When Wayne A. Elliott was transferred in 1996 from a factory job to a warehouse at Lockheed Martin Corp.'s sprawling military-aircraft production facilities in Marietta, Ga., he says he found himself face to face with naked racism. Anti-black graffiti was scrawled on the restroom walls. His new white colleagues harassed him, Elliott recalls, as did his manager, who would yell at him, call him "boy," and tell him to "kiss my butt." He complained, but Elliot says the supervisor was no help. Instead, he assigned Elliott, now 46, to collecting parts to be boxed, which involves walking about 10 miles a day. Meanwhile, the eight whites in his job category sat at computer terminals and told him to get a move on--even though Elliott outranked them on the union seniority list.
The atmosphere got even uglier when Elliott and a few other blacks formed a small group in 1997 called Workers Against Discrimination, which led to the filing of two class actions. One day, he and the other two black men among the 30 warehouse workers found "back-to-Africa tickets" on their desks, he says, which said things like "Just sprinkle this dingy black dust on any sidewalk and piss on it, and, presto! hundreds of n-----s spring up!" They reported this, but the Lockheed security officials who responded took the three victims away in their security cars as if they were the wrongdoers, he says, and interrogated them separately.
Then, one day in 1999, according to Elliott, a hangman's noose appeared near his desk. "You're going to end up with your head in here," Elliott recalls a white co-worker threatening. Another noose appeared last November, he says. He and the other whites "hassle me all the time now, unplugging my computer so I lose work, hiding my bike or chair; it's constant," says Elliott, who gets counseling from a psychologist for the stress and says he has trouble being attentive to his two children, ages 7 and 8, when he's at home.
Lockheed spokesman Sam Grizzle says the company won't comment on any specific employee. But regarding the suits, which Lockheed is fighting, he says, "we do not tolerate, nor have we ever tolerated, harassment or discrimination of any form. We take such complaints very seriously, and we always have investigated them and taken appropriate action when needed."
The alleged incidents at Lockheed are part of an extensive pattern of charges of racial hatred in U.S. workplaces that BusinessWeek investigated over a two-month period. Nearly four decades after the Civil Rights Act of 1964 gave legal equality to minorities, charges of harassment at work based on race or national origin have more than doubled, to nearly 9,000 a year, since 1990, according to the Equal Employment Opportunity Commission (charts).
The problem is not confined to small Southern cities such as Marietta. In addition to high-profile suits at Lockheed, Boeing, and Texaco, dozens of other household names face complaints of racism in their workforce. Noose cases have been prosecuted in cosmopolitan San Francisco and in Detroit, with a black population among the largest in the nation.
It's true that minorities' share of the workforce grew over the decade, which could have led to a corresponding rise in clashes. Yet racial harassment charges have jumped by 100% since 1990, while minority employment grew by 36%. What's more, most charges involve multiple victims, so each year the cases add up to tens of thousands of workers--mostly blacks, but also Hispanics and Asians.
It's hard to reconcile such ugly episodes with an American culture that is more accepting of its increasing diversity than ever before. Today, immigrants from every ethnic and racial background flock to the U.S. There is a solid black middle class, and minorities are active in most walks of life, from academia to the nightly news. When we do think about race, it's usually to grapple with more subtle and complex issues, such as whether affirmative action is still necessary to help minorities overcome past discrimination, or whether it sometimes constitutes reverse discrimination against whites.
To some extent, the rise in harassment cases may actually reflect America's improved race relations. Because more minorities believe that society won't tolerate blatant bigotry anymore, they file EEOC charges rather than keep quiet out of despair that their complaints won't be heard, says Susan Sturm, a Columbia University law professor who studies workplace discrimination. Many cases involve allegations of harassment that endured for years.
