhibit 81, Deposition of Leland Dow, p. 14, "A: Well, we ask them for their stand on the matter . . . and we explain the attitude he should have so far as the law is concerned. In most cases, certainly the larger companies, they say, oh, yes, that is quite right. We are sorry for that. This was not meant to be, and we'll straighten the matter out . . . . "Q: Okay. So, after you reserve the statement, quote, 'We'll straighten the matter out,' does that close the case? "A: Yes." Transcript of Hearing of March 20, 1974, pp. 189-190. See also id. 195; Exhibit 89, Deposition of George Murphy, p. 44. _ J Exhibit 16, pp. 1294 (2), (3), (6)-(8). 3 intense investigation." An employer would only be permanently refused service if it obstinantly refused to withdraw its dis criminatory job order; nor surprisingly agency officials were able to recall no more than two or three instances in which that had occurred. The attitude of TDES officials towards complaints by applicants of employer discrimination was at best equivocal. A typical white counselor testified that such grievances would be disregarded. q ; . . . Do you ever have people who come and say 'I have been trying to get any kind of job, and X can't because of my race? Have you ever had any of those kind of situations? A: I guess they want some specific thing, and they may complain some employer won't hire them because of it. Q: Because of their race. What do you do in those situations? A: There isn't anything I could do about it. Transcript of Hearing of March 20, 1974, p. 192. Id., p. 187. Exhibit 89, Deposition of George Murphy, 49, 60, 63. pp. 30, 34, Q: You don't make any contact with the employer? A: It depends on whether — I don't investigate these things. That would be something for the N.A.A.C.P. [sic] or some other organization." The TDES Equal Employment Opportunity representative explained that, although there were signs in the Memphis office announcing that discrimination was unlawful, he had directed that neither his name nor that of other local officials be placed on the posters as the appropriate persons to contact about a complaint of discrimination, explaining that he "was getting complaints sufficiently enough". The Director of the Employer Services Unit, who is responsible for assuring no service is provided to discriminatory employers, stated he was unaware of any procedures to advise applicants that they can or should report instances of employer discrimination to TDES. Section 1294 expressly contemplates that information regarding discrimination by employers served by a state employ ment service can and should be obtained from "public and private _/ Exhibit 83, pp. 33-34. See also id., pp. 36-37. The witness explained that she would report only discriminatory job orders, but not a complaint by a mere applicant. Exhibit 88, Deposition of Raymond Neal, p. 26. Transcript of Hearing of March 20, 1974, p. 183. Id., p. 194. organizations or individuals, State and local fair employment practice agencies, or reports of agencies responsible for enforcing non-discrimination, such as the DHEW Status of Title VI Compliance Interrogatory Report." Although E.E.O.C. officials contact TDES at least once a week to obtain informa tion on employers under investigation by the Commission, such an investigation does not result in a similar inquiry by TDES, and TDES does not solicit from the local E.E.O.C. office the identity of employers the Commission believes guilty of dis crimination. It is the clear policy of TDES to take no action if an employer uses a test or other selection procedure which violates Title VII. The Director of the Employer Service Unit explained that employer testing "is not our province and we don't make any particular study of what they do before accepting the applicant." The Assistant Manager of the Memphis office states that it was not the policy of his office to determine the validity of tests used by employers served by TDES. He Exhibit 16, p. 1294(2). _/ Exhibit 88, Deposition of Raymond Neal, pp. 65-66; Exhibit -89, Deposition of George Murphy, p. 28; Exhibit 91, Deposition of Charles Radford, pp. 123-24. It is the policy of TDES not to notify E.E.O.C. if it learns that an employer is engaging in discrimination. Hearing of March 20, 1974, p. 197; Exhibit 89, Deposition of George Murphy, pp. 42, 62-63. This is clearly contrary to § 1294. See Exhibit 16, p. 1294(5). _/ Exhibit 89, Deposition of George Murphy, p. 65. Exhibit 91, Deposition of Charles Radford, p. 26. noted that employer relations representatives would inform a company that "if they did use their own tests, they