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The Journal Times from Racine, Wisconsin • 23

Publication:
The Journal Timesi
Location:
Racine, Wisconsin
Issue Date:
Page:
23
Extracted Article Text (OCR)

tasmess Che' Journal Tlntes Tuttdtf, Aug. 21. IV71 fletlne, Wl ID Bias suit amimist Sears unresolved Aasssl. 1 1 By Owen Ullmnn APLeoor Writer WASHINGTON (AP) Six yean ago, the federal government launched Iti most ambitious assault ever on alleged race and sex discrimination In the job market. A principal target was Sears, Roebuck and one of the nation's largest employers.

Today, the government's discrimination case against the No. 1 U.S. retailer remains unresolved and Its future Is uncertain. The case has provoked dissension within the Equal Employment Opportunity Commission, the agency that Is handing the case. It has prompted flghtlng-mad defense and a unique counter-offensive from Sears, which claims It has one of the best equal employment records.

And, it has brought frustration to company employees waiting for action on their job bias complaints. EEOC officials say the agency limply bit off more than it could chew a view reinforced by the commission's decision in 1977 to no longer bring nation-wide charges against big firms because of the difficulty of putting together a case. A MAJOR PROBLEM WITH such cases Is that a company's employment practices vary around the country. Under current policy, job bias charges are being limited to alleged discrimination by a large employer in a specific community. Details of the EEOC's complaint against Sears have been kept secret under orders IN 1177, 21 PERCENT of Sears 400,000 em-ployees were minorities.

Within the category "officials and managers," 10 percent were minorities and 36 percent were women, the company said. "We are very proud of our record. We think It speaks for Itself," said Ernest Arms, spokesman at Sears' headquarters In Chicago. After the EEOC broke off settlement talks, the company attempted to put the government on the defensive by filing suit against the EEOC and nine other federal agencies. It charges that federal policies, such as veterans preference laws, create a workforce dominated by white males and actually prevent equal job opportunities.

The suit, which sought to hold the government responsible for correcting Job discrimination, was dismissed by a federal judge in May. An appeal by the company Is pending. While the legal battle between Sears and the EEOC drags on, hundreds of Sears employees who had filed job bias complaints with the EEOC years ago keep waiting for some resolution. Many of the women who filed complaints "feel discouraged and neglected by the EEOC," said Ann Ladke, associate director of Women Employed, a Chicago-based women's rights group. Ms.

Ladke said most of the women quit their jobs long ago because they feared reprisals from Sears. "They weren't sure if the case would every come to anything because of all the delays." But the EEOC has yet to go to court. Confidential EEOC memos leaked to an employment relations newsletter reveal there Is a heated debate within the EEOC over whether it has a strong enough case to go to court. One memo by the agency's acting general counsel admits that Sears "has been In the vanguard of voluntary affirmative action" since at least 1974. OTHER MEMOS CITE ERRORS In the case and suggest the agency should prepare a suit as a bargaining ploy to settle out of court.

However, agency sources say other commission attorneys disagree with that view. Memos written after a new general counsel took office conclude that the EEOC has a sol-Id case and should sue, the sources say. The commission voted on Aug. 7 to author-. ize Its attorneys to proceed with work on a suit, but it stopped short of ordering a suit filed.

Eleanor Holmes Norton, head of the commission, says she is prohibited under a 1977 court ruling from discussing the case. But she said she expected a new development "some time soon." The Sears case began in 1973, a year after Congress gave the EEOC power to sue in court. The agency also had recently won the largest settlement of a job bias case in its history a $50 million-plus affirmative action agreement with American Telephone Telegraph. On Aug. 30 of that year, then EEOC Chair man William H.

Brown II Lf lied simultaneous discrimination charges against Sears, General Motors, Ford, General Electric and the International Brotherhood of Electrical Workers. Brown wanted to go after the biggest employers who could make the greatest changes In employment practices. BUT THE AGENCY DID NOT realize the size of this task. Today, only the charge against GE has been resolved that ended with a $32 million settlement In June 1978. "In retrospect, It was perhaps overly ambitious," said Ms.

