# Appendix — General Elec. Co. v. Gilbert > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385003_2097%3A05 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix - **Published:** January 1, 1976 - **Citation:** 429 U.S. 125 ## Text 2 ee ee et ee ee ee ee | j 5; ? t j . i : ’ C4 APPENDIX - VOL. Il, NOV 94. 975 ‘ Supreme Court of the United States OCTOBER TERM, 1974 No. 74-1589 GENERAL ELECTRIC COMPANY, Petitioner, v. MARTHA V. GILBERT, INTERNATIONAL UNION OF ELECTRICAL, RADIO AND MACHINE WORKERS, AFL-CIO, CLC, et al, Respondents. No. 74-1590 MARTHA V. GILBERT, INTERNATIONAL UNION OF ELECTRICAL, RADIO AND MACHINE WORKERS, AFL-CIO-CLC, eft al, Petitioners, v. GENERAL ELECTRIC COMPANY, Respondent. ON WRITS OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT PETITIONS FOR CERTIORARI FILED JUNE 17, 1975 CERTIORARI GRANTED OCTOBER 6, 1975 GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. GE EXHIBIT NO. 41-A GE EXHIBIT NO. 41-B GE EXHIBIT NO. GE EXHIBIT NO. 27 28 39 40 42 47 (i) TABLE OF CONTENTS VOLUME Ill 795 822 828 830 832 836 837 s £ E . 850 (ii) GE EXHIBIT NO. 48 GE EXHIBIT NO. 49 GE EXHIBIT NO. 50 GE EXHIBIT NO. 53 GE EXHIBIT NO. 54 GE EXHIBIT NO. 55 GE EXHIBIT NO. 56 GE EXHIBIT NO. 57 GE EXHIBIT NO. 58 GE EXHIBIT NO. 59 GE EXHIBIT NO. 60 PLAINTIFFS’ EXHIBIT NO. 2B. EXHIBIT NO. J-1 to Pre-Trial Stipulation EXHIBIT NO. K-1 to Pre-Trial Stipulation EXHIBIT NO. K-2 to Pre-Trial Stipulation EXHIBITS NOS. L-1 to L-70 to Pre-Trial Stipulation . EXHIBIT NO. M to Pre-Trial Stipulation . EXHIBIT NO. N-1 to Pre-Trial Stipulation EXHIBIT NO. N-2 to Pre-Trial Stipulation EXHIBIT NO. O-1 to Pre-Trial Stipulation 870 873 875 876 876 876 876 876 877 877 — 880 882 883 954 956 960 968 (iii) EXHIBIT NO. O-3 to Pre-Trial Stipulation EXHIBIT NO. O-S to Pre-Trial Stipulation EXHIBIT NO. O-6 to Pre-Trial Stipulation EXHIBIT NO. P to Pre-Trial Stipulation . EXHIBIT NO. Q to Pre-Trial Stipulation . EXHIBIT NO. R to Pre-Trial Stipulation . EXHIBIT NO. S to Pre-Trial Stipulation . EXHIBIT NO. T to Pre-Trial Stipulation . EXHIBIT NO. U-2 to Pre-Trial Stipulation EXHIBIT NO. U-3 to Pre-Trial Stipulation EXHIBIT NO. V to Pre-Trial Stipulation . EXHIBIT NO. X to Pre-Trial Stipulation . EXHIBIT NO. Y to Pre-Trial Stipulation . EXHIBIT NO. Z-1 to Pre-Trial Stipu ation EXHIBIT NO. AA to Pre-Trial Stipulation. EXHIBIT NO. BB to Pre-Trial Stipulation EXHIBIT NO. CC to Pre-Trial Stipulation EXHIBIT NO. DD to Pre-Trial Stipulation EXHIBIT NO. HH to Pre-Trial Stipulation EXHIBIT NO. LL to Pre-Trial Stipulation (iv) EXHIBIT NO. MM to Pre-Trial Stipulation EXHIBIT NO. NN to Pre-Trial Stipulation EXHIBIT NO. OO to Pre-Trial Stipulation EXHIBIT NO. B to Pre-Trial Stipulation . EXHIBIT NO. PP to Pre-Trial Stipulation EXHIBIT NO. XX to Pre-Trial Stipulation EXHIBIT NO. YY to Pre-Trial Stipulation EXHIBIT NO. C to Pre-Trial Stipulation . EXHIBIT NO. E to Pre-Trial Stipulation . EXHIBIT NO. F to Pre-Trial Stipulation . EXHIBIT NO. G to Pre-Trial Stipulation . EXHIBIT NO. H-! to Pre-Trial Stipulation EXHIBIT NO. I to Pre-Trial Stipulation PLAINTIFFS’ EXHIBIT NO. 22 . 1059 . 1073 . 1077 . 1080-A . 1084 . 1092 . 1095 a 761 G.E. EXHIBIT NO. 27 - Memorandum of the Bell Companies received August 1, 1972 in the Matter of Petitions filed by the EEOC, et al., before the FCC, Docket No. 19143. Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of : Petitions filed by the Equal ) Employment OpportunityCom- ) Docket No. 19143 Commission (EEOC), et al. ) MEMORANDUM ACCOMPANYING THE AUGUST 1, 1972 SUBMISSION OF THE BELL COMPANIES I. INTRODUCTION The Bell companies are filing on this date with the Federal Communications Commission testimony documenting their commitment to equal employment opportunity and the steps they have taken to implement that commitment in all phases of the employment process. The testimony responds in de- tail to the allegations of discrimination which the Equal Em- ployment Opportunity Commission (EEOC) has made against them. This memorandum and the testimony it summarizes show: (1) the Bell companies are fully and firmly committed to the national goal of equal employment opportunity, and have been so committed as that policy has evolved over the years; (2) their commitment has produced results - good, substantial results; (3) these results are being produced by employment practices that are, contrary to the assertions of the EEOC, 762 progressive and lawful and nondiscriminatory; on an equal basis to male and female employees in the event of sickness, on-the-job accident or retirement. Also, in the event of death of an active or retired employee, a survivor annuity is payable to either a widow or widower. The Benefit Plans were revised during collective bargaining in 1971 and now make absolutely no distinctions among employees on the basis of sex. 2. Maternity Leave While authoritative judicial interpretations have not as yet been given, we consider the maternity leave policies of the Bell companies fair and nondiscriminatory!93 Leave policies, in general, as well as the features of maternity leaves in particular, are discussed in the testimony of Therese F. Pick, Secretary of the Employees’ Benefit Committee. The maternity leave policies of the companies permit any female employee, consistent with medical advice, to de- termine when she will take up to a year’s leave. There is no fixed period for taking leave. Maternity leave is a personal , but carries substantially greater assurance of employment than in the case of other personal leaves. The Employee Benefit Plans provide sickness disability benefits to any employee with six months’ service, beginning the eighth day of an absence from work because of physical 1331n the only decision to date by a United States Court of Appeals, the Fifth Circuit held that a leave system requiring term- ination at a fixed date was reasonable and rationally related to a permissible purpose and did not violate the Civil Rights Act of 1871. Schattman v. Texas Employment Comm'n, F.2d , 4 F.E.P. Cases 358 (Sth Cir. 1972), rehearing denied, F.2d ,4 F.E.P. Cases 543. 2 iD ee ers et - 763 disability to work by reason of sickness. Since employees on leave are not “absent”’ from work within the meaning of the Plan, no employee on any category of leave, in- cluding maternity leave, is eligible for sickness disability benefits. Moreover, a normal pregnancy is not a “sick- ness” within the meaning of the Plan, or by common medical definition.'*4 While EEOC by its latest guide- lines seeks to characterize such an approach as discrimina- tory, this is a change of position by EEOC and it has not been judicially approved. The Bell companies’ practices are consistent with initial EEOC interpretations that did not seek to compare an employer’s treatment of mater- nity with his treatment of illness or injury. '5 The estimated annual cost of providing disability bene- fits in all maternity cases ranges from $26 million, based on an average duration of eight weeks, to $58 million, consuming a 24-week duration. In relating this cost to service, it must be considered that a large number of women taking maternity leave do not return to work. A recent survey of 4,715 maternity leaves in six Bell com- panies showed that 38 percent did not wish to return.'%6 Since Bell will employ women who are already pregnant, and in light of the relatively short service period required 13406 testimony of EEOC witnesses Hellegers and Barter (EEOC Exhibits 13, 26 and Tr. 1089 er seq., 2017 ef seq.). 135 gee G.C. Opinion 218-66 (June 23, 1966); G.C. Opinions dated Nov. 15, 1966, and Feb. 17, 1967, CCH Emp. Prac. Guide, 41219 (1969); and Dec. No. 70-360 (Dec. 16, 1969), CCH Emp. Prac, Guide, $6084, 136 pick Testimony, p. 8. 764 for sickness disability eligibility, there is considerable room for abuse if benefits were extended to cover pregnancy. Accordingly, the Bell companies could not be justified in asking our customers to assume this added cost. D. OPPORTUNITIES FOR ADVANCEMENT The Bell companies have always emphasized the promo- tion of current employees to fill their higher positions. In part this is due to the unique nature of many telephone jobs, and in part to a recognition by the Bell companies of the desirability of providing meaningful and rewarding careers to their employees. The EEOC has alleged that many Bell jobs, particularly those in which minorities and women have been employed. G.E. EXHIBIT NO. 28 - Testimony of Therese Pick, In the Matter of Petitions filed by the EEOC, et al., FCC Docket No. 19143, Bell Exhibit No. 5 of 8/1/72 and Official Transcript, Volume 47, pgs. 5455-5557. TESTIMONY OF THERESE PICK Qualifications My name is Therese F. Pick. I am secretary of the Employees’ Benefit Committee of the American Telephone and Telegraph Company, at 195 Broadway, New York, New York. Before assuming my current responsibilities, I was an assistant secretary of the benefit committee at 765 AT&T for 8 years. Prior to that I had some 12 years of a variety of responsibilities in the Personnel Department at AT&T. My present responsibilities include the design of pen- sion, benefit and insurance programs for Bell Telephone companies, formulation of policies related to these pro- grams, administration and interpretation of specific pro- visions of the programs and consultation on problem areas with the benefit secretaries of the several telephone com- panies. Purpose The purpose of my testimony is to provide an explana- tion and overview of the Bell System’s “Plan for Employ- ees’ Pensions, Disability Benefits and Death Benefits” with particular emphasis on “Leaves of Absence” policies and our policies respecting pregnant applicants and employees. The Benefit Plan Each Bell System company’s “Plan for Employees’ Pensions, Disability Benefits and Death Benefits” provides coverage on an equal basis with the same eligibility re- quirements for male and female employees in the event of sickness, on-the-job accident, retirement or death. Al- so, in the event of death of an active or retired employee, a survivor annuity is payable to either a widow or widow- er under conditions that will be described later. Eligibility requirements are the same for all employees regardless of race, color, religion, sex or national origin. Leaves of Absence The plans provide that any absence without pay, other 766 than a “leave of absence’’ shall be considered as a break in continuity of service. A leave of absence thus is the usual technique to prevent such a break, which is impor- tant since continuity of service determines length of vaca- tion and eligibility to sickness benefits and group life and medical insurance and is the basis for pension credit. Personal Leaves These are granted by the committee at the request of the employee depending on the work needs of the department, the work record of the employee, the probability of his or her return, the duration of absence requested, the reason given for the leave requested, etc. Personal leaves generally carry serv- ice credit for the first month, elibibility to death benefits during the leave depending on the length of leave and expectancy of return. Employees on personal leave are not eligible for sickness disability benefits. However, where the employee is sched- uled to return to work at the termination of the leave, but is prevented from doing so by a sickness disability, he or she may be eligible for benefits on the eighth day following termination of the leave. At the end of the leave the application for reinstatement is reviewed on the basis of jobs avail- able and every effort is made to reinstate the em- ployee interested in returning. No wage progres- sion credit, i.e., service time upon which the em- ployee’s wage progression is based accompanies per- sonal leaves. Generally the employee on personal leave continues to participate in the company’s med- ical expense and group life insurance programs for a limited period, usually up to one year. 767 Maternity Leaves The Bell companies have for years granted pregnant employees leaves of absence for matemity reasons. These leaves have followed generally the pattern of personal leaves as outlined above. There was no uniformity as to all features among the com- panies. Most companies have personnel practices relating to this subject but some companies have the terms embodied in their union co stracts. With a view to achieving more uniformity, the labor relations staff of the American Company in April, 1971, in anticipation of that year’s round of labor negotiations, distributed to the labor relations staffs of the Bell oper- ating companies a list of principles relating to maternity leaves which it was suggested be incorporated in their contracts or practices as follows: (1) Apply to all females whether married or not; (2) No fixed date for going on leave. Each case to be decided upon individual basis considering such factors as employee’s condition, requirements of her job, medical advice, etc; (3) Upon application for reemployment, a like posi- tion should be provided unless conditions make it impossible, and no applicant should be refused without concurrence of appropriate Personnel De- partment representative; Note - Language on leave application form indicat- ing no guarantee of reemployment should be deleted. 