Sako Corp. settles discrimination suit

The U.S. Equal Employment Opportunity Commission and Sako Corporation have entered into a consent decree settling two federal lawsuits in the U.S. District Court here, according to EEOC statement.

The settlement resolves two cases brought by EEOC under Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act of 1978, on behalf of some of Sako’s pregnant employees.

Under the terms of the settlement, Sako agreed to pay eight affected garment workers $67,000 in general damages, in addition to reimbursing them for any medical expenses and to renew the annual employment contract of seven of the workers, without admitting any wrongdoing or fault.

Sako also agreed to an anti-discrimination training program on preventing sex discrimination and retaliation, to be monitored by EEOC for the Title VII compliance semi-annually for the next three years.

Based on the investigation by its Honolulu Office, the EEOC claimed pregnancy discrimination by Sako when the garment firm allegedly required several pregnant employees to sign agreements to pay for their own medical expenses and forced them to take leave without pay regardless of their ability to continue working.

In a related lawsuit, EEOC alleged Sako retaliated against employee Carmencita Abad after she assisted several co-workers file pregnancy discrimination charges.

Sako filed answers denying that it required employees to take any leave, denying that Ms. Abad or anyone else had been retaliated against, and asserting that Sako reimbursed all of its employees for all their pregnancy related medical expenses.

The settlement avoided a jury trial scheduled for late September.
EEOC officials hailed the court’s decision.
“We are pleased with this result, which is consistent with our mission to enforce civil rights in the CNMI,” said Susan L. McDuffie, EEOC’s San Francisco District Director.

Senior Trial Attorney Daphne Barbee-Wooten, who was in charge of the case on behalf of the EEOC, noted that “the employees are pleased that this matter is settled.”

“Sako is also pleased to have the two cases amicably resolved without the need for an expensive trial,” said its attorney Michael W. Dotts. “Sako looks forward to working with the EEOC over the next three years to make Sako one of the best places to work in the Pacific.”