Equal Employment Opportunity Commission v. Kenneth Balk & Associates, Inc.

616 F. Supp. 637, 1985 U.S. Dist. LEXIS 16505
CourtDistrict Court, E.D. Missouri
DecidedAugust 26, 1985
DocketNo. 84-1959C(1)
StatusPublished
Cited by2 cases

This text of 616 F. Supp. 637 (Equal Employment Opportunity Commission v. Kenneth Balk & Associates, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equal Employment Opportunity Commission v. Kenneth Balk & Associates, Inc., 616 F. Supp. 637, 1985 U.S. Dist. LEXIS 16505 (E.D. Mo. 1985).

Opinion

MEMORANDUM

NANGLE, Chief Judge.

This is an employment discrimination case wherein plaintiff alleges that defendant discriminated against Margo Mischeaux by terminating her because of her race and/or thereafter failing to offer her other and alternative employment with defendant because of her race.

This case was tried to this Court sitting without a jury. This Court having considered the pleadings, the testimony of the witnesses, the documents in evidence, and the stipulations of the parties, and being fully advised in the premises, hereby makes the following findings of fact and conclusions of law, as required by Rule 52 of the Federal Rules of Civil Procedure. Fed.R. Civ.P. 52.

A. FINDINGS OF FACT

1. Plaintiff Equal Employment Opportunity Commission (hereinafter “EEOC”) is an agency of the United States of America charged with administration and enforcement of Title VII of the Civil Rights Act of 1964, as amended, and is expressly authorized by § 706(e) to bring this action. 42 U.S.C. § 2000e-5(f)(l).

2. Defendant Kenneth Balk and Associates, Inc. (hereinafter “KBA”), is a corporation engaged in the architecture and engineering business in St. Louis County, Missouri. KBA employs more than fifteen (15) employees and is engaged in an industry affecting commerce. KBA employs professional, clerical and accounting employees. KBA’s employees are divided into a number of divisions, among them the accounting and finance division. KBA’s accounting and finance division was divided into four (4) distinct groups: project cost accounting, data processing, accounts payable and bookkeeping. These four (4) functions were overseen prior to 1981 by Ron Silber, the Corporate Treasurer and Vice President of Finance of KBA and, after his termination from employment in 1981, by Stephen Gossett, Treasurer of KBA.

3. Margo Mischeaux is a black female who was employed by KBA as a keypunch operator. Margo Mischeaux was hired by KBA on April 5, 1978 and was discharged on March 18, 1983. On April 5, 1978, Margo Mischeaux did not have the necessary skills or knowledge to operate the general automation computer, but she subsequently learned how to operate said computer and, after its replacement with a IV-Phase computer terminal tied to a main computer at McDonnell Douglas Automation Company, she operated the IV-Phase terminal. By the end of her employment in 1983, Margo Mischeaux was responsible for data entry upon the IV-Phase terminal, running reports on the IV-Phase terminal, calling and transmitting data to the main computer at McDonnell Douglas Automation Company, occasional ordering of supplies and occasional backup for other accounting clerks. Generally, Margo Mischeaux’s duties with KBA never involved word processing, receptionist or secretarial duties. At the time of her discharge, Margo Mischeaux’s annual salary was $18,480.00.

4. On May 12, 1983, Margo Mischeaux filed a charge of discrimination with EEOC alleging that KBA had discharged her be[639]*639cause of her race. On May 13, 1983, Margo Mischeaux’s charge was referred to the Commission on Human Rights which waived jurisdiction. Thereafter, KBA was served with notice that Margo Mischeaux’s charge had been filed and EEOC proceeded to investigate Margo Mischeaux’s charge. On February 29, 1984, EEOC issued a letter of determination finding reasonable cause to believe KBA had eliminated Margo Mischeaux’s position and discharged her because of her race, black. On February 29, 1984, EEOC mailed an invitation to KBA to participate in conciliation. However, on March 16, 1984, asserting that it had not discriminated against Margo Mischeaux, KBA declined to participate in conciliation. On April 16, 1984, KBA was advised that conciliation had failed and, on August 20, 1984, over thirty (30) days after Margo Mischeaux’s charge was filed with EEOC, this lawsuit was filed by EEOC.

5. In 1980, KBA lost $47,000.00 and in 1981, KBA lost $170,000.00. In addition, during 1981 and 1982, KBA’s current ratio approached 1 and KBA’s debt to equity ratio exceeded 13 to 1. Thus, KBA was close to financial insolvency.

6. As a result of KBA’s poor financial performance, beginning in 1980 KBA initiated an effort to cut costs through staff reductions, salary eliminations and overhead reductions. For example, during the period from April, 1980 through May, 1984, numerous employment positions were eliminated through layoffs, attrition, discharges and the deactivation of an entire division, the construction management division. Considerably more white employees than black employees were affected by this effort. In many cases, when a position was eliminated or vacated, a new person was not rehired and the job functions of that position were spread among other employees. For example, in the accounting and finance division, when the Corporate Treasurer, Ron Silber, was discharged, he was not replaced because Stephen Gossett and other members of the firm assumed his duties.

7. The accounting and finance division was severely affected by these economizing measures. During the period from January 1, 1980 through April 1, 1983, the division was reduced from eight (8) to four (4) employees through attrition, layoffs, or job elimination. These measures saved KBA in excess of $150,000.00 per year in salaries in the accounting and finance division alone. The discharge of Margo Mischeaux was part of KBA’s economizing efforts. In late 1982 and early 1983 KBA was still losing money, to the tune of $35,-000.00 for the first five months ending January 31, 1983. As a result, KBA’s President told Stephen Gossett in November, 1982 and again in January or February of 1983 to formulate a plan for reducing his department’s expenses. In February, 1983, the plan that Stephen Gossett came up with was to eliminate one (1) position and to spread out that person’s duties among the remaining employees in the accounting and finance division. This Court credits Stephen Gossett’s testimony that he selected Margo Mischeaux’s position for elimination based on a careful evaluation of each job, the training and skills required for each job, the ease of fragmenting the work performed in each job, the work history and potential future of each employee, and the current salary of each employee. Stephen Gossett’s selection of Margo Mischeaux’s position for elimination was not in any way, shape or form motivated by consideration of Margo Mischeaux’s race. Margo Mischeaux’s position was chosen for elimination because its functions could be split up easier than the functions of other positions and because Margo Mischeaux’s salary was the second highest, below Stephen Gos-sett’s salary, in the division. Margo Mischeaux’s position basically consisted of data entry on a CRT, supply ordering, and running reports on the IV-Phase terminal. Other employees in the division were already performing data entry on a CRT and ordering supplies, and another employee could be trained to operate the IV-Phase terminal. Stephen Gossett consulted the President of KBA, Kenneth Balk, and he approved of Stephen Gossett’s plan. Mr. [640]*640Balk’s approval of the plan also was not motivated in any respect by Margo Mischeaux’s race. Her discharge was simply a matter of economics.

9.

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Bluebook (online)
616 F. Supp. 637, 1985 U.S. Dist. LEXIS 16505, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-kenneth-balk-associates-inc-moed-1985.