768 (4) Where the nature of the job precludes continued work but other less arduous work that the employ- ee could safely perform is available, the employee should be given such work but ‘red circled’ at her former higher rate where the company practice is to treat other employees (men) in that fashion; (5) The leave should carry eligibility to death benefits but not sickness disability benefits during the leave. Several comments should be made about these princi- ples. We recognize that, subject to medical advice, the time when a pregnant employee should stop working is largely an individual matter. There is a strong commitment to reemploy as stated in item 3 above. This generally is not a written uncondi- tional guarantee because the nature of some jobs, particu- larly in small operating locations, makes it impossible to replace the employee by another without assuring the new employee of permanency. Every effort is made, however, and usually successfully, to place the employee wishing to return after her leave in the same job she left or in a comparable job in the same or nearby location. A recent survey was made of 4715 maternity leaves ending in the period July 1, 1971 - January 31, 1972 in four large Bell operating companies. Oniy 2937 (62 per- cent) of those on leave returned to work, 97.1 percent of those not returning acted on their own volition. Jobs were not available for only 51 employees who wanted to return to work, or just a little under 1.1 percent of the leaves. * Dlinois, Southwestern, four Chesapeake and Potomac companies and Southern Bell. -9- 769 I should also note that maternity leaves are ordinarily granted for a period of two to six months with exten- sions permitted up to a year. Sickness Disability Benefits I should now ljike to turn to the subject of sickness disability benefits. Under our benefit plans, sickness dis- ability benefits are paid on the eighth day of absence “on account of physical disability to work by reason of sick- ness” (Section 6 (1) of the plan). Disability on account of injury other than that arising out of and in the course of employment constitutes “sickness” for this purpose. Sickness disability benefits are paid to employees having a minimum service period of 6 months at the rate of one half-pay for up to 52 weeks of sickness disability. The duration and rates of benefits increase with added service to 52 weeks at full pay after 25 years of service. It will be noted that sickness disability benefits are paid for the absence resulting from sickness, and not merely for the sickness. An employee on leave is not on the active roll of employees scheduled or expected to work, and hence is not classified as “absent”. Accord- ingly, sickness disability benefits are not paid to any em- ployees on any class of leave. Furthermore, benefits are not paid for disability or inability to work as such—the disability or inability to work must be on account of sickness. By the same token, we do pay sickness benefits when a pregnant employee is absent (i.e., before going on a leave, the date of which is fixed not automatically but by 770 her individual situation, medical advice, etc.) due to sick- ness disability either unrelated to her pregnancy or arising out of it in the form of sickness complications or abnor- malities, such as toxemia, hypertension, miscarriage, abor- tion, etc. And the benefits in such cases continue until the sickness disability ceases or up to one year as out- lined above. We believe our practices regarding maternity leaves are fair and do not discriminate. They carry the perquisites of leaves granted for personal reasons. In addition they carry even greater assurance of a return to work if the employee desires. To pay sickness benefits for all maternity cases would be most costly, contrary to the “absence-sickness” intent of our plans. We have estimated the cost to range from about $26 million a year based on a duration of eight weeks, to about $58 million a year based on twenty-four weeks. These figures do not include the estimated $2 million to $6 million premium costs for Blue Cross-Blue Shield which would be incurred by the companies if we were required to pay sickness benefits for all maternity cases. This expense would be unwarranted even if all these people returned to work. But as indicated above, about 38 percent choose not to do so. Accordingly we do not believe our rate payers should bear this substantial, added cost. EEOC Summary 3396 states that the Bell Companies’ Extraordinary Medical Expense Plans in effect in 1971 exclude medical expenses for pregnancy, childbirth and related care. It should be noted that severe medical or surgical complications arising from pregnancy or the re- sulting childbirth are not excluded from coverage if they 5455 5456 771 otherwise qualify as covered medical expense. In addition, it should be noted that medical expenses for pregnancy, childbirth and related care are covered in the Bell Com- panies’ Basic Medical Plan. Whereupon, THERESE F. PICK was called as a witness and, after being first duly sworn, was examined and testified as follows: DIRECT EXAMINATION BY MR. LEVY: Q. Please state your name. Therese Pick. Q. What is your business address? A. Iam at the American Telephone and Telegraph Company, 195 Broad- way, New York, New York. Q. What is your occupation? A. My occupation is Employees Benefit Secretary, the Benefit Committee of the AT&T Company. Q. Do you have before you a copy of the document that has just been marked Bell Exhibit No. 5, “Testimony of Therese Pick’? A. Yes, I have. Q. Did you prepare that document or was it prepared under your supervision and control? A. Yes, it was. A. My name is A. On page | in the first line, first paragraph, change the comma to period after my name Pick. On page 5, line 6 in the last paragraph, the comma should be deleted and the word “and” inserted. 172 773 JUDGE DENNISTON: That is between the words 5460 Q. Further on in the personal leave of one month or “‘month” and “eligibility”? less and we have continuity of service, would there ever THE WITNESS: Yes, it is. be any sickness disability granted? You have a statement On that same page 5, iine 8, in the last paragraph, de- here on page 5 which is a little confusing to me, that lete “‘personal” in the second to the last line. same statement that the personal leaves up to one month Page 8, line 2 of the last paragraph, the study period is carry service credit and you indicated that that meant July 1, 1971 to January 31, 1972. continuity of service is maintained and further up there BY MR. LEVY: 5461 in the page you said continuity of service determines Q. Your correction then is to change “1970” to length of vacations and eligibility to sickness benefits? 1971"? A. That’s right. A. However, while a person is on a leave of absence, On page 10, lines 3 and 4 of the last paragraph to de- they are not scheduled to report to work so they are not lete the four words “in the case of.” absent. If they become ill while on that leave of absence, since they are not scheduled to come to work they would ” 2 ° not become eligible for sickness benefits. Q. Having read those corrections into the record, do Q. So if somebody took a personal leave of absence, you now adopt this testimony you have before you as either the one-month leave or the longer one, they could your own and is it true and correct to the best of your never be eligible for sickness disability benefits? A. knowledge, information and belief? A. Yes. You are meaning during the period of the leave? Q. Yes. A. If they became ill while on the leave s . . of absence? 458 CROSS-EXAMINATION Q. Yes. A. They would not become eligible for sickness benefits. BY MISS LONGO: Q. Never? A. First, I would like to ask you a few questions P . E about some items that appear on page 5. On page 5, lines 4 through 6, you say that continuity 5480 Q. A little further down the page, I guess it is the of service determines the length of vacation and eligibility second full paragraph, you state that the Labor Relations to sickness benefits, group life and medical insurance and 5481 Staff of the American Company in April of 1971 distrib- is the basis for pension credit. Does continuity of service uted a list of principles relating to maternity leave and also determine wage progression credit? A. To my then you list five principles. knowledge it does, yes. | Can you indicate which companies as of today or in * * . the recent past have adopted this policy in toto that you have listed on page 7 and page 8? 5513 774 MR. LEVY: You are asking for a listing of the individ- ual companies? MISS LONGO: Yes, the individual companies that have adopted this set of principles that your Labor Relations Committee drew up. THE WITNESS: I would not be able to make the statement about all five principles. I believe this can be ascertained fairly easily. BY MISS LONGO: | Q. Are there companies that would have adopted only some of them and not others? A. You are wonder- ing about right now as of this date? Q. Yes. A. There are some companies that may not have adopted one of these as an example. That is why I am reluctant to make an overall statement because I think there might be a company that has not adopted one of these. Q. I would like to ask you a few questions about your sickness disability. Let’s go over to page 9, lines 4, 5 and 6 of that first paragraph on sickness disability. You state “Disability on account of injury other than that arising out of and in the course of employment con- stitute sickness for this purpose.” You used the phrase “‘disability on account of injury”. Does “injury” include disease? A. In trying to dis- tinguish between sickness which would include disease and injury, which might be an accident that happens off the job. Q. But you are not answering my question. A. Injury does not refer to disease. Q. Can there be sickness disability benefits for someone 5514 5515 5516 5517 775 who is not injured but who is diseased? A. Yes. JUDGE DENNIS19N: I think the preceding sentence says that, doesn’t it, Miss Longo? BY MISS LONGO: Q. Are there any illnesses that are not covered under the sickness disability benefits, any specific illnesses? A. No, there are not. Q. Any specific operations? tion requires absence from the job. A. Not if the opera- Q. What happens, say, when an employee has an oper- ation in the doctor’s office or else it is a very simple operation and may require only one or two days of re- cuperative time and there are complications and instead of being absent two or three days they would be absent for ten days. Under which plan would they be covered? A. As soon as they reach the 8th day, they would be covered under the plan. Q. I would like to ask you about a specific kind of operation that may be performed in a doctor’s office. Are abortions covered under those plans the same as other operations? A. Yes. Q. There is some medical confusion or lay confusion about a spontaneous abortion as opposed to a medically- induced one. A. A spontaneous abortion would be covered — the absence for that. Q. Would a medically-induced abortion be covered, a voluntary, intentional abortion? Would that be covered? A. Yes, it would? 