Opinion ID: 318171
Heading Depth: 2
Heading Rank: 2

Heading: Desegregation of the Employee Boards

Text: 228 In finding the segregation of black and white employees into two boards illegal, the district court stated: 229 However, the passage of Title VII of the Civil Rights Act of 1964 presents, in the judgment of this Court, a novel case of first impression. Assuming the propriety and lawfulness of the operation of the Eagan Plan at Acipco prior to July 2, 1965, the issue is presented concerning the effect on the Eagan Plan of the new and overriding legislative policy of Title VII which now controls the employment practices of all private corporations covered by the Act. Title VII now prohibits, in no uncertain terms, any discrimination by an employer with respect to compensation, terms, conditions or privileges of employment because of an individual's race or color. The Court believes that the right to serve as a member on the Board of Operatives at Acipco has been, since the inception of the Eagan Plan, a valuable term, condition, or privilege of employment at Acipco and therefore falls within the express coverage of Title VII, 42 U.S.C.A. 2000e-2(a). 332 F.Supp. at 815. 230 The court then declared the racial restriction on membership on the Board of Operatives unlawful, but directed that it continue its functions, as a joint stockholder, co-trustee, and management advisor, representing both black and white employees with no racial restriction on its membership. The Auxiliary Board was ordered to be abolished simultaneously with the elimination of the racial restriction on the membership of the Board of Operatives. The district court, however, was conscious of the fact that the ratio of black employees to white employees was approximately one to two and that if voting should polarize along racial lines no black employee would be elected to the Board of Operatives under the present electoral districts, established in 1959. Therefore, the court ordered the company to draw up new electoral districts. The court also added: 231 As a caveat, the Court points out that the election district arrangement should not be drawn or gerrymandered for the purpose of either depriving or guaranteeing any employee of a particular race or color the right to serve on the Board of Operatives. This would be contrary not only to the spirit and letter of the original Eagan Plan and Trust, but also to the provisions of Title VII and the prevailing law. Such arrangement of election districts must be on genuine geographical, operational and functional grounds in the manner contemplated by the Eagan Plan so that employees throughout the plant will have the opportunity of electing fellow employees working in their own areas or districts to the Board of Operatives on a fair basis. 332 F.Supp. at 817. 232 The company submitted a plan which enlarged the number of electoral districts from five to twelve with one representative elected from each district. The district court approved this plan finding that the districts 'had been organized and are based on genuine geographical, operational and functional grounds without any intention or purpose to gerrymander the districts because of racial considerations.' 332 F.Supp. at 819. Black employees of the company have boycotted each election held subsequently because they consider the elections pursuant to the company's plan unfair and illegally constituted. The black employees now submit their objections to this plan to this Court on appeal. We affirm the district court's order. 233 Appellants maintain that the district court's order is inadequate to remedy the unlawful exclusion of black employees from this segment of the management structure. They point to the record of the racially discriminatory practices employed by the company under its all-white management. The district court's notation of the low ratio of black employees to white employees, which means less black votes, is claimed to be a result of the practices condoned by the company's management which should not continue to penalize black employees. Second, appellants point out that a primary purpose of the Board of Operatives is to act as a channel of communication for employees. They postulate that 33% Of the company's work force, all of the black employees, will go unrepresented if the clear majority of white employees is allowed to rule. Finally, in assuming that the Board of Operatives will have substantial responsibility in monitoring the compliance with Title VII, appellants challenge the bona fides of persons who have condoned and been the beneficiaries of the company's prior discriminatory practices. Appellants rely on Fifth Circuit precedent ordering equal black and white representation in elective offices and committees in merging previously segregated unions. E.g., Long v. Georgia Kraft Co., supra, 455 F.2d 331; United States v. Jacksonville Terminal Co., supra, 451 F.2d at 457-458. Cumulative voting on a plant-wide basis and a two-thirds voting requirement for the Board of Operatives is requested. 234 The appellants' position has several strengths. The Board of Operatives, as co-trustees of the stock of the company, jointly, with the Board of Managers, elects the Board of Directors, 158 who are ultimately responsible for the company's policies and who elect the Board of Managers, the day to day operators of the company's business. The Board, therefore, shares the responsibility for the company's past employment practices. In addition, the Board of Operatives will be the main recipient of any complaints concerning compliance with the relief granted by the court. Therefore, input by black employees is vital. However, the district court has correctly applied the law in this case, 159 and we do not think it has abused its discretion in granting relief. 235 There is no racial gerrymandering claimed by the appellants. 160 Since the date of the district court's order, the number of black employees has increased to approximately 50% Of the company's work force. In addition, in the first election after the district court's order, the statistics reveal that black employees were in a majority in three of the electoral districts and constituted a substantial percentage in two others. 161 To allow cumulative voting would defeat the valid company policy of allotting representation along geographical and functional lines. Cumulative voting would also result in at-large elections. Courts in the reapportionment area have frowned upon the use of at-large districts while endorsing single electoral districts. White v. Regester, 412 U.S. 755, 765-770, 93 S.Ct. 2332, 37 L.Ed.2d 314 (1973); Connor v. Johnson, 402 U.S. 690, 91 S.Ct. 1760, 29 L.Ed.2d 268 (1971). Finally, at-large elections would encourage voter polarization by race. We are seeking to apply a law whose purpose is to resolve employment inequalities resulting from racial discrimination rather than emphasize race as an employment or voting criterion. 236 However, in affirming the order of the district court, we are mindful of the responsibility the Board of Operatives will bear in aiding the implementation of the affirmative relief that the trial court will order. To the extent possible with the procedure which the district court will direct on remand, we think it appropriate that a bi-racial committee of employees, operating as an agency of the Board of Operatives, be appointed to deal with this matter. Cf. Ellis v. Board of Public Instruction of Orange County, 423 F.2d 203, 206, n. 4 (5th Cir. 1970). The members of this committee should be drawn from the ranks of the Board of Operatives and the Equal Employment Opportunity Committee. The committee would be available to receive employee complaints and aid in compliance with Title VII. It could report both to the Board of Operatives and to the district court, so long as it retains jurisdiction, on equal employment problems. 237 The judgment is reversed and the case is remanded to the trial court for further proceedings not inconsistent with this opinion.