were leaving themselves wide open for possible suit in the future," but explained that the representatives would conduct no in vestigation of those tests because "we are not a police agency at all." When a TDES investigation of an employer who apparently rejected disproportionate numbers of females revealed that this was due to the use of a test, the inquiry was ended. In the early 1970's, at the direction of the Department of Labor, TDES discontinued its practice of using tests to screen applicants for certain positions because the Department had found the tests were not job related. Shortly thereafter the employers instituted there own tests to screen applicants for those jobs; although this was well known to TDES officials, no inquiry was ever conducted into the validity of these new tests. This acknowledged policy of serving em ployers regardless of whether they used illegal tests was clearly Id., p. 25. _/ "[w]e found that they were, they were following their own rules and testing procedures, and this accounted for what appeared to us to be some sort of discrimination, and they convinced us that ti was not discrimination because of sex, but, that people were being eliminated because of the test they had, which we had no control over." Hearing of March 20, 1974, p. 192. _/ Ehibit 89, Deposition of George Murphy, pp. 64 et seq Exhibit 91, Deposition of Charles Radford, pp. 5-28. 1 unlawful. Section 1294 prohibits service to an employer who discriminates in any manner, and the Solicitor's Memorandum expressly disapproves service to an employer which sets job specifications "which are not necessary to performance" and which have an adverse impact. Although the District Court was well aware that TDES1 alleged failure was one of the primary issues at the class action hearings, the court inexplicably failed to decide that issue. The court's September 25 opinion notes the existence of severzl of the problems noted above, including the failure to scrutinize employer tests or to notify E.E.O.C. of instances of discrimination. Aside from these brief des criptions, however, the opinion is entirely silent on this issue. Since the record demonstrates a systematic and in excusable failure on the part of TDES to comply with Title VI, this aspect of the case should be remanded to the District Court with instructions to fashion appropriate injunctive relief. Adams v. Richardson, 480 F.2d 1159 (D.C. Cir. 1973). __/ Exhibit 18, p. 12, § 6. __/ See Memorandum Opinion, September 25, 1975, p. 2. IV. THE DISTRICT COURT ERRED IN DISMISSING PLAINTIFF'S INDIVIDUAL CLAIM (a) The Absence of Specific Findings Certain basic facts regarding plaintiffs individual claim are not in dispute. On February 18, 1969, Mildred Ewing, then a counsellor at TDES, received by telephone a job order from R.C.A. for a position entitled "Traffic Analyst The job requirements, as related to Mrs. Ewing by Mr. Robert Phillips of R.C.A., included a minimum of two years of college and an age limit of 27-35 years. These requirements were duly recorded on the TDES order form, Exhibit 33. The job was given the DOT code 184 x 168, the "x" indicating that a trainee was acceptable. Id. At a later date in February Mrs. Ewing, after reviewing her files, selected Mr. Robert G. Smith, a white male, for possible referral. Mr. Smith was then living in indiannapoli and had never filled out a TDES referral application, but had submitted a resume. Smith had never been given a DOT code. Mr. Smith's previous experience was as a supervisor in a food company and, earlier, as a warehouse manager. Mr. Smith had never indicated any specific interest in shipping or traffic jobs, and there was no evidence that he had ever attended college. Mrs. Ewing nonetheless believed Mr. Smith was qualified and called Phillips to suggest he be interviewed. Phillips stated he was not interested in interviewing Smith. On or about March 20, 1969, Mrs. Ewing mailed to R.C.A. the resume of Marvin Avnet, also a white male. Mr. Avnet was then 44 years old, 9 years over the R.C.A. limit, and was coded for a different position, DOT 184.118. Mr. Avnet had never attended college, thus failing to meet another R.C.A. requirement. Mr. Avnet was then employed as an office manager at a firm not connected with shipping. His last experience in shipping was from 1958 to 1961 at Kelly Air Forde Base in Texas. Mr. Phillips subsequently indicated he was not interested in interviewing Avret. On March 7, 1969, after hearing a radio advertisement about this job placed by TDES, plaintiff called TDES and asked to be referred. Because the college