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EMPLOYMENT LAW — 2/2/06

Pepsi-Cola General Bottlers to pay $400,000 for sexual harassment, retaliation

US District Court Judge for the Northern District of Illinois, Milton I. Shadur, has entered a consent decree requiring Pepsi-Cola General Bottlers, Inc to pay $400,000 in damages, back pay and attorneys' fees to resolve an individual case of sexual harassment and retaliation brought by the US Equal Employment Opportunity Commission (EEOC).

The EEOC's suit (EEOC, et al v Pepsi-Cola General Bottlers, Inc, NDIll, No 03 C 6576) alleged that Pepsi-Cola General Bottlers permitted severe sexual harassment of a female dispatcher, Renaee N. Henry, at its facility at 1400 West 35th Street in Chicago, Illinois and then terminated her employment in retaliation for her complaints of the harassment. Henry intervened in the EEOC's lawsuit and is represented by Chicago, Illinois attorney Fern N. Trevino. Henry also made an additional claim under the Family and Medical Leave Act of 1993.

The EEOC contended, based upon an administrative investigation led by Chicago District Director John Rowe, that throughout Henry's three years of employment (where she was in daily contact with dozens of men), she was subjected to ongoing sexual harassment by numerous male employees. According to the EEOC, these male employees repeatedly made vulgar sexual comments, asked her for dates and sex and touched her. In addition, there was sexually explicit graffiti about her in the men's restroom. Rowe contended that Henry made repeated complaints to her supervisors about the harassment and was then subjected to different terms and conditions of employment and finally terminated in retaliation for making the complaints.

The consent decree, which ends the suit, was signed January 18, 2006 by Judge Shadur who sits in Northern District of Illinois, Eastern Division in Chicago. Under the terms of the two-year decree, in addition to providing $400,000 to Henry and her attorney, Pepsi-Cola is enjoined from engaging in sexual harassment and retaliation. The company must also provide training to all of its employees at its 35th Street facility regarding sexual harassment and retaliation and must make periodic reports to the EEOC of any future complaints of sexual harassment or retaliation.

John Hendrickson, EEOC Chicago District Regional Attorney, said, "Sexual harassment and retaliation are a volatile and poisonous mix in any work place and they continue to attract our attention at EEOC. In this instance, we're satisfied with the result we were able secure through our litigation and working with the employer and the charging party's counsel." "It's a good decree," Hendrickson continued, "it signals, once again, that employers must listen to complaints of discrimination, must take prompt corrective action, and must not retaliate. Going after the messenger is always at bad idea."

The EEOC Supervisory Trial Attorney who led the agency's litigation effort, Diane Smason, added, "The charging party here was one of only a few women working in a heavily male environment. In that kind of situation employers really need to be alert to what is going on and pay real attention to complaints. When that doesn't happen, the result can be expensive. On the other hand, we are optimistic that the consent decree in this case will change the landscape for women at Pepsi."

For more information on this and other topics, consult CCH Employment Practices Guide or CCH Labor Relations.

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