5533 5534 776 Q. For someone to collect sickness disability benefits, am I to understand that they cannot be on a leave to collect those benefits? A. That is correct. Q. What is their absence called if they are not on a leave, if they are ill and away from the job? Do you call it anything? A. Sickness disability absence. Q. During the duration of a sickness disability absence, is there any wage progression credit? Q. Is there any pension credit? A. Yes. Q. Are they still covered — this is a silly question, but are they stil! covered by group life insurance and medical expense? A. Yes. Q. Thank you very much on that. Let’s turn to your testimony on maternity leave which I believe begins on page 7, and there is a list of the principles you have already discussed with Miss Longo on pages 7 and 8 and I have just a brief question on the fourth of these principles on page 8 where it states that the nature of the job precludes continued work but other less arduous work that the employee could perform is available, the employee should be given such work but red circled at her former higher rate where the company practice is to treat the other men employees in that fashion. Is that correct? A. That is correct. Q. I don’t understand where the company practices to treat other employees, men, in that fashion, and could you give an example of that? A. There may be in- stances where an employee has had an illness and has re- turned to the job and is not quite capable of doing his regular job, where he is then put in a lower assigned job but at the red circled rate. A. Yes, there is. 5536 5537 777 There may be instances where, again, he is just partial- ly disabled. His usual job is to climb poles, he strained his wrist — Q. Let’s say if he had a heart attack he would be in a less arduous job but he would be circled? A. That could be a policy. Q. If a company has that policy for males, it will have the same policy for females? A. Yes, this was the principle that was being offered. Q. You said you were not sure which companies had adopted this principle? A. We understand from our labor relations staff that this is being generally and widely implemented. I would not be able to say the status of it company by company. Q. All employees are entitled, according to the plan, to sickness disability benefits when they are working and not on leave? A. That is correct. To be eligible, one needs six months’ service to be covered by the full plan. Q. But after that all employees are covered? A. Yes. Q. A pregnant woman employee is covered until she begins that maternity leave? A. That is correct. Q. Once she begins maternity leave, she is not covered by the sickness disability benefits? A. That is correct. Q. On these principles on maternity leave that you have on pages 7 to 8, what recourse does a woman have if she believes that those principles are not being followed? Let me give you an example in my own mind. For example, if she applies for re-employment and she thinks there is a position open, that her old job is open 5545 778 and they are just not giving it to her, what can she do? A. I think she could speak to higher levels of authority within her department. I have to make the assumption here when she returns to her department and has gone to her immediate super- visor and the immediate supervisor demures to this em- ployment provision, then her next recourse would be to go to higher levels and say, “I believe this is one of my rights.” Q. This is not a matter covered by any union grievance procedure? A. I don’t believe so. Q. And there is no formal sort of grievance procedure for these kinds of matters. It is merely an informal ques- tioning of her supervisors and higher company officials? A. I believe that is the way it works. MR. GARRISON: I have no more questions, Your Honor. Q. You said in the testimony that the 97.1 percent of the women not returning acted on their own volition. That means that they just were not refused a job; is that right? JUDGE DENNISTON: What page are you referring to, Miss Gemma? MISS GEMMA: Page 8. THE WITNESS: Perhaps the best thing is to read it “97.1 of those not returning acted on their own volition. They did not want to return.” BY MISS GEMMA: Q. They did not want to return or they were refused a job? A. They refused a job. Q. How did you know they did not want to return? A. This is part of the procedure at the expiration of the leave. 5546 779 Q. Do you mean you called them up and asked them whether or not they wanted to return? A. In the companies included in the survey they had evidence to show either these women volunteered this or took the initiative or upon contact indicated they were not inter- ested in returning. Q. Say a woman returned back to work and she was offered a job that was not as high-paying as the one she had before she left because it was not open and she de- cided not to go back to work. Wouldn’t she be returning on her own volition? A. She would make the deci- sion not to return under those conditions. Q. So this 97.1 could include any number of women who decided not to return to work because they were not offered a job as high paying as the one they had before? A. It could be, I don’t know. * * * G.E. EXHIBIT NO. 30 - Testimony of Robert H. Barter, EEOC Exhibit 26 and Official Report of Proceedings, pgs. 1088 through 1112, February 14, 1972, In the Matter of Petitions filed by the EEOC, et al., FCC Docket No. 19143. 780 BEFORE THE FEDERAL COMMUNICATIONS COMMISSION WASHINGTON, D.C. 20554 In the Matter of: ) ) ) DOCKET NO. 19143 Petitions filed by the ) EQUAL EMPLOYMENT ) OPPORTUNITY COMMISSION, ) et al. ) Docket No.: 19143 et al. Exhibit no.: 26 Presented by: EEOC Identified x Disposition Received x Rejected Reporter: Short Date: 3/2/72 TESTIMONY OF ROBERT HENRY BARTER My name is Robert Henry Barter. I received my B.S. (1937) and M.D. (1940) from the University of Wisconsin. I then interned at Cleveland City Hospital and worked as a resident at both Chicago Lying-in-Hospital and at Wis- consin General Hospital. In 1949 I was certified by the American Board of Obstetrics and Gynecology. I served in the U.S. Army Medical Corps for a period of four years after which I was Chief Medical Officer in Obstetrics and Gynecology at Gallinger Municipal Hospital in Washington, D. C. For the past thirteen years I have been Professor of Obstetrics and Gynecology at The George 781 Washington University School of Medicine. Between 1958 and 1967 I served as Chairman of the Department of Ob- stetrics and Gynecology. In addition, I am Consultant Emeritus in Obstetrics and Gynecology to the Surgeon General of the United States Air Force, Consultant to the National Institutes of Health, and Senior Consultant at Walter Reed Army Medical Center. During the course of my career I have published over 30 articles in professional medical journals and produced six professional films concerning Obstetrics and Gynecolo- gy. In addition to being a member of eleven professional societies, I have served on the Executive Board of the American College of Obstetricians and Gynecologists, as President of the Southern Gynecological and Obstetrical Society and as Chairman of the Section on Obstetrics and Gynecology of the American Medical Association. It is my impression, as a Professor of Obstetrics and Gynecology and a practicing Obstetrician and Gynecolo- gist, that there is no reason why a patient who is preg- nant should not be able to work as long as she feels cap- able of so doing. In the early history of this country there is certainly nothing which would lead one to believe that women were not allowed to work as long as they wished. The rules and regulations which have prevented pregnant wo- men from working have not had any basis in actual fact. I am of the firm belief that many women who are presnant do much better in those pregnancies if they are allowed to work. Such is particularly true of a woman who has worked all of her life and who, when unable to work, may develop anxiety and depression which she 2018 782 would not have had if she had continued her regular place in the work-a-day world. Therefore, I would like to go on record as saying that in the absence of any complications of pregnancy, there is no reason why any normally pregnant woman should not be allowed to work as long in her gestation as she may comfortably do so. PARTIAL TRANSCRIPT March 2, 1972 Pages: 2018-2030 DIRECT EXAMINATION BY MR. COPUS: Q. What is your name, please? A. Robert Henry Barter. Q. Dr. Barter, what is your business address? A. 2141 K Street, Northwest. Q. Washington? A. Washington, D. C. Q. What is your occupation, Dr. Barter? A. Phy- sician. Q. What kind of a physician? A. Obstetrician and gynecologist. Q. What is your place of employment? A. Self- employed. Q. Do you have in front of you a document which is entitled “Testimony of Robert Henry Barter’’ which has been marked for the record as EEOC-26? A. Yes. Q. Was that document prepared by you or under your 2019 2020 783 your direction? A. Yes. Q. Do you have any changes you want to make in it at this time? A. No, it is correct. Q. Do you now adopt this testimony as your own testimony and is it true and correct to the best of your information, knowledge and belief? A. It is. MR. COPUS: Mr. Examiner, we now offer Dr. Barter for voir dire and cross-examination. PRESIDING EXAMINER: I assume the list of publi- cations, 28, was a correct list of your writings? THE WITNESS: Yes. PRESIDING EXAMINER: Very well. CROSS-EXAMINATION BY MR. LEVY: Q. Dr. Barter, have you practiced industrial medicine? A. Not as such. Q. Are you familiar with the physical requirements of positions which pregnant women may hold in private in- dustry generally? A. No, I don’t keep any such women from my practice, if that is what you mean. I don’t discriminate against anyone who happens to be working and who is also pregnant. Q. I was asking, Doctor, whether you were familiar with the physical requirements and environment of jobs or positions in private industry which pregnant women might hold. A. Well, such as? Q. Such as the range of jobs which pregnant women might hold, Doctor. Let me be more specific — . A. A pregnant woman can hold any job a non-pregnant woman might hold. Q. Are you familiar with the requirements of the positions which women may hold in the Bell companies? 784 A. No, not specifically. Q. You are not familiar, then, with the physical re- quirements of the lineman job or the cable splicer job or the telephone operator job in the Bell System? A. No. Q. Doctor, in the first paragraph on page 3 of your testimony you state, and I quote, “there is no reason why a patient who is pregnant should not be able to work as long as she feels capable of so doing.” A. Yes, that is correct. Q. And in the concluding paragraph at the bottom of page 3, carried over to page 4, you again state categoric- ally, and I quote, “‘there is no reason why any normally pregnant woman should not be allowed to work as long in her gastation as she may comfortably do so.” A. Yes, that is correct. Q. Is it your feeling that the subjective feelings of the pregnant working women are controlling as to whether or not she may safely and efficiently continue to work at her job? A. Yes, I think that has a bearing. I think as long as she feels like working, I don’t see any reason why she should not continue to work. Q. Medically speaking, Doctor, can’t it be subjectively comfortable, to use the word you used, for a normally pregnant woman to continue at her job and yet be unsafe for her to do so? A. Well, in the types of occupations of women who I see and who are “normally pregnant” the majority of women I see are doing jobs that there is no reason why they could not do safely. Certainly being a secretary you can do just as safely being pregnant as not being pregnant. Q. Even though a woman is comfortable while work- ing, Doctor, isn’t it true that her pregnancy places certain stress on such organs as the kidney and the liver? A. Not in the normal patient, no. 2022 785 Q. Might exposure to certain potentially toxic sub- stances which would produce no harm to a normal non- pregnant women be harmful to a normally pregnant wo- man? A. Not to the patient herself, no. Q. Would jobs involving exposure to various kinds of radiation and toxic matter be potentially harmful to the unborn child? A. Yes. It would also be harmful to the patient. Q. They would be harmful to the patient? A. Yes, sure. There is not anything that is going to harm the fetus that does not have some adverse effect on the patient. Q. Don’t the physical limitations of normal pregnancy tend to increase the risk of accident in certain jobs as pregnancy progresses? A. I would not say so in the jobs with which I am familiar, which my patients occupy, which my patients hold. Q. What about a woman in a job involving climbing up and down telephone poles or in and out of manholes or visiting and making installations on outside premises as pregnancy progresses, as weight increases, as normal agil- ity is affected by the weight carried by the pregnant wom- an, is it likely that accident risk would be increased? A. Well, for the specific occupations that you mentioned I am sure that would be true, but I just don’t happen to know any telephone pole climbers who are pregnant and I don’t think you do, either. Q. Well, those questions I asked you, Doctor, were from the medical viewpoint. Let me ask you from the perspective of industrial efficiency as to your comments that I previously quoted. Can’t a women feel capable of working and yet be inadequate or inefficient in attempting to do so? A. I don’t think any more than a non- pregnar.: patient. I think the pregnancy is not a factor. 