# Appendix — National Organization for Women, Inc. v. United States

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1976
- **Citation:** 425 U.S. 944

## Text

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Opinion of the District Court, June 7, 1974

Unirep States of America, By William B. Saxse, the At-
torney General, on Behalf of Peter J. Brennan the
Secretary of Labor, and the Equal Employment Op-
portunity Commission,

Plaintiff,
v.

ALLEGHENY-LupLUM INpvustries, INc., et al.,

Defendants.

Civ. A. No. 74-P-339-S

United States District Court
N. D. Alabama, 8S. D.

June 7, 1974

Robert T. Moore, Dept. of Justice, William L. Robinson,
Equal Employment Opportunity Commission, William J.
Kilberg, Sol. of Labor, Dept. of Labor, Washington, D. C.,
for plaintiff.

Ralph L. MeAfee, Cravath, Swain & Moore, New York
City, William K. Murray and James R. Forman, Jr.,
Thomas, Taliaferro, Forman, Burr & Murray, Birmingham,
Ala., for defendant Companies.

Michael H. Gottesman, Washington, D. C., Jerome A.
Cooper, Cooper, Mitch & Crawford, Birmingham, Ala., for
defendant Steelworkers.

Judith A. Lonnquist, NOW, Chicago, Ill., Jack Green-
berg, New York City, Oscar W. Adams, Jr., Adams, Baker
& Clemon, Birmingham, Ala., Gerald A. Smith, Baltimore,

2a
Opinion of the District Court, June 7, 1974

Md., Bernard D. Marcus, Kaufman & Harris, Pittsburgh,
Pa., Arthur J. Mandell, Mandell & Wright, Houston, Tex.,
William R. Jones, NAACP, New York City, J. Richmond
Pearson, Birmingham, Ala., for petitioners for interven-
tion.

MEMORANDUM oF OPINIOY
Pointer, District Judge.

After months of negotiations pursuant to the govern-
mental conciliation function of Title VII, 42 U.S.C.A.
§ 2000e et seq., the parties herein reached a tentative agree-
ment as to a manner and means for correcting allegedly
discriminatory employment practices of a systemic nature
at some 240 steel plants and other steel-related facilities
throughout the nation. The agreement was reduced to
writing in the form of two consent decrees entered into by
the United States, through various governmental agencies
including the Justice Department, the Labor Department
and the Equal Employment Opportunity Commission, as
plaintiff, and by nine steel companies and the United Steel-
workers of America, as defendants. The proposed decrees
were presented to, and entered by, this court on April 12,
1974, resulting in a broad national settlement of Title VII,
and related, disputes between the United States and the
ten defendants. The provisions reflect a thoughtful and
earnest attempt to respond to—and to reconcile competi-
tion between—charges of employment discrimination made
on behalf of black, female, and Spanish surnamed workers
and applicants.

Consent Decree I takes the form of an injunction with
respect to those matters which, in general, have previously
been affected by collective bargaining between the com-

3a
Opinion of the District Court, June 7, 1974

panies and the union. The decree provides for a restruc-
turing of seniority rules and regulations, primarily using
plant continuous service as a base; specifies procedures
respecting transfers, promotions, vacancies, layoffs and
recalls; and enumerates affirmative action guidelines and
goals with respect to trade and craft positions and initial
selection and assignment of employees. In recognition that
general standards may require tailoring to meet local
problems and that experience may indicate the inadequacy
of some of the remedial steps, implementation procedures
and enforcement tools are established through a structure
of Implementation Committees, composed of company,
union and minority members, at each affected facility, as
well as an Audit and Review Committee which is national
in scope. A mechanism for expeditious and co-ordinated
resolution of the multitude of pending EEOC charges re-
specting these defendants is established. A potential back-
pay fund of $30,940,000.00 is created, along with guidelines
for calculating and disbursing awards to eleciing indi-
vidual employees affected by past discrimination. Juris-
diction is retained by the court for a period of at least five
years.

Consent Decree II takes the form of a general injunc-
tion respecting those aspects of employment which are, es-
sentially, company-controlled and not normally subject to
collective bargaining agreements. The companies are gen-
erally enjoined from any form of employment disecrimina-
tion and are obligated to institute a program of affirmative
action with respect to hiring, initial assignments, and man-
agement training programs, as well as affirmative recruit-
ment of minorities. See Morrow v. Crisler, 491 F.2d 1053
(CA5 1974); Franks v. Bowman Transportation Co., 495
F.2d 398 (CA5 June 3, 1974). The court retains jurisdic-

4a
Opinion of the District Court, June 7, 1974

tion for at least five years; and, as also is true regarding
Consent Decree I, the consent decree between the govern-
ment and the defendants does not purport to bind any
individual employee or to prevent the institution or mainte-
nance of private litigation.

Shortly after entry of these decrees, various individuals
and organizations sought to intervene. A hearing was set
for May 20, 1974, with the request that briefs be filed by
May 13th and reply briefs by the hearing date. This memo-
randum is addressed to the claims for intervention and
certain other issues raised thereby and is issued after a
study of the motions, briefs, reply briefs, and oral argu-
ment presented at the May 20th hearing.

INTERVENTION

The court concludes that §§ 707(e) and 706 of Title VII,
42 U.S.C.A. 6§ 2000e-6(e) and 2000e-5, confer upon some
petitioners a right to intervene within the meaning of Rule
24(a)(1), F.R.Civ.P. This statutory right is provided to
a “person or persons aggrieved” within the meaning of
Title VII. In this context, the term refers to those in-
dividuals with respect to whom alleged discrimination by
the defendants is within the scope of a charge which has
heretofore been presented to the EEOC, without regard
to whether such charge was filed by them, by fellow em-
ployees with similar complaints, by an organization on
their behalf, or by a member of the EEOC, and without
regard to whether or not they are named plaintiffs or actual
or putative class members in pending litigation.

Most of the individual petitioners—including some who
joined in the petitions of the Ad Hoe Committee and of the

5a
Opinion of the District Court, June 7, 1974

National Organization of Women'—meet the test for inter-
vention of right under Rule 24(a)(1) as just stated. The
court concludes that the balance of the individual peti-
tioners—-including one who is the principal officer of the
Rank and File Committee, the other organizational peti-
tioner—should also be allowed to intervene, given the
rather limited purpose for which intervention is being
allowed, under the provisions of Rule 24(a) (2) or 24(b) (2).

The court denies the requests for intervention by the
three organizations, the Ad Hoc Committee, NOW, and the
Rank and File Committee. While such organizations may
have authority to file charges with the EEOC and even to
file lawsuits with respect thereto, they are not “persons
aggrieved” for the purpose of any statutory right of inter-
vention under Rule 24(a)(1). In view of the allowed inter-
vention of officers or members of such organizations, it
appears that adequate representation is being afforded for
any interest the organizations may have. See Rule 24(a)(2)
and Hines v. Rapides Parish School Board, 479 F.2d 762
(CA5 1973). Nor, indeed, have the organizations demon-
strated a sufficient interest qua organizations to justify the
additional problems of management and inconvenience
caused by unnecessary intervenors. See Bennett v. Madison
County Board of Education, 437 F.2d 554 (CA5 1970) ;
Horton v. Lawrence County Board of Education, 425 F.2d
735 (CA5 1970).

10On May 20. NOW was given leave, essentially nune pro tune,
to amend its pleadings, which were filed only on behalf of the
organization, to name not more than three individual women who
were to be allowed to intervene pursuant to Rule 24(a)(1) or (b).
Such amended pleadings were filed with the court on June 4, 1974.

Ga
Opinion of the District Court, June 7, 1974

Such intervention as is allowed is permitted at this time?
for the limited purposes of seeking to stay or vacate the
consent decrees and to question the contemplated releases
of back-pay claims in connection with the payments of back-
pay to electing employees under the decree. While the inter-
venors are to be bound by the decision made with respect
to such limited issues, the court does not consider that such
intervenors, or any class which they may represent, are at
present bound, as a matter of res adjudicata or collateral
estoppel, to the terms of the consent decrees themselves,

No evidentiary hearings are needed with respect to the
issues on which intervention has been allowed. Based upon
responses by counsel to questions posed by the court at the
May 20th hearing, it is clear that any additional hearings
would merely involve an attempt by intervenors to demon-
strate in greater detail the alleged deficiencies and prob-
lems presented by the decrees, e. g., that the decrees are
somewhat open-ended and that there may be already some
understandings or proposals as to the manner in which
such details will be resolved.* There was no indication,
however, that any evidence would be tendered respecting
the basic allegations against the decrees which are not
apparent upon the record. Moreover, time weighs heavy
in this dispute, for not only must implementation go for-
ward to meet timetables in the decree, but also delay would

* This is without prejudice to the rights of individuals to seek
further intervention, in accordance with the rulings herein, re-
specting specifie questions which have arisen or may arise in the
future. See Hines v. Rapides Parish Schoo! Board, 479 F.2d 762
(CA5 1973). The limitation upon present intervention is placed
so that the resolution of the fundamental questions will not be
delayed by disputes over matters which, in essence, are details.

*See note 2 supra.

Ta
Opinion of the District Court, June 7, 1974

adversely affect many of the admittedly prophylactic pro-
visions of the decrees to the detriment of the beneficiaries
of Title VII. As the court is convinced that the suggested
evidence would not materially contribute to the resolution
of the limited issues upon which intervention has been
allowed, there is no sound reason to schedule an evidentiary
hearing.

ALLEGED ILLEGALITY or ConsENT DECREE

Intervenors attack the consent decree on various grounds
of alleged illegality, including vagueness; venue deprival ;
lack of advance notice; enforcement by violators; insuffi-
ciency of relief; direct interference with rights of indi-
viduals to file, maintain or pursue individual remedies; and
a renunciation of statutory responsibility by executive
agencies.

Without here separately listing the considerations in-
volved in each of these thrusts, the court concludes that,
as attacks on the decrees as a whole, they are due to be
denied and overruled, and that the intervenors do not
demonstrate or suggest anything illegal, improper or funda-
mentally unsound in these decrees, which, it should be em-
phasized, are not binding on individual employees.

By undertaking to resolve by settlement the myriad of
problems regarding employment discrimination in the steel
industry—diseussions to which individual employees and
their supporting organizations were not privy—the execu-
tive agencies have not renounced their statutory responsi-
bilities as alleged. Such efforts are consistent, not incon-
sistent, with the statutorily mandated duty of conference,
conciliation and persuasion embodied in Title VII. It more-

8a
Opinion of the District Court, June 7, 1974

over appears that the commitment‘ undertaken by the
government with respect to pending or future Title VII
litigation involving these defendants does not preclude the
government from advocating, and bringing expeditiously
into court if a satisfactory resolution is not accomplished
through the settlement procedures established, a claim for
other relief by an aggrieved employee.

The court does recognize that these decrees may, as a
practical matter, impede, if not impair, some interests of
private litigants. Indeed, it must be assumed that conces-
sions during settlement negotiations were motivated in part
by the desire of the parties to avoid, by anticipatory cor-
rections, future litigation and to provide more expeditious
solutions even in matters already in the judicial processes.
Justice delayed may, it is said, be justice denied. More-
over, it must be kept in mind that resolution in this forum
of issues between the government and the defendants does
not preclude additional—or even inconsistent—relief in
favor of private parties in other litigation. As stressed by
Congress in the passage of Title VII and its amendments,
settlement offers the principal hope for rapid correction
of the ills of employment discrimination, preserving, how-
ever-—as here—the right to litigate where the persons
aggrieved are not parties to the conciliation agreement and
believe the settlement to be unsatisfactory.

‘A letter from the original parties herein was received by the
court on June 3, 1974. Such has been filed on record as it serves
to clarify the obligations of the United States with respect to future
action pursuant to the coiisent deerees. Nor would it be sound to
assume that the government can not oppose relief sought by a
private litigant: for example, if a particular black plaintiff, due
to his own situation, were to seek an occupational seniority rule
considered by the EEOC to be generally adverse to the interests
of other black employees, it eonld hardly be asserted that the
EEOC is bound to advocate such relief.

9a
Opinion of the District Court, June 7, 1974

Some of the wording of the consent decrees may on its
face improperly affect the maintenance of private actions.
For example, the decrees provide for mailing of back-pay
notices even to those involved in pending litigation as
named plaintiffs or as determined or putative class mem-
bers. In view of the court’s retained powers and in view
of the presence of the parties to this litigation before other
forums, such problems, as they are identified, can be sat-
isfactorily resolved, and no doubt there will be a need
from time to time for liaison and co-ordination between this
court and other forums. The decrees may require clarifica-
tion in some particulars and, indeed, as administration of
the decrees continues, there will doubtless be problems
which were not considered or anticipated by the parties or
which run counter to their expectations during negotia-
tions. Should such eventualities occur, the court, by virtue
of paragraph 20° of Consent Decree I and paragraph 2°
of Consent Decree II, has jurisdiction of this cause for
the purpose of issuing subsequent orders, consistent with
principles of due process, as necessary to further the pur-
poses and objectives of these decrows.'

5“90 Retained Jurisdiction—The court hereby retains jurisdic-
tion of this cause for the purpose of issuing any additional orders
or decrees needed to effectuate, clarify or enforce the full pur ose
and intent of this Decree.

Anytime after the conclusion of five (5) years from the dat» of
this decree, any party may move to dissolve this decree in whole
or in part.”