plaintiff had attended was well known to be an all-black institution, and because plaintiff reported having heard about the job on a radio station catering primarily to black listeners, Mrs. Ewing could not have failed to know plaintiff's race. After inquiring about plaintiff's education and background, Mrs. Ewing refused to refer him on the ground that he was unqualified. Mrs. Ewing advised that plaintiff lacked sufficient experience in shipping. Plaintiff asked that he be referred anyway so that he could try to convince the employer, whose name Ewing declined to disclose, that he could do the job. Ewing persisted in her refusal but agreed to meet with plaintiff at the TDES office on March 11. __/ See Exhibit 32-36; Hearing of March 22, 1974,10-38. pp. On March 8, 1969, plaintiff went to the TDES and obtained a referral application, which he took home and filled out. On March 10, 1969, plaintiff went to the TDES office to meet with Mrs. Ewing. Mrs. Ewing was apparently out to lunch, and plaintiff was referred instead to Mrs. Sarah Askew, Mrs Ewing's supervisor. Mrs. Askew examined plaintiff's application and the job order and refused to refer plaintiff to the job on the ground that he was unqualified. She refused to disclose the identity of the prospective employer on the ground it was the policy of TDES not to reveal the names of employers to un qualified applicants. Plaintiff persisted in asking for a referral, and asked whether Mrs. Askew was refusing to refer him because of his race. Thereafter Mrs. Askew purported to make a telephone call to Mrs. Phillips, who allegedly advised her the job had already been filled. Plaintiff believed this telephone call and asked Mrs. Ewing, who had by then returned from lunch, to call the employer. Mrs. Ewing refused. The disputed job at R.C.A. was eventually filled by Bert Fletcher, a white male who learned of the opening through a newspaper advertisement placed by R.C.A. itself. The actual responsibilities of Mr. Fletcher were those of a trace clerk, keeping track of shipments in transit, expediting shipments, __/ See Exhibits 35,36; Transcript of Hearing of March 20, 1974, pp. 35-132; Transcript of Hearing of March 22,1974, pp. 10-80. /u i and locating shipments which had gone astray. His work "didn't really have anything to do with rates," although this was apparently part of a program of on-the-job train ing for work as a traffic assistant. The R.C.A. plant closed in 1970, and Fletcher never did any work other than _ / tracing. Fletcher's previous experience had been calculating _ /rail rates for a grain company; plaintiff's TDES application revealed his prior experience including management of a major air freight terminal, with 20 subordinates, supervising the shipment of cargo worldwide via both military and civilian _ / shippers. No claim was made below that plaintiff was unqualified, or less qualified than Fletcher, for the job which Fletcher actually performed. The defense asserted by Ewing and Askew was that they, as well as Phillips, had misunderstood the position involved to be primarily concerned with analysing traffic rates, and to require substantial and recent experience with and knowledge of the air, rail and truck rates in the Memphis area. This, they asserted, was why they believed plaintiff was unqualified. Although neither Smith nor Avret were qualified by this standard, Ewing insisted she only learned of this requirement after she had attempted to refer them. Plaintiff asserts that this defense is a mere / Exhibit 78, Deposition of Bert Fletcher, pp.15-18. / Id. p.6 / Exhibit 31. pretext, and that defendants refused to refer him to the R.C.A. _ / job because of his race. The evidence in the District Court thus presented three critical factual questions: (1) Did Mrs. Ewing refuse to refer plaintiff because of his race, or because she believed that he was unqualified? .(2) Did Mrs. Askew refuse to refer plaintiff because of his race, or because she believed that he was Of unqualified? £,(3) Was the R.C.A. position filled prior to either March 7, 1969, when plaintiff first inquired about it, or on March 10, 1969, when the defendants ¥ \ allegedly learned it was filled. - ̂ ^The District Court's opinion is devoted largely to a summary of the facts not in dispute. While the District Court apparently concluded that the job was filled on March 4, 1969, it made no specific findings of fact on the first two questions. A resolution of these issues by the District Court is especially necessary in light of the inconsistences in the defense testimony. Mrs. Askew testified she believed plaintiff un