June 12, 1998

$34 Million Settles Suit for Women at Auto Plant

By BARNABY J. FEDER

HICAGO -- In the largest sexual harassment settlement ever negotiated by the Federal Government, the Mitsubishi Motor Corporation's American subsidiary agreed Thursday to pay $34 million to end a Government lawsuit charging that hundreds of female workers its automobile assembly plant in Normal, Ill., had been sexually harassed.

The payment, negotiated by the Equal Employment Opportunity Commission, was hailed by some lawyers representing women as a strong warning to top managers that improper behavior on the factory floor needed to be aggressively handled. But others said that the amount seemed modest in light of Mitsubishi's agreement last summer to pay $10 million to settle harassment suits filed privately on behalf of 27 women who worked at the plant.

"It's good news whenever a large company is forced to accept responsibility for the mistreatment of its employees," said Keith Hunt, a Chicago lawyer who represents a number of women who recently sued the Ford Motor Company. "The real test is what the working environment for women there is going forward."

Mitsubishi said the settlement was "the right business decision" and would support its efforts over the last 20 months to institute training programs and other changes that it said would prevent future problems.

Kohei Ikuta, executive vice president of Mitsubishi Motors of America Inc., said, "We want to reaffirm Thursday what we have said previously: we have had problems involving sexual harassment which required correction and we extend our sincere regret to any woman who has been harmed."

Both the Federal and the private lawsuits complained of routine groping, graffiti and degrading remarks directed at women, who made up about a fifth of the 4,000 plant employees.

The lawsuits also asserted that Mitsubishi managers had created an atmosphere that condoned such behavior.

Mitsubishi initially denied any wrongdoing, arguing that it had actively investigated accusations of harassment or discrimination that had been brought to its attention since the plant opened in 1987. It staged a rally intended to embarrass the equal-opportunity commission by busing employees three hours from Normal to the agency's office here.

But the women also garnered widespread attention. The Rev. Jesse Jackson led a boycott of the company's cars and the National Organization for Women organized demonstrations at Mitsubishi dealerships around the country. With sales declining, the company hired Lynn Martin, a former Secretary of Labor, to perform an independent study and recommend management changes. The company began mandatory sexual harassment training for all employees. Eventually, it negotiated an end to the boycott and resolution of the private suits.

To become effective, the settlement must be approved by Judge Joe Billy McDade of Federal District Court, who had been pushing the two sides to reach an agreement. The proposed consent decree would also require Mitsubishi to allow a panel of three independent observers to monitor its training programs and efforts to encourage employees with complaints to come forward.

The $34 million would be distributed among current and former employees based on a variety of criteria, including the severity of the harassment they suffered, the duration of the illegal conduct, and whether it led them to quit their jobs. The largest payment that can go to any woman under the law is $300,000.

The commission said that the women who had already come forward with complaints would be sent claim forms. All current and former female employees at the plant are to be mailed notice of the settlement if Judge McDade approves it.

The Normal factory manufactures the Mitsubishi Eclipse, Spyder convertible and Galant. It also makes two cars for the Chrysler Corporation, the Dodge Avenger and the Chrysler Sebring.