¢“9 The court hereby retains jurisdiction of this cause for the
purpose of issuing any additional orders or decrees needed to
effectuate, clarify or enforce the full purpose and intent of this
decree and/or the agreement attached hereto.

Anytime after the conclusion of five (5) years from the date of
this decree, any party may move to dissolve this decree in whole
or in part.”

7 By leters of June 3, 1974, referred to in note 4 supra, the
original parties herein have stated that all parties accept the

10a
Opinion of the District Court, June 7, 1974

The court finds nothing illegal respecting the consent
decrees themselves, neither in the basic approach to settle-
ment reflected therein, the way in which such were negoti-
ated and entered, nor the manner in which such will be
implemented. Parenthetically, the court notes that the sug-
gestion that advance notice was a requirement for the
decree—which does not rise to the status of a class action
decree—would likely haunt, if adopted by the court, the
intervenors and their sponsoring organizations in other
litigation. Cf. Eisen v. Carlisle & Jacquelin, 42 U.S.L.W.
4804, —— US. , 94 S.Ct. 2140, 40 L.Ed.2d 732 (May
28, 1974).

ALLecep ILuecaALity or Back-Pay RELEASE

In connection with the claim of illegality, some inter-
venors have raised the question of the binding effect of a
release executed by employees who accept back-pay under
the deeree. The consent decree, however, while providing
for the use of such a release, does not contain a judicial
finding or conclusion that such could be efficacious. This is
an issue in which all parties have an interest and, as a
practical matter, is in need of a present resolution. The
basic question is whether a signed release in exchange for
the payment of back-pay determined under a settlement

court’s view of authority to review any action taken pursuant to
the decrees, including actions of the Audit and Review Committee,
whether or not any party requests such review. Also, such parties,
while perhaps disagreeing with the court as to the limits involved,
acknowledge the concept of retained jurisdiction with respect to
the effectuation of the full purpose of the decrees. Notwithstanding
any such disagreement with the court’s view of such powers, the
parties advised the court “that none of them wishes to cancel or
revoke its consent or withdraw from the Consent Decrees in the
above-captioned case.”

lla
Opinion of the District Court, June 7, 1974

procedure, as contemplated in paragraph 18(g) of Consent
Decree I, can be valid as a matter of public policy.

Intervenors cite, among other similar decisions, Schulte
v. Gangi, 328 U.S. 108, 66 S.Ct. 925, 90 L.Ed. 1114 (1946),
an FLSA case, for the proposition that such a release
would be invalid as contravening public policy. Such FLSA
cases are, however, distinguishable from the instant case.
Relief under the FLSA is defined, 29 U.S.C.A. § 216(e),
while Title VII relief is more flexible, 42 U.S.C.A. § 2000e-
5(g). While the amount of back-pay for an FLSA viola-
tion is, essentially, a matter of simple calculation subject
only to the statutory requirements of the Act, Title VII
back-pay awards are much more difficult of ascertainment
as such are subject to innumerable variables. Schulte
seems to be most concerned with the leverage afforded em-
ployers if employees could be persuaded or coerced into
waiving statutory pay minimums.

The legislative history of Title VII, as well as the Act
itself in providing substantial mechanisms for conciliation
and settlement, 42 U.S.C.A. §§ 2000e-5(b) and (f), indi-
eates a Congressional desire for out-of-court settlement
of Title VII violations.

In Alexander v. Gardner-Denver Co., 42 U.S.L.W. 4212,
4219, 415 U.S. 36, 94 S.Ct. 1011, 39 L.Ed.2d 147 (1974) the
Supreme Court indicates that there presumably may be
an effective release of Title VII claims where the parties
enter into a voluntary settlement. For such a waiver to
be effective, however, the employee’s consent to the set-
tlement must be both “voluntary and knowing’’. /d. at 4219
n. 15, 415 U.S. 52, 94 S.Ct. 1021, 39 L.Ed.2d 147. See also
Petitway v. American Cast Iron Pipe Co., 494 F.2d 211 at
notes 152 and 156a (CA5 1974), in which the Fifth Circuit

12a
Opinion of the District Court, June 7, 1974

seems to indicate its approval of voluntary settlement of
similar issues,

This court concludes that there can be a legal waiver
of back-pay claims where, for valuable consideration, a
release is signed knowingly and voluntarily, with adequate
notice which gives the employee full possession of the
facts. Such a ruling, however, is not to be taken as a pro-
spective ruling on the question of the efficacy of any par-
ticular release, as such would require an individual de-
termination of the factual setting in which such a release
may be executed. '

ConcCLUSION

For the reasons indicated, the court has allowed inter-
vention by the individual petitioners for the limited pur-
poses of seeking to stay or vacate the consent decrees and
of challenging the legal efficacy of settlement releases of
back-pay claims and has denied the claims of such inter-
venors with respect thereto. Intervention by other peti-
lioners or for other purposes has, at present, been denied,
By separate document, the order of the court with respect
to such matters is filed concurrently herewith.

13a

Opinion of the Court of Appeals, August 18, 1975

Unrrep Srates or America, et al.,

Plaintiff s-A ppellees,
v.

Arcecueny-LupLum Inxpustnies, Inc., et al.,

Defendants-A ppellees,

Siwney S. Hanais, et al.,

Intervenors-A ppellants,

NationaL Orcanization For Women, Inc., et al.,

Movants-Appellants.

No. 74-3056

United States Court of Appeals
Fifth Circuit

Aug. 18, 1975

Oscar W. Adams, Jr., Birmingham, Ala., Kenneth L.
Johnson, Baltimore, Md., Bernard D. Marcus, Pittsburgh,
Pa., Arthur J. Mandell, Gabrielle K. MeDonald, Mark T.
McDonald, Houston, Tex., J. Richmond Pearson, Birming-
ham, Ala., Nathaniel R. Jones, NAACP, New York City,
for S. S. Harris and others.

Judith A. Lonnquist, Chicago, Ill., Kenneth L. Johnson,
Emily M. Rody, Baltimore, Md., Jack Greenberg, James
M. Nabrit, I], Barry L. Goldstein, New York City, for
National Organization for Women and others.

I4a
Opinion of the Court of Appeals, August 18, 1975

William J. Kilberg, Sol. of Labor, U. S. Dept. of Labor,
Washington, D. C., Wayman G. Scherrer, U. 8. Atty., Bir-
mingham, Ala., Leonard L. Scheinholtz, Pittsburgh, Pa.,
Robert T. Moore, U. S. Dept. of Justice, Washington, D. C.,
Francis St. C. O'Leary, Pittsburgh, Pa., William A. Carey,
Gen. Counsel, William L. Robinson, Joseph T. Eddins,
EEOC, Washington, D. C., for U.S.A. and Wheeling-Pitts-
burgh Steel Corp.

William K. Murray, James R, Forman, Jr., Birmingham,
Ala., for U. S. Steel Corp., Allegheny-Ludlum Industries,
Republic Steel, Youngstown Corp., Bethlehem Steel, Wheel-
ing-Pittsburgh Steel, Armco Steel, National Steel, Jones-
Laughlin.

Michael H. Gottesman, Washington, D. C., Jerome
Cooper, Birmingham, Ala., for Steelworkers.

Carl B. Frankel, Asst. Gen. Counsel, United Steelworke “s
of America, Pittsburgh, Pa., Marshall Harris, Asso. Sol.
Labor Relations, Civ, Rights, Dept. of Labor, Washington,
D. C., Vincent L. Matera, Pittsburgh, Pa., for U. S. Steel
Corp.

Ralph L. MeAfee, New York City, for Bethlehem Steel.

David Scribner, New York City, James H. Logan, Pitts-
burgh, Pa., Elizabeth M. Schnieder, Doris Peterson, Center
for Constitutional Rights, New York City, for amici curiae.

Appeals from the United States District Court for the
Northern District of Alabama.

Before THornperry, Morcan and Cuark, Circuit Judges.

THORNBERRY, Circuit Judge:

These appeals present novel and important issues which
require us to consider the scope of the federal government’s

15a
Opinion of the Court of Appeals, August 18, 1975

authority to encourage and negotiate expeditious and effi-
cient settlement of widespread charges of employment dis-
crimination in the nation’s steel industry. Some of these
issues are procedural in nature; others call into question
the substantive legality of the means utilized. Some issues
are ripe for decision; others are essentially hypothetical
and conjectural. During the interim between the oral argu-
ment of these appeals in December, 1974 and the present,
we have carefully examined the attacks which have been
advanced against the settlement. Our conclusion is that the
settlement has not been shown to be in any respect unlawful
or improper, and hence its terms, conditions, and benefits
must go forward immediately in their entirety.

JT. IntTnuvuctTIon AND BacKGROUND

On April 12, 1974, a complaint was filed in the federal
district court for the Northern District of Alabama. The
plaintiffs were the United States, on behalf of the Secre-
tary of Labor, and the Equal Employment Opportunity
Commission. Nine major steel companies' and the United
Steelworkers of America were named as defendants. The
suit involved some 240-250 plants at which more than
300,000 persons are employed, over one-fifth of whom are
black, Latin American, or female. Alleging massive pat-
terns and practices of hiring and job assignment discrim-
ination on the bases of race, sex, and national origin, the

1The companies are Allegheny-Ludlum Industries, Ine., Armeo
Steel Corporation, Bethlehem Steel Corporation, Jones and Laugh-
lin Steel Corporation, National Steel Corporation, Republie Steel
Corporation, United States Steel Corporation, Wheeling-Pittsburgh
Steel Corporation, and Youngstown Sheet & Tube Company. Ac-
cording to one estimate, the complaint reached seventy-three per-
cent of the country’s basic steel industry. Brief for the appellee
steel companies at 3 n. 2.

l6a
Opinion of the Court of Appeals, August 18, 1975

complaint sought to enforce the edicts of Title VII of the
Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e
et seq., and contractual obligations under Executive Order
11246, as amended, 3 C.F.R. 160 et seq. (1974).

The complaint charged that the companies had violated
Title VII and Executive Order 11246 by hiring and assign-
ing employees on impermissible grounds, and by restricting
ethnic minorities and females to low-paying and undesir-
able jobs with scant opportunities for advancement. The
complaint also charged the companies and the union with
formulating collective bargaining contracts which estab-
lished seniority systems for promotion, layoff, recall and
transfer so as to deprive minority and female employees
of opportunities for advancement comparable to those
enjoyed by white- males.

The filing of the complaint culminated more than six
months of intensive, hard-fought negotiations between, on
one side, the EEOC and Departments of Justice and Labor,
and on the other the companies and the union, Simultane-
ously with the filing of the complaint, the parties announced
to the court that a tentative nationwide settlement had been
reached. The parties multilaterally reduced their agree-
ment to the form of two extensive written consent decrees.
Describing the decrees as “a thoughtful and earnest attempt
to respond to—and to reconcile competition between—-
charges of employment discrimination made on behalf of
black, female, and Spanish surnamed workers and appli-
cants,”* District Judge Pointer signed and entered the
documents later that same day.*

* See United States v. Allegheny-Ludlum Indus., Ine., N.D.Ala.
1974, 63 F.R.D. 1, 3.

* The two consent decrees are reprinted in BNA FEP Manual
431 :125—152 (1974). The correct entry date, as reflected in the
record, is April 12, 1974, rather than April 15.

17a
Opinion of the Court of Appeals, August 18, 1975

Consent Decree I is aimed at the practices of the union
as well as those of the steel companies. It permanently
enjoins the defendants from “discriminating in any aspect
of employment on the basis of race, color, sex or national
origin and from failing or refusing to fully implement”
the substantive relief set forth therein. The items covered
by Consent Decree I are mainly matters historically encom-
passed by collective bargaining. The substantive relief
falls into three basic categories: (1) immediate implemen-
tation of broad plantwide seniority, along with transfer
and testing reforms, and adoption of ongoing mechanisms
for further reforms of seni~rity, departmental, and line of
progression (LOP) structures, all of which are designed
to correct the continuing effects of past discriminatory
assignments; (2) establishment of goals and timetables for
fuller utilization of females and minorities in occupations
and job categories from which they were discriminatorily
excluded in the past; and (3) a back pay fund of $30,-
940,000, to be paid to minority and female employees
injured by the unlawful practices alleged in the complaint.‘

Consent Decree II and its accompanying Agreement deal
‘with aspects of employment which are mainly company-
controlled and thus not subject to collective bargaining.
The companies again are broadly enjoined from any form
of unlawful employment discrimination. Also, Consent De-

‘Paragraph 18(c) of Consent Decree I defines as the affected
classes of employees eligible to receive back pay: (1) minority

(black and Spanish-American surnamed) employees in Production °

and Maintenance units who were employed prior to January 1,
1968; (2) all females in Production and Maintenance units as of
the date of decree entry; and (3) those former employees who
retired on pension within the two years preceding entry of the
decrees, who, if they were still employed, would be within group
(1) or group (2). Provision is also made for payment of back
pay to surviving spouses of otherwise eligible deceased employees.

18a
Opinion of the Court of Appeals, August 18, 1975

cree IT requires the companies to initiate affirmative action
programs in hiring, initial assignments, promotions, man-
agement training, and recruitment of minorities and fe-.
males.