qualified because the words "heavy experience in rates "allegedly appeared on the job order, "which, from working with R.C.A., we / / Exhibits 35 and 36; Hearing of March 22, 1976, pp.26-35, 46-65. / Order of December 20, 1974. _ /knew they meant local rates." But Mrs. Ewing, who claimed to have written those words, understood them otherwise, since _ / she referred a white whose shipping experience was in Texas. There were substantial differences in the statements which Askew,and Phillips gave the E.E.O.C. in 1969, and then testimony in 1974. In 1969 Askew said that when she called R.C.A. Phillips told her _ / the job was still open; in 1974 she testified Phillips told _ /her the opposite. In 1969 Phillips said he could not remember any call from Mrs. Askew about Mr. Shipp, and believed Shipp _ /would have been qualified for the job. In 1971 Phillips told counsel for defendants he believed Shipp was unqualified, but said no _ / thing about the job being filled prior to the Askew call; in 1974 Phillips recalled the Askew conversation in great detail, was certain the job had already been filled, and was ambiguous about _ /plaintiff's qualifications. / Hearing of March 22, 1974, p.46, 65-66 / Id., pp. / Exhibit 35 / Hearing of March 22, 1974, pp. / Stipulation of Rebuttal Testimony, pp. 1-2. / Exhibit 38 / Hearing of March 22, 1975 pp. 80-114. / The District Court's failure to make findings of fact on the central disputed facts of the case, not required by Rule 52(a), is reversible error. "Where the trial court fails to make findings, or to find on a material issue, and an appeal is taken, the appellate court will normally vacate the judgment and remand the action for appropriate findings to be made." 5A Moore's Federal Practice, 552.06 [2]; see United States v. Claycraft Co. 408 F.2d 366 (6th Cir. 1969); McClanahan v. Mathews,440 F.2d 320 (6th Cir. 1971). The conclusory statement that plaintiff had "failed to demonstrate _ /prejudice or discrimination" is inadequate, for it discloses neither the factual nor legal bases of the conclusion and is to general to permit meaningful appellate review. It is of course possible that the District Court reached this conclusion because it believed the job had been filled by March 4 and that plaintiff could not have gotten the job regardless of the intent of Ewing and Askew. The District Court apparently believed that specific findings as to the intent of Askew and Ewing was un necessary because, even if their actions were racially motivated, plaintiff would not be entitled to back pay under Title VII because, unknown to the defendants, the job in question was already filled on the dates when they refused to refer him because he was allegedly unqualified. [Id., pp. 4-5]. While these circumstances might preclude an award of back pay, they would not preclude an award of punitive damages under 42 U.S.C. §1981. Johnson v. Railway Express Agency, U.S. -- C-*—•s'Sr'ioA- v~ , / n. 7 -/ Order of December 20, 1974, p.4. tx* (197 ) Sfe V77. In a case where an employment service, unaware that a job has already been filled, refuse to refer an applicant on account of race, such punitive damages would seem the appro priate remedy. Since the complaint alleges that this is, at the least, such a case, and the District Court failed to make findings of fact on the disputed facts, the order of dismissal should be reversed. (b) The Class-wide Discrimination After the conclusion of the March, 1974 hearing the District Judge indicated his intention to resolve plain tiffs individual claim only in the light of his ultimate conclusions as to the claim that the defendants had system atically discriminated against blacks. In December, 1974, however, the District Court, without affording counsel any prior notice or an opportunity to proposed findings of fact and conclusions of law, entered sua sponte an order dismissing the individual claim. Had no further action been taken on the individual claim, the December 20, 1974, decision would re quite reversal because it expressly and necessarily disregarded the evidence of systematic discrimination, and because thepro- cedures followed were inherently unfair. In its September 25, 1975, order, however, the District Court summarily reaffirmed its previous decision in the light, inter alia, of its con clusion that there had been no systematic discrimination. Hearing of March 22, 1975, pp. 129-130. Memorandum Opinion, September 25, 1975, p. 17. While the 1975 decision may have rendered moot the defects of the 1974 order, the later decision suffered from an equally serious defect, for it rested on an