Opinion ID: 504371
Heading Depth: 2
Heading Rank: 2

Heading: Evidence Regarding The Disparity

Text: 17 The class argued that the hiring system utilized by USX had a demonstrably adverse impact on black applicants and, further, that USX was aware of this impact and intentionally refused to alter the system to avoid the discrimination that resulted from its use. The class alleged, therefore, that USX was liable to the class under the disparate impact theory of discrimination established by the Supreme Court in Griggs v. Duke Power Co., 401 U.S. 424, 91 S.Ct. 848, 28 L.Ed.2d 158 (1971), Albemarle Paper Co. v. Moody, 422 U.S. 405, 95 S.Ct. 2362, 45 L.Ed.2d 280 (1975), and International Bhd. of Teamsters v. United States, 431 U.S. 324, 97 S.Ct. 1843, 52 L.Ed.2d 396 (1977) (Teamsters), and also under the disparate treatment theory as established by the Supreme Court in McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973). 18 In support of its disparate treatment claim, the class presented statistical evidence of the disparity between whites and blacks in the USX hiring practice that was generated by a study completed by statistics expert, Dr. Samuel Litwin. Using information derived from USX's applicant and employment records, and from the Affirmative Action Quarterly Reports (AAQR's) filed by USX. Dr. Litwin determined that, between 1971 and 1982, 49,585 applications for P & M positions were received by USX. Of those applicants, 12,857 (25.9%) were black. Green, 570 F.Supp. at 262 (Findings of Fact p 57). This data was analyzed for each year of the class period: 19 TOTAL BLACK YEAR APPLICATIONS APPLICATIONS %bLACK 1971 (July-Dec) 1,210 280 23.1% 1972 3,953 801 20.3% 1973 5,059 1,222 24.2% 1974 8,985 1,925 21.4% 1975 1,328 267 20.1% 1976 7,022 2,223 31.8% 1977 5,119 1,389 27.1% 1978 10,191 2,969 29.1% 1979 6,665 1,762 26.4% 1980 23 6 26.1% 1981 26 3 11.5% 1982 4 0 0 --------------------------------------------------- All Years 49,585 12,875 25.9% 20 Dr. Litwin's study showed that, during the class period, USX hired 5,516 persons into the P & M Department. Ninety-five percent of these hires were for the unskilled laborer positions at issue in this action. The study also determined that 972 (17.6%) of the persons that USX hired during this period were black. 21 TOTAL BLACK %bLACK %bLACK YEARS HIRES HIRES HIRES APPLICANTS 1972 (July-Dec) 609 90 14.8% 20.3% 1973 1,781 287 16.1% 24.2% 1974 1,249 164 13.1% 21.4% 1975 6 2 33.3% 20.1% 1976 253 107 42.3% 31.8% 1977 240 63 26.2% 27.1% 1978 769 147 19.1% 29.1% 1979 582 111 19.1% 26.4% 1980 1 0 0 26.1% 1981 26 1 3.8% 11.5% 1982 0 0 0 0 ------------------------------------------------- ALL YEARS 5,516 972 17.6% 25.9% (inc. 1971) 22 Using a standard deviation of 1.64 as the measure of statistical significance, Dr. Litwin evaluated the data regarding USX's hiring practices under four different methods of analysis. By the use of these methods, Dr. Litwin adjusted his analysis to take into account variations that could have affected the accuracy of his conclusions. The first method that he employed (Method A) compared the ratio of black hires and applicants with the ratio of white hires and applicants. The second (Method B) computed the expected number of black hires overall in proportion to the number of blacks in the applicant pool. The final two methods (Method C and Method D) examined the timing of applications in relation to the time that hiring decisions were actually made. Each of these methods produced results demonstrating that USX's hiring practice had a statistically significant adverse impact upon blacks. 7 Under Method A, Dr. Litwin concluded that the shortfall in USX's hiring of blacks ranged between -5 and -11 standard deviations below the expected values. Under Method B the shortfall was more than -14 standard deviations. Under Method C the deviation ranged between -4 and -8, and under Method D the deviation was approximately -6. Green, 570 F.Supp. at 263-64 (Findings of Fact paragraphs 67-74).