The decrees must be made to function in varying and
peculiar situations in accordance with the parties’ ambi-
tious objectives. Furthermore, the parties contemplated
that unforeseen interpretive issues will inevitably arise
and require resolution. With these considerations in mind,
the decrees provide for the establishment of implementa-
tion and enforcement procedures through a system of Im-
plementation Committees. These committees are estab-
lished at each major plant to which the decrees are made
applicable. Each committee includes at least two union
representatives, one of whom is a member of the largest
minority group in the piant,® and an equal number of com-
pany members. The government is entitled to designate a
representative to meet with any Implementation Commit-
tee. The Implementation Committees are charged with as-
suring compliance with Consent Decree I, including changes
in local seniority rules and LOPs, as well as the establish-
ment of goals and timetables for affirmative action under *
paragraph 10. In addition, it is the Implementation Com-
mittees’ responsibility to furnish employees with informa-
tion about their rights under the settlement.

The Audit and Review Committee, established under
paragraph 13 of Consent Decree I, is the hub mechanism
in the decrees’ system of continuing review, enforcement,
and compliance. It is composed on an industry-wide basis

* Paragraph 12 of Consent Decree I provides for a seeond min-
ority member at plants in which at least ten percent of the em-
ployees comprise a second minority group, unless one of the union
representatives is already from that minority group.

19a
Opinion of the Court of Appeals, August 18, 1975

of five management members, five union membe1s, and one
government member. It meets regularly to oversee com-
pliance with the decrees and to resolve disputes which come
before it, including any questions that the Implementation
Committees have been unable to resolve. Matters which
the Audit and Review Committee cannot resolve unan-
imously may be brought before the district court. Fur-
thermore, all parties to the decrees have stipulated on the
record that paragraph 20 of Consent Decree I, which vests
the district court with continuing jurisdiction for at least
five years, permits the court to review fully and, if nec-
essary, correct any action taken pursuant to the decrees,
irrespective of whether a party requests such review. Be-
ginning no later than December 31, 1975, the Audit and
Review Committee will review the entire experience under
Consent Decree I. The committee may then propose
remedial steps at any plant in order to overcome deficien-
cies in either the decree or its results. If the government
representative remains dissatisfied with a committee pro-
posal, he may take the matter to the district court. Finally,
the Audit and Review Committee is responsible at least
annually for reviews of the various Implementation Com-
mittees’ performance in establishing and fulfilling affirma-
tive action goals in job assignment, hiring, promotion and
seniority, and minority-female recruitment.

As the district court correctly determined, neither de-
cree purports “to bind any individual employee or to pre-
vent the institution or maintenance of private litigation.” *
At the time of the decrees’ entry, hundreds of employment
discrimination charges were pending against the defen-
dants before the EEOC and federal district courts scattered

*63 F.R.D. at 4.

20a
Opinion of the Court of Appeals, August 18, 1975

throughout the country. Between twenty and sixty thou-
sand minority and female individuals then stood beneath
the overlapping umbrellas of these charges as members of
putative aggrieved classes in actions seeking systemic in-
junctive relief and back pay. Thousands still do, and the
problems of administrative and judicial management are
truly awesome.’ The consent decrees establish a formula

7A revealing illustration is the purported class action involving
United States Steel’s Fairfield Works in Alabama, now pending
on appeal before this court, No. 73—3907, Ford, et al. v. United
States Steel Corp., et al., partially reported below at 371 F.Supp.
1045 (N.D.Ala. 1973). Approximately 12,000 people are employed
at Fairfield Works, around 3,100 of whom are black. Between six
and eight private class actions were consolidated for trial. Back
pay was awarded to some members of three classes, but denied as
to the other classes. A total of sixty-one people, or thirteen percent
of the members of the certified private classes, received back pay
awards. The other eighty-seven percent, or 403 blacks, were denied
back pay. Nonetheless, in anticipation of the appeal, the district
court on May 2, 1973 amended the class certification order to re-
define the plaintiff class as: (1) all blacks, except those already
members of a private class whose rights had been adjudicated, who
had been employed at Fairfield Works at any time prior to Jan-
uary 1, 1973; and (2) all blacks who had unsuccessfully sought
employment at Fairfield Works prior to January 1, 1973. Although
we have no reliable estimate on the combined size of the resulting
class, subclass (1) alone is sufficiently large to have encouraged
the defendants to enter into consent decrees with the government,
in which $30.9 million is promised in back pay, “several million
dollars” of which represents United States Steel’s allotment, prin-
cipally for blacks, but also for female and Spanish-surnamed work-
ers at Fairfield Works. Brief for Appellee United States Steel
Corp., at 7, No. 73—3907, Ford, et al. v. United States Steel Corp.,
et al.

The Fairfield Works case also involved pattern or practice charges
brought by the United States, resulting in an appeal by the govern-
ment from denial of certain injunctive relief and denial of back
pay to black employees who were not represented in the private
class actions. Sinte the government is now admittedly satisfied
with the rate retention and back pay provisions of subsequently-
negotiated Consent Decree I, paragraphs 8 and 18 thereof respec-
tively, it has withdrawn its appeal in Ford pending our decision

21a
Opinion of the Court of Appeals, August 18, 1975

for expeditious and coordinated resolution of the multitude
of pending charges. With respect to pending cases in
which district courts have already entered remedial de-
crees, the government, companies, and union have agreed
to petition those courts for amendments to conform their
relief to that contained in the consent decrees. The same
action is being taken with respect to orders of the Secre-
tary of Labor, rendered pursuant to Executive Order
11246, which were issued prior to entry of the decrees. In
regard to other pending litigation, the parties to the con-
sent decrees have agreed that release forms and notices to
employees pursuant to subparagraphs 18(g) and (h) of
Consent Decree I shall be forwarded to the courts trying
the private actions, as well as to Judge Pointer for ap-
proval prior to distribution to all other affected employees.
The parties have agreed on the record that they will ob-
serve any order or instruction issued by any of these
courts. Audit and Review Committee Directive No. 1, 5,
May 31, 1974.

Under introductory paragraph C of each decree, the
government has stipulated that in future cases involving
private claims for relief, other than back pay, which would
be inconsistent with the systemic relief provided by the
decrees, the government will suggest to the forum court
that the relief sought is unwarranted in the separate pro-

as to the validity of the consent decrees sub judice. Stipulation of
the Parties, filed July 8, 1974.

Last but not least, in an Order filed December 23, 1974, Judge
Pointer entered an unopposed amendment in Ford conforming the
injunctive relief for Fairfield Works to that provided by the
consent decrees, in all minimum respects except back pay. Since
the issue of classwide back pay is still on appeal to this court in
Ford, Judge Pointer ordered postponement of further back pay
availability in that ease until fina! decision of the appeals in Ford
and in this case.

22a
Opinion of the Court of Appeals, August 18, 1975

ceeding. The government, however, may proceed through
the Audit and Review Committee mechanism to recommend
that matters raised in the separate proceeding be sub-
mitted to Judge Pointer for resolution within the frame-
work of the consent decrees. The government concedes, of
course, and no one seriously argues contrariwise, that no
forum court will be legally obliged to follow any govern-
ment recommendation of dismissal, stay, or transfer as to .
any separate suit filed in such court.

With respect to charges pending at the administrative
level at the time of the decrees’ entry, the EEOC has
agreed in paragraph 19 to expedite its processing schedule.
The Commission will first identify those charges that al-
lege violations for which the appropriate remedies are
wholly within the seope of the decrees. In those cases, the
EEOC will consider the charges settled and so notify the
charging party. In addition, it will recommend to the
charging party that he or she accept the back pay provided
under paragraph 18(c) of Consent Decree I. As discussed,
infra, the charging party is free to reject the EEOC’s rec-
ommendation and commence a private suit for greater back
pay or any other relief. As for pending charges that re-
‘ate to matters which are not wholly within the scope of
the decrees, the Commission will conduct the usual in-
vestigations and attempt to conciliate the charges. In all
such cases, the time in which a charging party must decide
whether to claim the back pay under paragraph 18 will be
suspended during the administrative proceedings.

The overriding goal of the United States, the Secretary
of Labor, the EEOC, the companies, and the union is
comprehensive, final and fair settlement of charges of un-
lawful employment discrimination arising from patterns
and practices alleged upon the part of the companies and

23a
Opinion of the Court of Appeals, August 18, 1975

the union up to and including the entry date of the consent
decrees. Accordingly, introductory paragraph C of each
decree provides for binding resolution, between and among
the parties to the decrees, of all issues treated by the de-
crees, together with all issues which may arise as future
effects of the resolved pre-decree discriminations. To the
extent the defendants maintain compliance with the de-
crees as to issues covered and which through the various
procedures may become covered thereby, the government
has agreed that it shall deem the defendants to have com-
plied with Title VII and Executive Order 11246.* As to
matters which originate in discriminations ccecurring prior
to and including the entry date, and which are covered by
the complaint or the decrees, the settlement is res judicata
between and among its signatories.

Two important factors, however, warrant clarification at
this point. First, no private individual, as such, is a party
to the consent decrees. Thus, the consent decrees do not
seek by their terms to bind private individuals by way of
res judicata or estoppel by judgment. It is only through
the acceptance of the back pay and legally effective execu-
tion of the release contemplated by paragraph 18(g) of
Consent Decree I that a private individual can compro-
mise, by virtue of the decrees, any right that he may have.
Apart from the $30,940,000 back pay fund, paragraphs 17
and 18 establish mandatory procedures for fully informing
private parties of their rights. Paragraph 18 sets up spe-
cifie guidelines and standards for computing and delivering
back pay awards to electing employees. The Implementa-
tion Committees, the Audit and Review Committee, and

* Paragraph 16 of Consent Decree I contains a corresponding
stipulation on behalf of the Secretary of Labor and the Office of
Federal Contract Compliance.

24a
Opinion of the Court of Appeals, August 18, 1975

ultimately the district court bear the critical responsibility
to insure that individual employees have the opportunity
to make free, intelligent decisions whether to accept the
back pay under the consent decrees,

The second factor relates to the nature of the consent
decrees’ finality as contemplated by paragraph C. In that
paragraph, the plaintiffs United States, the Secretary of
Labor, and the EEOC have stated in so many words that
they consider the decrees remedially adequate to bring the
defendants into present compliance with federal anti-dis-
crimination law and to con:pensate individual employees
for the past and continuing effects of the alleged disecrim-
inatory practices which the decrees enjoin. Because the
plaintiffs believe that the decrees are sufficient to those pur-
poses, they have stipulated that the decrees are res judicata
with respect to all legal, factual, and remedial issues within
the scope of the complaint and the decrees, In other words,
the plaintiffs—and we take the parties at their word at oral
argument—have merely consented to proceed within the
mechanics of the decrees in lieu of filing additional law-
suits and seeking additional judgments against the de-
fendants with respect to matters covered by the decrees.

Also because they believe that the decrees provide ade-
quate relief, the plaintiffs have agreed that compliance with
the decrees shall be deemed compliance with Title VIT and
Executive Order 11246. Nonetheless, it is our understand-
ing of the submissions to this court on behalf of all par-
ties to the decrees that the government remains entirely
free, from and after the date of entry, to police the im-
plementation of the decrees for repeated or new violations
of the injunctive provisions, and furthermore that the gov-
ernment shall be entitled to treat such suspected violations
as new violations of Title VII and/or Executive Order

25a
Opinion of the Court of Appeals, August 18, 1975

11246, by reason of which the government shall not be
barred from bringing the matter to the attention of the
district court for new injunctive correction, if necessary.
Correspondingly, in light of the parties’ stipulation as to
the scope of the district court’s continuing jurisdiction, we
construe paragraph 20 of Consent Decree I as authorizing
any aggrieved individual to proceed in similar fashion. If
the grievance arises from a transaction or episode to which
the injunctive provisions of the decrees apply, then we
understand the court directly.’ If the grievance involves an
allegation of new discrimination occurring subsequent to
entry date, then it is our understanding that the individual
may file a charge with the EEOC, and/or a lawsuit if he
or she chooses, and expect the same quality of administra-
tive and judicial consideration to which an employment
discrimination complainant would be entitled in any other
American industry.

Having sketched—by no means exhaustively—the terms
of the settlement, the parties’ interpretation thereof, and

* Of course, the parties to the decrees will encourage the grievant
to proceed initially through Implementation and Audit and Review
Committee channels, if the grievant seeks systemic relief. Also,
that procedure obviously will be the most viable alternative for
employees who reside at a distanee from the Northern District of
Alabama. Yet the decrees themselves—and particularly paragraph
20 of Consent Deeree JT, see also paragraph 2 of Consent Decree
I!—are open-ended in that they do not purport to impose adminis-
trative «x!austion requirements upon the individual in excess of
those otherwise imposed by law. Thus, it is quite reasonable to
infer that any obstacles which the individual may encounter en
route to any given courthouse must arise by virtue of rules of law
or compromises that exist independently of the hare terms of the
consent decrees, In any event, with respect to questions concerning
any matter resolved by the decrees, the parties thereto have stipu-
lated that the district court may assume jurisdiction on its own
motion, Hence, the deerees do not by their own force attempt to
inhibit anyone’s access to judicial process or the availability of
judicial review.

26a
Opinion of the Court of Appeals, August 18, 1975

our general understanding of what the parties intended by
their words and deeds, we turn now to the adversary en-
- vironment which produced these appeals.