erroneour view of the discriminatory nature of the defendants1 general practices . The central issue underlying the events of 1969 was whether the defendants had refused to refer plaintiff to the position at R.C.A. because of his qualifications or because the job was filled, or whether these reasons were merely a pretext used to cloak a decision based on plain tiffs race. Whether the reasons advanced by an employer to justify his conduct were in fact the basis for that con duct, or were a pretext to hide more sinister motives, can rarely be assessed without reference to the company's "general policy and practice with respect to minority employment". McDonnell Douglas Corp. v. Green, 411 U.S. 792, 804-05 (1973). That is particularly so in a case such as this where there is a dispute as to both the qualifications for the job and the qualifications of the applicant, and the assessment of both is necessarily subjective and flexible. In Franklin v. Troxel Manufacturing Co., 501 F.2d 1013 (6th Cir. 1974), the District Court, examining the disputed employment decision in isolation, had dismissed the action of the individual plaintiff. This Court reversed for a new trial in light of the company's history of discrimination and McDonnell Douglas. 501 F.2d at 1015-16. CONCLUSION For the above reasons the decisions of the District Court of December 20, 1974 and September 25, 1975, should be reversed, and the case remanded with instructions to fashion appropriate relief for the class claims, and to make new findings on the in dividual claim. Respectfully submitted, WILLIAM E. CALDWELL .520 Woodward Bldg. 733 Fifteenth Street, N.W. Washington, D.C. 20005 JACK GREENBERG ERIC SCHNAPPER Suite 2030 10 Columbus Circle New York, New York 10019 ELIJAH NOEL, JR. Ratner, Sugarmon, Lucas & Salky 525 Commerce Title Building Memphis, Tennessee 38103 Attorneys for Plaintiffs-Appellants Average Rates By Occupation Group Occupa tion Group Description White Male 0-1 Professional, technical and managerial $3.42 (774) 2 Clerical & Salas 2.74 (736) 3 Service 2.20 (230) 4 Fanning, Fishery and Forestry 2.61 (7) 5 Processing 2.60 (88) 6 Machine Trades 2.84 (501) 7 Bench Work 2.62 (134) 8 Structural Work 2.92 (917) 9 Miscellaneous 2.43 (1338) Total $2.77(4725) Black Male White Female Black Female $2.86 (450) $3.01 (73) $2.25 (164) 2.42(1228) 2.39 (962) 1.99(1498) 2.00(1650) 1.51 (166) 1.53(4021) 2.14 (11) - 2.88 (1) 2.42 (308) 2.00 (14) 1.95 (68) 2.40 (864) 2.30 (19) 2.30 (171) 2.37 (441) 1.95 (104) 1.92 (697) 2.51(1071) 2.08 (8) 1.75 (29) 2.24(5151) 1.95 (61) 2.37 (332) $2.32(11174) $2.26(1407) $1.74(6981) Average Rate Differential Between White and Black Workers Occupation Group Description Male Differential Female Differential Total Differentia 0-1 Professional, technical and management $0.56 $0.76 $0.69 2 Clerical & Sales 0.32 0.41 0.36 3 Service 0.20 -0.2 0.24 4 Farming, Fishery and Forestry 0.47 - 0.40 5 Processing 0.18 0.05 0.17 6 Machine trades 0.44 0.43 7 Bench Work 0.25 0.03 0.23 8 Structural Work 0.41 0.33 0.43 9 Miscellaneous 0.24 -0.42 0.11 Total $0.45 $ 0.52 $0.54 1/Allocation of Work Force D.O.T. First Digit White Males Black Males White Females Black Females Highest paid category 16.3% 4.0% 5.1% 4.7% Second highest 19.4% 9.5% 68.3% 1/ 2.3% Second lowest 28.3% 46.1% 5.9% 0.4% Lowest paid category 4.8% 14.7% 11.7% 57.5% 1 / Category 4 is excluded because of the insignificant number of referrals involved. 2/ This is an average of categories 7 and 9. Allocation of Work Force O c c u p a t i o n G r o u p W h i t e M a l e B l a c k M a l e W h i t e M a l e B l a c k F e m a l e 0 - 1 1 6 . 4 % 4 . 1 % 5 . 1 % 2 . 3 % 2 1 5 . 6 % 1 0 . 2 % 6 8 . 5 % 2 1 . 5 % 3 4 . 8 % 1 4 . 9 % 1 1 . 8 % 5 7 . 6 % 4 0 . 2 % * i—1 •o 0 0 5 1 . 9 % 2 . 9 % 1 . 0 % 1 . 0 % 6 1 0 . 7 % 7 . 8 % 1 . 3 % 2 . 4 % 7 2 . 3 % 4 . 0 % 7 . 4 % 1 0 . 0 % 8 1 9 . 5 % 9 . 7 % 0 . 6 % 0 . 4 % 9 2 8 . 5 % 4 6 . 3 % 4 . 3 % 4 . 8 % 1 0 0 . 0 % 1 0 0 . 0 % 1 0 0 . 0 % 1 0 0 . 0 % Allocation of Trainees Distribution of Trainees DOT Description Average Wage All Referrals WhiteMale Black Male White Female Black Female Group 0-1 Professional, etc. $3.09 8.3% 3.6% 5.2% 2.4% 2 Clerical & Sales 2.32 32.7% 14.2% 77.9% 40.7% 3 Service 1.68 7.8% 14.9% 7.4% 29.6% 4 Fanning, etc. 2.34 0.1% 0.02% 0 0.2% 5 Processing 2.37 3.0% 6.4% 0.4% 9.7% 6 Machine Trades 2.52 6.0% 6.9% 2.0% 3.1% 7 Bench Work 2.13 6.4% 7.5% 3.0% 7.2% 8 Structural Work 2.68 11.5% 11.9% 0.1% 0.8% 9 Miscellaneous 2.28 23.8% 34.2% 3.7% 6.2% Total 2.23 100% 100% 100% 100% Source: Exhibit 63(a) Major Male Occupations White Males Black Males D.O.T. Code Description Average Rate (Number of Referrals) Average Rate (Number of Referrals) Differentia 1 189.168 Junior Executive $3.15 (232) $2.85 (149) $0.30 222.387 Shipping & Re ceiving Clerk 2.53 (106) 2.36 (329) . 