2023 2024 2025 786 Q. Doctor, when your colleague, Dr. Hellegers was here, he made reference to an article by a Dr. R. W. Biddle in the January 1970 Journal of Medicine, entitled “Gravid Women at Work.” Are you familiar with that article, Doctor? A. I am. Q. Would you agree with the following statement from that article, Doctor, and I quote from the first page of the reprint which Mr. Copus made available to us: “Preg- nancy may affect both the ability and capacity of gravid women to work efficiently; working may affect the preg- nancy as well.” Would you agree with that statement, Doctor? A. Not entirely, no. Q. To what extent do you disagree with that? A. Would you read it again? I remember having read that and thinking that was too broad a statement. MRS. POTTER: Perhaps it would be helpful if the Doctor could look at the article. ; MR. LEVY: Do you have a copy? My copy is mark- ed up. THE WITNESS: As a broad generalization, I guess you would have to say that that isn’t incorrect. I think it is too broad a general statement. BY MR. LEVY: Q. At the top of the right-hand column of the second page of the reprint supplied by Mr. Copus is the follow- ing statement, Doctor, It is a separate paragraph, and I quote: “Hyperemesis gravidarium,. urinary frequency, symptoms of pressure, constipation, excess vaginal dis- charge, and fetal activity might militate against efficiency at work.” Would you agree with that statement? would not agree with that. Q. What is your basis for your disagreement, Doctor? A. No, I 2026 187 A. The basis for my disagreement is that very few pa- tients have any or all of those symptoms. I mean, every gal that gets pregnant does not get morning sickness which is what you read from hyperemesis. Q. I thought that was a strain of gladiola. women wish that it were. No, I was rather surprised at Dr. Biddle, whom I hap- pen to know, let his name be put on that article. In fact, I think that he is an obstetrician and gynecologist in prac- tice and to the best of my knowledge he is not an indus- trial, or I would say commercial obstetrician and I won- dered where he got that and why he would make such a statemeni because I personally don’t agree with it. Now, I would agree that if someone had a severe morn- ing sickness she obviously is not as efficient but I person- ally don’t know of any patient who had quit her job be- cause she had moming sickness. The other things in the article, I mean constipation is not peculiar to pregnancy in the average female. Q. Doctor, of course, the quote did not talk about these reasons for quitting work. The quote was framed in terms of these several factors listed, ““may mitigate A. Some against efficiency at work.” Perhaps you misunderstood it when I read it. Would you agree that these are factors which if they obtain in a given pregnant woman may militate against her efficien- cy at work? A. In a very broad generalization, but it applies to very few women who are pregnant as individ- uals. Q. The last quote from the article that I would like to read to you, Doctor, and ask your views on is the follow- ing, and it is from the bottom of the left-hand column, top of the right-hand column of the fifth page of the 1027 788 reprint supplied by Mr. Copus: “In many pregnant women their capacity for work is affected by increased weight, change in posture and physiologic changes in the urinary tract and cardiovascular system. Fatigue may pre- dispose to instability of the nervous system and to poor food intake leading to anemia. Complications of pregnan- cy are seldom affected by work itself unless the patient works with dust, certain kinds of chemicals or with lab- Oratory viruses. On the contrary, pregnancy may decrease efficiency of concentration and alertness.” Would you agree with that statement, Doctor? Perhaps you would like to see it. I know there were a number of thoughts in it. A. Well, again, that is a very broad generalization. On the other hand, I don’t think there would be very many women who think that they are mentally less alert because they are pregnant. I doubt if you sampled any large number of women that they would agree with that. Women do not complain of that as a problem of pregnancy. Q. Were you familiar with the work that farm women did years back? A. Yes. Q. And still do, presumably. A. Yes. Q. And were their tasks physically demanding? “° A. Yes, I would say that the average woman on a farm works pretty hard. Q. And did they stop working hard when they were pregnant? A. Not to the best of my knowledge, no. Q. Would not their tasks demand lifting and bending and stretching and many other types of physical strains? A. I think that the average farm woman today probably does pretty much the same type of work when she is 2030 1/89 pregnant that she does when she is not pregnant. I am sure there is very little limitation of their ability to do things. Q. All right. A. My whole philosphy is that a pregnant patient can to a great extent adjust her own life as to her ability to adapt to different situations, and I think that, if I may enlarge upon that, that telling somebody that when you are 28 weeks pregnant, for example, for in that article that Mr. Levy quoted one of the companies saying that women had to quit work when they were 12 weeks pregnant, first of all nobody knows it so that in itself is foolish. I think to tell any patient that when she is 28 weeks pregnant you automatically have to quit, say, teaching school or working in an office, or doing some secretary type of labor, there is no physi- ologic justification for it. Q. Or even a physical type of labor, would you in- clude that in it, too? We just discussed the farm woman. A. Well, physical to the point of within her own capac- ity. Q. Well, then, I gather from your testimony what you are suggesting is that instead of a company trying to set down ground rules as to one woman must desist from physical activity that you think it is an adequate gauge to allow the woman herself t~ decide when she could not carry out certain tasks? A. I think the average wom- an does that. I don’t have in mind — my principal con- cern through the years has been the school teachers be- cause I just don’t see any reason why a woman cannot teach school pregnant as well as she can teach school unpregnant and that has been the basis of my contention through the years. Q. Do you think that many of the restrictions on pregnant women are just a reflection of our cultural 790 mores rather than physical necessity? A. Yes, I think that they are too arbitrary and again without physi- ologic background. MR. JUNTILLA: All right. Thank you, Doctor. G.E. EXHIBIT NO. 31 - FCC Staff Exhibit 36 (list of questions to be asked of company witnesses) dated November 24, 1972, in the Matter of Petitions filed by the EEOC, et al., FCC Docket No. 19143 FEDERAL COMMUNICATIONS COMMISSION Docket No.: 19143 Exhibit No.: 36 Presented by: FCC Staff Identified x Disposition Received x Rejected Reporter: BRM Date: 11-29-72 Mr. Harold Levy, Esquire AT&T 195 Broadway New York, New York 10007 Dear Mr. Levy: As promised, you will find herein a list of questions in- tended to be asked all company witnesses. The witness- es scheduled to appear November 27, 1972 through De- cember 1, 1972 will be asked these questions orally. Company witnesses thereafter are requested to respond in writing if they can. 791 You will note that all the questions below are the same as those asked of Therese Pick, with the exception of questions regarding “‘the Bridge.” 1. 26. For non-management employees does continuity of service determine eligibility for: a. Pension credit? b. Wage progression credit? c. Sickness disability benefits? For management employees does continuity of service determine eligibility for; a. Pension credit? b. Wage progression credit? c. Sickness disability benefits? a. Are benefits accompanying personal leaves administered differently depending on the length of leave? b. Are personal leaves divided into categories by length? What are those categories (i.e., leaves of one month or less and leaves of more than one month)? Are non-management employees on maternity leave eligible for sickness disability benefits? Answer the same question for management em- ployees. Mr. Harold Levy, Esquire 34. Specify whether your answers would be dif- ferent for married and unmarried females in 792 questions 6-16, 16-21, 26, 28, 30, and, 31-33. I apologize for the delay in sending you these questions. Sincerely, Giovanna H. Longo Counsel cc: Frederick W. Denniston, Administrative Law Judge Federal Communications Commission 1919 H Street, N.W. Washington, D. C. 20554 David A. Copus, Esquire Equal Employment Opportunity Commission 1800 G Street, N.W. Washington, D. C. 20506 G.E. EXHIBIT NO. 32 - EEOC “Request for Statistics, Received 4/13/71, In Matter of Petitions filed by EEOC, et al., FCC Docket 19143. 211 East 35th Street New York, New York 10016 April 8, 1971 Honorable Jacob K. Javits United States Senate Washington, D. C. 20510 Dear Senator Javits: — 793 I have just reviewed the discovery request propounded by EEOC to AT&T which is now being considered in FCC Docket No. 19143. (Copy attached.) I am certain you will agree that providing the information requested by EEOC is a horrendous undertaking, and I would guess that just gathering this material will cost the Bell System somewhere in the area of $1,000,000. I also happen to be a customer of New York Telephone which, as you know, has serious service problems. AT&T may not have a perfect record in satisfying the insatiable demands of EEOC, but I for one would much prefer that such funds be spent on plant and equipment leading to improved service, EEOC is seeking enforcement powers similar to the NLRB. It is obvious from this demand and other EEOC activities that they are incapable of objectivity. I therefore urge that you deny them additional powers. Very truly yours, /s/ JAMES R. THOMPSON James R. Thompson JIRT:tg Attachment cc: Mr. Ben F. Waple 794 REQUESTS FOR STATISTICS For the thirty SMSA’s designated by EEOC: give sex and ethnic composition as of December 31, 1970, by EEO-1 job categories, job titles and departments. 