Norton, "and the cases were brought, as it turns out, in the most troubled time of the commission, Ms. Norton, who took charge of the agency in mld-1977, said Brown left right after filing the charges, the EEOC ran into management problems, investigations moved slowly, settlement talks plodded along. Finally, in April 1977, the EEOC Issued a formal decision on the charges against Sears. The agency said it found reasonable cause to believe Sears had engaged in unfair employment practices. Formal settlement talks ensued until the agency ended them last January.

Sears has proven itself a scrappy fighter, contending it has taken major steps to im-" prove opportunities for women and minorities. The company says it voluntarily Implemented a highly praised affirmative action program in May 1973 two months before Brown filed charges. ELEANOR H. NORTON from a federal judge. But leaked documents disclose that Sears Is accused of a nationwide pattern of race and sex discrimination.

Specifically, it Is charged with falling to hire enough minorities relative to the number of applications, assigning minorities and women to less desirable and lower-paying jobs, and paying women less than men, in some cases, for the same work. The case has been In limbo since last January, when the commission broke off talks aimed at settling out of court. In so doing, the agency signaled It would sue Sears in court to force employment policy changes that the company would not make voluntarily. Clerks striking ock Island line CHICAGO (AP) The Rock Island Railroad, one of the nation's largest rail carriers, was struck today by a union representing 1,800 clerks in 13 states in a longstanding contract dispute, a railroad spokesman said. Chris Knapton, a railroad official, said pickets were set up immediately at Chicago commuter stations and elsewhere in Illinois and in Iowa and Oklahoma.

He said the strike was expected to paralyze service on the railroad even though the clerks do not actually operate the railroad cars and other machinery. "Every other craft on the railroad is represented by a union," Knapton said. "For the last 100 years, the unions have respected the picket lines, at least at the begin-ning." The Brotherhood of Railway and Airline Clerks had announced earlier that its 1,800 member-employees of the Chicago, Rock Island and Pacific Railroad would walk off the job at 6 a.m. following a failure to break an impasse in Thomas Fitzgibbon, vice president of the union, said in a statement the strike was the only alternative available to the clerks. The Rock Island operates 7,200 miles of track stretching over 13 states.

It also serves 27,000 Chicago-area commuters who ride the railroad's line from Joliet to Chicago. The key issue in the dispute is a union demand that any settlement be retroactive to April 1978, when its last contract expired. The union won such an arrangement in a national contract reached last January with most major railroads, but the Rock Island has refused to go along, citing financial problems. The railroad has filed for reorganization under federal bankruptcy laws. Henry Fleisher, a union spokesman, said the strike was called after the railroad rejected a proposal made by the National Mediation Board, a federal agency that handles rail labor disputes.

The proposal provided for binding arbitration of unresolved issues by a three-member panel made up of industry' and union representatives and a neutral member as chairman. Spacy wafers APLaserphoto Sylvia Laseckl inspects silicon wafers In holders before they are placed in a metal evaporation chamber at the RCA Solid State Division plant in Mountaintop, Pa. The wafers are used for making semiconductor devices that are used in weather and communications satellites and the space shuttle program. fuly machine tool orders down 14 Business Briefs Piggly Wiggly opening Sheboygan-based Schultz Sav-0 Stores Inc. will open Its new, 20,500 square-foot Piggly Wiggly supermarket In Sho-recrest shopping center, 3900 Erie at 9 a.m.

Wednesday. In conjunction with the Shorecrest opening, Schultz Sav-O closed the 11,500 square-foot Piggly Wiggly store at 420 Goold St. on Saturday. Plans for the closing were reported earlier. At Shorecrest, Piggly Wiggly occupies a former supermarket.

The Shorecrest store closed In April, along with all other outlets in Wisconsin. Schultz Sav-0 originally planned to open a new north side store on 3 Mile Road west of Guido's restaurant, in a building that Guido's owner William M. Wells agreed in mid-1978 to build and lease to Schultz. As previously reported, S.C. Johnson Son Inc.

agreed last month to buy from Wells eight acres of land, Including the Piggly Wiggly construction site, where the foundation is all that was completed. At the same time, Schultz made arrangements to take over the former Shorecrest space, which is about a block west of the now-abandoned construction site. Including the Shorcrest store, Schultz has six Piggly Wigglys in the Racine area, its heaviest store, concentration anywhere. Johnson patent usable S.C. Johnson Son Inc.

said a patent on a process for improving safety In aerosol filling operations has been placed in the public domain by the company for royalty-free use by the entire aerosol industry. The patent, No. 4,146,064, was issued March 27, 1979, on a process developed by John M.C. Roberts, technical director of Johnson Wax the Racine company's British subsidiary. It was dedicated to the public, Johnson said, in the Aug.