17 223.387 Stock Clerk 2.41 (106) 2.30 (291) .11 289.358 Commodities sales man 3.06 (78) 2.61 (22) .45 311.875 Waiter 1.82 (30) 1.73 (182) .09 355.878 Hospital attendant 2.26 (35) 2.22 (80) .04 372.868 Guard 2.22 (44) 2.37 (156) (.15) 381.887 Porter 1.86 (12) 1.93 (410) (-07) 382.884 Janitor 1.63 (10) 1.98 (206) (.35) 620.281 Auto mechanic 2.50 (84) 2.42 (98) .08 810.884 Welder - arc 3.37 (37) 3.06 (77) .31 812.884 Welder - arc and gas 3.19 (36) 3.12 (76) .07 828.281 Electronics mechanic 3.04 (89) 2.51 (29) .53 860.381 Carpenter 3.21 (83) 2.79 (35) .42 860.887 Carpenter's helper 2.27 (97) 2.23 (115) .04 904.883 Tractor trailer truck driver 3.02 (114) 3.40 (216) (.38) 905.803 Truck driver - heavy 2.58 (102) 2.43 (281) .15 906.883 Truck driver - light 2.16 (170) 2.18 (516) (.02) 915.867 Gas station attendant 1.92 (144) 1.93 (195) (.01) 922.883 Industrial truck operator 2.56 (114) 2.36 (566) .20 922.887 Loader 2.41 (287) 2.26(1.,630) .15 929.887 Trash collector 2.44 (229) 2.25 (1,063) .19 $2.57(2,239) $2.29(6,722) $0.28Total Major Male Occupations: Distribution of Males By Wage Rate Hourly Wage $3.00 and over $2,50-$2.49 $2.00-$2.99 $1.50-$l.99 Portion of White Males 29.88% 18.13% 43.23% 8.76% Portion of Black Males 5.49% 3.49% 76.24% 14.78% Major Female Occupations White Females Black Females D.O.T. Code Description Average Rate (Number of referrals) Average Rate (Number of referrals) Differential 201.368 Secretary $2.62 (162) $2.25 (68) $0.37 204.588 Clerk typist 2.06 (75) 1.98 (165) .08 211.468 Cashier II 1.82 (29) 1.70 (147) .12 213.582 Key Punch operator 2.42 (44) 2.23 (76) .19 219.388 Record Clerk 2.17 (157) 2.02 (182) .15 299.468 Cashier checker 1.95 (14) 1.87 (104) .08 301.887 Day worker - servant - 1.39 (676) - 306.887 Laundress - servant 1.55 (2) 1.43 (754) .12 311.878 Waitress 1.42 (88) 1.53 (819) (.11) 313.381 Cook - general 1.86 (3) 1.50 (156) .36 314.381 Cook - short order 1.58 (6) 1.60 (327) (.02) 318.887 Kitchen helper, dishwasher 1.56 (6) 1.42 (220) .14 323.887 Maid 1.42 (4) 1.59 (177) (.17) 355.878 Hospital attendant 1.79 (9) 2.46 (133) (.67) 381.887 Charwoman 1.96 (8) 1.56 (165) .40 729.884 Electrical unit assembler 2.42 (15) 2.10 (171) .32 920.887 Hand packer 2.05 , ,.(24j 1.81 (133) .14 Total $2.13 (646) $1.62 (4,477) $0.51 Major Female Occupations Distribution of Females By Waqe Rate Hourly Wacre Portion of White Females Portion of Black Females Over $2.25 34.21% 0 Over $2.00 73.83% 14.07% $1.50 and under 14.24% 40.33% Comparative Wages Major Female Occupations Black Average Wage as Percent of White Job TDES Referrals National Secretary 85.8% 106.3% Typist 96.1% 102.6% Record Clerk 93.0% 101.2% Keypunch Operator 92.1% 101.2% Cashier 93.4% 101.2% Cook 80.6% 89.5% Waitress 107.7% 111.6% Private Servant 103.6% 102.7% ; 1970 Census of the Population, v. 1, Table 228. Source: Table Jobs With Average Wage Rates, By Race, Differ By Over 50 cents _______________ An Hour_______________ D.O.T. Code Description Average White Wage (Number of Referrals) Average Black Wage (Number of Referrals) Difference 091.228 Secondary school teacher $3.30 (21) $2.34 (32) $0.96 160.188 Accountant 4.64 (46) 3.32 (13) 1.32 195.108 Social worker, etc. 3.76 (14) 2.56 (29) 1.20 205.368 Personnel clerk 3.31 (18) 2.27 (27) 1.04 210.388 Book-keeper 2.60 (87) 2.06 (30) .54 289.358 Commodities salesman 3.05 (79) 2.38 (31) .69 289.458 Salesperson, general 2.66 (30) 1.99 (59) .67 600.280 Machinist - general 3.66 (22) 2.87 (20) .79 616.380 Machine set-up man 2.87 (25) 2.33 (94) .54 637.281 Air conditioning, etc., mechanic 3.01 (35) 2.35 (5) .66 638. 281 Maintenance mechinic 3.87 (59) 2.99 (17) .88 729.381 Electrical systems tester 3.38 (3) 2.34 (52) 1.04 741.884 Painter 3.20 (3) 2.57 (60) .63 824.281 Electrician 3.93 (44) 2.67 (12) 1.26 828.281 Electronic mechanics 3.04 (89) 2.51 (29) .53 869.887 Miscellaneous construc- i tion worker 2.58 (21) 2.01 (45) .57 Male and Female Average Wages Major Clerical and Service Jobs D.O.T. Code Description Average Male Waae Average Female Waae Difference 160.188 Accountant $4.57 $3.26 $1.31 195.108 Social worker, parole officer 3.03 2.81 .22 201.368 Secretary 3.08 2.50 .58 203.588 Typist 2.77 2.11 .66 206.388 File Clerk 2.90 2.52 .38 209.588 Clerk typist 2.47 2.00 .47 210.388 Book-keeper 2.71 2.37 .34 213.582 Key Punch Operator 2.41 2.29 .12 219.388 Record clerk 2.66 2.08 .56 219.488 Accounting clerk 2.71 2.44 .27 223.387 