US agency sues two automakers, alleging discrimination and harassment

By Jonathan Stempel

(Reuters) – The U.S. Equal Employment Opportunity (SO:) Commission on Friday sued two large automakers, accusing General Motors (NYSE:) and the United Auto Workers of age discrimination and the Stellantis (NYSE:) unit that includes Chrysler of subjecting female employees to sexual harassment.

GM and the UAW were accused of having since October 2019 maintained a sickness-and-accident benefits policy under their collective bargaining agreement that reduces payouts to older employees who receive Social Security benefits.

The EEOC said the policy, covering at least 50 GM facilities nationwide, discriminates against employees ages 66 and older, violating the federal Age Discrimination in Employment Act.

Stellantis’ FCA US unit, meanwhile, was accused of having since December 2020 tolerated pervasive sexual harassment of female employees at a Detroit assembly plant, and routinely ignored their complaints about male supervisors and co-workers, some of whom were placed in leadership roles.

The EEOC said the alleged harassment included inappropriate touching and sexually charged comments, and together with FCA’s failure to discipline male harassers created a hostile work environment that violated Title VII of the Civil Rights Act of 1964.

GM had no immediate comment, having yet to review its complaint. FCA and the UAW did not immediately respond to requests for comment about their respective cases.

The GM and UAW lawsuit seeks to recoup benefits that workers ages 66 and older deserved but never received, while the FCA lawsuit seeks compensatory and punitive damages for female employees at the Detroit plant.

Both lawsuits also seek permanent injunctions against further wrongful conduct.

GM and the UAW were sued in the federal court in New Albany, Indiana, while FCA was sued in Detroit federal court.

The lawsuits are part of a string of enforcement actions by several federal agencies in the final days of the Biden administration.

It is unclear how EEOC enforcement priorities will change after President-elect Donald Trump enters the White House.