SCHOTT NORTH AMERICA, INC. TO PAY $1.45 MILLION TO SETTLE EEOC SEX BIAS SUIT

Company Laid Off Class of Women Workers Based on Gender, Federal Agency Said

SCRANTON, PA. — The U.S.  Equal Employment Opportunity Commission (EEOC) today announced a major  settlement of a sex discrimination lawsuit for $1,450,000 and significant  equitable relief against Schott North America, a multinational developer and  manufacturer of special glass and specialty materials, components and systems, based in Elmsford,  N.Y.

The EEOC charged that Schott laid off women because of  their sex after a company reorganization in October 2004 of its specialty glass  plant in Duryea, Pa.  Prior to the reorganization, glass production at the plant was generally  divided into two parts, the “hot end” and the “cold end”; 95.3% of the hot-end  workers were male and 76.6% of the cold-end workers were female.

As part of the reorganization, the company created a new  position of “melting line operator” and used a “skills matrix” to determine who  would obtain these new positions. The  glass company laid off employees whom it did not select for the melting line  operator position. In its lawsuit, the  EEOC charged that the skills matrix system benefited male employees, did not  accurately measure the skills truly needed to perform the melting line operator  job and had an adverse impact on female applicants – who were selected for  layoff at a significantly higher rate than male employees. The EEOC contended that six plaintiff  intervenors and five class members were not selected for melting line operator  positions and were laid off because of their sex, in violation of Title VII of  the Civil Rights Act of 1964.

Acting EEOC Chairman Stuart J. Ishimaru said, “This  significant settlement demonstrates the EEOC's commitment to securing  meaningful relief for victims of systemic sex discrimination.”

In  addition to the $1.45 million in monetary relief, the three-year consent decree  provides substantial equitable relief, including: injunctive relief enjoining  Schott from engaging in unlawful discrimination under Title VII or retaliation;  annual anti-discrimination training of all supervisors and managers at the  Duryea, Pa. facility; and the posting of a notice about the settlement.

“Companies must make hiring and layoff  decisions based on the individual’s qualifications and abilities, and not  because of gender,” said EEOC Philadelphia District Director Marie M. Tomasso,  who oversaw the agency’s administrative investigation which preceded the  litigation. “The EEOC will take action  if a company reorganization has an adverse impact on women.”

The EEOC filed suit (Civil Action No. 06-CV-1246) in U.S. District Court  for the Middle District of Pennsylvania after  first attempting to reach a voluntary settlement out of court. Schott did  not admit liability in the consent decree, which is pending judicial  approval. Sean P. McDonough, of the  Dougherty, Leventhal & Price law firm, and Pete Winebrake, of The Winebrake  Law Firm, LLC, represented plaintiff intervenors in their private claims  against Schott.

Judith O’Boyle, the supervisory trial attorney  responsible for handling the litigation, noted, “We are pleased that the parties  were able to resolve this matter and that Schott agreed to a variety of  remedial measures designed to prevent problems in the future."

Karen  McDonough investigated the charges of discrimination filed with the agency.

According to its web site, www.us.schott.com,  “SCHOTT Corporation is the North American headquarters and holding company for  the SCHOTT Group. With 16 divisions and subsidiaries in the United States,  Canada, and Mexico, SCHOTT Corporation employs approximately 2,500 people for  the manufacture and distribution of special glass and glass-related systems.  The SCHOTT Group employs 17,300 people worldwide and has sales of approximately  $3 billion.

The  EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is  available on its web site at www.eeoc.gov.