Opinion ID: 401038
Heading Depth: 1
Heading Rank: 2

Heading: allocation of grain work

Text: 9
10 Grain work comprises approximately 8% of all longshore work and involves the loading and unloading of ships carrying grain. It is physically less demanding than other types of work because the cargo is pumped rather than carried onto and off of vessels. Grain workers often become covered from head to toe in grain and inhale particles, however, and because of this unpleasantness, a premium is paid for grain work. 11 Pursuant to the Deep Sea Agreement, grain work was allocated equally between the members of the black and white locals. Plaintiffs contend that this practice violated Title VII and § 1981. 12 The district court's original order in this case, dated February 14, 1979, 466 F.Supp. 662, was five years after the trial. In that order, the court found that the 50-50 allocation of grain work was discriminatory, yet it did not find a violation of Title VII. Upon plaintiffs' motion for reconsideration of the issue, the court clarified by saying its earlier holding meant that the contract clause requiring 50-50 allocation was not discriminatory but that it was evidence of the discriminatory potential inherent in a system that maintained segregated local unions. 13 The court then reconsidered plaintiffs' allegation that the practice of 50-50 allocation was discriminatory in and of itself. Again, the court did not find a violation of Title VII. This time its conclusion was based upon its finding that, because longshoremen perform more than one type of work, evidence focusing on only one of these jobs, i.e., grain work, would distort the analysis. The important thing is how (the black longshoreman) fares overall. The court then considered the overall welfare of black longshoremen and concluded that in the Port of New Orleans, they received their proportionate share of work and pay. Thus the court found no discrimination. 14 An appellate court must accept a trial court's findings of subsidiary facts unless clearly erroneous; however, the court's ultimate finding on the issue of discrimination is subject to review free of the clearly erroneous standard. Wright v. Western Electric Co., 664 F.2d 959, 963 (5th Cir. 1981). Furthermore, this Court is not bound to any degree by the district court's conclusions as to the law, Parson v. Kaiser Aluminum & Chemical Corp., 575 F.2d 1374, 1382 (5th Cir. 1978), cert. denied, 441 U.S. 968, 99 S.Ct. 2417, 60 L.Ed.2d 1073 (1979), nor are we bound by findings of fact based upon erroneous applications of law, Johnson v. Uncle Ben's, Inc., 628 F.2d 419, 422 (5th Cir. 1980), vacated on other grounds, 451 U.S. 902, 101 S.Ct. 1967, 68 L.Ed.2d 290 (1981). We find that the district court's opinion was based upon an erroneous legal conclusion as to the viability of plaintiffs' grain claim. Thus our review of the court's findings of fact is not bound by the clearly erroneous standard of Fed.R.Civ.P. 52(a). 15 In concluding that the plaintiffs failed to prove discrimination, the district court misconstrued plaintiffs' allegation. By comparing the overall economic picture of blacks and whites, the court transformed plaintiffs' claim of discrimination in the allocation of grain work into a claim of discrimination in the entire industry. 7 The court erroneously concluded that plaintiffs' segmented claim was not cognizable under Title VII and § 1981. 16 Claims alleging discrimination in only one segment of an employer's workforce are cognizable under Title VII and § 1981. The Supreme Court recognized this principle in one of the landmark Title VII cases, International Brotherhood of Teamsters v. United States, 431 U.S. 324, 97 S.Ct. 1843, 52 L.Ed.2d 396 (1977). There, the United States brought suit on behalf of blacks and Spanish-surnamed persons against a large trucking company and the union which represented its employees claiming that the company engaged in a pattern or practice of discrimination in the hiring of line drivers. Minorities who were hired allegedly were relegated to the lower paying, less desirable positions and met with insurmountable difficulties in trying to gain promotions and transfers. 17 The government's case consisted of powerful statistical evidence showing a gross disparity between the percentage of minorities in the company's workforce as a whole and those in line driver positions. Those statistics, coupled with the testimony of individuals who recounted over forty specific instances of discrimination, established the government's prima facie case. The company was unable to rebut this evidence, and the government prevailed on the issue. 18 Line drivers only comprised approximately one-fourth of the truck driver positions, yet the Court recognized the validity of the departmentalized claim. The Court did not look to the overall picture of minorities within the company's employ to determine the validity of the claim. Minorities may have fared overall as well as their white counterparts, yet the Court did not consider this factor in evaluating the evidence. The government was permitted to charge discrimination in one job classification only and to prove its case by offering statistical evidence relevant only to that job. 19 In determining whether a particular claim of discrimination in only a segment of an employer's work force is cognizable the operative factor must be the distinctiveness of the segment. In Teamsters, supra, the duties and compensation of line drivers differed from those of other driver positions and thus line drivers constituted a distinct job classification. 