II. Private INTERVENTION :
CompLaints, ProceepiIncs, AND APPEALS

The consent decrees were entered on April 12, 1974. By
May 17, 1974, three organizations, four individuals, and six
groups” of plaintiffs in actions pending before various
district courts had moved to intervene and to vacate the
decrees. The district court invited the movants to file
briefs, offer proof, and make oral arguments at the hear-
ing conducted on May 20. At the conclusion of the hear-
ing, the court narrowed the issues in intervention to two
points: (1) whether the decrees should be stayed or va-
eated as unlawful or improper in their entirety; and (2)
the validity of the contemplated releases of claims for addi-
tional relief in connection with the payment of back pay
to employees so electing under the consent decrees.

The district court granted intervention as of right, in-
tendedly pursuant to § 706(f)(1) of Title VII, 42 U.S.C.

©The Harris group, certain members of which are the principal
appellants herein, consists of seven sub-groups, the first of which
claims to represent all black employees, past, present, and future,
of all defendant companies at plants in which the Steelworkers’
Union is the employees’ bargaining representative. The next six
sub-groups claim to represent six private classes in pending ac-
tions: Harris, et al. v. Republic Steel Corp., et al., N.D.Ala., C.A.
No, 74—P—3345; Ford, et al. v. United States Steel Corp., et al.,
N.D.Ala., C.A.No. 66—625, sce note 7, supra; Taylor, et al. v. Armeo
Steel Corp., et al, S.D.Tex., C.A.No.68—129: Walker, et al. v.
Republic Steel Corp., et al., 'N.D.Ala., C.A.Nos.71—179, 71—180,
71—-181, 71—185; Lane, et al. v. Bethlehem Steel Corp., et al.,
s Md., C.A.No. 71-580—H: Rodgers, et al. v. United States Stee!

Corp., et al, WD.Pa., C A.No.71—793.

27a
Opinion of the Court of Appeals, August 18, 1975

§ 2000e-5(f)(1), and F.R.Civ.P. 24(a)(1), to a group of
thirty-six individuals with respect to whom charges of
discrimination on the part of the defendants had been filed
with the EEOC. Thirty-three of these individuals were
members of the Harris group. The court also granted per-
missive intervention under F.R.Civ.P. 24(b) to the prin-
cipal officer of the Rank and File Team, an organization
composed of rank and file members of the Steelworkers’
Union. Judge Pointer denied all other motions for inter-
vention, including that filed by the National Organization
of Women (NOW), appellant herein. Among the thirty-
six persons as to whom the court allowed intervention by
right, however, three were women specifically appointed by
NOW at Judge Pointer’s request, and represented by
NOW’s counsel throughout the proceedings."

In his memorandum opinion of June 7, 1974, see 63 F.R.D.
1, 5, Judge Pointer refused to stay or vacate the consent
decrees and upheld their validity against the intervenors’
attacks. He determined first that no evidentiary hearing
was needed, since the intervenors sought mainly to pre-
sent legal hypotheses and argument rather than evidence.
Next, the court rejected contentions that the government
had abdicated or bargained away its responsibilities under
Title VII and Executive Order 11246. While recognizing
that the decrees may require authoritative construction
and clarification from time to time, Judge Pointer deemed
such potential difficulties within his control by virtue of
the court’s continuing jurisdiction. With respect to the

On June 4, 1974, Judge Pointer permitted NOW to file an
amended complaint in intervention on behalf of the three women,
who represented aggrieved classes of former, present, and future
female employees of the defendant steel companies. Judge Pointer
also received from NOW extensive briefs concerning the effects of
the consent decrees upon the rights of females.

28a
Opinion of the Court of Appeals, August 18, 1975

alleged illegality of the back pay settlement releases, Judge
Pointer defined the issue as “whether a signed release in
exchange for the payment of back-pay determined under a
settlement procedure, as contemplated in paragraph 18(g)
of Consent Decree I, can be valid as a matter of public
policy.” Td. at 7. Relying on recent language by the Su-
preme Court,” he held in the affirmative, provided the em-
ployee’s consent is both “ ‘voluntary and knowing,’ ” with
“adequate notice which gives the employee full possession
of the facts.”’ Id.

As a procedural matter, Judge Pointer also relaxed his
earlier orders denying intervention to the majority of the
movants. The final memorandum of June 7 denies such
intervention without prejudice to the rights of private par-
ties to seek further intervention as to questions which may
arise in the future. Similarly, whereas Judge Pointer con-
sidered his opinion binding upon those to whom he granted
intervention as to the issues therein determined, he stated
explicitly that he did not consider any private intervenor
or class of private parties bound by principles of res judi-
cata to the consent decrees. Id. at 4 n. 2, 5.

NOW appeals the district court’s refusal to allow inter-
vention by the organization qua organization. It has also
filed a brief and presented oral argument on the merits in
behalf of the three female appellants to whom Judge
Pointer granted intervention. The intervenors from the
Harris group appeal the district court’s judgment sustain-
ing the overall legality of the consent decrees, although
they complain primarily about the back pay features rather
than the decrees’ injunctive provisions. No other appeals

12 See Alexander v. Gardner-Denver Co., 415 U.S. 36, 52 & n. 15,
94 S.Ct. 1011, 1021 & n. 15, 39 L.Ed.2d 147, 160 & n. 15 (1974).

29a
Opinion of the Court of Appeals, August 18, 1975

are properly before this court.’* For the reasons which
follow, we affirm the judgment of the district court insofar
as it rejected the contentions of the Harris intervenors
and the three females nominated by NOW. We dismiss the
appeal of NOW qua organization for want of jurisdiction.

Ill. Dentat or NOW’s Motion To INTERVENE

Logical analysis of any question concerning intervention
in federal court begins with Rule 24 of the Federal Rules
of Civil Procedure. The rule establishes ground rules for

13 The record reflects that attorneys for the Harris group also
listed the National Ad Hoe Committee of Steelworkers, as to which
the district court denied intervention, in the Harris intervenors’
Notice of Appeal. On appeal, however, the Ad Hée Committee has
filed only a brief as Amicus Curiae, joined by the District 31
Committee to Defend the Right to Strike along with the Rank and
File Team. Of the issues briefed by Amici, only those relating to
the alleged illegality of the back pay releases have been presented
to this court by the briefs of NOW, the three women represented
by NOW, and the Harris intervenors. The other issues briefed by
Amici were not raised in the district court, and for that reason
we shall not consider them. Cf. Wisconsin Barge Line, Ine. v.
Coastal Marine Transport, Inc., 5 Cir. 1969, 414 F.2d 872, 876,
and cases cited.

16 Rule 24.
Intervention

(a) Intervention of Right. Upon timely application anyone shall
be permitted to intervene in an action: (1) when a statute of the
United States confers an unconditional right to intervene; or (2)
when the applicant claims an interest relating to the property or
transaction which is the subject of the action and he is so situated
that the disposition of the action may as a practical matter impair
or impede his ability to protect that interest, unless the applicant's
interest is adequately represented by existing parties.

(b) Permissive Intervention. Upon timely application anyone
may be permitted to intervene in an action: (2) when a statute of
the United States confers a conditional right to intervene; or (2)
when an applicant’s claim or defense and the main action have a
question of law or fact in common. When a party to an action

30a
Opinion of the Court of Appeals, August 18, 1975

two categories of intervention: section (a) establishes the
procedures for timely intervention as of right, whereas
section (b) recognizes discretion in the district court to
permit intervention in two specified situations, again upon
timely application.

Besides timeliness, Rule 24 details other preconditions
to intervention. Under section (a), intervention as of right
is authorized (1) when an act of Congress confers an un-
conditional right to intervene, or (2) when the applicant
claims an interest in the subject matter of the action and
shows that the action’s disposition may, as a practical
matter, impair or impede the ability to protect that interest,
unless the applicant’s interest is adequately protected by
other parties to the suit. Thus, (a)(1) intervention pre-
supposes reliance on a statute. By contrast, the inquiry
under subsection (a)(2) is a flexible one, which focuses on

relies for ground of claim or defense upon any statute or executive
order administered by a federal or state governmental officer or
agency or upon any regulation, order, requirement, or agreement
issued or made pursuant to the state or executive order, the officer
or agency upon timely application may be permitted to intervene
in the action. In exercising its discretion the court shall consider
whether the intervention will unduly delay or prejudice the ad-
judication of the rights of the original parties.

(ce) Procedure. A person desiring to intervene shall serve a
motion to intervene upon the parties as provided in Rule 5. The
motion shall state the grounds therefor and shall be accompanied
by a pleading setting forth the claim or defense for which inter-
vention is sought. The same procedure shall be followed when a
statute of the United States gives a right to intervene. When the
constitutionality of an act of Congress affecting the public interest
is drawn in question in any action to which the United States or
an officer, agency, or employee thereof is not a party, the court
shall notify the Attorney General of the United States as provided
in Title 28, U.S.C. § 2403.

As amended Dec. 27, 1946, eff. March 19, 1948; Dee. 29, 1948,
eff. Oct. 20, 1949; Jan. 21, 1963, eff. July 1, 1963; Feb. 28, 1966,
eff. July 1, 1966.

3la
Opinion of the Court of Appeals, August 18, 1975

the particular facts and circumstances surrounding each
application. Since 1966, we have consistently held that
(a)(2) intervention as of right must be measured by a
practical rather than technical yardstick. E. g., Martin v.
Travelers Indem, Co., 5 Cir. 1971, 450 F.2d 542, 554; Diaz
v. Southern Drilling Corp., 5 Cir. 1970, 427 F.2d 1118,
1123-25, cert. denied sub nom., Trefina A.G. v. United
States, 400 U.S. 878, 91 S.Ct. 118, 27 L.Ed.2d 115 (1970) ;
Atlantis Development Corp. v. United States, 5 Cir. 1967,
379 F.2d 818, 822-29. A denial of an application for inter-
vention by right which was timely filed, as here, is subject
to the usual scope of our appellate review over questions
of law. An erroneous denial will be reversed. Weiser v.
White, 5 Cir. 1975, 505 F.2d 912, at p. 916. On the other
hand, if the appellate court finds that the claim of right to
intervene was without merit, then it must dismiss the appeal
for want of judisdiction, since the order denying interven-
tion does not constitute a final judgment. Id. See also C.
Wright, Federal Courts § 75, at 332 (1970).

The rules pertaining to permissive intervention are
slightly different. Rule 24(b) authorizes permissive inter-
vention (1) when a federal statute confers a conditional
right to intervene, or (2) when the application raises a
question of law or fact which is material to the main action.
In exercising its discretion, the district court is required
to consider whether permissive intervention would unduly
jeopardize or delay the determination of the original suit.
On appeal, the denial of a motion for permissive interven-
tion is unreviewable, unless the trial court abused its dis-
cretion. Brotherhood of R. R. Trainmen v. Baltimore &
Ohio R. R., 331 U.S. 519, 524, 67 S.Ct. 1387, 1390, 91 L.Ed.
1646, 1650 (1947) ; Martin v. Kalvar Corp., 5 Cir. 1969, 411
F.2d 552. If no abuse of discretion is demonstrated, then

32a
Opinion of the Court of Appeals, August 18, 1975

once again the district court’s order is not appealable and
we must dismiss the appeal for want of a final order.
Weiser v. White, supra; C. Wright, supra.

NOW’s principal contention asserts an absolute, uncon-
ditional right of intervention in favor of the organization.
NOW thus seeks to enter the lawsuit under Rule 24(a)(1).
NOW argues that this absolute, unconditional right is con-
ferred upon it by § 706(f)(1) of Title VII, as amended,
Puw.L.No.92-261, § 4(a) (Mareh 24, 1972), 42 U.S.C. § 2000e-
5(f)‘1). Section 706(f)(1), which, as pertinent, contains
the procedures for filing charges with the EEOC and the
filing of lawsuits by the Commission or charging parties
when conciliation fails, confers upon the “person or persons
aggrieved” a right to intervene in a civil action brought
thereunder by the Commission. NOW contends that since
it is a civil rights-oriented feminist organization which has
been permitted on occasions to file charges with the EEOC
on behalf of women, and since on at least one occasion
it has been made as a party-plaintiff in a sex disecrimina-
tion lawsuit,’® it should therefore be deemed a “person
aggrieved” in its own stead. NOW argues that judicial
recogition of an unconditional organizational right of inter-
vention would yield socially desirable results, since the
organization would receive valuable stature and publicity

1® NOW informs us that it is one of the plaintiffs in a class action
employment discrimination suit pending before the federal district
court in Maryland, styled Baltimore Chapter of NOW; Cathleen
J. Beasley and Catherine N. Lloyd v. Bethlehem Steel Corp., et al.,
No. M—74—377. Brief for Appellants NOW, et al., at 6. NOW
asserts that its filing of charges with the EEOC, for example on
behalf of all female employees of United States Steel at Gary,
Indiana (Charge No. TCH 4—1985, filed March, 1974), has been
instrumental in generating a favorable climate for conciliation and
settlement in the steel industry.

33a
Opinion f ‘te Court of Appeals, August 18, 1975

which would encourage female workers throughout the
nation to seek its assistance.

Without drawing any finer distinctions, the district court
held that NOW is not a “person aggrieved” within the
meaning of § 706(f)(1). In the court’s view, NOW did
not demonstrate a sufficiently concrete interest qua orga-
nization to justify the additional problems of management
and inconvenience to other parties (including, presumably,
the beneficiary employees of the consent decrees) that
might result from duplicative intervention. The fact that
NOW previously had been permitted to designate three
female intervenors, whom its counsel ably represented,
weighted heavily in Judge Pointer’s calculus. See 63 F.R.D.
at 4.

