Caterpillar Inc., a prominent manufacturer of construction equipment globally, has agreed to a settlement of $800,000 to address allegations of discrimination based on national origin and race among its employees. The settlement was reached with the U.S. Equal Employment Opportunity Commission (EEOC) following an investigation that uncovered discriminatory practices within the company, negatively impacting its workforce. This article will explore the specifics of the settlement, its implications for Caterpillar, and the broader issue of workplace discrimination.
The Division of Labor uncovered that the company discriminated against 60 Black applicants at its manufacturing facility in Decatur, Illinois.
Settlement Details
Caterpillar has agreed to pay $800,000 in back wages and interest to settle the claims of alleged hiring discrimination at its Decatur, Illinois, facility. The Labor Division’s investigation revealed that Caterpillar discriminated against 60 Black applicants who applied for positions as fabrication specialists and welders between March 30, 2018, and March 30, 2020. As part of the settlement, the company will compensate the affected individuals and extend job offers to 34 eligible applicants. Additionally, Caterpillar will revise its hiring policies to eliminate discrimination and provide training for those involved in the hiring process.
Insights
In response to the settlement, Caterpillar stated that it is fully cooperating with the authorities on the matter. The company emphasized its commitment to fostering a workplace that respects and celebrates diverse backgrounds, experiences, and perspectives. Despite the conciliation agreement, Caterpillar maintains that the questions raised do not reflect its current hiring practices.
The Labor Division highlighted that Caterpillar violated Government Order 11246, which prohibits federal contractors from discriminating based on race, gender, color, religion, sexual orientation, gender identity, or national origin. Caterpillar, a recipient of multiple government contracts, including significant federal contracts since 2018 and contracts with the U.S. Navy, has pledged to uphold non-discriminatory practices in its hiring processes.
Industry Trends
The settlement with Caterpillar is part of a broader trend of federal contractors facing allegations of hiring discrimination. In recent cases, GE Aerospace paid $443,000 for discriminating against female operations support applicants in Vermont, while Olin Corp settled for $630,000 to address alleged hiring discrimination against Black and female applicants in Mississippi. HVAC manufacturer Daikin Industries also faced a $100,000 settlement for race-based discrimination against Black applicants at a Virginia plant.
the settlement between Caterpillar and the EEOC underscores the importance of promoting diversity and inclusion in the workplace. It serves as a reminder for companies to adhere to non-discriminatory practices and create an environment that values the contributions of employees from diverse backgrounds.