20 A similar distinction exists between grain work and other types of longshoring jobs in New Orleans. The tasks performed by grain workers differ from those performed by other longshoremen because of the nature of the cargo involved. Furthermore, the Locals and NOSA traditionally have treated grain work separately from other types of longshore work, as evidenced by the Deep Sea Agreement. The hourly wage paid for grain work is negotiated separately from other types of work. 8 The mode of allocating jobs evenly between the black and white Locals was also unique to grain work. Thus, while longshoremen can and do perform a variety of jobs, the distinctiveness of grain work makes plaintiffs' claim of discrimination in this one area of employment viable under Title VII and § 1981. 21 In fact, the court below recognized the validity of segmented claims within the industry in New Orleans. Although it refused to consider plaintiffs' claims of discrimination in the allocation of grain work, it permitted similar segmented claims with respect to other sectors of the industry. A clear example is the court's consideration of plaintiffs' allegation of discrimination in job assignments in general cargo gangs. Although the court ultimately rejected plaintiffs' claim on the merits, it recognized the segmented claim and considered statistics relevant only to general cargo gangs, not the entire industry. 22 Furthermore, both logic and the policies underlying Title VII dictate the conclusion that a segmented claim is cognizable. Title VII proscribes racial discrimination of any kind in virtually all aspects of employment. There is nothing in the Act to indicate that a claim for discrimination in one distinct category of employment within a plant, industry or office, or even in one job, is not cognizable. 23 Were we to accept defendants' contentions, we would be ruling in effect that an employer may discriminate with impunity as long as it confines such action to some units or departments within the workforce while maintaining an overall facade of equality. An employer guilty of plant or industry-wide discrimination may be a worse offender of Title VII than one who discriminates in only a single department. The remedies awarded to the former's employees as well as the penalties assessed against it may be greater than those imposed upon the latter. As to liability, however, both are equally subject to the prohibitions of Title VII. 24 The cases relied upon by defendants in support of the judgment below are unpersuasive. None of these cases involved the question of whether a segmented claim may be brought against an employer. In Swint v. Pullman-Standard, 539 F.2d 77 (5th Cir. 1976), cert. granted (after an earlier remand), 451 U.S. 906, 101 S.Ct. 1972, 68 L.Ed.2d 293 (1981), plaintiffs alleged that the defendant engaged in a pattern or practice of racial discrimination in departmental assignments within its production plant. To prove their claim, plaintiffs offered statistical evidence of racial disparity in nine of the twenty-eight departments. We discarded the proffered analysis because it focused on only nine of twenty-eight departments. 539 F.2d at 94-95. Instead, we held the proper statistical focus should have encompassed the entire plant and thus plaintiffs' evidence of racial imbalances in a segment of the plant was insufficient to establish a prima facie case of plant-wide discrimination. 25 In E.E.O.C. v. Datapoint Corp., 570 F.2d 1264 (5th Cir. 1978), plaintiffs raised a claim of racial discrimination in hiring and job assignments. They introduced statistical evidence showing gross imbalances in some job categories, but no evidence as to the employer's workforce as a whole. The district court rejected this as proof of a prima facie case. We upheld its decision stating that while plaintiffs' statistical evidence alone might be sufficient to infer discrimination in these job categories ... (to prove) a prima facie case of racial discrimination, such statistics must be relevant, material and meaningful.... 570 F.2d at 1269. Because plaintiffs' claim was one of employer-wide discrimination, the segmented, isolated statistics offered were misleading and therefore meaningless. 26 Contrary to defendants' contention, these two cases do not stand for the proposition that plaintiffs' claim of discrimination in grain work is not cognizable. In both cases, plaintiffs charged the employer with plant-wide discrimination but offered statistical evidence which was limited to small segments of the plant. In denying plaintiffs' claims, we held that the proffered limited statistics were insufficient to prove the broad claims asserted. 