While perhaps a court might be persuaded by Judge
Pointer’s conclusion that NOW is not a “person aggrieved”
within the meaning of § 706(f)(1),’* we defer decision of
that question in favor of an approach which we consider

16 Cf. Sierra Club v. Morton, 405 U.S. 727, 740, 92 S.Ct. 1361,
1368-69, 31 L.Ed.2d 636, 646 (1972) :

The requirement that a party seeking review must allege
facts showing that he is himself adversely affected does not
insulate executive action from judicial review, nor does it
prevent any public interests from being protected through the
judicial process. It does serve as at least a rough attempt to
put the decision as to whether review will be sought in the
hands of those who have a direct stake in the outcome. That
goal would be undermined were we to construe the APA to
authorize judicial review ait the behest of organizations or
individuals who seek to do no more than vindicate their own
value preferences through the judicial process. The principle
that the Sierra Club would have us establish in this case would
do just that.

(footnotes omitted.)
But see Warth v. Seldin, —— USS. . , 95 S.Ct. 2197,
2211, 44 L.Ed. (1975) :

There is no question that an association may have standing

in its own right to seek judicial relief from injury te itself

34a
Opinion of the Court of Appeals, August 18, 1975

more directly dispositive. We hold that this was not a
proper case for intervention as of right by any private
party or organization pursuant to Rule 24(a)(1). Specif-
ically, we hold that intervention as of right was not con-
ferred in this proceeding by any act of Congress. We do so
because it is plain from a careful examination of the
government’s complaint that this was not in substance a
§ 706 action, but rather a “pattern or practice” action au-
thorized by § 707, 42 U.S.C. § 2000e-6, which the EEOC
was empowered to institute by virtue of the transfer of
functions outlined in §707(c).’’ Insofar as the United
States and the Secretary of Labor joined as plaintiffs to
enforce the obligations imposed on the defendants by Ex-
ecutive Order 11246, the district court’s jurisdiction was
hased on 28 U.S.C. § 1345."

and to vindicate whatever rights and immunities the associa-
tion itself may enjoy. Moreover, in attempting to secure relief
from injury to itself the association may assert the rights of
its members, at least so long as the challenged infractions
adversely affect its members’ associational ties.

In Warth the Court described the question of standing as essen-
tially a matter of “whether the constitutional or statutory provision
on which the claim rests properly can be understood as granting
persons in the plaintiff's position a right to judicial relief.” ——
U.S. at , 95 S.Ct. at 2207 (footnote omitted). Note that whereas
§ 706(f) (1) of Title VII creates civil actions and rights of inter-
vention in favor of “Person[s] aggrieved,” § 703, 42 U.S.C. § 2000e-
2, makes it unlawful to discriminate against “any individual.”
(emphasis added).

17 As of March 24, 1974, the EEOC assumed the full range of
“pattern or practice” functions which had belonged to the Justice
Department since the effective date of Title VII, July 2, 1965.
Accordingly, NOW appears to accept as correct our statement in
the text, that this was a § 707 “pattern or practice” action. Brief
for Appellants NOW, et al., at 6.

1698 U.S.C. § 1345: “Except as otherwise provided by Act of
Congress, the district courts shall have original jurisdiction of all

35a
Opinion of the Court of Appeals, August 18, 1975

Nothing in § 707 or in any other federal statute con-
ferred an unconditional right of intervention upon any
private individual or association thereof. The “pattern or
practice” action under § 707, which is conspicuously silent
in regard to intervention, must be carefully contrasted
with the actions contemplated by § 706. Under § 707, the
EEOC (formerly the Attorney General) may institute a
“pattern or practice” suit anytime that it has “reasonable
cause” to believe such a suit necessary. See United States
v. Jacksonville Terminal Co., 5 Cir. 1971, 451 F.2d 418,
438, cert. denied, 406 U.S. 906, 92 S.Ct. 1607, 31 L.Ed.2d
815 (1972). Section 707 does not make it mandatory that
anyone file a charge against the employer or follow ad-
ministrative timetables before the suit may be brought.
It was unquestionably the design of Congress in the enact-
ment of § 707 to provide the government with a swift and
effective weapon to vindicate the broad public interest in
eliminating unlawful practices, at a level which may or
may not address the grievances of particular individuals.
See Rodriguez vy. East Texas Motor Freight, 5 Cir. 1974,
505 F.2d 40, at p. 66; United States v. International Ass’n.
of Bridge, Structural, and Ornamental Iron Workers, 7
Cir. 1971, 438 F.2d 679, cert. denied 404 U.S. 830, 92 S.Ct.
75, 30 L.Ed.2d 60 (1971). Rather, it is to those individual
grievances that Congress addressed § 706, with its atten-
dant requirements that charges be filed, investigations con-
ducted, and an opportunity to conciliate afforded the re-
spondent when “reasonable cause” has been found. On the

civil actions, suits or proceedings commenced by the United States,
or by any agency or officer thereof expressly authorized to sue by
Act of Congress.” See United States v. Local 189, United Paper-
makers, E.D.La.1968, 282 F.Supp. 39, 43, aff'd, 5 Cir. 1969, 416
F.2d 980, cert. denied, 397 U.S. 919, 90 S.Ct. 926, 25 L.Ed.2d 100
(1970).

36a
Opinion of the Court of Appeals, August 18, 1975

other hand, the mere fact that some charges were filed, or
that efforts were made toward conciliation, does not in our
view transform what the government may properly bring
and does bring as a § 707 “pattern or practice” action into
a § 706 action. See United States v. Lronworkers Local 86,
9 Cir. 1971, 443 F.2d 544, 551-52, cert. denied, 404 U.S. 984,
92 §.Ct. 447, 30 L.Ed.2d 367 (1971).

We have studied closely the language of the two sections
in reaching the foregoing conclusions. If only the words of
the statute were available, one might plausibly argue that
§ 707(e), 42 U.S.C. § 2000e-6(e), incorporates § 706(f) (1)
intervention as of right into “pattern or practice” proce-
dure. Section 707(e), enacted as another of the 1972 amend-
ments to Title VII, provides that the EEOC shall have the
authority, subsequent to March 24, 1972, “to investigate
and act on” charges of pattern or practice discrimination
filed in behalf of aggrieved individuals. Section 707(e)
concludes: “All such actions shall be conducted in ac-
cordance with the procedures set forth in section 2000e-5
[§ 706] of this title.”

Arguably, these procedures include intervention as of
right by aggrieved parties. The legislative history indicates
otherwise, however, and in the absence of an express provi-
sion for intervention we choose to follow its signals. In
the first place, we have discovered no legislative history
evincing a favorable congressional attitude toward uncon-
ditional private intervention in government “pattern or
practice” litigation. In the legislative history which speaks
most closely to the point, the Hlouse Committee on Educa-
tion and Labor described the enacted precursor to § 707(e)
as a measure which merely “[a]ssimilate[d] procedures for
new proceedings brought under Section 707 to those now
provided for under Section 706 so that the Commission

37a
Opinion of the Court of Appeals, August 18, 1975

may provide an administrative procedure to be the counter-
part of the present Section 707 action.” (emphasis added)."*
Thus, while Congress apparently intended that the EEOC
have investigative and conciliatory authority in “pattern or
practice” situations comparable to its existing powers in
§ 706 cases, there is no indication that Congress intended
the duplication of procedures to extend beyond the admin-
istrative level. The EEOC, of course, may not enact stat-
utes, and it is a statute that Rule 24(a)(1) requires.

We emphasize that our disposition of the 24(a)(1) as-
pect of the intervention question is based primarily on
what we find to be the correct construction of § 707 and its
legislative history. We are comforted, however, by the Sev-
enth Cirenit’s recent decision in EEOC vy. United Air Lines,
7 Cir. 1975, 515 F.2d 946, in which the court reached the
same conclusion, though ultimately its affirmance was based
on the untimeliness of the intervenors’ application. Also,
we find persuasive support for our refusal to effectively
imply an unconditional statutory right in the strong judicial
policy against nonexpress private intervention in govern-
ment enforcement litigation when an adequate private rem-
edy is freely accessible. See, ce. g., Sam Fox Publishing
Co. v. United States, 366 U.S. 683, 81 S.Ct. 1309, 6 L.Eid.2d
604 (1961). See also Battle v. Liberty Nat’l. Life Ins. Co.,
5 Cir. 1974, 493 F.2d 39, 52, cert. denied, 419 U.S. 1110, 95
S.Ct. 784, 42 L.Ed.2d 807 (1975). This policy likewise ap-
plies to applications for intervention by right under Rule
24(a)(2), and applications for permissive intervention un-
der Rule 24(b). See SEC v. Everest Mgt. Corp., 2 Cir.
1972, 475 F.2d 1236; United States v. Automobile Mfrs.

'? H. Rep. No. 92-238, reporting H.R. 1746, 92d Cong., 2d Sess.,
1972 U.S.Code Cong. & Admin.News 2137, at 2164 (reporting
§ 707(f) of H.R. 1746).

38a
Opinion of the Court of Appeals, August 18, 1975

Assn., C.D.Cal.1969, 307 F.Supp. 617, 619, aff'd per curiam,
397 US. 248, 90 S.Ct. 1105, 25 L.Md2d 280 (1970). Cf.
NAACP v. New York, 415 U.S, 945, 368, 93 S.Ct. 2591, 2604,
37 L.Kid.2d 648, 664 (1973).

Without any aim on our part to denigrate whatever so-
cial benefit may accrue from participation in the proceed-
ings by organizations such as NOW, or to impose NOW’s
motives or sincerity, we note that NOW has offered no
commanding legal or policy arguments to warrant a rule
allowing its intervention as of right. NOW places much
reliance on EKOC vy. American Tel, & Tel. Co., B.D.Pa.1973,
i655 F.Supp. 1105, aff'd in part, appeals dismissed im part,
3 Cir, 1974, 506 F.2d 735. There the court granted interven-
iion by right, under © 706(f)(1) and Rule 24(a)(1), to a
labor union insofar as certain issues raised in the union's
application related to grievances with respect to whieh
charges had been filed with the KEOC, and to remedy
which the Commission had filed a suit that led to an in-
dustry wide consent decree, American Tel. & Tel., however,
was a suit brought by the Commission pursuant to 4 706.
It was not a 4707 “pattern or practice” action. See 506
F.2d at 740. The issue before the court was whether the
union could be considered an “aggrieved” party for pur-
poses of 4 706(f)(1). The ease is not authority for the
proposition sought to be established sub judice. At any
rate, we think that a labor union which is party to the col-
lective bargaining agreement presents a far stronger case
for intervention than does an organization such as NOW,
provided that confliets of interest are minimized.”

"A labor union is elected to represent in collective bargaining
the employees who depend on the eompany for their jobs and
livelihood, When the company, as in American Tel. & Tel, enters
into a settlement with the government in an effort to resolve eom-

39a
Opinion of the Court of Appeals, August 18, 1975

In summary, we have determined that NOW enjoyed
no unconditional statutory right to intervene under F.R.
Civ.P. 24(a)(1). The matter is mostly ended at this point,
but we pause briefly to consider whether the district court
could have erred in refusing to grant NOW intervention
under Rule 24(a)(2) or (b). With respect to (a)(2) inter-
vention as of right, NOW obviously claims an interest in
the subject matter of the action. We believe, however, that
NOW fails the other two prongs of the test. NOW has not
shown that the district court’s decision to enter the consent
decrees as between the government and the defendants may,
as a practical matter, operate to impair or impede the pro-
tection of its interest. Neither NOW nor any of its mem-
bers is bound by res judicata or estopped to the consent
decrees. See Rodriguez v. Kast Texas Motor Freight, 5
Cir. 1974, 505 F.2d 40 at p. 65; Williamson v. Bethlehem
Steel Corp., 2 Cir. 1972, 468 F.2d 1201, 1203, cert. denied,

plaints of alleged employment discrimination, the union deriva-
tively acquires a mandatery duty to negotiate alternatives to the
provisions—e.g., those relating to seniority, or as in the Bell case
pregnancy leave—of the existing collective bargaining contract. If
the settlement contains features the legality or propriety of which
is questionable, then the union may have a definite, cognizable
interest qua union in contesting those features. Cf. Kilberg, Cur-
rent Cimil Rights Problems in the Collective Bargaining Process:
The Bethichem and AT&T Experiences, 27 Vand.1.Rev. 81, 101,
106 (1974). Furthermore, the union’s ability to protect its interest
may well be impaired or impeded if it is not allowed to intervene
in the settlement formalization proceedings. Id. At the very least,
it would be anomalous to assume in such cases that the employees’
bargaining representative's interest is adequately served by the
government or the employer. Nevertheless, the union must eare-
fully tailor its role in intervention in order not to unduly favor
or discriminate against the interests of particular segments of its
membership, See EEOC v. American Tel. & Tel. Co., 3 Cir. 1974,
06 F.2d 735, 741.