Stock clerk 2.32 1.84 .48 289.458 Salesperson - general 2.86 1.89 .97 299.468 Cashier-Checker 2.80 1.87 .93 311.878 Waiter-Waitress 1.74 1.51 .23 313.381 Cook - general 2.18 1.59 .59 314.381 Cook - short order 1.89 1.50 .39 235.862 Switchboard operator 2.43 2.05 .38 Total $2.45 $1.82 $0.63 Male and Female Average Wages: Major Industrial Occupations With Greater Number Of ________________ Female Referrals D.O.T. Code Description 616.380 Machine set-up worker 706.887 Metal Unit Assembler 729.381 Electrical system tester 729.884 Electrical unit assembler 787.782 Sewing machine operator 920.885 Machine packager 920.887 Hand packager Average Male Wacje Average Female Waqe Difference $2.71 $1.77 $0.94 2.16 1.86 0.30 3.17 2.21 0.96 2.79 2.12 0.67 2.22 1.71 0.51 2.29 1.85 0.44 2.04 1.84 0.20 I Referrals To Major Jobs ____Over 90% Black_____ Number Number D.O.T. Code Description of Whites (Average Rate) of Blacks (Average Rate) Portion Black 301.887 Day worker - servant 0 680 ($1.38 100% 306.878 Laundress and Laundryman 2 ($1.55) 758 ($1.42) 99.73% 313.381 Cook - general 15 ($2.19) 207 ($1.73) 93.24% 314.381 Cook - short order 11 ($1.66) 401 ($1.57 97.33% 318.887 Kitchen helper, dishwasher 18 ($1.64) 348 ($1.54) 95.08% 323.887 Hotel maid 4 ($1.42) 183 ($1.59) 97.86% 303.782 Clothes presser 1 ($2.00) 57 ($1.71) 98.27% 381.887 Charwoman & porter 20 ($1.90) 575 ($1.82) 96.63% 382.884 Janitor 10 ($1.63) 208 ($1.98) 95.41% 619.885 Misc. Machine operator 4 ($2.43) 50 ($2.53) 92.59% 729.381 Electrical systems tester 3 ($3.38) 52 ($2.34) 97.54% 741.884 Painter 3 ($3.20) 60 ($2.57) 95.23% 919.887 Car washer attendant 3 ($2.02) 40 ($1.67) 93.02% Total 94 ($1.92) 3,619 ($1.60) 97.46% Referrals To Closely Related Jobs D.O.T. Code Description Average Rate White Referrals Black Refer: 184.118 Manager - Transportation, etc. $3.08 0 24 184.168 Manager - Transportation, etc. 3.75 13 0 262.358 Salesperson - Food 3.29 11 2 263.458 Salesperson - Clothes 2.11 9 22 289.358 Salesperson - Commodities 2.85 79 31 289.458 Salesperson - General 2.21 30 59 804.281 Sheet Metal Worker 3.31 24 9 804.886 Sheet Metal Worker - Helper 2.49 9 0 860.381 Carpenter 3.08 83 35 860.887 Carpenter-Helper 2.24 97 115 899.281 Maintenance Man - Factory 3.27 39 8 899.381 Maintenance Man - Building 2.55 45 24 950.782 Sanitary Engineer 3.13 14 9 950.885 Sanitary Engineer 2.02 0 12 Wage Rates Referrals To Trainee Jobs ______ Exhibit 65_______ Applicant Education White Male Black Male White Female Black Female 0-8 years $2.07 $2.09 $1.68 $1.83 9-11 years 2.20 1.98 1.77 1.79 High School 2.40 2.30 2.08 1.91 Above High School 2.40 2.51 2.09 2.07 Total 2.38 2.26 2.06 1.91 Number of Referrals 6,819 11,599 2,218 6,075 All Whites $2.30 (Women are 24.5%) All Blacks $2.03 (Women are 34.3%) Exhibit 62 Referrals Of Applicants With More Education Than Requested ______ By Employer______ Years Requested Race Sex 0-8 9-11 High :School White Male 2,313 (19.5%) * 559 (5.3%) 1,242 (22.7%) Black Male 4,971 (23.4%) 1,515 (10.5%) 1,237 (37.2%) White Female 175 (4.0%) 86 (2.1%) 670 (36.0%) Black Female 3,545 (34.2%) 568 (8.2%) 599 (39.4%) * Percent is portion of pool with more than the needed education (e.g. 9 plus years for a 0-8 job) who were referred to a job for which overqualified. Exhibit 62 Referrals Of Applicants With Less Education Than Requested ______ By Employer_______ Years Requested Race Sex 9-11 High School 12 plus White Male 30 (7.1%) * 279 (14.8%) 50 (0.7%) Black Male 71 (2.6%) 613 (6.4%) 16 (0.07%) White Female 5 (6.5%) 75 (16.6%) 12 (0.46%) Black Female 37 (2.8%) 287 (5.9%) 8 (0.07%) ♦Percent is portion of pool with less than the needed education who were referred to a job for which unqualified. Over Qualified Trainees Referrals To Trainee Jobs Requesting 0-8 Years of Education of Applicants With More Than 8 Years of Education (Exhibit 65) Race/Sex Number of Referrals Applicants With Over 8 Years Education White Male 1,341 7,237 Black Male 5,168 11,806 White Female 179 2,385 Black Female 2,199 6,138 Ratio 18.5% 43.7% 7.5% 35.8% Portion of Applicants Referred To Job Requiring Less Education Than They Had (Exhibit 62)* Education of Applicant Beyond Overqualified Referrals Race/Sex 9-11 Years or Hiqh School Hiqh School White Male 59.8% 54.1% 77.0% Black Male 67.7% 63.7% 90.0% White Female 50.2% 13.1% 90.4% Black Female 72.2% 51.9% 91.5% Underqualified Referrals portion of Applicants Referred to Job Requiring More Education Than They Had (Exhibit 62)* Education of Applicant Race/Sex 0-8 Years 9-11 Years High School White Male 27.3% 24.0% 1.5% Black Male 17.6% 14.2% 0.15% White Female 14.8% 30.8% 0.71% Black