Multimillion-dollar settlements of racial discrimination or harassment claims at such companies as Coca-Cola Co. and Boeing Co. also give victims greater hope that a remedy is available. Such suits became easier in 1991, after Congress passed a law that allowed jury trials and compensatory and punitive damages in race cases. "It's like rape, which everyone kept silent about before," says
Boeing human resources chief James B. Dagnon. "Now, prominent individuals are willing to talk publicly about what happened, so there's a safer environment to speak up in."
But many experts say they are seeing a disturbing increase in incidents of harassment. Minority workers endure the oldest racial slurs in the book. They're asked if they eat "monkey meat," denigrated as inferior to whites, or find "KKK" and other intimidating graffiti on the walls at work.
Even office workers are not exempt. In May, 10 current and former black employees at Xerox Corp. offices in Houston filed harassment charges with the EEOC. One, Linda Johnson, says she has suffered racial slurs from a co-worker since 1999, when glaucoma forced her to quit the sales department and become a receptionist. Last year, a white colleague doctored a computer photo of her to make her look like a prostitute, she says. After she complained, her boss printed out the picture and hung it in his office, her charge says. "I tried to do what company procedures suggested and complain to my supervisor, then on up to human resources at headquarters," says Johnson, 47. "But they just sweep it under the rug." Xerox declined to comment on her case.
Worse yet are hangman's nooses, a potent symbol of mob lynchings in America's racial history. The EEOC has handled 25 noose cases in the past 18 months, "something that only came along every two or three years before," says Ida L. Castro, outgoing EEOC chairwoman. Management lawyers concur that racial harassment has jumped sharply. "I've seen more of these cases in the last few years than in the previous 10, and it's bad stuff," says Steve Poor, a partner at Seyfarth, Shaw, Fairweather & Geraldson, a law firm that helps companies defend harassment and discrimination suits.
Some lay the blame on blue-collar white men who think affirmative action has given minorities an unfair advantage. Their feelings may be fueled by the long-term slide in the wages of less-skilled men, which have lagged inflation since 1973. Since many whites see little evidence of discrimination anymore, the small number who harbor racist views feel more justified in lashing out at minorities, whom they perceive as getting ahead solely due to their race, says Carol M. Swain, a Vanderbilt University law professor who is writing a book about white nationalism.
SILENCE. Incidents of open racism at work occur below the national radar because all the parties have powerful incentives to keep it quiet. Plaintiffs' lawyers don't want employees to go public before a trial for fear of prejudicing their case in court. BusinessWeek spoke for more than a month with some lawyers before they agreed to let their clients talk. Even then, most workers refused to give their names, fearful of retaliation. Management and plaintiffs' lawyers alike say it takes tremendous nerve to file a suit or EEOC charges, given the likelihood that co-workers or bosses will strike back. Since 1990, the number of minorities filing charges of retaliation with the EEOC after they complained about racial mistreatment has doubled, to 20,000 a year.
Companies have an even greater desire to avoid bad publicity. Many suits end when employers settle. They routinely buy employees' silence with extra damage award money.
Because racial harassment allegations can be so embarrassing, they pose a difficult challenge for companies. Some quickly go on the offensive and take steps to change. Other employers hunker down for a fight, arguing that allegations are inaccurate or exaggerated. Northwest Airlines Corp., for example, is fighting charges made by black construction workers who found a noose last July at the airline's new terminal under construction at Detroit Metro Airport. Northwest also recently settled two noose-related suits, although it denied liability. Northwest spokeswoman Kathleen M. Peach says none of the noose incidents "rise to the level of harassment. You have to ask was it a joke at a construction site? Or was it in a cargo area where a lot of ropes are used? It's not as cut-and-dried as it seems."
Some employers dismiss nooses and slurs as harmless joking. This seems to be the view taken by Lakeside Imports Inc., New Orleans' largest Toyota Motor Corp. dealer. Last August, it signed a consent decree with the EEOC to settle charges brought by six black salesmen in its 50-person used-car department. The men said that their manager, Chris Mohrman, hit and poked them with two 3 1/2-foot-long sticks with derogatory words on them that he called his "n----- sticks."