21 issue of the Official Gazette of the U.S. Patent Trademark Office. The process involves the reduction of potential static electricity buildup which can result from leaking aerosol containers during the manufacture of products containing powdered ingredients, Johnson said. Leaks in powder-containing aerosols during manufacture can cause static charges to build up in areas were flammable propellent are used, increasing the risk of spark-induced fire, the company said. Chrysler cuts some aid DETROIT (AP) Laid-off Chrysler Corp.

employees with low seniority are no longer getting money from the company's Supplemental Unemployment Benefits fund. The fund, which supplies workers with roughly half their income while at home, was suspended Monday for workers with less than 10 years seniority. In another blow to employees of the troubled No. 3 automaker, the company said Monday that it would add 1,800 more employees to the indefinite layoff roll on Sept. 24.

That would bring Chrysler's layoff total to 27,600 of the industry total of more than 70,000. Payments to workers with more than 10 years seniority, cut by 20 percent four weeks ago, will continue, Chrysler said. i Chase prime now WA NEW YORK (AP) Chase Manhattan Bank today raised the prime rate to 12'4 percent, the highest interest level ever for loans to major corporations. Chase, the nation's third largest bank, did not explain the increase from 12 percent, but economic analysts had expected the increase following recent increases in other interest rates. The Federal Reserve moved last week to force up short-term interest rates in an effort to control Inflation.

Other major banks were expected to match the increase. CM fills PR veep post General Motors Corp. said John W. McNulty has been named vice president for public relations, effective Sept. 1.

t. McNulty succeeds Anthony G. De Lorenzo, a Racine native, who is retiring, as previously reported. I.r'rr'ESM's director commimt--cations since 1977. Cold soars past $316 LONDON (AP) The price of gold jumped to record highs in London and Zurich today, topping $316 for the first time, and the dollar also gained against all major foreign currencies except the British pound.

affected by plant vacations, which are traditional for machine-tool producers and many metal-working plants that use machine tools. For the first half of 1979, the association said, overall monthly orders averaged $468 million. The industry's backlog in July rose to $4.56 billion from $4.47 billion at the end of June and $3.5 billion at the start of the year. The backlog at the end of July a year earlier was $2.88 billion. lion in June but up 20 percent from $249.3 million in July a year earlier, the association said.

Last month's orders for presses and other metal-forming machines, used to shape metal with pressure, totaled $64.2 million, down 26 percent from $86.7 million in June and down 11 percent from July a year earlier. The association's figures show that in both categories, more than half the order decline from June occurred in bookings for July orders for machine tools totaled $362.4 million, down 14 percent from $422 6 million in June but up 13 percent from $321.6 million in July a year earlier, the National Machine Tool Builders Association reported. Of the July total, orders for lathes, milling machines, machining centers, boring mills, grinders and other machines that shape metal by cutting were $298.2 million. That was down 11 percent from $336 mil- export. Foreign orders usually are slightly more than 10 percent of the industry's sales from domestic plants.

They tend to fluctuate more sharply from month to month than the larger domestic order category. Overall, foreign orders in July were $29.2 million, down 53 percent from $62.5 million in June but up 25 percent from $23.4 million in July a year earlier. Both July and August order totals will be raw-Edison OKs McG sale of Speed Queen McGraw-Edison El- The laundry products divi-gin, 111., said it has agreed sion includes the Ripon-to sell its kitchen appliance based Speed Queen unit, divisions and the U.S. opera- which makes coin-operated tions of its laundry products and household washing ma-division to Raytheon chines and dryers; dry Lexington, for an un- cleaners, institutional iron-, disclosed amount of cash. ing machines and water sof- tenersj, In addition to the headquarters plant at Ripon, Speed Queen has Wisconsin plants at Wautoma and Om-ro and also operates a plant in Searcy, Ark.