Female 12.8% 11.8% 0.18% * Both charts disregard jobs for which employer requirements were unknown. Wage Rate of Referrals _____By Education____ Wage Rate Education White Male Black Male Difference White Female Black Female Difference 0-8 $2.25 $2.02 $0.23 $1.59 $1.49 $0.10 9-11 2.41 2.07 .34 1.87 1.62 .15 High School 2.57 2.32 .25 2.37 1.85 .52 Above High School 2.60 2.57 .03 2.20 2.07 .13 Total 2.55 2.25 .30 2.24 1.77 .47 Referral Rates Whites and Blacks With Different Education SIC Code Description (sex) Whites: 0-8 years Blacks: High School 01 Agriculture - crops (males) 2.05 1.89 15 Building Construc tion (males) 2.73 2.36 16 General Construc tion (males) 3.09 2.53 17 Construction - Special Trades (males) 2.39 2.37 23 Apparel Manufactur ing (males) 2.50 1.98 24 Lumber Manufactur ing (males) 1.87 1.84 26 Paper Manufacturing (males) 2.86 2.80 28 Chemical Manufac turing (males) 2.45 2.33 32 Store Processing (males) 2.73 2.32 33 Primary Metal Manu facturing (males) 3.10 2.97 36 Electrical Machinery Manufacturing (males) 2.50 2.43 37 Transportation Equi- ment Manufactur ing (males) 3.32 2.89 38 Precision Instrument Manufacturing (females) 2.34 1.90 39 Miscellaneous Manu facturing (males) 1.98 1.96 59 Miscellaneous Retail (males) 2.37 2.01 65 Real Estate (males) 2.16 2.05 65 Real Estate (females) 1.85 1.75 70 Hotel Services (males) 1.72 1.69 76 Miscellaneous Repair services (males) 2.35 2.12 SIC Code Description (sex) Whites: 0-8 years Blacks: Hicrh School Graduates 79 Recreation Services (females) 2.07 1.74 86 Club Services (males) 2.00 1.95 88 Private Household Services (males) 2.00 1.90 15 17 20 28 35 42 50 53 55 58 73 88 91 Referral Rates: SIC Groups With Over 1000 Referrals High School Graduates Average Rate - Males Average Rate Description White Black Difference White Black Building Con struction 2.69 2.36 .33 2.51 2.03 Construction - special trades 2.52 2.37 .15 2.17 1.79 Food Manufactur ing 3.28 2.97 .31 2.59 2.61 Chemical Manufac turing 2.81 2.33 .48 2.33 2.11 Machinery Manu facturing 3.44 3.24 .20 2.35 2.13 Motor freight 2.53 2.31 .22 2.24 2.36 Wholesale Trade 2.34 2.17 .17 2.20 1.92 Retail - General 2.00 1.99 .01 1.92 1.76 Retail - Cars & Ga s 1.91 1.87 .04 2.03 1.81 Retail - Restau rants 1.83 1.67 .16 1.37 1.33 Business Services 2.50 2.08 .42 2.09 1.89 Private Household Services 1.93 1.90 .03 1.30 1.42 Government 2.80 2.58 .22 2.47 2.36 Referral Rates: SIC Group; With Over 1000 Referrals Average Rate - Males Average Rate - Females White Black White Black SICCode Description (Number of Referrals) $ (Number of Referrals) $ Difference $ (Number of Referrals) $ (Number of Referrals) $ Difference $ 15 Building Construction 2.59 (482) 2.32 (834) .27 2.46 (26) 2.08 (16) .38 17 Construction - Special Trades 2.49 (438) 2.29 (1,077) .20 2.24 (60) 1.75 (33) .49 20 Food Manufacturing 3.10 (727) 2.88 (1,035) .24 2.56 (118) 2.54 (166) .02 28 Chemical Manufacturing 2.79 (281) 2.33 (469) .46 2.33 (145) 2.11 (155) .22 35 Machinery Manufacturing 3 .44 (422) 3.10 (649) .34 2.47 (79) 2.14 (62) .33 42 Motor Freight 2.49 (492) 2.26 (1,457) .23 2.20 (67) 2.43 (66) (.23) 50 Wholesale Trade 2.45 (1,447) 2.11 (3,963) .34 2.21 (429) 1.92 (534) .29 53 Retail - General 1.99 (472) 1.98 (813) .01 1.88 (175) 1.75 (440) .04 55 Retail - Cars & Gas 1.94 (456) 1.87 (917) .07 1.97 (92) 1.80 (126) .17 58 Retail - Restaurants 1.85 (168) 1.66 (688) .19 1.38 (197) 1.31 (2,438) .07 73 Business Services 2.52 (571) 2.05 (891) .47 2.10 (275) 1.89 (429) .21 88 Private Household Services 1.96 (85) 1.95 (596) .01 2.25 (46) 1.39 (1,742) .86 91 Government 3.05 (287) 2.44 (463 .61 2.48 (220) 2.31 (614) .17 * , I ... i ‘) h >. .1 r .. i . <-‘-'or... ...... .... ’ P’l t C u H £ r« T A f(0 a L F fcK K A L C F k E G f S T E n e b V M L 1 vToli A L s ' 11 / il • C r 'A r 'A C T c K IS I IC S NO t,r APPLICANTS itioi v i L u a l S P l a c to . 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V V • 1 X r : H • r. • j • • : • 3 l. • 7 i 1-. • i _____ __________ _ __________ _ *---- ----- t ̂ * ------- * • v n a n • c c * e • - ~ • •» co*e • * 1 r l * ? • ♦ * >----- i - • M * 2 • C* i ' l “ * * Os’-nl r t ' • r v i * ?«»-*y * • W VV311<!*T a'J • C\ : 1 * 3 H I 3 *7 0 :r ' C * • B I ' S ‘ - 0 :j * 2 • - f t ' / • • c - ? v • - C a * ’ * - 7 « M ' 8eM • > * l ? i r u • * k3At o i d ' iv .'.ivv :;-»v? a'J Ojjvii iw.nctiv -ii i3Utilv'jvo j T C Ratio of Referrals to Placements Year ending January 31, 1972 Tvoe of Applicant Referral Ratio White 2.542 Black 2.372 Walk in clients 2.471 Welfare referrals 1.637 Male 2.408 Female 2.444 Education: 0-7 1.327 8-11 2.180 12 2.614 12 2.944 Source: Tables