40a
Opinion of the Court of Appeals, August 18, 1975

411 U.S. 931, 93 S.Ct. 1893, 36 L.Ed.2d 390 (1973). See also
Sam Fox Publishing Co. v. United States, supra, 366 U.S.
at 689-90, 81 S.Ct. at 1313, 6 L.Ed.2d at 609. Furthermore,
the district court explicitly qualified the denial of interven-
tion as a denial without prejudice to future intervention.
Cf. NAACP v. New York, supra. Finally, plenary legal
remedies remain fully available to NOW’s membership and
perhaps, or so NOW has asserted, to the organization it-
self." The policy against private intervention in govern-

21 For that reason, NOW’s reliance on eases such as Trbovich v.
UMW, 404 U.S. 528, 92 S.Ct. 630, 30 L.Ed.2d 686 (1972), is mis-
placed. Trbovich was an action by the Secretary of Labor under
§ 482(b) of the LMRDA, 29 U.S.C. § 401 et seq., to set aside a
union’s election of officers because of alleged violations of Title IV
of the Act, § 481 et seq. The statute provided that the suit by the
Secretary constituted the exclusive remedy, and union members
are barred by law from bringing private actions. Since the Secre-
tary thus functioned as the union members’ only advocate for the
protection of their valuable rights against the union, and because
of the Secretary’s corresponding and potentially conflicting duty
to consider the broader public interest, the Court held that the
union member who filed the original complaint with the Secretary
was entitled to limited intervention under Rule 24(a)(2). Here,
by contrast, although the government was obliged to represent the
publie interest, the consent decrees do not purport to affect the
availability of relief from employment discrimination through pri-
vate actions under Title VII, the Civil Rights Act of 1866 (42
U.S.C. § 1981), the labor law duty of fair representation, or any
other applicable federal law. Compare Hodgson v. UMW, 1972,
153 U.S. App.D.C, 407, 473 F.2d 118, 122 n. 15, 128-30 (suit by
Secretary under Title ITI of LMRDA is res judicata as against
union members; Rule 24(a)(2) intervention allowed).

Also to be distinguished are cases such as Atlantis Development
Corp. v. United States, 5 Cir. 1967, 379 F.2d 818 (title to prop-
erty); Martin v. Travelers Indem. Co., 5 Cir, 1971, 450 F.2d 542
(liability insurance coverage); and Nuesse v. Camp, 1967, 128
U.S.App.D.C. 172, 385 F.2d 694 (conflict between federal banking
laws and state law), in which courts have granted (a)(2) inter-
vention because of the practical disadvantages that would follow
from peculiar stare dé cisis effects, if intervention were not allowed.
Again contrasting this ease, we have difficulty conceiving of how
the consent decrees—products of negotiation rather than contested

4la
Opinion of the Court of Appeals, August 18, 1975

ment litigation, noted supra, militates against the allowance
of (a)(2) intervention here; NOW makes no colorable
showing of inadequacy in the government’s representation
of the public interest. In any event, NOW fails the third
element of the (a)(2) test. Having participated through
its nominees and counsel during these entire proceedings,
NOW cannot be heard to complain of the adequacy of the
feminist representation.

Insofar as NOW’s application may be deemed to have
sought permissive intervention under Rule 24(b), no abuse
of discretion has been shown in the denial. The district
court was clearly justified in determining that the interests
of the majority of the effected individuals predominated
over NOW’s interest in further delaying implementation
of the decrees’ reforms. Such determinations must be
viewed in light of the circumstances as they existed at the
time. EEOC v. United Air Lines, supra, 515 F.2d at 949.
In this case, a full hearing had been held and NOW had
received ample opportunity to present its arguments. The
court below did not err in denying further intervention.

litigation—are likely to carry stare decisis effects measurably ad-
verse to NOW or its membership in any future proceeding. A
careful analysis of the deerees demonstrates that such an assump-
tion would be not only quite premature, but also naively critical
of the perceptive abilities of the judiciary. See Judge Motley’s
lucid diseussion in Leisner v. New York Tel. Co., S.D.N.Y.1973,
358 F.Supp. 359, 369-70. Cf. Pettway v. American Cast Iron Pipe
Co., 5 Cir. 1974, 494 F.2d 211, 221 n. 21; Rodriguez v. East Texas
Motor Freight, 5 Cir. 1974, 505 F.2d 40, at p. 65; Dickerson vy.
United States Steel Corp., E.D.Pa. 1974, 64 F.R.D. 351.

In no respect does this case bear genuine resemblance to the kind
of bizarre problems encountered in Caseade Natural Gas Corp. v.
El Paso Natura! Ges Co., 386 U.S. 129, 87 S.Ct. 932, 17 L.Ed2da
814 (1967). See Kaplan, Continuing Work of the Civil Committee:
[ete.} (7), 81 Harv.L.Rev. 356, 405-06 (1967).

42a
Opinion of the Court of Appeals, August 18, 1975

Consequently, NOW’s appeal qua organization must be
dismissed.”

Ill. Tue Appeats on THE Merits: CHALLENGES
To THE ConsENT DecrEES

A. Scope of Review

Before proceeding with our examination of the appel-
lants’ numerous and provocative challenges to the consent
decrees, it is appropriate that we outline the rules of law
which govern the parameters of our review. Initially, it
cannot be gainsaid that conciliation and voluntary settle-
ment are the preferred means for resolving employment
discrimination disputes. As early as 1968, Judge Bell wrote
for this court: “It is thus clear that there is great em-
phasis in Title VII on private settlement and the elimina-
tion of unfair practices without litigation.” Oatis v. Crown
Zellerbach Corp., 5 Cir. 1968, 398 F.2d 496, 498 (emphasis
added). Subsequently, in Dent v. St. Louis-San Francisco
Ry. Co., 5 Cir. 1969, 406 F.2d 399, 402, Judge Coleman
advanced the same thesis:

Thus it is quite apparent that the basie philosophy
of these statutory provisions is that voluntary compli-

22 Although we have determined that intervention as of right
under F.R.Civ.P. 24(a)(1) was not available to the private parties
and groups who sought intervention in this case, some of whose
applications were granted below on the assumption that § 706(f)
(1) of Title VII conferred such right, we proceed nonetheless to
consider the merits of the attacks lodged against the consent de-
erees by the remaining intervenors-appellants. We do so on the
assumption that the district court, having concluded that certain
parties ought to be granted intervention either by right or by
permission, would have allowed those parties to intervene in any
event under either 24(a)(2) or (b). No appellee has suggested
by way of cross-assignment or otherwise that we should not go
forward to the merits.

43a
Opinion of the Court of Appeals, August 18, 1975

ance is preferable to court action and that efforts
should be made to resolve these employment rights by
conciliation both before and after court action.

(emphasis added). In Culpepper v. Reynolds Metals Co.,
5 Cir. 1970, 421 F.2d 888, 891, we declared that “the cen-
tral theme of Title VII is ‘private settlement’ as an effec-
tive end to employment discrimination,” citing Oatis. Next,
in Hutchings v. United States Industries, Inc., 5 Cir. 1970,
428 F.2d 303, 309, Judge Ainsworth stated:

[I]t is clear that Congress placed great emphasis upon
private settlement and the elimination of unfair prac-
tices without litigation (citing Oatis) on the ground
that voluntary compliance is preferable to court action.
(citing Dent). Indeed, it is apparent that the primary
role of the EEOC is to seek elimination of unlawful
employment practices by informal means leading to
voluntary compliance,

(emphasis added).”

Our recent excursions into this area have not detoured
from the foregoing principles, but have emphasized instead
their practical value. In the most sweeping of all our em-
ployment discrimination decisions, Pettway v. American
Cast Iron Pipe Co., 5 Cir. 1974, 494 F.2d 211, 258, we said
in regard to the firmly established, but nonetheless thorny
and speculative matter of awarding ciasswide back pay:

*8 Accord, Guerra v. Manchester Terminal Corp., 5 Cir. 1974,
498 F.2d 641, 650; Airline Stewards and Stewardesses v. Ameri-
ean Airlines, Ine., 7 Cir. 1972, 455 F.2d 101, 109; Fekete v. United
States Steel Corp., 3 Cir. 1970, 424 F.2d 331, 336; Bowe v.
Colgate-Palmolive Co., 7 Cir. 1969, 416 F.2d 711; Jenkins v.
United Gas Corp., 5 Cir. 1968, 400 F.2d 28.

44a
Opinion of the Court of Appeals, August 18, 1975

Initially, we approve the district court’s intention of
referring the back pay claims to a Special Master, Fed.
R.Civ.P. 53. United States v. Wood, Wire & Metal
Lathers Int. Union, Local 46, 328 F.Supp. 429, 441
(S.D.N.Y. 1971). However, the court and the parties
may also consider negotiating an agreement. E. g.,
Johnson v. Goodyear Tire & Rubber Co., 349 F.Supp.
3, 18 (S.D. Tex. 1972), 491 F.2d 1364 (5th Cir. March
27, 1974); United States v. Wood, Wire & Metal
Lathers, Int. Union, Local 46, supra 328 F.Supp. at
444 n. 3. An alternative is to utilize the expertise of
the intervening Equal Employment Opportunity Com-
mission to supervise settlement negotiations or to aid
in determining the amount of the ward.

(emphasis added).

Nor has the Supreme Court maintained detached silence |
in regard to the deference courts should accord the pro- |
cesses of voluntary conciliation and settlement. Describing

Title VII and the functions of the EEOC, Mr. Justice

Powell in Alexander v. Gardner-Denver Co., 415 U.S. 36, —

44, 94 S.Ct. 1011, 1017-18, 39 L.Ed.2d 147, 156 (1974), wrote

for the Court:

Cooperation and voluntary compliance were selected
as the preferred means for achieving [the elimination
of unlawful employment discrimination]. To this end,
Congress created the Equal Employment Opportunity
Commission and established a procedure whereby State
and local equal employment opportunity agencies, as
well as the Commission, would have an opportunity
to settle disputes through conference, conciliation, and
persuasion before the aggrieved party was permitted
to file a lawsuit. In the Equal Employment Oppor-

45a
Opinion of the Court of Appeals, August 18, 1975

tunity Act of 1972, Pub.L. 92-261, 86 Stat. 103, Con-
gress amended Title VII to provide the Commission
with further authority to investigate individual charges
of discrimination, to promote voluntary compliance
with the requirements of Title VII, and to institute
civil actions against employers or unions named in a
discrimination charge.

(emphasis added). In Gardner-Denver the Supreme Court
stressed the importance of voluntary settlement in voicing
its disapproval of a policy of deferral to binding arbitra-
tion. In the Court’s view, such a policy could adversely
affect the arbitration system as well as the vindication of
individual rights, since the employee—fearful of the arbi-
tral forum—might elect to bypass arbitration and file a
lawsuit instead. “The possibility of voluntary compliance
or settlement of Title VII claims would thus be reduced,
and the result could well be more litigation, not less.” 415
U.S. at 59, 94 S.Ct. at 1025, 39 L.Ed.2d at 164. (emphasis
added).

So far, we have emphasized only one side of the coin—
the side which places a premium on the achievement of
voluntary compliance. In doing so, we have not overlooked
that the “final responsibility for enforcement of Title VII
is vested with federal courts,” Gardner-Denver, supra, 415
U.S. at 44, 94 S.Ct. at 1018, 39 L.Ed.2d at 156, and that
“Congress gave private individuals a significant role in
the enforcement process of Title VII.” Jd. See also Me-
Donnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct.
1817, 36 L.Ed.2d 668 (1973); Griggs v. Duke Power Co.,
401 U.S. 424, 91 S.Ct. 849, 28 L.Ed.2d 158 (1971).** Nor

** Statements to the same effect may be found in virtually all of
the cases which we have canvassed in stressing the importance of

46.
Opinion of the Court of Appeals, August 18, 1975

have we forgotten that “the private right of action remains
an essential means of obtaining judicial enforcement of
Title VIL” Gardner-Denver, supra, 415 U.S. at 45, 94 S.Ct.
at 1018, 39 L.Ed.2d at 156 (emphasis added), and cases
cited. We are fully mindful, moreover, that the EEOC’s
limited resources permit it to undertake serious conciliation
or lawsuits in only a small fraction of the cases on its
docket.** For that reason, the congressional scheme con-
tinues to depend in substantial measure upon “private at-
torneys general” who, through their lawsuits in the federal
courts, elicit enunciation of the great bulk of policies and
principles which serve to flesh out the basie congressional
mandate.

Yet we deal here with one of those rare instances in
which the government has, to its satisfaction, successfully
negotiated a comprehensive voluntary accord. At least os-

conciliation and settlement, and in legion others as well. See, e.q.,
Gamble v. Birmingham Southern R. R., 5 Cir. 1975, 514 F.2d 678,
at p. 686. To repeat the citations would be superfluous in view of
the Supreme Court's repeated and emphatic recognition of the
important enforcement role played by private suitors.

7° According to one fairly recent source, the EEOC—to no one’s
surprise—“suffers from a considerable work backlog.” It is re-
ported that as of June 30, 1971, some 32,000 cases were backlogged,
and that the processing of a charge may consume eighteen to
twenty-four months. Further, after the EEOC finds reasonable
cause, another six months usually passes before it seeks conciliation.

In fiseal 1972, the last year prior to implementation of the 1972
amendments which gave the EEOC power to sue, the Commission
found reasonable cause to assert unlawful discrimination against
only 1,390 empl yers. Settlement was attempted to some degree
with 792 of these employers, but only 268 attempts resulted in a
partial or complete success. Note, The Tentative Settlement Class
and Class Action Suits Under Title VII of the Civil Rights Act,
72 Mich.L.Rev. 1462, 1463 n. 11, 1464 n. 17 (1974).

Another source reports that as of the close of fiscal 1974, the
EEOC’s backlog had grown to nearly 98,000 charges. 181 BNA—
DLR—D-1, 5 (Sept. 17, 1974).

