Abram v. United Parcel Service of America, Inc.

200 F.R.D. 424, 2001 U.S. Dist. LEXIS 8093, 2001 WL 589412
CourtDistrict Court, E.D. Wisconsin
DecidedMay 10, 2001
DocketNo. 97-C-1233
StatusPublished
Cited by10 cases

This text of 200 F.R.D. 424 (Abram v. United Parcel Service of America, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abram v. United Parcel Service of America, Inc., 200 F.R.D. 424, 2001 U.S. Dist. LEXIS 8093, 2001 WL 589412 (E.D. Wis. 2001).

Opinion

DECISION AND ORDER

RANDA, District Judge.

This employment discrimination matter comes before the Court on a motion by the plaintiffs for class certification under Federal Rule of Civil Procedure 23. The ten named plaintiffs are African-Americans employed as full-time supervisors by United Parcel Service of America, Inc. and United Parcel Service, Inc. (collectively, “UPS”). They allege that UPS’s system for determining supervisor compensation is “excessively subjective” and thus permits discrimination forbidden by 42 U.S.C. § 1981 (“Section 1981”) and Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq. (“Title VII”). The plaintiffs seek certification of a nationwide class consisting of “all African-American full-time supervisors employed throughout UPS.” Because the plaintiffs have failed to establish the prerequisites for class certification under Rule 23(a), their motion is denied.

BACKGROUND

The plaintiffs assert that UPS has discriminated against them individually — and against African-American full-time supervisors as a class — with respect to compensation. Specifically, they claim that UPS “maintains highly subjective, facially neutral performance rating and compensation systems which result in discriminatorily lower ratings and pay for African American supervisors than for their white counterparts.” Memorandum in Support of Class Certification (“Class Cert.Mem.”), p. 1. As originally stated, the allegations against UPS were much broader. However, after extensive discovery relating to class certification issues, the plaintiffs amended their complaint and withdrew some of their claims, as outlined in a stipulation approved by the Court on April 5, 2000. The facts relevant to the plaintiffs’ surviving compénsation claim, i.e., facts concerning the structure of UPS and how it determines supervisor compensation, are largely undisputed.1

UPS, a nationwide cpmpany that provides package delivery service to individual and business clients, employs roughly 300,000 people. Declaration of Lea Soupata (“Sou-pata Deel.”), 112. The company is divided into eleven regions, which in turn are divided into districts. Id., H113-4. Each district is responsible for delivering packages within a specified geographical area. Id., 119. There are sixty-five districts in all. Id., K 3. Some extend to an entire state or bloc of states, while others are confined to a major urban area. Id., H 9. Each district is headed by a district manager, whose subordinates, called division managers, are responsible for particular functions within the district. Id., 1111. On the next rung down the managerial ladder, reporting to the division manag[426]*426ers, we find center managers. Id. Lastly, there are roughly 16,850 full-time supervisors, who report to the center managers. Id. Approximately ten percent of these full-time supervisors are African-American, and they comprise the putative class in this case. Class Cert.Mem., p. 10. The ten named plaintiffs (representing seven different districts) are all African-American full-time supervisors employed by UPS. Second Amended Complaint, UU 33-66.

The parties agree that UPS has standardized the personnel procedures that affect compensation, including the performance appraisal forms used to evaluate full-time supervisors. Although the form has changed three or four times since 1992, at any given time the districts all use the same form. The parties also agree that actual decisionmaking as it relates to compensation is individualized and decentralized. Center managers evaluate the performance of full-time supervisors and their evaluations (which affect salary) are reviewed only as far as the district manager level. See, e.g., Declaration of Myron Gray (“Gray Decl.”), 11114-5. While the plaintiffs place great emphasis on performance evaluations, claiming that this is where bias creeps into the system, it should be noted that performance evaluations are not the only determinant of a full-time supervisor’s pay. Other factors include (1) the individual’s pay when he or she was promoted to full-time supervisor, (2) the length of time since that individual was promoted, (3) the geographic location of the UPS facility in which the supervisor works, (4) the type of supervisor position held by the employee, (5) the supervisor’s educational background, and (6) his or her salary grade. Opposition to Motion for Class Certification (“Opp.Mem.”), p. 7.

Decentralization in personnel matters is a practical necessity in any large business. Likewise, as the defendants’ expert observes, “salary setting in most occupations, and virtually all management occupations, includes subjective assessments of performance and the context in which that performance took place.” Report of Michael P. Ward, Ph.D (“Ward Rept.”), p. 12 n. 12. From the plaintiffs’ perspective, however, the standardized personnel procedures developed by UPS allow for too much discretion and “subjective judgment” on the part of center managers. Such a system, according to the plaintiffs, invites the impermissible consideration of race. The basic idea behind lawsuits alleging “excessively subjective” decisionmaking is that “the employer systematically discriminates against its employees by permitting subordinate managers to make employment decisions ... without providing any objective framework for the exercise of that subjective judgment.” Gary M. Kramer, No Class: Post-1991 Barriers to Rule 23 Certification of Across-the Board Employment Discrimination Cases, 15 Lab.Law 415, 417 (Winter/Spring 2000). Such lawsuits can be framed in terms of “disparate treatment,” “disparate impact,” or, as here, both disparate treatment and disparate impact. Id. at 420-22; Class Cert. Mem., p. 1.

Statistical data relating to full-time supervisor compensation at UPS from 1992-1998 offers some support for the plaintiffs’ disparate impact claim. The data, considered in the aggregate (and without any controls for non-racial factors that legitimately affect compensation, such as education), shows a statistically significant gap in compensation between African-American full-time supervisors and their white counterparts. However, as the Court observed when it authorized discovery of the statistical data, the “principal question, for certification purposes, is whether the plaintiffs can make an adequate statistical showing of a consistent pattern of [lower pay] within the class of African-American [full-time supervisors], both within their respective districts and nationally.” Decision and Order, April 5, 2000, p. 3 (emphasis added). In the absence of a consistent pattern, as discussed below, the closely-intertwined class action prerequisites of “commonality,” “typicality,” and “adequacy of representation” are not present.

DISCUSSION

I. Class Action Standard

This Court enjoys “broad discretion” in determining whether certification of a class-action lawsuit is appropriate. Keele v. Wex-ler, 149 F.3d 589, 596 (7th Cir.1998). See [427]*427generally Califano v. Yamasaki,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Moussouris v. Microsoft Corp.
311 F. Supp. 3d 1223 (W.D. Washington, 2018)
Stagi v. National Railroad Passenger Corp.
391 F. App'x 133 (Third Circuit, 2010)
Gutierrez v. Johnson & Johnson
269 F.R.D. 430 (D. New Jersey, 2010)
Dukes v. Wal-Mart Stores, Inc.
222 F.R.D. 137 (N.D. California, 2004)
Anderson v. Boeing Co.
222 F.R.D. 521 (N.D. Oklahoma, 2004)
Ellis v. Elgin Riverboat Resort
217 F.R.D. 415 (N.D. Illinois, 2003)
Rhodes v. Cracker Barrel Old Country Store, Inc.
213 F.R.D. 619 (N.D. Georgia, 2003)
Carson v. Giant Food, Inc.
187 F. Supp. 2d 462 (D. Maryland, 2002)
Bates v. United Parcel Service
204 F.R.D. 440 (N.D. California, 2001)
Wright v. Circuit City Stores, Inc.
201 F.R.D. 526 (N.D. Alabama, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
200 F.R.D. 424, 2001 U.S. Dist. LEXIS 8093, 2001 WL 589412, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abram-v-united-parcel-service-of-america-inc-wied-2001.