Lakeside brushed aside the incident, according to case depositions. Mohrman's manager at the time, a white man named David Oseng, had hired the black salesmen. When he heard what was going on, Oseng said in his deposition, he told the dealership's top brass. Oseng said the top two managers "told me they were tired of all the problems with the n-----s. And if we hired another n-----, [I] would be terminated."
Lakeside lawyer Ralph Zatzkis says the dealer didn't admit any guilt and denies that anything serious happened. He says the sticks, which the EEOC obtained by subpoena, did have writing on them, but "those weren't racial remarks." Zatzkis dismissed the episode as "horseplay." Mohrman and the black salesmen left Lakeside and couldn't be reached. Zatzkis says Lakeside's top managers declined to comment.
Frivolous harassment charges do occur, say experts, but they're rare. "It takes a lot of energy to raise a complaint, and you can make major mistakes assuming what the employees' motives are," warns Haven E. Cockerham, head of human resources at R.R. Donnelley & Sons Co., which is fighting a class action for alleged racial discrimination and harassment that included claims of whites donning KKK robes.
Consider Adelphia Communications Corp., a $2.9 billion cable-TV company based in Coudersport, Pa. In February, the EEOC filed suit on behalf of Glenford S. James, a 12-year veteran, and other black employees in the company's Miami office. A manager there racially harassed minorities "on a daily basis" after he took over in August, 1999, the suit says. The manager twice put a noose over James's door, it says. Once, says the complaint, the manager told an employee to "order monkey meat or whatever they eat" for James.
In a suit filed in June, James says that Adelphia didn't stop the problem until he complained to the EEOC in May, 2000. Then, the manager was terminated or resigned. Adelphia declined to comment. However, its brief in the EEOC suit admits that the manager displayed a noose and "made inappropriate statements of a racial nature." The brief says Adelphia "promptly and severely disciplined" the manager "as a result of his actions." The manager couldn't be reached.
REVENGE. Whites who stand up for co-workers also can run into trouble. Ted W. Gignilliat, a worker at the Marietta facility of Lockheed since 1965, says he was harassed so badly for speaking up about two nooses that he had to take a leave of absence. He says he was threatened, his truck was broken into, and he got anonymous phone calls at work and at home--one telling him he would "wind up on a slab, dead." In March, 2000, a psychologist told Gignilliat to stop work; he went on disability leave until May of this year. He now works as an alarm-room operator in the plant's fire station. "It's in the middle of the security office, with guards, but I feel they will retaliate against me again for stepping forward," says Gignilliat.
Usually, of course, minorities bear the brunt of revenge. Roosevelt Lewis, who delivers Wonder bread for an Interstate Bakeries Corp. bakery in San Francisco, says his white superiors have been making his life miserable ever since he and other blacks filed a race suit in 1998. A jury awarded them $132 million last year (later reduced by a judge to $32 million). Lewis says this only exacerbated the behavior. "They're trying to make you insubordinate, to create an excuse to fire you," charges Lewis. He says he has complained to higher-ups, but the hassling continues.
Jack N. Wiltrakis, Interstate's head of human resources, says the company has a hotline to headquarters in Kansas City but has received no complaints. "If they have a problem, it's incumbent on them to tell us," he says. Interstate, which has 34,000 workers in 64 bakeries around the U.S., has been sued for race problems in New York, Orlando, Indianapolis, and Richmond, Va. It has settled the two cases, denying liability, and is still fighting the others, including Lewis'. Wiltrakis says the suits haven't prompted Interstate to launch new policies.
In the end, racist behavior by employees lands at the door of corporate executives. They face a dilemma: If they admit there's a problem, the company is exposed to lawsuits and negative publicity. But denial only makes matters worse. Until more employers confront the rise of ugly racism head on, Americans will continue to see behavior they thought belonged to a more ignominious age.
By Aaron Bernstein
With Michael Arndt in Chicago and bureau reports