27. REQUESTS FOR PRODUCTION OF DOCUMENTS For each company: each collective bargaining agree- ment (including supplements) which was in effect January 1, 1960 and January 1, 1971. For thirty cities: current job descriptions for all job classifications, including both management and non-management jobs. For each current EEO-1 reporting unit, EEO-1 report as of December 31, 1970. For thirty cities: for the thirteenth day of each month in the periods January 1968 - December 1968 and January 1970 - December 1970, copies of all classified ads, with specification of date, media, and column heading. For each company: for the period July 1, 1964, to the present, copies of all internal memoranda relating to company policy conerning equal employment and advertising. For each company: if a married woman takes maternity leave: (a) what is length of leave she may take? (b) does she have written reassurance of employ- ment? 795 (c) is she eligible for benefits during leave, under the Employees Pension Disability Benefits and Death Benefits plan? (d) is maternity leave compulsory as of any given time? 28. For each company: same as No. 27 for unmarried women who take maternity leave. G.E. EXHIBIT NO. 33 - Motion of EEOC to Terminate FCC Proceedings. BEFORE THE FEDERAL COMMUNICATIONS COMMISSION WASHINGTON, D. C. 20554 In the Matter of Petitions filed by the EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (EEOC) et al. DOCKiT NO. 19143 ee i MOTION TO TERMINATE PROCEEDINGS (To be Acted Upon by the Commission) The Equal Employment Opportunity Commission (EEOC), respectfully requests that Docket No. 19143 be terminated and that its complaint therein dismissed. In support whereof it is stated as follows: 1. On December 10, 1970, the EEOC filed a “Petition 796 for Intervention” in Docket No. 19129 wherein it oppos- ed proposed revisions in tariffs filed by AT&T providing for increases in rates for long distance message telephone service. In its Petitition, the EEOC alleged that AT&T and the Bell companies engaged in systemwide discrimina- tion in employment against women, blacks, Spanish-sur- named Americans, and other minorities in violation of the Communications Act of 1934, the Commission’s Rules and Regulations, Title VII of the Civil Rights Act of 1964, the Civi! Rights Act of 1866, the Equal Pay Act of 1963, Executive Order No. 11246, and the fair em- ployment practices acts of numerous states and cities. The Commission in a Memorandum Opinion and Order released January 21, 1971, rejected the EEOC’s request that these allegations be considered in the context of Docket No. 19129. However, it set the EEOC charges for separate hearing in Docket No. 19143 on the basis that “‘the filing by the EEOC clearly alleges ‘a general pattern of disregard of equal employment practices’ pur- suant to [the Commission’s] Rules.” 27 F.C.C.2d 309, 311 (1971). 2. American Telephone and Telegraph Company (AT&T) and its associated operating telephone companies (Be‘l companies) denied the charges of the EEOC and the other complaining parties and presented testimony showing the progress that had been made in the Bell System in the hiring and promotion of women and minorities. 3. Since the institution of this proceeding, AT&T and the Bell companies have made a number of changes in their recruiting, hiring, job placement, promotion and transfer practices which should result in greater oppor- tunities for women and minorities. Also AT&T and the 797 Bell companies have adopted new Affirmative Action Programs which contain specific goals and timetables for women and minorities in major job categories. These plans, in conjunction with new Upgrading and Transfer Plans which AT&T and the Bell companies have also adopted, should further accelerate the progress Bell is making in an effective utilization of women and minori- ties in all job categories and at all levels. 4. For the past several months extensive negotiations have been engaged in by the EEOC, the U.S. Department of Labor and AT&T, on behalf of itself and the Bell companies, for the purpose of resolving many of the re- maining controversies between the parties. These nego- tiations have resulted in an Agreement signed by repre- sentatives of AT&T and the Bell companies, EEOC and the U.S. Department of Labor, a copy of which is attach- ed hereto as Exhibit A. By the terms of this Agreement the Bell companies have agreed to establish and make a good faith effort to reach revised goals for job classifica- tions within each establishment where underutilization is determined to exist. They have agreed to provide oppor- tunities for transfer or advancement for female and mi- nority employees in particular job classifications and to make pay adjustments both for the past and the fu‘ure. 5. The EEOC and the U.S. Department of Labor have agreed that if AT&T and the Bell companies comply with the terms of the Agreement, they will be in full compliance with the laws and regulations governing equal employment opportunity and equal pay for equal work which are covered in the Agreement. 6. The Agreement further provides for securing the reso- lution, to the extent feasible, of all pending litigation, 798 including this proceeding, coneming compliance by AT&T and the Bell companies with all laws and regulations con- cerning equal employment opportunity and equal pay for equal work. 7. In view of the foregoing, Petitioner believes that the goals of equal employment opportunity and equal pay for equal work can best be achieved by the termination of this proceeding. To the extent that any issues of com- pliance of Bell companies with equal employment laws remain unresolved, they can be more effectively dealt with outside this proceeding. WHEREFORE, EEOC requests that Docket No. 19143 be terminated and its complaint be dismissed. Respectfully submitted, EQUAL EMPLOYMENT OPPORTUNITY COMMISSION /s/ DAVID COPUS David Copus Attorney January 19, 1973 799 MEMORANDUM OF AGREEMENT THIS AGREEMENT, made and entered into this 18th day of January, 1973, among the American Telephone and Telegraph Company, for itself and on behalf of its associated telephone companies (hereinafter collectively referred to as the Bell Companies),* the Equal Employ- ment Opportunity Commission, and the U.S. Department of Labor, WITNESSETH WHEREAS there are certain currently outstanding equal employment opportunity and equal pay for equal work * American Telephone and Telegraph Company New England Telephone and Telegraph Company The Southern New England Telephone Company New York Telephone Company New Jersey Bell Telephone Company The Bell Telephone Company of Pennsylvania and The Diamond State Telephone Company The Chesapeake and Potomac Telephone Company The Chesapeake and Potomac Telephone Company of Maryland The Chesapeake and Potomac Telephone Company of Virginia The Chesapeake and Potomac Telephone Company of West Virginia Southern Bell Telephone and Telegraph Company South Central Bell Telephone Company The Ohio Bell Telephone Company Cincinnati Bell Inc. Michigan Bell Telephone Company Indiana Bell Telephone Company, Incorporated Wisconsin Telephone Company Illinois Bell Telephone Company Northwestern Bell Telephone Company Southwestern Bell Telephone Company The Mountain States Telephone and Telegraph Company Pacific Northwest Bell Telephone Company The Pacific Telephone and Telegraph Company and Bell Telephone Company of Nevada 800 issues which are the subject of Equal Employment Oppor- tunity Commission (EEOC) charges, government contract compliance reviews or pending litigation or investigations involving the Bell Companies, and WHEREAS the Bell Companies deny that they have engaged in any discriminatory employment practices which constitute violations of federal laws, regulations or Execu- tive Orders, and WHEREAS the undersigned parties desire to resolve the aforesaid equal employment opportunity and equal pay for equal work issues and to assure the Bell Com- panies’ compliance with applicable equal employment opportunity and equal pay for equal work laws and regulations with respect to such issues, NOW THEREFORE, in consideration of the covenants herein expressed, it is mutually agreed as follows: PART A I. AFFIRMATIVE ACTION PROGRAMS The Office of Federal Contract Compliance (OFCC) of the Department of Labor accepts, as consistent with the requirements of Revised Order No. 4, the American Telephone and Telegraph Company’s (AT&T’s) Model Affirmative Action Program, Upgrading and Transfer Plan, and Job Briefs and Qualifications, attached hereto as Exhibits A, B and C, respectively (said three exhibits being referred to herein as the “Model Programs”), subject to the clarifications and amplifications contained in this Agreement. The OFCC agrees that subject to the clarifications and amplifications contained herein, such Model Programs, if adopted and implemented without material deviation by individual Bell Companies for each of their respective establishments, shall be considered as complying with the requirements of Revised Order No. 4. 801 EEOC agrees that such Model Programs, as clarified and amplified herein, constitute a “bona fide seniority or merit system” within the meaning of Section 703(h) of Title VII and that employment decisions made in con- formity with such Programs will comply with Title VII. Provided, however, that all individual Company programs embodying material deviations from such Model Programs and any material revisions of such programs resulting from the annual reviews thereof will be submitted to the OFCC and the EEOC prior to i: slemeritation by any Bell Com- pany. Such programs shall be deemed accepted unless disapproved by the OFCC within 45 days from the date of submission, consistent with Section 718 of the Civil Rights Act of 1964 as amended. Il. GOALS AND TIMETABLES A utilization analysis of each of the fifteen (15) Affirma- tive Action Program Job Classifications as defined in Sec- tion IV of the Model AAP (Exhibit A hereto) within each establishment will be conducted pursuant to 41 C.F.R. §60-2.11. For those job classifications wherein there exists a substantial salary range, such analysis shall speci- fically include reference to the relative distribution of minorities and women within such salary range. Each factor in 41 C.F.R. §60-2.11(a)(1) and (2) for which accurate and relevant data are available shall be considered. A goal will be developed for each of the 15 AAP job Classifications within each establishment where under- utilization is determined to exist pursuant to 41 C.F.R. §60-2.12. In a good faith effort to meet such goals, each Bell Company will establish intermediate targets for one, two and three-year time frames. At the end of each intermediate three-year time frame, the goal for each classification for which a goal has been set will be re-evaluated to determine whether underutilization still 802 exists, and the goals for each job classification will be adjusted or eliminated as appropriate. All goals and all intermediate targets and time frames for each Company and each establishment must be individually approved by the OFCC, and shall be submitted for approval to the OFCC within 120 days from the date of this Agreement, together with the relevant utilization analysis, including worksheets. Such goals, intermediate targets and time frames shall be deemed approved unless disapproved by the OFCC within 90 days of their submission, notwith- standing Section 718 of the Civil Rights Act of 1964, as amended. Worksheets shall include that portion of the goal which each establishment will make a good faith effort to achieve as intermediate targets — within stated time frames. The foregoing utilization analysis, goals, intermediate targets, and time frames shall also by developed for males in the operator and clerical classifications as part of each Bell Company’s program. All goals and all intermediate targets and time frames, as approved by the OFCC, and as adjusted at the end of each intermediate time frame will promptly be sub- mitted by each Bell Company to the appropriate collective bargaining representative of its employees. Ill. TRANSFER, PROMOTION, LAYOFF AND RECALL A. Each Bell Company agrees to offer each of its female and minority employees, in nonmanagement, non- craft jobs, who had four or more years of net credited service on July 1, 1971, and who expresses a desire for transfer as required by the appropriate upgrading and transfer plan or posting and bidding system to a job in AAP job classification 9 or 10, an opportunity to com- pete therefor with other employees on the basis of net 303 credited service and basic qualifications, as set forth in Exhibit C, if females or minorities currently are under- utilized in such AAP job classification 9 or 10 and such employee is a member of the group which is under- utilized. For purposes of this Agreement, “net credited service”’ shall mean total length of service with the opera- ting company in which the vacancy occurs. Provided, however, that total length of service within the Bell Sys- tem shall continue to be used for other purposes, including bridging rights, consistent with the provisions of the applicable Bell Company’s collective bargaining agreement(s). Provided further, each Bell Company and each collec- tive bargaining representative of their employees shall be free to bargain to expand this definition of net credited service, for purposes of this Agreement, to mean total length of service with the Bell System.