27 Here, plaintiffs alleged discrimination in one separate job category within the industry. Naturally, then, their statistics focused on the subject area. Unlike the Swint and Datapoint plaintiffs, they did not offer a segmented statistical analysis as a means of trying to prove industry-wide discrimination. Indeed, that was not their claim. The district court, nevertheless, treated their offer of proof as one for industry-wide discrimination. As such, plaintiffs' statistics certainly would not prove a prima facie case, for the reasons cited in Swint and Datapoint. The court refused to consider plaintiffs' proof in the context in which it was offered, and we find this to be reversible error. 28 Lee v. City of Richmond, 456 F.Supp. 756 (E.D.Va.1978) and Croker v. Boeing Co., 437 F.Supp. 1138 (E.D.Pa.1977), aff'd, 662 F.2d 975 (3d Cir. 1981), also relied upon by defendants, are equally unsupportive. Both cases, as do our decisions set out above, stand only for the proposition that segmented statistical evidence of racial imbalances within a few departments cannot prove a prima facie case of employer-wide discrimination. Neither of these cases addresses the validity of a claim of segmented, departmentalized discrimination such as the one posed by plaintiffs herein. Therefore, they do not support defendants' position in this appeal. 29 We hold that the district court erred in refusing to recognize plaintiffs' claim and in transforming it into one of industry-wide discrimination. 9 Plaintiffs presented a cognizable claim under Title VII and § 1981. We now turn to the merits of that claim.
30 Having found plaintiffs' claim for discrimination in the allocation of grain work to be cognizable under Title VII and § 1981, we turn now to plaintiffs' evidence to determine whether a prima facie case was made. We note at the outset that the contract clause requiring the 50-50 allocation of grain work was eliminated in 1974. Because the clause formed a significant part of plaintiffs' evidence, our discussion in this section pertains only to the time period in which the objectionable clause was in effect. 31 Plaintiffs' claim is one of class-wide disparate treatment. Thus, the inquiry must be whether defendant treated members of the plaintiff class differently from their white counterparts, and if so, whether that difference was the result of discriminatory intent. In some cases, proof of the latter can be inferred from strong statistical evidence of the former. Teamsters, 431 U.S. at 335 n.15, 97 S.Ct. at 1854 n.15; Pouncy v. Prudential Insurance Company of America, 668 F.2d 795 at 802 (5th Cir. 1982); Wilkins v. University of Houston, 654 F.2d 388, 395 (5th Cir. 1981). 10 Plaintiffs introduced statistical evidence which they contend proved a significant disparity between blacks and whites in the allocation of grain work. 32 Statistics have become an important and useful tool in civil rights litigation. In many cases, they are the only evidence available to plaintiffs. Pragmatically, too, statistics assist in the evaluation of employer practices because absent explanation, it is ordinarily to be expected that nondiscriminatory ... practices will in time result in a work force more or less representative of the racial and ethnic composition of the population ... from which employees are hired. Teamsters, 431 U.S. at 339 n.20, 97 S.Ct. at 1856 n.20. 11 Thus, (w)here gross statistical disparities can be shown, they alone may in a proper case constitute prima facie proof.... Hazelwood, 433 U.S. at 307-08, 97 S.Ct. at 2741. Wilkins, 654 F.2d at 395. 33 Plaintiffs introduced statistical evidence showing the allocation of grain work in ten of the NOSA companies 12 for the years 1971-73. In 1971, there were six grain gangs composed of 31 whites and 32 blacks; in 1972, there were 19 gangs composed of 72 whites and 76 blacks; and in 1973 there were 18 gangs composed of 67 whites and 71 blacks. Thus while blacks comprised 75% of the registered workforce, they held only 51.3% of the grain positions. A calculation of the binomial distribution, see Castaneda v. Partida, 430 U.S. 482, 97 S.Ct. 1272, 51 L.Ed.2d 498 (1977), reveals that the actual number of black grain workers deviated from the expected number by 10.24 standard deviations. 13 This is well sufficient to prove a prima facie case of discrimination. Id. at 496 n.17, 97 S.Ct. at 1281 n.17. 34 In addition to this strong statistical data, plaintiffs introduced into evidence the contract between the Craft I unions and NOSA which specifically compelled the allocation of grain work according to race. It provided that so far as is practical, work is to be divided between members of ILA Locals 1418 and 1419 in grain trimming machine gangs, and/or hand trimming gangs. Williams v. NOSA, 466 F.Supp. at 673. In practice, this meant that grain gangs were half black and half white. Id. 35 The contract clause and the statistics are powerful evidence of purposeful discrimination. The statistics alone show that it is quite unlikely that random, impartial hiring practices would have produced such disparities. And, in light of the contract's compelled discrimination, any doubts as to purposefulness must be resolved in plaintiffs' favor. We hold that plaintiffs established a prima facie case of purposeful discrimination in the allocation of grain work.
