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 November 03, 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
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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