* Where the term net credited service is presently defined in applicable collective bargaining agreements as length of service greater than that of the company into which the employee was last hired, definition of that term shall be unaffected by this paragraph. B. In filling vacancies in AAP job classifications 6 and 7, candidates for promotion shall be evaluated on tlie basis of net credited service and best qualified, unless a lower standard of qualification is provided in a collective bargaining agreement or pursuant to Bell Company prac- tices. However, if any Bell Company is unable to meet its intermediate targets within the stated time frames using these criteria, it will use only the criteria of net * Employees returning from maternity leave do not have their service broken (absence in excess of 30 days will be deducted from net credited service). 804 credited service and a basic qualified criterion and, if necessary, will seek new hires who meet at least the basic qualified criterion. Efforts to achieve intermediate targets should be substantially uniform throughout the appropriate time frame. Each Bell Company agrees to notify the appropriate collective bargaining representative of its employees prior to promoting or transferring persons into AAP job classifications 6 and 7 on the basic of net credited service and basic qualifications. C. Net credited service shall be used for determining layoff and related force adjustments and recall to jobs where nonmanagement female and minority employees would otherwise be laid off, affected or not recalled. Collective bargaining agreements or Bell Company prac- tices shall govern the confines of the group of employees being considered. Provided, however, vacancies created by layoff and related force adjustments shall not be considered vacancies for purposes of transfer and promo- tion under this Section. D. Minimum residency (time in title) requirements shall not be greater than the following, in the major job titles noted below: 1. Clerical; six-twelve months time in title; 2. Operator, six-twelve months time in title; 3. Service Representative, fifteen-eighteen months time in title; 4. Lower and Middle Craft, fifteen-eighteen months time in title; 5. Top Craft (Switchman, PBX Installer, PBX Repair- man, Toll Test man, etc.) twenty-four - thirty months time in title. Collective bargaining agreements or company practices which provide lower minimum residency requirements than those outlined above shall continue in effect. 805 IV. EMPLOYEE INFORMATION PROGRAM A. Each Bell Company agrees to inform its employees who are affected by the provisions of this Agreement, and the appropriate collective bargaining representatives of its employees of the terms thereof in a manner approved by AT&T, EEOC and OFCC. B. Each Bell Company will, with respect to each of its transfer bureaus, provide a quarterly notice to non-management employees served by such transfer bureau and to any collective bargaining representative representing such employees of the projected number of job opportunities by the major job titles (e.g., installer, lineman) set forth in the Job Briefs contained in Exhibit C hereto, in his or her transfer bureau for the balance of the calendar year and the number of jobs filled during the previous quarter by net credited service date, date of transfer, job title, EEO-1 minority designation, sex, and last previous job assignment. V. TESTING Each Bell Company reserves the right to utilize test scores on validated tests along with other job-related con- siderations in assessing individual qualifications. However, each Bell Company agrees that it shall not rely upon the minimum scores required or preferred on its pre-employ- ment aptitude test batteries as justification for its failure to meet its intermediate targets for any job classification. VI. PROMOTION PAY PLAN Each empioyee promoted from one nonmanagement job to another with a higher basic maximum rate of pay, shall have his or her rate of pay in the higher rated job deter- mined as follows: 806 The employee shall be placed on the step of the new wage table as determined by allow- ing the employee full wage experience credit, both in progression and at maximum, on the old wage table, but shortened in 1970 or 1971 collective bargaining, then the wage experience credit allowance shall be used. . Current promotion pay practices which provide more favorable treatment than the procedure outlined above shall continue in effect. . Modification of Plan for Promotion from Sim- ple to Complex Line Assigning Employees who have work experience in simple plant line assigning (not including clerks whose duties do not require that they use cable books to locate available cable pairs) and are promoted to complex line assigning (Top or Second Craft) will be treated as follows: a. Those with over four years of wage ex- perience credit or net credited service (as provided in note 3 above), at least one year of which is simple plant line assign- ing experience, upon promotion will re- ceive wage experience credit on the new wage schedule equal to their wage ex- perience credit or their net credited service (as provided in note 3 above). b. Employees to whom paragraph (a) is not applicable will be accorded promotion pay under the basic promotion pay plan de- scribed above. 807 Vil. COLLEGE GRADUATE FEMALES HIRED DIRECTLY INTO MANAGEMENT In each Bell Company (other than Cincinnati Bell Inc., which did not have an Initial Management Development Program (IMDP) at any time between July 2, 1965, and December 31, 1971, and The Bell Telephone Company of Pennsylvania, which has heretofore satisfactorily re- solved issues respecting female college graduate manage- ment hires): A. Four-year college graduate female employees hired directly into management other than IMDP between July 2, 1965, and December 31, 1971, with the exception of those thereafter placed in IMDP or who were offered placement in IMDP and declined, will be surveyed to determine their interest in promotion to District level (third level) and above management positions. Provided, however, that any Bell Company may during the thirty- day period following execution of this Agreement and entry of the decree provided for in Part C., Section I.A., present to the EEOC and OFCC data indicating that an IMDP program was not underutilizing women during any year or years between July 2, 1965, and December 31, 1971. Upon presenting such data, this Section VII shall be inapplicable to four-year college graduate women hired directly into management for those years during which underutilization did not exist in the IMPD program in question. For purposes of this paragraph only, an ab- sence of underutilization shall mean 25% of all enrollees in an IMDP program. The parties agree that failing agree- ment as to whether an IMDP program or an individual should be excluded from the application of this Section such determination shall be submitted to the Court for final and binding adjudication under the decree. 808 B. Those employees who are found to be interested will be scheduled for a two-to-three day assessment at a management center to evaluate their potential for promo- tion to District level. This assessment will be conducted under procedures outlined by AT&T and will be completed to the extent possible within twelve months of the date of the execution of this Agreement. Those employees assessed as satisfactory and who are below second level will be candidates for promotion .to second level as vacancies occur and will be added to the District level potential list. Those employees assessed as satisfactory and who are at second level at the date of assessment will be candidates for promotion to District level as vacancies occur. Prior to promotion, both these second level and below second level employees may be reassigned for further developmental experience preparatory to promotion. C. AT&T agrees to provide the EEOC and OFCC with descriptions of the criteria employed in making such assess- ments and on request will provide data at reasonable inter- vals on the number of persons evaluated and rated satis- factory; provided, however, the foregoing assessment pro- cedure may not be relied upon as a defense by any indi- vidual Bell Company for its failure to reach the inter- mediate targets for those job classifications for which such procedures are used. D. Those employees evaluated under paragraphs A and B of this Section VII. who do not receive a satisfactory rating will return to their current assignments and their assessment rating will not be entered into their permanent personnel file. 809 Vill. PAY ADJUSTMENTS A. Nonmanagement Jobs. Employees promoted prior to January 1, 1973, will have their rate of pay adjusted as of the first pay period after January 1, 1973, to the rate they would have achieved if the promotion pay plan described in Section VI above had been ii effect at the time of their promotion. B. Craft Jobs Only. 1. In recognition of alleged claims of possible dis- Crimination in compensation: a. Except for Switchroom Helpers at Michigan Bell Telephone Company (Michigan Bell), back wages shall be accorded those female employees who were resident in AAP job classifications 6, 7, 9 and 10 at any time during the period January 1, 1971, to December 31, 1972, as follows: Each such employee shall be paid an amount equal to the difference between the amount which was paid to her under the promotion pay plan in effect at that time, and that which would have been paid to her during the period from January 1, 1971, to December 31, 1972, had the promotion pay plan described in Section VI above been in effect at the time of her promotion and for the period of time such employee was resident in a position in AAP job classifice- tions 6, 7, 9 or 10. b. In order to bring the minimum and maximum rate of pay of Switchroom Helpers at Michigan Bell into the range for the Frameman job in other Bell Companies, the rates for such job will be in- creased by means of the following formula to be Zone | Zone 2 Zone 3 Zone 4 810 effective the beginning of the first pay period following January 1, 1973. Present Present Proposed Proposed Minimum Minimum Minimum Minimum Rate Rate Rate Rate $124.50 $157.00 $127.50 $169.50 117.00 $153.50 119.00 166.00 111.00 151.00 113.50 161.50 109.00 149.50 111.50 159.00 Michigan Bell will establish new wage sched- ules similar to those in effect for the Frame- man job in other Bell Companies to reflect these minimum and maximum rates of pay. Michigan Bell will pay to Switchroom Helpers who were so classified during any part of the period from January 1, 1971, to December 31, 1972, the difference be- tween what they earned had the wage sched- ule set forth in the columns “Present Maxi- mum Rate” and “Present Minimum Rate”’ been in effect during the period January | 1971, to December 31, 1972, and what they would have earned had the wage sched- ules been those set forth in the columns “Proposed Maximum Rate” and “Proposed Minimum Rate.” 2. In recognition of alleged claims of possible delay in promotion in nonmanagement jobs because of discrimination, lump sum payments shall be made to. each female and minority employee in each establishment where there exists in his or her respective job classifica- tion an underutilization of the group of which he or she is a member, who meets the following criteria: &11 a. had four or more years’ net credited service on July 1, 1971; b. has been or will be promoted from non- management, noncraft jobs into AAP job classifications 6, 7, 9 and 10 subsequent to June 30, 1971, and prior to July 1, 1974: and c. remains in that job or another job in AAP job classifications 6, 7, 9 and 10 for a total of more than six months. Those employees meeting the criteria listed in a), b) and c) will receive lump sum pay- ments in accordance with the following schedule (it being understood that a female minority employee shall be entitled to receive only one lump sum payment). PROMOTION DATE PAYMENT 7/1/71 through 12/31/71 $ 100 1/1/72 through 12/31/72 200 1/1/73 through 12/31/73 300 1/1/74 through 6/30/74 400 In the event that on July 1, 1974, at least ten thousand (10,000) employees have not re- ceived payments pursuant to this Section VIII.B.