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Summary Mehri & Skalet and the Equal Employment Opportunity Commission ("EEOC") each filed a lawsuit challenging Ford's procedures for selecting apprentices nationwide. These suits alleged that, since 1997, Ford has discriminated against African-Americans on the basis of race in selecting apprentices. The two cases were consolidated in front of Senior Judge S. Arthur Spiegel in the Southern District of Ohio.
After extensive negotiations, the parties arrived at a settlement. The settlement resolves all claims in both lawsuits. We believe that the settlement is in the public interest and confers substantial benefits on the Settlement Class. The settlement provides monetary and non-monetary benefits to the class, as well as providing substantial systemic relief.
Some key aspects of the Settlement Agreement include: Ford has ceased the use of the current apprenticeship test for selection of apprentices at Ford facilities in the U.S. The parties have jointly selected Kathleen Lundquist, president of Applied Psychological Techniques in Darien, Connecticut as an independent industrial psychologist to serve as an expert to devise new apprenticeship selection procedures.
Ford selected 276 members of the Settlement Class and placed them, along with three Charging Parties, on a Ford apprenticeship program eligibility list. This aspect of the Settlement Agreement was designed to remedy claims for lost job opportunities.
To remedy compensation damages claims for the class, the Settlement Agreement also provides that Ford will pay $2400 to each Settlement Class member who submits a properly executed Claim and Release Form and did not opt-out of the lawsuit.
A formal fairness hearing to determine whether the terms of the Settlement Agreement were fair, reasonable, and adequate took place on June 1, 2005, and the Settlement Agreement was approved by Judge Spiegel on June 15, 2005. Judge Spiegel said "The settlement provides substantial monetary and non-monetary benefits to the class as well as extensive systemic relief. The new testing procedures will benefit not only the class members, but potentially also all employees and future employees of Ford. " The Settlement became Final and Binding in August 2005.
Frequently Asked Questions
1. When will I receive my check?
All Class Members who returned their completed Claim and Release Form to the Claims Administrator, Settlement Services by March 31, 2006, should have been issued a payment.If you have not received your check, or if you returned your Form after this date and have not been contacted by Mehri & Skalet, PLLC, please contact our firm at (866) 464-9097.
2. Will I have to pay taxes on my settlement check?
All settlement checks are subject to income tax. Ford will issue a form W-2, subject to lawful withholding, to each Settlement Class member who is currently a Ford employee. Ford will issue a form 1099 to each Settlement Class member who is no longer a Ford employee. Please consult a tax advisor for any additional questions you may have.
3. When will the new apprentice eligible candidates be chosen?
At this point, all 276 individuals have been chosen and contacted by Ford, and have now been added to the apprenticeship list.
4. When will the new selection procedure for apprentice candidates be available?
Class Counsel and Ford are actively working with the Jointly Selected Expert Industrial Psychologist to coordinate the development of the new selection procedure. That selection procedure is targeted to be available for Ford employees in 2007. |
