The UNITED STATES Department of Labor's Office (DOL) of Federal Contract Compliance Programs (OFCCP) this afternoon publicized that Baldor Electric Co. has consented to reconcile claims relating to systemic discrimination coming from Balder's applicant selection process at their location in Ft. Smith, Arkansas. DOL/OFCCP Compliance Officers determined adverse impact existed in the selection of women and minorities, the selection practice violated Executive Order 11246. The findings identified 795 qualified female, Black and qualified Asian and Hispanic job seekers that were not given the opportunity to advance in the selection/interview process for job openings for laborer and production positions.
OFCCP and Secretary of Labor Hilda Solis were pleased with the decision.
As a result of the findings and settlement, Balder will pay $2Million to the individuals that were affected as well as make preferential hiring decisions to 50 members of the affected class when positions become available. Baldor also agreed to review its selection process and implement robust self-monitoring processes to measure and ensure that all hiring practices meet the requirements of Executive Order 11246 and the CFR's.
Baldor Electric, owned by Switzerland-based ABB LTD has affirmative action requirements due to the $18 million in federal contracts with the U.S. department of Veterans Affairs and the Department of Justice and the General Services Administration.
Failure to ensure that a company monitors its selection and recruitment process has led to larger than normal settlements with the OFCCP. Federal Express just recently settled a case for $3 Million.
Who is Career Resources, Inc.
Founded in 1979, Career Resources is a privately owned company which develops Affirmative Action and Diversity Plans, provides Diversity and Affirmative Action Plan implementation, online e-Learning courses, Sexual Harassment Training, EEOC and OFCCP vulnerability audits, OFCCP audit support used by hundreds of organizations nationwide including fortune 500 companies and small/medium size businesses in all industries.