(2), the Bell Companies will extend the date until 10,000 employees have been paid. All payments after July 1, 1974, shall be at the rate of $400. Management Jobs. Those employees who are assessed as satisfactory pursuant to Section VII above will have their salary in- creased $100 per month as of their assessment date or September 1, 1973, whichever is earlier. 812 D. Limitation on Recovery No individual who has received back pay and/or individual relief under a prior settlement agreement, con- ciliation, or consent decree shall be elibigle to receive back pay or individual relief with respect to the same claim of discrimination as a result of this Agreement. PART B I. PROCEDURE FOR RESOLVING EEOC CHARGES A. It is the intent of the parties that, to the extent feasible, all charges of employment discrimination under Title VII will be resolved in a manner consistent with the principles set forth in this Agreement and the Decree provided for in Part C, Section I.A. To this end, upon the execution of this Agreement, the EEOC will: 1) Assert jurisdiction over all matters which have have been pending before state or local agencies designated as deferral agencies pursuant to Section 706 of Title VII of the Civil Rights Act of 1964, as amended, for more than the minimum deferral period and which have been the subject of charges filed with the EEOC. 2) With respect to charges on which “notice of right to sue”’ letters have been issued within the 90 days immediately preceding the date of this Agreement, or may be issued subsequent thereto, contact the charging parties, through their attorneys or otherwise, and urge them to agree to a settlement consistent with the principles set forth in the Agree- ment and Decree. 813 B. In order to facilitate conciliation of charges filed with the EEOC during the life of the Decree provided for in Part C., Section I.A.: 1) Beginning within 60 days from the date of this Agreement and weekly thereafter, EEOC will provide AT&T with copies of all charges not yet served on Bell Companies and with separate lists for each Bell Company of all charges (a) pending, (b) settled, (c) administratively closed, and (d) in which notices of right to sue have been issued. 2) Beginning within 60 days from the date of this Agreement, AT&T or the Bell Company involved will supply EEOC with proposals for settling charges which any individual Bell Company is prepared to settle. 3) Beginning within 60 days after such proposal is submitted to EEOC, AT&T or the Bell Company in- volved and EEOC will seek to resolve through con- ciliation any charge for which a settlement has been proposed. C. The EEOC and Department of Labor further agree: 1) That they will not, in any claim, action or pro- ceeding (including rate cases), involving any of the Bell Companies, initiate encourage, fund, intervene in support of or advocate by amicus brief or other- wise, a position inconsistent with the Agreement or the Decree. 2) That EEOC will advise its Regional and District offices, as well as state and local agency grantees, and the Department of Labor will advise its Regional and District offices and contract compliance agencies, that the Decree will bring the Bell Companies into compliance with Title VII, the Equal Pay Act, an: 814 Executive Order 11246 requirements as to the issues identified in the Decree and that, to the limit of EEOC’s contractual power to insure such a result, such Companies shall not be the subject of enforce- ment programs funded by EEOC, as to the matters covered therein. 3) That any actions taken by EEOC Regional or District offices or Department of Labor Regional or District offices or OFCC field offices which any Bell Company believes to be inconsistent with the terms of the Agreement or Decree may be brought to the attention of the national headquarters of the EEOC, Department of Labor, or OFCC, as appropriate and such national headquarters shall become the par- ty with whom such Bell Company may resolve such compliance issues. II. PROCEDURE FOR RESOLVING EQUAL PAY AND CONTRACT COMPLIANCE QUESTIONS It is the intent of the parties that, to the extent feasi- ble, all questions of the Bell Companies’ further compli- ance with the Equal Pay Act of 1963 and Executive Or- der 11246 will be resolved without the need for adminis- trative proceedings or litigation. The parties also agree that should the Department of Labor or the designated compliance agency conclude that a Bell Company is vio- lating the Equal Pay Act or the Executive Order and that it is unable to resolve such matter with that Company it will inform AT&T and give the latter 30 days in which to seek a resolution of such matter. II]. SETTLEMENT OF PENDING LITIGATION It is the intent of the parties to secure the resolution, to the extent feasible, of all outstanding employment $15 discrimination cases involving each Bell Company’s com- pliance with Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Acts of 1866 and 1871, and the Equal Pay Act of 1963, consistent with the principles set forth in this Agreement and the Decree. A. The Michigan Bell case will be settled by a stipula- tion of dismissal. Michigan Bell will be a party to this agreement, provided that the statute of limitations cutoff date in that case shall be used for the calculation of back wages for Michigan Bell craftswomen. B. In cooperation with the Department of Labor, AT &T will use its best efforts to achieve a settlement in the New England Telephone and Telegraph Company case. C. Each Bell Company further agrees that within 90 days after the execution of this Agreement, it will advise the EEOC of those cases which it believes can be resolved in whole or in part consistent with the terms set forth in the Agreement and Decree. If requested by all parties to such a case, EEOC will offer conciliation services to faci- litate such a resolution. PART C I. CONSENT DECREE A. The provisions of this agreement shall not become effective until such time as they are embodied in the Con- sent Decree attached hereto to be entered simultaneously with the execution of this Agreement in a United States district court, designated by the parties, originating in an action brought by the EEOC pursuant to Sections 706(f) and 707(e) of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §2000e, et seqg., by the Secretary of Labor under the Equal Pay Act of 1963, Section 6(d) of the Fair Labor Standards Act of 1938, as amended, 29 816 U.S.C. §206(d), and by the United States pursuant to Ex- ecutive Order 11246, as amended. Such Decree shall provide for the retention of jurisdic- tion by the Court to enter such orders as are necessary to effectuate the provisions of the Agreement and shall state that the life of the Decree shall be limited to six years, except that as to the issues in Part A, Sections VI, and VIII the Decree shall provide that the Bell Compa- nies are permanently enjoined from violating the Equal Pay Act. Provided that AT&T and each Bell Company retains its right to move for dissolution or modification of the Decree as to such Company. Provided further, that should either opinion letter, provided for in Part C, Section II of this Agreement or any portion of such letters be withdrawn or overruled, the Bell Company af- fected by such withdrawal or overruling may move the Court to dissolve any portion of the Decree which in- volves the issue or issues with respect to which the opin- ion letter has been withdrawn or modified, and to strike any portion of the pleadings in this action relevant there- to, and such motion shall be granted. B. By entering into this Agreement and accepting the Consent Decree referred to in Part C, Section I.A., the Bell Companies do not make any admission that they have engaged in any discriminatory employment practices or other practices which constitute violations of the Fed- eral laws, regulations or Executive Orders set forth in Part C, Section I.A. II. OPINION LETTERS Pursuant to this Agreement, and simultaneous with its execution, the Wage and Hour Administrator of the De- partment of Labor, in conformity with the requirements of 29 C.F.R. 8790.13 and 790.17, shall issue an opinion 317 letter dealing with the pay practices set forth in Part A, Sections VI and VII, as respects compliance with the pro- visions of the Equal Pay Act of 1963. In addition, the General Counsel of EEOC, in conformity with the require- ments of Section 713(b) of the Civil Rights Act of 1964, as amended, and 29 C.F.R. 8 1601.28-1601.30, shall is- sue an opinion letier dealing with the employment prac- tices set forth in Part A, Sections III, IV, VI, and VIII, as respects compliance with the provisions of Title VII of the Civil Rights Act of 1964, as amended. Il. DURATION OF AGREEMENT — DISMISSAL OF DOCKET NO. 19143 A. The provisions of this Agreement shall become ef- fective upon the entry of the Decree provided for in Part C., Section I.A. and shall terminate as to each Bell Com- pany at the time that such Decree shall terminate as to such Company. B. It is the intent of the parties that this Agreement shall result in the dismissal of Docket No. 19143 which is presently pending before the Federal Communications Commission (FCC). Upon the execution of this Agree- ment, the EEOC will move for the dismissal of Docket No. 19143. The EEOC will undertake to secure the con- currence of all intervening parties, to such dismissal. IV. INDIVIDUAL RELIEF A. The payments or adjustments for individual relief set forth in Part A, Section VIII of this Agreement, shall not be made until such time as the opinion letters referred to in Part C, Section I.C., have been issued, the Decree de- scribed in Part C, Section I.A. has been entered and Docket No. 19143 has been dismissed. 818 B. The Bell Companies may require that acceptance by any person of individual relief pursuant to the terms of Part A, Section VIII. shall constitute a waiver and re- lease by such person of any claims for alleged violations of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. 81981, 1983, Executive Order 11246, or any applicable state fair employment practice laws or regula- tions based upon occurrences prior to the date of this Agreement and the Decree, and such person shall sign a waiver of such claims as a condition to receipt of such individual relief. V. COMPLIANCE PROCEDURE A. As to the issues identified in the Decree provided for in Part C., Section I.A., compliance with the terms thereof resolves all questions of the Bell Companies’ com- pliance, for acts or practices occurring prior to the date of this Agreement, with the requirements of Title VII of the Civil Rights Act of 1964, as amended, the Equal Pay Act of 1963, and Executive Order 11246. Moreover, com- pliance with the terms of the Decree in the future will constitute compliance with such laws, orders, and regula- tions as respects those issues dealt with in the Decree. B. The EEOC will make reasonable cause determina- tions of charges filed against Bell Companies within the life of the Decree and to the extent that they relate to issues identified therein on the basis of whether or not the practices complained of violate the terms of the De- cree. In the event that the EEOC determines that there is reasonable cause to believe that the Decree is being vio- lated, it shall follow the compliance procedure as set forth below. C. The government plaintiffs shall endeavor to coordi- nate their efforts to assure compliance with the Decree 819 and shall develop such procedures as may be appropriate to this end. D. The government will promptly notify the Bell Com- pany involved and AT&T of any complaints of noncom- pliance. Such Company will be given 60 days to investi- gate the complaint and conciliate with the government re- garding the appropriate corrective action to be taken. At the end of this period, the government, if not satisfied may seek an appropriate judicial resolution of the ques- tion. E. Each Bell Company is to be responsible for its com- pliance with the terms of the Agreement or Decree. The responsibility of AT&T, @Part from