36 Once plaintiffs have proved a prima facie case of purposeful discrimination, defendants must rebut plaintiffs' case by discrediting plaintiffs' evidence or providing a nondiscriminatory explanation for the apparently discriminatory result. Teamsters, 431 U.S. at 360 n.46, 97 S.Ct. at 1876 n.46. If the defendants fail to rebut the prima facie case, plaintiffs prevail on the issue. 14 37 At no point in this eleven year proceeding have defendants disputed the validity of plaintiffs' statistics relating to the allocation of grain work. In fact, the statistical data was derived from the defendant companies' Answers to plaintiffs' Interrogatories. Defendants challenged the designation of black grain workers as the sample and argued that the analysis should have focused upon all black longshoremen. We responded to this contention in Part I, supra and need not reiterate our holding. 38 Instead, defendants offered explanations for the statistical disparity which they contend satisfied their rebuttal burden. First, they contend that because the offensive clause was included at the insistence of black Local 1419, in following its mandate they were only following the wishes of those who now claim to have been discriminated against. This appears to be factually correct; nevertheless, it does not excuse discrimination on the part of the union or the employer. The rights assured by Title VII cannot be bargained away-either by a union, by an employer, or by both acting in concert. United States v. St. Louis-San Francisco Railway Co., 464 F.2d 301, 309 (8th Cir. 1972) (en banc), cert. denied, 409 U.S. 1116, 93 S.Ct. 913, 34 L.Ed.2d 700 (1973). We have held (t)he fact that a contract required this limitation (of employment opportunities) is not a justification if it is discriminating. United States v. Hayes International Corp., 456 F.2d 112, 117 (5th Cir. 1972). Clearly, then, neither the existence of the contract nor its origin can exonerate defendants' discriminatory practices. 39 Second, defendants claimed that because blacks in the longshore industry fared overall as well as or better than whites, any misallocation of grain work is irrelevant. As we stated above, this type of analysis transforms plaintiffs' claim into one of industry-wide discrimination. Whether blacks as a whole suffered economically has no bearing on the issue of discrimination in the allocation of grain work. Swint, 539 F.2d at 92. Plaintiffs readily admit that industry-wide earnings of blacks may be relevant on the issue of backpay. This evidence has no place in the liability phase, however. Id. Defendants also argue that grain work was no more desirable than any other type of work. Although it paid a 20cents per hour premium, it was unpleasant. The desirability of grain work is irrelevant as well. Title VII provides for equal opportunities in all jobs whether better or worse than others. Teamsters, 431 U.S. at 338 n.18, 97 S.Ct. at 1855 n.18; Hayes International Corp., 456 F.2d at 118. 40 Finally, defendants argued that the casual nature of the longshore industry precludes a finding of discrimination. We have already described the shape-up process and the many variables that determine a longshoreman's position and earnings. The unpredictability of available work coupled with the personal choices inherent in the system normally would complicate our inquiry. Because so many of the factors determining work patterns are not within the employer's control, and in fact are determined by the employees, it is more difficult to attribute statistical imbalances to a discriminatory motive on the part of the employers. Here, however, we need not speculate as to the reasons for the imbalance because the contract shows that such an allocation was required. Whether the casual nature of the industry could or would have produced similar disparities is irrelevant in the face of the explicit language of the Deep Sea Agreement. 41 We hold that defendants failed to rebut plaintiffs' prima facie case of purposeful discrimination in the allocation of grain work during the existence and application of the 50-50 clause. The statistical data introduced by plaintiffs pertains only to the period during which the discriminatory contract was in force. Because our conclusions are based upon evidence relative to this period only, our finding of discrimination is limited accordingly. Plaintiffs contend that even after the deletion of the 50-50 clause, the practice of discriminatory allocation continued. We turn now to that claim. 