1 Proceeds from the sale, $723 million tender offer for Studebaker-Worthington common stock, on the basis of $51.50 a share for the outstanding shares. Studebaker-Worthington, based in New York, manufactures a variety of industrial products. which is expected to be completed within two months, will be used to help finance McGraw-Edison's takeover of Studebaker-Wor-thington the company said. Raytheon, a diversified electronics company, manu factures major appliances, including Amana refrigeration equipment and Caloric and Glenwood ranges. The company had sales of $3.2 million last year.

McGraw-Edison, a diversified maker of electrical products, on Aug. 13 began a -Stocks Commodities- Harnischfeger net off Grain futures Over the counter Local interest Courtesy Robert W. Baird Co. Bid Ask Inc. Net (Quotations as ot a.m.: Low Last Chng 24' 24 Franklin El 15 16 Marine Corp 30 Marshall II Corp 244 25 Stearns 5- Versa Tech 12 14 Mutual funds Bid Ask Affiliated Fund 30 8 90 Century Snares Trust 13.14 14.17 Fidelity Fund 17.40..N.L.

Investors Mutual 9.36 10.17 investors Stock 20 00 21 74 Investors Variable Pay 8.14 8 B5 Massachusetts inv. Tr 1 1 04 11 90 Massachusetts Growth 10 24 11 06 Newtoh 15.11 N.L. Nicholas Fund 13 21 N.L. Selected Am. Shares 7 19 N.L.

Wisconsin ItK 4 59 N.L Harnischfeger said the weakening U.S. dollar meant that West Germany "has now become a high-cost producer in relationship to the U.S. and many manufactured products there must be sold at or below factory costs to be competitive in world markets." He said the German operation's production has been cut back sharply. Two proposed tender offers for Harnisch-feger's 8.9 million shares of common Stock are pending. The first, from Paccar Inc.

of Bellevue, a maker of heavy-duty Harnischfeger Milwaukee, said its earnings for the fiscal third quarter ended July 31 fell 76 percent because of losses from operations in West Germany and costs associated with two acquisition proposals. Harnischfeger reported a third quarter operating profit of $1.7 million or 19 cents a share, but said costs associated with the proposed tender offers reduced earnings by $630,000, to 12 cents a share. The company's net income during the year-earlier quarter was $4 million or 46 cents a share. Third quarter revenue rose CHICAGO (AP) Futures trading Monday on the Chicago Board ot Trade: Open High Low Close Chg WHEAT 5,000 bu.l Dollars per bit. Sep 4 42 4.47'j 4.39 4 40 Dec 4.52 4.58 4.48 4.51 Mar 4.62 4 67 4 58 4 62 -00' May4.604.64 4 5' 4 61 Jul 4.40 4.44 4.37V 4.41 Sep Sales Fri.

11.149. Total open interest Fri. 56.637, otf 29 trom Tnurs. CORN 5,000 Dollars per bw. Sep 2 82 2 85 2 iHn 2 83 01 Dec 2 15 2 88 2 834 2 85' Mar 2 97 2.994k 2 94 2 96 May 3 02 3 OS 3 00 3 01 Jul 3 05 3 08 3 01V, 3 0344 Sep 3 07 3 OS 3 03 3.06 Saiet Fw, 22,26.

i Total open interest Fri. 171,006, OH' 1,486 trom lhurs. High Aileg Lud 25 Am Motors 8'A Ametek 39 ni Bucyrus 21 a Cont. Can 30 Evans 24 First Wis Hardee INcO mart ,....271 Koe tiring 224k Koracorp 18 Lee 24 Massey 11 Mattel Inc 10 Maitel MGIG 344b Modine 23' Northwest Ind einord (2.36 pfd) Rexnord Inc 191 Snap-on Tools. 2f Sta Rife Inc 14 Tenneco ......37 Tentron 29 Twin Disc 204 Vulcan 32 Wis El Pow 254 Wis PSvc 18 Wis Pwr 4 Lt 19 -'A NC NC 'ZINC NC NC Vk NC NC Iw, NC 4 NC NC NC NC -4 NC NC NC 8 8 39i 39' 21 214k 29 30 24' 24' 264k 14 14 21 21 27 27' 22' 22 18 18 24 24 114 114 9 10 28 28 344 33 23 23 36 364 56 19 19 114.ll4t 2546 251 14 14 37 37 29 294 204 204 32 32 25 25 18 IS 194 19 trucks and railroad cars, was for $20 a "24 million-fronriSTShare.