47a
Opinion of the Court of Appeals, August 18, 1975

tensibly, the government has done precisely what it ought
to do as a matter of public policy in order to vitiate the
need for additional industry-wide litigation. On the other
hand, the product of the considerable efforts on behalf of
the government, the steel companies, and the union does
not purport to foreclose any alternatives that may other-
wise exist for individuals who had rather litigate than par-
ticipate in the entire settlement.** We say entire because

26In this respect, the consent decrees present a situation some-
what analcgous to that recently examined by the Supreme Court
in Johnson yv. Railway Express Agency, Inc., US. , 95
S.Ct. 1716, 44 L.Ed.2d 295 (1975). In Johnson it was argued that
the timely filing of an employment discrimination charge with the
EEOC, pursuant to Title VII, should be held to toll the applicable
state statute of limitations for a suit under 42 U.S.C. § 1981 on
the same cause of action. Rejecting the argument, the Supreme
Court reiterated the theme of Gardner-Denver that the various
legal remedies for employment discrimination are cumulative and
complementary. From the grievant's standpoint, “{u]nder some
circumstances, the administrative route may be highly preferred
over the litigatory; under others the reverse may be true.”
U.S. at ——, 95 S.Ct. at 1720, 44 L.Ed.2d at 302.

The most significant feature about Johnson is its emphasis on
the principle that the choice over which way to proceed belongs to
the grievant:

Petitioner argues that a failure to toll the limitation period
in this case will conflict seriously with the broad remedial and
humane purposes of Title VII. Specifically, he urges that
Title VII embodies a strong federal policy in support of con-
ciliation and voluntary compliance as a means of achieving
the statutory mandate of equal employment opportunity. He
suggests that failure to toll the statute on a § 198! claim dur-
ing the pendency of an administrative complaint in the EEOC
would force a plaintiff into premature and expensive litiga-
tion that would destroy all chances for admnistrative concilia-
tion and voluntary compliance.

We have noted this possibility and, indeed, it is conceivable,
and perhaps almost to be expected, that failure to toll will
have the effect of pressing a civil rights complainant who
values his § 1981 claim into court before the EEOC has com-
pleted its administrative proceeding. (footnote omitted). * * *

48a
Opinion of the Court of Appeals, August 18, 1975

the injunctive relief provided by the consent decrees ex-
tends to all affected steelworkers, regardless whether they
elect to accept the back pay and execute the releases. The
question at this point, then, is through what lens do we
judge the adequacy of the settlement as against the inter-
venors’ objections, bearing in mind that Congress and the
Supreme Court have expressed a preference for voluntary
compliance above all other tools of enforcement?

We think the answer was delivered nearly fifteen years
ago by Judge (now Chief Judge) Brown in Florida Trailer
and Equipment Co. v. Deal, 5 Cir. 1960, 284 F.2d 567, in
which an objecting creditor sought to void a referee and
district court-approved settlement, reached pursuant to the
Bankruptcy Act, between the trustee of the insolvent estate
and a lien creditor. There we stated:

Of course, the approval of a proposed settlement does
not depend on establishing as a matter of legal cer-
tainty that the subject claim or counterclaim is or is
not worthless or valuable. The probable outcome in

But the fundamental answer to petitioner’s argument lies in
the faet—presumably a happy one for the civil rights claim-
ant—that Congress clearly has retained § 1981 as a remedy
against employment discrimination separate from and inde-
pendent of the more elaborate and time consuming procedures
of Title VII.

U.S. at , 95 S.Ct. at 1722, 44 L.Ed.2d at 304. Likewise
in this case, individual employees will find themselves faced with
the choice whether to timely accept back pay under the consent
decrees, for which no litigation will be necessary, or file private
charges and /or lawsuits and risk the usual litigatory uncertainties
in quests for greater recoveries. We know of no policy or rule of
law, however, which forbids the erection of such a choice when its
effect is to leave the individual grievant in a position no worse,
but in fact better, than that oceupied in the absence of the settle-
ment, which, of course, is not binding on the individual unless he
or she so desires.

49a
Opinion of the Court of Appeals, August 18, 1975

the event of litigation, the relative advantages and
disadvantages are, of course, relevant factors for eval-
uation. But the very uncertainty of outcome in litiga-
tion, as well as the avoidance of wasteful litigation
and expense, lay behind the Congressional infusion of
a power to compromise. This is a recognition of the
policy of the law generally to encourage settlements.
This could hardly be achieved if the test on hearing
for approval meant establishing success or failure to
a certainty. Parties would be hesitant to explore the
likelihood of settlement apprehensive as they would
be that the application for approval would necessarily
result in a judicial determination that there was no
escape from liability or no hope of recovery and hence
no basis for a compromise.

284 F.2d at 571. Judge Brown continued:

Obviously, it would not be a settlement if to obtain
approval the Trustee would have to demonstrate that
he could not succeed had the preference claim been
pressed. All that he must do is establish to the rea-
sonable satisfaction of the Referee that, all things con-
sidered, (citation omitted), it is prudent to eliminate
the risks of litigation to achieve specific certainty
though admittedly it might be considerably less (or
more) than were the case fought to the bitter end. * * *

Id. at 573 (emphasis added).

Despite the appearance of an occasional contextual
gloss,”” the approach to judicial evaluation of proposed set-

27 FE. g., West Virginia v. Chas. Pfizer & Co., S.D.N.Y.1970, 314
F.Supp. 710, 740, aff'd, 2 Cir. 1971, 440 F.2d 1079, cert. denied,
sub nom., Cotler Drugs, Inc. v. Chas. Pfizer & Co., 404 U.S. 871,

50a
Opinion of the Court of Appeals, August 18, 1975

tlements announced in Deal has drawn firm adherents
among the federal courts. See City of Detroit v. Grinnell
Corp., 2 Cir. 1974, 495 F.2d 448, 455-56 (objectors must
show clear abuse of discretion in trial court’s approval of
settlement); Bryan v. Pittsburgh Plate Glass Co., 3 Cir.
1974, 494 F.2d 799, 803, cert. denied, Abate v. Pittsburgh
Plate Glass Company, 419 U.S. 900, 95 S.Ct. 184, 42 L.Ed.2d
146 (1974) (settlement not unfair simply because many
class members oppose it); Greenspun v. Bogan, 1 Cir. 1974,
492 F.2d 375, 381 (only where one side is so clearly cor-
rect that offer in compromise becomes clearly unreasonable
does trial court abuse discretion in approving settlement) ;
Ace Heating & Plumbing Co., Ine. v. Crane Co., 3 Cir. 1971,
453 F.2d 30, 34 (great weight is accorded the trial judge’s
views); West Virginia v. Chas. Pfizer & Co., 2 Cir. 1971,
440 F.2d 1079, 1085-86, cer*. denied, see footnote 27, supra,
(appellate court will disturb settlement approval only upon
clear showing of abuse of discretion). See also Young v.
Katz, 5 Cir. 1971, 447 F.2d 431.

Applying the Deal approach to the issues before us, we |
align ourselves with certain propositions which were re-
cently developed by the Second Circuit in its review of a
similar, though less expansive, Title VII settlement, see
Patierson v. Newspaper and Mail Deliverers’ Union of New
York and Vicinity, 2 Cir. 1975, 514 F.2d 767. In the first
place, the scope of our review is narrow and we should
interfere with the implementation of the consent decrees
only upon a clear showing that the district judge abused
his discretion by approving the settlement. Next, to the

92 S.Ct. 81, 30 L.Ed.2d 115 (1971) (“fair, reasonable and ade-
quate”) ; “*eCray v. Beatty, D.N.J.1974, 64 F_R.D. 107, 110 (court
“would not approve a settlement that appeared inequitable or un-

fair to any party to the suit”). .

5la
Opinion of the Court of Appeals, August 18, 1975

extent that the settlement may in occasional respects ar-
guably fail short of immediately achieving for each affected
discriminatee his or her “rightful place,” we must balance
the affirmative action objectives of Title VII and Execu-
tive Order 11246 against the equally strong congressional
policy favoring voluntary compliance. The appropriate-
ness of such balancing is especially clear, as here, “in
an area where voluntary compliance by the parties
over an extended period will contribute significantly to-
ward ultimate achievement of statutory goals.” 514 F.2d
at 771. Nor should we substitute our notions of fairness
and adequacy of the relief for those of the parties and
Judge Pointer, absent a strong showing that the district
court failed to satisfy itself of the settlement’s overall fair-
ness to beneficiaries and consistency with the public in-
terest. Finally, and of utmost importance, we are without
authority to modify or rewrite the parties’ agreement. Our
only alternative, if it were shown that Judge Pointer abused
his discretion or overlooked an illegal provision, would be
to vacate his approval of the entire settlement and remand
for trial of the government’s “pattern or practice” com-
plaint. See United States v. Atlantic Ref. Co., 360 U.S. 19,
23, 79 S.Ct. 944, 946, 3 L.Ed.2d 1054, 1057 (1969); Patter-
son, supra, 514 F.2d at 772. Cf. United States v. Blue Chip
Stamp Co., C.D.Cal. 1967, 272 F.Supp. 432, 440, aff’d per
curiam sub nom., Thrifty Shoppers Scrip Co. v. United
States, 389 U.S. 580, 88 S.Ct. 693, 19 L.Ed.2d 781 (1968).
To the foregoing observations we add a few remarks
which we think are particularly pertinent to these appeals.
The central issue here is not whether the consent decrees
achieve some hypothetical standard constructed by imagin-
ing every benefit that might someday be obtained in con-
tested litigation. The question which we must decide is
whether the responsible government agencies may lawfully

52a
Opinion of the Court of Appeals, August 18, 1975

conciliate and settle by consent decree charges of diserim-
ination cutting across an entire industry in a manner which
assures cooperative defendants that they will not face fu-
ture government lawsuits on those claims, and which ac-
cords the defendants the opportunity to offer final satis-
faction to aggrieved individuals who are willing to accept
tenders of back pay and execute the releases. Throughout
their arguments, the appellants imply that private suits
by thousands of unspecified employees whose grievances
are generally covered by the decrees would be virtually
certain to achieve far better results thon those obtained by
the government. Yet this implication, stripped of its rhet-
orice, goes really ouly to back pay insofar as the Harris ap-
pellants have challenged seriously the adequacy of the de-
crees’ injunctive measures neither in the district court nor
in this court.** Only the three female appellants have done

7* The extremely dubious validity of the appellants’ implication
is highlighted by certain examples. Although Title VIT had been
in effect almost nine years at the time of the consent decrees’ entry,
private actions had been instituted at no more than a dozen of the
250 plants covered by the deerees. Of these private actions, only ©
one had proceeded to final judgment, the Fairfield Works case, sce
note 7, supra. In that case sweeping injunctive reforms were <r-
dered and implemented, but the district court denied back pay to
the overwhelming majority of aggrieved steelworkers. Whereas
the consent settlement extends offers of back pay to all production
and maintenance minority employees hired before 1968 and all
female employees hired before the date of the decrees, the back
pay awarded in the Fairfield case was limited to sixty-one blacks
hired before 1963.

Furthermore, the Fairfield order provided affirmative relief
only to blacks. The consent decrees provide such relief to females
and Spanish-surnamed Americans as weil. Consent Deeree IT, for
example, establishes as an interim affirmative goal that twenty
percent of all new hires in production and maintenance depart-
ments shall be females.

Also, the order in Fairfield provided for rate retention only to
blacks who transferred within three years of the date of the order.

53a
Opinion of the Court of Appeals, August 18, 1975

so, and their contentions—though they certainly suggest
possibilities—do not approach any stretch of certainty.
Against the overwhelmingly speculative advantage that
might acerue to a small number of aggrieved persons if
the decrees were vacated must be weighed the certain loss
to all of the immediate injunctive benefits and the unim-
peded opportunity to receive some back pay today—instead
of after months or years of litigation. Additional losses
which must be considered include the nation’s investment in
the resources consumed by the federal agencies in negotiat-
ing these decrees, as well as the chance justly to finalize a
matter that otherwise would burden agencies and courts and
continue to disrupt an industry vital to the nation’s security
for years to come. We proceed now to examine specific is-
sues raised by the appellants.

Consent Decree 1 creates a rate retention remedy which applies
to all female and minority employees with piant seniority as of
January 1, 1968, and who may wish to transfer at any time in the
future. The rate retention in Fairtield lasted for only one year
following transfer; the retention period under Consent Decree I
continues for up to two years.

Finally, the time factor alone is illuminating as it surfaces in
these cases. It seek six months to try the Fairfield suit. The re-
lief eventually ordered there is no more impressive than the re-
forms which were hammered out by the government, the steel
companies, and the union during six months of negotiations. If
we consider back pay, then the Fairfield relief per capita is far
less than under the deerees. The appellants here do not dispute
the steel companies’ estimate that if an equivalent amount of time
were used to litigate the issues at each of the 250 plants covered
by the-decrees, it would take at that rate ten years to try just the
liability issues. If after trial the back pay issues were referred
to a special master for individualized computations, after giving
consideration to various defenses, including lack of qualification,
voluntary freezing, refusal to bid, and physical fitness, and if on:
hour were allotted each of 60,000 claimants, over twenty-cigt t
years of trial time could be consumed. Brief for appellee steel com-
panies at 11 n. 14.

