Hearn v. General Electric Co.

927 F. Supp. 1486, 1996 U.S. Dist. LEXIS 7854, 71 Fair Empl. Prac. Cas. (BNA) 435
CourtDistrict Court, M.D. Alabama
DecidedJune 3, 1996
DocketCivil Action 93-T-424-S
StatusPublished
Cited by17 cases

This text of 927 F. Supp. 1486 (Hearn v. General Electric Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hearn v. General Electric Co., 927 F. Supp. 1486, 1996 U.S. Dist. LEXIS 7854, 71 Fair Empl. Prac. Cas. (BNA) 435 (M.D. Ala. 1996).

Opinion

MEMORANDUM OPINION

MYRON H. THOMPSON, Chief Judge.

Plaintiffs Renate “Irene” Hearn and Betty Kendrick have brought this lawsuit claiming that defendant General Electric Company, also known as GE, illegally discriminated against them because they are women. Hearn claims that GE laid her off, and Kendrick claims that the company demoted her, all in violation of Title VTI of the Civil Rights Act of 1964, as amended, 42 U.S.C.A §§ 1981a, 2000e through 2000e-17 (West 1994). 1 They have properly invoked the jurisdiction of the court pursuant to 42 U.S.C.A. § 2000e-5(f)(3) (West 1994). They seek injunctive relief, compensatory and punitive damages, and attorney’s fees and expenses. Based on the evidence presented, the court finds in favor of Hearn and Kendrick and against GE. 2

I. BACKGROUND

GE operates a plant in Dothan, Alabama. The plant employs over 200 people and manufactures electric motors for industrial and commercial use. 3 GE pays plant employees in three different ways. “Non-exempt hourly” employees are paid hourly wages and are covered by the minimum wage and maximum hours provisions of the Fair Labor Standards Act of 1938, as amended, 29 U.S.C.A. §§ 201-219 (West 1978 & Supp.1996). “Nonexempt salaried” employees are paid weekly salaries but are covered by the Act. “Exempt salaried” employees are paid weekly salaries and are exempt from the Act. Most management and professional positions fall into this third category. 4 From time to time, GE supplements its workforce with persons *1489 from private personnel firms. These supplemental employees are not considered GE employees and thus do not enjoy the employment benefits received by GE employees. 5

Hearn and Kendrick held exempt salaried positions. 6 Hearn was a first shift supervisor over the machine shop in the plant’s “South End.” At the time of her lay off, she had been employed with GE for approximately 23 years in various divisions of the company and had worked at the Dothan plant since 1988 in various supervisory positions. 7 Kendrick was a customer service specialist. 8 She has worked at the plant in various capacities since 1975. 9

In August 1992, A1 Veres became plant manager. 10 As the new manager, he continued efforts, initiated by his predecessor, to reorganize partially the plant’s administrative structure, changing it from a traditional “supervisory” one, in which forepersons and other administrators supervised by giving orders, into a “team” structure, in which employees would confront issues and resolve problems more through interaction and cooperation among themselves. 11 Veres believed that the team concept would have several benefits. First, it would increase employee involvement in decisionmaking about the operation of the plant. Second, it would reduce the plant’s “base” costs, that is, costs (such as those for salaried positions) which remain constant irrespective of changes in production. Base costs would be reduced by decreasing the number of salaried positions. Third and finally, it would improve the plant’s production and competitiveness. The concept was adopted in response to instructions from higher management that base costs be trimmed, production improved, and profits increased. 12 Although the team concept had been tried previously, and unsuccessfully, Veres believed that he could make the concept work. 13

With the reorganization and implementation of the team concept, Veres laid off Hearn 14 and reclassified Kendrick into an hourly position as a material controller, paying her $15,000 less than she had earned in her earlier position. 15 Hearn was paid through November 1992, and eventually she was able to obtain a lower-paying supervisory position with another company in the Do-than area. 16

Several important observations should be made about how Veres implemented the team concept, about the effects of the implementation on women in management, and about Veres himself:

• Before the reorganization, there were 25 salaried positions at the Dothan plant. Twenty-one were held by men 17 and four by women. 18 To implement the team concept, Veres eliminated eight salaried positions by laying off or demoting the persons who held them. The four salaried positions held by women (including, of course, those held by Hearn and Kendrick) were *1490 all eliminated, 19 but only four of the 21 salaried positions held by men were eliminated. 20 In other words, after the reorganization, all women were removed from salaried positions; only men enjoyed these positions. 21
• Of the eight persons whose salaried positions were eliminated, Veres laid off three and demoted five to hourly positions. Two of the three he laid off were women (one being Hearn), 22 and two of the five he demoted to hourly positions were women (one being Kendrick). 23 Thus, he laid off two of the four women and one of the 21 men, and he demoted the remaining two women and three of the remaining 20 men.
• With the reorganization, two “business team leader” positions were created. Although the team concept centered around team work, the two new positions still required “supervisory skills.” Indeed, the team leader positions and the former supervisory positions overlapped substantially in the duties assumed and qualities required. 24 They differed mainly in that a supervisor generally had responsibility for a particular shift, whereas a team leader had responsibility for an entire area of the plant and was supposed to involve employees in the decision-making process more. 25 In other words, the team leader’s area and range of responsibility were much greater, and he or she was to try to obtain cooperation more through consensus than with direct supervision. 26

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Bluebook (online)
927 F. Supp. 1486, 1996 U.S. Dist. LEXIS 7854, 71 Fair Empl. Prac. Cas. (BNA) 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hearn-v-general-electric-co-almd-1996.