million a year earlier. for the fiscal first nine months, Har Livestock MILWAUKEE (AP) Monday closing cattle market: Good to choice steers 59 0062 00; good to choice heifers 57 00-59 00. good Hoistem steers 53 00-57 00, standard to low good 50 00-53 00, dairy he iters 50 OO-52O0; utility cows a 0050 00; canners and cutters 43 00-48 00; commercial built 58 00-60 SO, common 54 00-58. 00. Monday's closing calf market: Choice calves 80 00-95 00.

good 75 00-80 00, feeder Dun I 105 00-140 00; feeder heifers 100 00-200 00 Milwaukee federal Judge Robert W. Warren has blocked the Paccar offer from going ahead, but his injunction is being appealed. On Monday, Conrad Goodkind, Wisconsin's deputy commissioner of securities, ruled the Paccar bid legal under state law. The second proposal is from Mannesman AG of' West Germany, which makes OATS 5,000 ti Dollars per bo Sep 1 46 1 48-, 1 45 1 454a -OIVi Dec I 61' 1 42' I 1 (' -01 Mar 1 71 I 72VS 1 TO 1 70 01' May 1 77 1 79 76 1 77 00, Jul 179180 179 179 BWa Sales Fri. 609 Total open interest Fri.

1420, up 15 from Tnura. SOYBIANJ S.SW SO.) nischfeger, a maker of industrial cranes and earth-moving equipment, said its operating profit was $1.6 billion or 18 cents a. share, with tender-offer costs reducing the final net to $989,000 or 11 cents a share. In the year-earlier nine months, the company had a profit of $13.3 million or $1.52 a Potatoes Foreign exchange dealers said the money markets were Detiert per bv. steel and industrial equipment.

Mannes- jutepending announcement oUheAmerican tradeJigurea-areJJine-montlweyenue rose to $405.2 7 ii I (AP) (usni m. Monday Olina no million from $364.2 million. for July. Lioht butchers 37 00-40 50; heavy ior potato market FOB shipping points U.S. 1A Monday in 100 lb "matin's offer.

$27.50 a sMre. is to proceed Sept. 7, according to a subsidiary, Mannes-mann Machinery Corp. The Mannesmann offer was delayed for 30 days on Aug. 2 at the suggestion of the Federal Trade No7 2S lltlllt 7 17-ltHa Jan Vi 7 42 7 79 7 31 0" Mar 7 S3 7 54 7 43 7 44 I0l May 7 41 7 61 7 52 7 SJW Jut 7 a 7 70 7 59 7 41 0j Aug 7 65 7 66 7 5 7 59 -10 Sep 7 54 7 57 7 54 7 59-95 Seies Fri nsel v.

To'al open H1rt FHt 95,727, oft butchers 34 90-37 00, light sows 29 00-X 00. heavy sows 27 00-29 00; boars 33 00 and down Monday closing lamb market: Good to cno.ee 50 00-56 00, ewes and bucks 10 00-15 00 Today estimated receipts: tsa catite. 450 ceives. 150 hogs. 25 sneep.

Henry Harnischfeger, chairman and president, said most of the earnings decline was attributable to losses from Harnischfeger GmbH, which is 49 percent owned by Thyssen Industrie AG. mih: minnesora rouna reos 4.0O-J 50-Minnesota round whites i 25; Minnesota norgotdt 4 00; Colorado round reos 5 90-5 50; 50 lb cartons: Weshino-ton rnrgoias 2S- 50, Oregon IW, golds 4 00; Colorado norgoKM go. Gold was quoted in Zurich at $316,625 an ounce, up more than $2 from Monday's closing rate of $314,125 and $2 above the record Zurich price of $314,625 last Friday. London's five major bullion dealers set a mean price of $318. rt for trading at t4 idmorning.

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