54a
Opinion of the Court of Appeals, August 18, 1975

B. Alleged Illegality of Back Pay Releases

The subject of back pay is treated in paragraph 18 of
Consent Decree I. The parties to the decree begin with the
understanding that disagreement exists over whether any
affected employee is entitled to back pay, and if so how
much. Paragraph 18 continues:

In final resolution of that dispute and in full compen-
sation for all alleged injuries suffered by such [ag-
grieved eligible employees] by reason of any unlawful
acts and practices within the scope of the complaint
or this Decree, as well as any future claim of dam-
ages by reason of the continuance of the effects of
such past discriminatory acts and practices, all of the
parties have agreed as follows:

(g) The amount of back pay determined to be due
to each affected employee*’ shall be tendered to him in

*® Subsection (e) of paragraph 18 sets forth the factors to be
considered by the Audit and Review Committee in identifying
eligible recipients and computing individual awards. Those em-
ployees who have been most adversely affected for the longest
periods are supposed to receive the highest sums. The average
award is approximately $500 ($30,940,000) divided by 60,000
black, Latin American, and female employees). Some employees
will receive more, others will receive less; but in no event will an
electing eligible employee, sec paragraph 18(c) of Consent Decree
I and footnote 4, supra, whose plant service antedates 1968 receive
less than $250. All females who were employed in a production
and maintenance unit as of the date of decree entry are eligible
for back pay. We were advised at oral argument that the indi-
vidual awards will represent pro rata shares across the member-
ships of particular soniority subclasses. Such a method designed
to equitably and efficiently distribute the gross recovery was ap-
proved in Pettway, supra, 494 F.2d at 263 n. 154. Obviously,
there is no single “correct” formula.

55a
Opinion of the Court of Appeals, August 18, 1975

accordance with procedures established by the Audit
and Review Committee. In order to receive such back
pay, each affected employee shall be required to execute
a release, in a form approved by the Audit and Review
Committee, of any claims against or liability of the
Company, the Union, their officers, directors, agents,
local unions, members, employees, successors and as-
signs, resulting from any alleged violations based on
race, color, sex (exclusive of the matters referred to
in paragraph D of this Decree), or national origin,
occurring on or before the date of entry of this Decree,
of any equal employment opportunity laws, ordinances,
regulations or orders, including but not limited to Title
VII of the Civil Rights Act of 1964, as amended, 42
U.S.C. § 2000e et seq., the Civil Rights Act of 1866,
42 U.S.C. § 1981 et seq., Executive Order 11246, as
amended, the United States Constitution, the duty of
fair representation under the Labor Management Re-
lations Act, 29 U.S.C. § 151 et seq., and any other ap-
plicable federal, state or local constitutional or stat-
utory provisions, orders or regulations. Such release
will also bar recovery of any damages suffered at any
time after the date of entry of this decree by reason
of continued effects of any such discriminatory acts
which occurred on or before the date of entry of this
Decree.*®

*° The provision for the release by electing employees of claims
against the defendants in exchange for back pay was patterned
after the release which was utilized with the Bell System consent
decree, ZEOC v. American Tel. & Tel., supra. See BNA FEP
Manual 431:73, at 431:77, 431:79 (parts A VIII.A; B II.B.).
Whereas the Bell release encompassed “any claims for alleged vio-
lations . . . based upon occurrences prior to” the date of decree
entry, Consent Decree I specifically provides for the release of

56a
Opinion of the Court of Appeals, August 18, 1975

All appellants attack the legality and efficacy of the
quoted provision on a variety of grounds. They argue that
paragraph 18(g) unlawfully forces minority and female
employees to waive their statutory right to bring private
actions as a condition of obtaining any relief in a govern-
ment “pattern or practice” suit. Alternatively, they argue
that the release constitutes an illegal prospective waiver
of the employee’s Title VII rights. They contend next that
the release interferes with the employee’s right to seek
independent remedies, a right which they assert may not
be compromised as a matter of public policy. Moreover,
the appellants maintain that the back pay fund is grossly
inadequate by comparison with the recoveries that could
be had in contested litigation, and hence that the decrees
are plainly unfair to minority and female employees,

Eschewing as premature any ruling on the validity of
any particular employee’s release, the district court con-
cluded that the appellants’ arguments were lacking in merit
as attacks on the decrees as a whole. Judge Pointer held

“any claims .. . resulting from any alleged violations . . . oceur-
ring on or before” entry date, and for “any damages” suffered
after decree entry “by reason of continued effects” of pre-decree
discriminatory acts or practices. Although the appellants here
presume that the language of the Bell release necessarily falls
short of any compromise as to continued effects, the difference is
not entirely apparent to us. If the parties to this decree had not
inserted the additional specifie limitation concerning continued
effects, but which is itself restricted to claims for damages, it
seems that both releases reasonably could be thought to mean the
same thing: 1. ¢., a bar to additional relief of any kind for con-
tinuing effects of past discriminations. Cf. A. Corbin, Contracts
§ 598, at 588 (1960). Since under our analysis of the law we think
such a release could be valid, but since at the same time the re-
lease sub judice does not cover every item that other parties might
choose to include, it is unnecessary for us to place a definitive con-
struction on the Bell release or attempt to reconcile its meaning
with that of any other release.

57a
Opinion of the Court of Appeals, August 18, 1975

that “there can be a legal waiver of back-pay claims where,
for valuable consideration, a release is signed knowingly
and voluntarily, with adequate notice which gives the em-
ployee full possession of the facts.” *! We agree, but in
order to delineate more precisely the contours of the ap-
plicable rule of law, we hold that the employee may release
not only claims for additional back pay, but also claims
for other relief—including injunctive—provided the re-
leased claims arise from antecedent discriminatory events,
acts, patterns, or practices, or the “continuing” or “future”
effects thereof so long as such effects are causally rooted—
in origin, logic, and factual experience—in discriminatory
acts or practices which antedate the execution of the re-
lease, and provided, of course, that the release is executed
voluntarily and with adequate knowledge, as described by
Judge Pointer.

’ Reduced to their simplest terms, the items to be released
by electing employees pursuant to paragraph 18(g), in re-
turn for back pay, are: (1) all claims (subject to an excep-
tion not now germane) asserting unlawful employment dis-
crimination by the defendants and/or their agents or
privies insofar as such claims are based on acts or practices,
within the scope of the government’s complaint or the con-
sent decrees, which were completed on or before the date
of the decrees’ entry; and (2) claims for damages incurred
at any time because of continued effects of complaint or
decree-covered acts or practices which took place on or
before the entry date of the consent decrees.

There are certain potential rights, however, with respect
to which we do not understand paragraph 18(g) to envision
a compromise. That is because a waiver of these rights
either does not follow from a fair reading of paragraph

163 F.R.D. at 7.

58a
Opinion of the Court of Appeals, August 18, 1975

18(g) (number (1)), or else they are “prospective” and
employees may not waive them (numbers (2) and (3)).
We list them as follows:

(1) The release will not bar an employee from suing in
the future for additional injunctive relief if the reforms
contemplated by the decrees do not eliminate continued
effects which are causally grounded in past acts or prac-
tices of discrimination. For example, suppose a minority
or female employee had been assigned to a lowly job in an
undesirable LOP or pool at some point prior to April 12,
1974. At that point the employee became “locked” into a
departmental seniority system whereby, in bidding for more
desirable vacancies in other departments against white
males with less plant seniority, the minority or female
employee would be denied the new job for want of superior
departmental seniority, though qualifications were other-
wise equal. As of the decrees’ entry, the aggrieved em-
ployee suddenly obtained plantwide seniority, and at
minimum the right to bid for entry-level jobs in other
departments on that basis. See paragraph 7 of Consent -
Decree I. Suppose, then, that subsequent to April 12, 1974
the aggrieved employee successfully bids for an entry-level
job in a new department which offers substantial oppor-
tunity for advancement, perhaps to a trade or craft de-
partment. Because of his or her basic qualifications and
superior plantwide seniority, however, the employee feels
that a higher job in the unit should have been awarded
instead of the entry-level position. Yet at his or her plant
the gencral rule is ethnically and sexually neutral three-
step bidding under paragraph 7(a). We are aware of no
feature of the release which would preclude this employee
from filing a charge with the EEOC, and/or an eventual
lawsuit, seeking suspension of three-step bidding at the

PD

59a
Opinion of the Court of Appeals, August 18, 1975

plant, at least in his or her case. To the extent the plant’s
transfer procedure restrains otherwise qualified, plant-
senior minorities and females from reaching their “rightful
places,” then it may perpetuate the effects of past discrim-
ination. See Stevenson v. International Paper Co., 5 Cir.
1975, 516 F.2d 103, at pp. 114, 116. We emphasize may
because the answer is not now available; it will depend on
the manner in which future circumstances and business
necessities develop. Of course, regardless of the success or
failure of the employee’s challenge to the transfer pro-
cedure, his or her release may be pled in bar to a claim
for damages based on whatever effects of past discrim-
ination the procedure might have continued while it existed.
This variety of grievance is precisely the kind to which
the decrees are directed—present effects of former systemic
discrimination. The decrees may quickly remedy such prob-
lems, if they are given a chance.

(2) Any employee who feels aggrieved by the defen-
dants’ palpable disobedience of the terms of the decrees
may sue, in effect, to enforce them. Although the defen-
dants’ promise to comply runs directly to the government,
rather than to employees, the defendants readily concede
that an episode of nonadherence to the decrees may con-
ceivably constitute a new violation of the law and give
rise to a new cause of action under Title VII or other
applicable law. Whether a particular instance of noncom-
pliance may give rise to a new claim for damages, injunc-
tive relief, or perhaps both or neither, will again depend
on the circumstances. If, for example, a minority or female
individual could show that the company failed to fulfill an
affirmative action goal for promotion to higher-paying
trades and crafts, see paragraph 2(a)(1) of the Agreement
accompanying Consent Decree II; that such failure was

60a
Opinion of the Court of Appeals, August 18, 1975

ue to discrimination; and that he or she was qualified and
would have been promoted at an earlier date but for the
discrimination, then arguably the employee would be en-
titled to the first promotional vacancy and some amount
of money for the period during which promotion was denied.
On the other hand, the company may be able to show that
no one was promoted during the relevant period, or that
the promotions which did occur were based on unusual
needs or other business necessities. Under those circum-
stances the employee may be entitled, if at all, te no more
than a right of first refusal when the next vacancy occurs.

(3) Clearly apart from compliance or noncompliance
with the decrees, the release cannot preclude a suit for any
form of appropriate relief for subsequent injuries caused
by future acts or undertakings the effects of which are
equivalent to the otherwise compromised, noncompensable
effects of past discriminations covered by the complaint
or the decrees. Thus, the defendants are responsible for
their conduct relating to job assignments, tests, qualifica-
tion requirements, transfers, layoffs, and collective bar- -
gaining to the extent these items are carried out after
April 12, 1974. If the defendants engage in new discrim-
ination (of course, they deny that they have engaged in any
heretofore), they will be fully liable for its provable effects
and for provable economic losses caused thereby, regard-
less whether complaining employees signed releases as to
other claims. Thus, it essentially appears that all an em-
ployee really waives in terms of “continued effects” by sign-
ing a release is his or her speculative accrual of further
damages due to the inconceivable possibility that the de-
fendants would take no corrective action whatsoever subse-
quent to the entry of the consent decrees. Obviously they
may not sit still for long, or they will be in contempt—or

6la
Opinion of the Court of Appeals, August 18, 1975

perhaps the warm waters of private litigation if their in-
action breaches an express obligation which they have as-
sumed under the decrees.

This last aspect of the release can have no other ac-
ceptable meaning, for notwithstanding that the systemic
reforms contained in the decrees have been put into op-
eration, thereby undertaking to break the chains of past
causation as it were, the defendants have an ongoing stat-
utory responsibility independent of the decrees to see that
the corrective measures and goals established thereunder
are maintained and updated so that the effects of past dis-
crimination will be wiped out as quickly as due diligence
and business necessity permit. See Pettway, supra, 494
F.2d at 248. This is especially the case with regard to the
elimination of discriminatory departmental seniority strue-
tures, tests, and other custums that can unlawfully restrict
the mobility of minorities and females within and between
LOPs. On the other hand, neither the decrees nor the laws
impose upon the defendants an impossible burden to in-
sure that each victim arrives at his or her “rightful place”
at once. In cases like this, involving large numbers of work-
ers, it can rarely be determined how much a given employee
would have earned or what job he or she would have oc-
cupied during a particular period but for the effects of sys-
temic discrimination. Pettway, supra, at 260, 262. Seldom
can more than speculative back pay relief be obtained si-
multaneously with seniority reform, for despite massive
court-ordered competitive advantages and objective cri-
teria based affirmative action, many aggrieved employees
will not immediately achieve their “rightful places,” but
only a more favorable start on the road toward better jobs.
See, e. g., Pettway, supra, 494 F.2d at 249, 258 (back pay
normally stops accruing when reformed seniority goes into

62a
Opinion of the Court of Appeals, August 18, 1975

effect); Johnson v. Goodyear Tire & Rubber Co., 5 Cir.
1974, 491 F.2d 1364, 1375, 1379 (same; individual cireum-
stances vary and not all class members are automatically
entitled to back pay) ; United States v. Georgia Power Co.,
5 Cir. 1973, 474 F.2d 906, 927.*7 These substantial, flexible
decrees offer much remedial potential in reconciling con-
flicting dema

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385003_1586%3A2. Public record. Not legal advice.
