Reversal of Decision to Award Back Pay to 3,000 Black Workers in U.S. Steel Fairfield Works Case

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From: | Noxman Bloomfield 
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ae NAACP LEGAL DEFENSE AND EDUCATIONAL FUND, INC. ul F | , a) 

10 Columbus Circle 
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\ New York, New York 10019 

212 - 586-8397 
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Contact following at above number, or at home: 

Reweng lum Nev- 

9 06-3 25-247) 
Mike Baller: 212 - 228-2255 
Barry Goldstein: 212 - 799-6387 
Jack Greenberg: 212 - 860-2208 

914 - 687-9625 (week-end) 

FOR IMMEDIATE RELEASE 

NEW YORK, N.¥., Oct. 10 - The NAACP Legal Defense and Educational Fund 

just received word that the United States Court of Appeals for the Fifth Circuit 

has reversed a District Court decision denying back pay to more than 3,000 black 

workers in a long-standing employment discrimination suit conducted by the 

Legal Defense Fund against the U. S. Steel Fairfield Works in Birmingham, Ala. 

The decision rejects the national government-steel industry consent decree 

as a remedy and overturns the district court's decision to hold the action in 

abeyance until exhaustion of all proceedings dealing with the consent decree. 

In its decision of October 8, the Appellate Court set up principles 

for determining the amount of back pay to be awarded individuals in the class, 

noting that "unrealistic exactitude is not required." The Court further stated 

that any difficulty in determining the amount of awards should be resolved by a 

"pro-rated method" or by "other reasonable alternatives," declaring that the class 

of victims is entitled to remuneration even if their economic losses cannot be 

precisely determined. 

The 3,000 black employees, hired prior to 1973, now have a right to 

monetary recovery which will involve million: s of dollars in back pay awards to 

compensate for seven to eight years of di 

training opportunities and the denial of 

(More 

scriminatory denial of promotional and 

rights to supervisory positions. 

) 



In an earlier and related action, the Legal Defense Fund obtained $201,000 in 

back pay compensation from the company and the locals of the United Steelworkers 

Union for 61 black steelworkers. 

In the present action (United States v. U. S. Steel Corp.), the government 

withdrew its appeal on behalf of the 3,000 workers in favor of the nationwide 

steel industry settlement, but the Legal Defense Fund, which intervened to protect 

the rights of black workers, represented the entire class. 

The Appellate Court, moreover, declared that the national agreement did not 

apply, that "the liability stage of the trial in this case was completed almost a 

year prior to the entry of the consent settlement." The Legal Defense Fund has 

suits pending in other steel cases of a similar nature. 

Commenting on the case, the Fund's Director-Counsel, Jack Greenberg, said: 

"We have insisted that the rights of black workers cannot be resolved by in camera 

agreements entered into by discriminators, even if later approved in open court 

in the form of consent decrees. We are gratified that the Courtsof Appeals have 

been vindicating our position and the rights of the employees." 

The Legal Defense Fund had raised nine distinct objections to the national 

consent decrees. Though the Fifth Circuit refused to vacate the decrees, the 

Court's opinion supported the Fund's stand on four key issues and eliminated 

what Legal Defense Fund attorneys termed "the most noxious problems" in two other 

areas of concern. 

The government and industry lawyers had urged that employees who received 

back pay under the consent decrees should forfeit any right to seek injunctive 

relief if the decrees do not work. The Court of Appeals held that minority employees 

retained that right regardless of whether they accepted back pay. 

(More) 



The steel industry also insisted that an’ employee who accepted back 

pay should lose any right to additional back pay for injuries suffered if the 

decrees don't work. The Court rejécted this contention in large part, thus 

keeping the pressure of monetary liability on the defendants if they fail to 

remedy the effects of past discrimination. 

As noted by Mr. Greenberg, "Our overriding concern in pursuing this 

litigation was to stop the government from making similar agreements with other 

national industries. The Fifth Circuit decision does so not only by setting a 

precedent on which future intervenors can rely, but by providing government 

negotiators with a ready answer if some company asks for what the steel industry 

thought it had gotten." 

NOTE TO THE EDITOR: 

The NAACP Legal Defense and Educational Fund is a completely separate 

organization, even though originally established by the NAACP in 1939. ‘The correct 

designation is NAACP Legal Defense and Educational Fund, Inc., frequently shortened 

to Legal Defense Fund. The organization has a national staff and headquarters in 

New York City and works with 400 cooperating attorneys throughout the country.