42 D. Discrimination in the Allocation of Grain Work After the Deletion of the 50/50 Clause 43 Thus far we have held that there was purposeful discrimination in the allocation of grain work during the pendency of the grain clause. Plaintiffs contend that the discriminatory practice continued after the deletion of the clause and that the court below erred in refusing to consider the issue. Defendants argue that plaintiffs waived the issue of post-clause discrimination because they failed to request its consideration by the court. 44 It is plaintiffs' assertion that the clause was eliminated after the close of the record; defendants contend the opposite. We find plaintiffs' assertion ironic. If the clause were eliminated after trial, the record would have closed, and thus the only evidence plaintiffs could have produced would have concerned the practices existing during the application of the clause. Because a court's consideration need not extend to claims for which plaintiffs produce no evidence, Rivera v. City of Wichita Falls, 665 F.2d 531, 536 n.6 (5th Cir. 1982), the district court would have been justified in refusing to consider the claim of post-clause discrimination. Thus, if plaintiffs are correct in their assertion as to when the clause was eliminated, the only way they could be entitled to a finding on post-clause discrimination would be by petitioning the court to reopen the case, which they have not done. 45 On the other hand, if the clause were eliminated during the trial, plaintiffs' failure to request a ruling would not constitute a waiver of the claim. Plaintiffs claimed that defendants were guilty of allocating grain work in a discriminatory manner. The contract clause was offered as evidence of that practice. While plaintiffs certainly objected to the clause, the subject of their claim was the practice of discriminatory allocation, whatever its source, and the court's inquiry should have focused on the practice. By bringing such a claim, plaintiffs requested consideration of the issue of post-clause discrimination. An additional request would not have been necessary. 46 We believe both parties are partially correct in their statements as to when the clause was deleted. The trial took place from July 22 to September 20, 1974, during the time that the Deep Sea Agreement was being renegotiated. The Agreement was to expire on September 30, 1974. By mid-September, it must have become painfully apparent that the grain clause was doomed, and as a tactic of this litigation, Williams v. NOSA, 466 F.Supp. at 673, NOSA and Locals 1418 and 1419 decided to eliminate the clause from the new contract. But the new contract was not actually effective until October 1, 1974. So although it was agreed during the trial that the clause would be deleted, the action was not officially taken until after the trial ended. 47 Because the trial court was aware of the imminent elimination of the clause, we find that the issue was before it and should have been considered. At the close of the trial, however, plaintiffs had produced no evidence on the issue. In subsequent affidavits submitted on a summary judgment motion, plaintiffs offered evidence showing that the discriminatory practice continued notwithstanding the elimination of the clause. Defendants responded with counter-affidavits. When plaintiffs moved for reconsideration of the grain issue in 1979, their supporting memorandum noted the conflicting affidavits and insisted that the issue could not be resolved without an evidentiary hearing. 48 The trial court granted plaintiffs' motion for reconsideration of the grain issue. But, without another hearing and relying only upon the evidence adduced at trial five years earlier, the court reiterated its former holding that the proper comparison was between blacks and whites in the entire industry. This conclusion foreclosed a decision on post-clause discrimination in grain work. The grain work issue was not mentioned despite the fact that plaintiffs brought to the court's attention the conflicting affidavits. The court, however, would consider only the industry-wide claim. 49 Plaintiffs are entitled to a hearing on the issue of post-clause discrimination. We remand this issue to the district court so that all parties may present evidence as to whether or not discrimination continued after the 50-50 clause was deleted.