11/6/2004
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SAN FRANCISCO - U.S District Court Judge Susan Illston approved on Tuesday the settlement of a class action lawsuit, Gonzalez v. Abercrombie & Fitch, requires the retail clothing giant to pay $40 million dollars to Latino, African American, Asian American and women applicants and employees who charged the company with discrimination.
The settlement also requires the company to institute a range of policies and programs to promote diversity among its workforce and to prevent discrimination based on race or gender.
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s part of the settlement, Abercrombie & Fitch admitted to no wrongdoing.
"We have, and always have had, no tolerance for discrimination," Mike Jeffries, Abercrombie Chairman and CEO, said. "We can now focus on achieving even greater representation of diversity among our associates and management."
The lawsuit was originally filed in U.S. District Court in San Francisco in June 2003 by the Mexican American Legal Defense and Educational Fund (MALDEF), the NAACP Legal Defense and Educational Fund (LDF), the Asian Pacific American Legal Center (APALC) and the law firm of Lieff, Cabraser, Heimann, & Bernstein, LLP, on behalf of nine young adults of color, including students and graduates of the University of California and Stanford, who were refused sales jobs or terminated based on their race or ethnicity.
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This agreement promises to transform this company, whose distinctiveness will no longer stem from an all-white image and workforce," Thomas A. Saenz, Vice President of Litigation at MALDEF said.
The settlement requires the store to pursue "benchmarks" for the hiring and promotion of Latinos, African Americans, Asian Americans and women; the company must report on its progress toward these goals at regular intervals to the plaintiffs' attorneys and to a Special Master named by the court.
Robert Singer, President and Chief Operating Officer added, "Diversity and inclusion are core values for Abercrombie & Fitch. We will continue to demonstrate our commitment to diversity by implementing the elements of the consent decree."
In addition, the company must hire 25 recruiters who will seek out minority employees. The company is barred from targeting particular fraternities or sororities for recruitment purposes, a practice that previously helped to ensure a predominantly white sales staff.
To ensure compliance with the provisions of the Consent Decree, the company will name a Vice President for Diversity, and provide diversity training for all employees with hiring authority. A new internal complaint procedure will provide employees with a mechanism to report any problems they face.
TESTIMONIALS
Eduardo Gonzalez, a Stanford student from Hayward, California, was pleased with the settlement. "I remember how discouraged I felt when I applied for a job at the Santa Clara store and the manager suggested that I work in the stock room or on the late night crew in a non-sales position. I felt it was because I was a Latino - but there was no one I could report this to at the time."
Plaintiff Anthony Ocampo, a recent Stanford graduate, who was told he couldn't be hired because "there's already too many Filipinos," agreed with Gonzalez. "It is important that Abercrombie seek out employees of color and provide them training and opportunities for promotion."
Jennifer Lu worked at the Crystal Court Mall store in Costa Mesa, California for three years while she was a student at U.C. Irvine. "I was very distressed after I was terminated for being an Asian American woman. I am now very excited about the policies and programs Abercrombie must implement that came about as a result of this lawsuit. I am looking forward to seeing a more diverse Abercrombie; one that actually reflects the look of America," said Lu.
"I felt demoralized being the only African American employee and being specifically assigned to dust the store, wash the windows and clean the floors," Carla Grubb, an African American student at California State Bakersfield said. "With this settlement, I now know that Abercrombie cannot treat other employees of color in such a manner."