responsibility for the compliance of its own departments, shall be limited to: (1) in case of an irreconcilable conflict between the gov- ernment and an individual Bell Company, to use its good offices to aid in achieving a resolution of such conflict: (2) the provision of advice to its associated telephone companies as to the meaning of the Agreement or Decree and procedures for compliance; (3) where appropriate, the coordination of reports required by the terms of the Agree- ment or Decree; and (4) the provision of assistance on the development of the management assessment procedure pro- vided in Part A. Section VII. VI. REPORTING A. EEOC and OFCC will each receive summaries of the information compiled pursuant to Part A, Section IV.B. by each Bell Company for each of the first two full calendar quarters following the execution of this Agreement and annually thereafter during the duration of the Decree provided for in Part C, Section I.A. These quarteriy and annual compilations will be forwarded in duplicate within 45 days subsequent to the second 820 full calendar quarter following the execution of this Agreement and within 45 days after the close of each calendar year, respectively. B. During the term of this Agreement or the Decree provided for in Part C, Section I.A., except for the re- quirements of 29 C.F.R. Part 516, the filing of EEO-1 reports and reports required pursuant to the equal em- ployment rules of the Federal Communications Commis- sion (FCC), 47 C.F.R. 81.815, 21.307, and 23.49, or such other reports of general application which are hereaf- ter promulgated by EEOC, FCC, or the Department of Labor, the reports required by Part C, Section VI.A. of the Agreement will be exclusive, and the Bell Companies shall not be required to file any additional reports or, ex- cept as noted below,* submit to any compliance reviews with respect to obligations under the laws listed in Part C., Section LA. VII. COLLECTIVE BARGAINING AGREEMENTS This Agreement shall not be interpreted as requiring or permitting the abandonment of any provision in any Bell Company’s collective bargaining agreement(s) except as re- quired to maintain compliance with Federal law, Execu- tive Orders and regulations promulgated pursuant thereto pertaining to discrimination in employment. The govern- ment asserts that all of the Bell Companies’ obligations in this Agreement are required for compliance with Fed- eral law; provided, however, that nothing in this Agreement * The above provision concerning compliance reviews shall not apply to investigations of charges by the EEOC pursuant to Section 706(b) of Title VII and to investigations pursuant to Section 11(a) of the Fair Labor Standards Act. 321 is intended to restrict the right of the Bell Companies and the collective bargaining representatives of their employees to negotiate alternatives to the provisions of this Agree- ment which would also be in compliance with Federal law. To the extent that any Bell Company has in effect, in connection with the promotion and transfer of employees, a posting and bidding system, or other system, said sys- tem shall continue to be used. Provided, however, that such system will be modified to the extent necessary to conform with PART A, Section III of the Agreement. Each Bell Company agrees that it will notify all appro- priate collective bargaining representatives of the terms of this Agreement and of its willingness to negotiate in good faith concerning these terms. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective represen- tatives on the day and year first above written. AMERICAN TELEPHONE AND TELEGRAPH COMPANY, for itself and on behalf of its associated tele- phone companies as set forth herein. By /s/ David Easlick David Easlick, Vice President THE EQUAL EMPLOYMENT OPPOR- TUNITY COMMISSION By /s/ William H. Brown III William H. Brown III, Chairman THE U.S. DEPARTMENT OF LABOR By /s/ Richard F. Schubert Richard F. Schubert, Solicitor of Labor 822 /s/ William Kilberg William Kilberg, Associate Solicitor of Labor /s/ Carin Ann Clauss Carin Ann Clauss, Associate Solicitor of Labor G. E. EXHIBIT NO. 35 Complaint in Communication Workers of America, AFL-CIO, et al., v. Illinois Bell Telephone Com- pany, filed 4-13-73, in the Northern District of Il- linois, Eastern Division, Case No. 73C-9599. IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION COMMUNICATION WORKERS OF AMERICA, AFL-CIO; ROSE MARIE BYARD and JEWEL WHITE; individually and on behalf of all simi- larly situated female employees of Dlinois Bell Telephone Company, Plaintiffs, CIVIL ACTION a “eA wel 47/ 4 uae ure wos hg WLVO HY ZAM HAL tLép a “oe Apropos? yos fes7 wag aes ty sees avrowhasdwyz lat ae % ay "Al4e sorewas id iad tee avawteslwy reas % yy repens 27 24¢ Seseweay 94¢ errs res ty Tet wat sree Ts'CO Che 4h 4A fasrway Are “Ags Sis Sen oer |, sets 1 fe erarerwon, Pees : i tre orth ; feos wry aes ern CF |! tery “87 or4 Lf |} frary i avawhe ows [ Yt ‘See eerayer 846 G.E. EXHIBIT NO. 42 - Cost Estimates Regarding Mater- nity Benefits. Statistical Study by Paul H. Jackson, Fellow, Society of Actuaries. A. Privately Insured Short-term Disability Coverage The cost for maternity coverage on the same basis as any other disability was developed on the following assumptions: 1. Annual births in United States among working mothers approximately 1,463,000 based on annual rate of birth by age of mother assumed equal to the 1968 live birth rates (latest published), Table 56, Statistical Abstract of tne United States, discounted by a judgment factor of .9 to allow for a lower rate of birth among married women in the working population than among married women generally. See attached worksheet. 2. 40% of working employees under 65 are covered by group sickness and accident insurance. (Source Book of Health Insurance 1972-1973, page 25, and Special La- bor Force Report 144, Bureau of Labor Statistics, Table B.) 3. Insurance company premiums for short-term dis- ability approximately 123% of claim payments, Table 735, American Almanac—Source—U.S. Social Security Adminis- tration—S.S. Bulletin, April 1972. 4. Average benefit $1,276 based on 45% under 13 week plans with $60 average benefit, 50% under 26 week plans with $70 average benefit, 5% under 52 week plans with $80 average benefit. (Source Book of Health Insur- ance 1972-1973, 12th Annual Survey 1971, Health Insur- ance Institute and 1971 Reports Mortality and Morbidity 847 Experience, Society of Actuaries.) Utilization—13 weeks under 13 week plans, 23 weeks under 26 week plans and 30 weeks under 52 week plans. (Judgment item assuming modest claim abuse and malingering with maximum claim controls.) | 5. Total Annual Cost - $918,460,000. (1,463,000 x 1.23 x $1,276 as per above.) 6. Present Annual Cost - $114,016,000 based on 40% of insured plans providing 6 week maternity benefit averaging $396. (Source — 1971 Reports.) (1,463,000 x 4x 4x 1.23 x 396.) 7. Added Annual Cost (5-6) - $804,000,000. B. Sick Leave Program Added cost under sick leave programs $406,000,000 based on annual sick leave payments projected to $1,070,000,000 in 1973 (Source — Research and Statistics Note 23, DHEW Pub. No. SSA 73-i1701) and same ratio of increase as applicable to short-term disability (804/2121). C. Long-term Disability Coverage Added annual cost $143,000,000 based on 10% of workforce with LTD coverage (Source Book of Health Insurance, p. 25) and 5% of covered births (7315) claim- ing disability and collecting average benefit of $75 per week for 5 year average claim. The 7315 claims at 5% of total births is an estimate of uncontrollable claim abuse such as feigned disability based on claims of mental and nervous ailments, etc. that cannot be objectively disproven. (It was assumed that all claims presented under disability pension provisions could be denied.) 849 848 €161 ‘4t 41™¢ | OCs ‘St , TIT CST = 6° = STST = ose‘ yest «eqztE Tenwey peqeeszeg “6° S28q30H SuTyION SIFY TIIF_g AERC] 303 UNCDETq “(L461 1hady ‘*aeg s0qey *Om “og “Sd ‘£ STGPZ) 69261 = ZL6T YIM 92204 JOGeT UE (3Ueve1g puqeENG) TEBON pezss9H “9S-SY 203 C9" PUP yy-SE 203 GES*Y (9)°19D “YS-S¥ 203 OL4°6 PUP He-SE 203 I9S"6 (S)*I°D PUP HS-Sy 203 LL1°Z1 “HH-SE 203 OSO'IT (€)°10D :eMoT 103 SB sdnoid e8e [w1QUe2 Ong 20; A[UC BT QUI FEAR B3eq /€ 2OQ¥T JO QUemjsedeg “§°h ‘SOFISFIVIg JOG] JO NBeINg ‘yy, 310dey e220g J0qGe] [eTDOdg g eTqQez /T (2eusaly usopiswy ‘Sg eTqQuE) 2298228qGy Le>T;IeTIBIg O¢ PIGeL /T 986‘ 79S ‘T 000‘ o¢s ‘eT 000‘ tre Se 76‘ C99"t 000‘ 08S‘ T8303 096 ‘Zz /E 000‘ L1¢'z fE 000 sec’ 680°9 /E 000‘ 680‘9 1 ly £0442 fE 000'69z‘2 fE 000° tLL*¢ osz‘es /E 000‘sze's ol tw? CLL°66 /E 000‘ 0L2‘Z JE 000‘ 1L4‘9 004 ‘60z JE ovo‘ sze‘s Crs ue zs9‘ Cet 000‘ 700‘Z 000‘ 1c8*y StL‘ ty 000° ¢06‘s si ze 719°6L€ 000‘zo01‘z 000‘99%‘¢ Ov1 ‘186 000‘1s0'd Ort lz os1‘289 000° 91z°Z 000‘ ze‘ 816‘199'T 000‘%32‘8 L91 zz 950‘ ET 000‘ oz¢ 000‘ 998 Z01 ‘864 000‘ L495‘ 99 ra () ~* (9) (s) (9 (¢) (z) (1) BOLIOEO) fz Jusseig jz Jueseig Zz “= 1l6l it BSyse[ndog any 8194304 @]1emeg Susqeng pueqeng s8y214¢ ae{ndog 000'1 20d 1833085 Suowy sy3.tg 8104104 eel ewe, [enuy el emweg e30y WIT l[enucy per eByI3e7 al ewe, petl2l2eK [#30] perieH Tiel GSTieTadey Fayqion D. Total Estimated Annual Cost - $1,353,000,000. 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Lid ver __ sae . oot —_—-s a . -—- -_- = ; ot ° sot _ a ee Piet oot -_ — - = a ® ® ® » eore ; t $ s ——— Sa sina nea aI: ; owe wits nd in_varying percentages from seventy-three to one hun- dred. On-Becember first, the plan had been in effect four months. Benefits were not to be paid until six months had elapsed. Thirty-five thousand men and wom- en have joined, and three hundred and fifty thousand dollars have been paid in, half by the employees and half by the company. 967 HOW THE PLAN WORKS So I have learned that men do recognize their respon- sibilities to their brothers in service, and endeavor to take care of them. So we said that in an unemployment emer- gency, all the people in the company, whether they were members of the plan or not, should contribute one per- cent of their earnings as long as they were working fifty per cent or more of the time. These contributions were to be made by the office boy, the salaried people, the salesmen, and the management, from the president down, and from the people in remote places like Denver and San Francisco. On December first we declared that unemployment emergency existed, and collections are beginning to be made. In such unemployment emergency the company pays an amount equal to that contributed by the employ- ees. 968 EXHIBIT NO. 0-1 to the Pre-Trial Stipulation of Facts. (PLAINTIFFS’ EXHIBIT NO. 44A) 37th Annual Report of GE 1928. 1928 General Electric Annual Report GROUP LIFE AND DISABILITY INSURANCE For nearly nine years your Company has provided group life and disability insurance protecting a large ma- jority of the employees. The 1926 annual report described an Additional Group Life and Disability Insurance Plan which was offered to employees in the latter part of 1925. In December 1927 announcement was made to employees that on January 1, 1929, this plan would become a mutual condition of em- ployment for some and optional for others. It met with such general acceptance that after conferring with the representatives of the employees, the effective date was advanced to July 1, 1928. Acceptance of the plan was made a mutual condition of employment for all men employees who had completed five years of continuous service and who on July 1, 1928, were forty-five years of age or less and for all men em- ployees thereafter completing five years of continuous service. Every one of this group of 21,000 accepted the plan. For men employees over forty-five years of age on July 1, 1928, and with more than five years of service, the plan is optional. It is also optional for men employ- ees who have served more than one year and less than five years, until the expiration of the fifth year, when it becomes a mutual condition of employment. There were 959 approximately 28,000 men in these two groups and 85 per- cent accepted the plan. It is optional for all women em- ployees after one year of service. There were approxi- mate ; 16,000 women eligible, of whom 73 percent accept- ed the plan. Since the “additional” insurance plan was put into effect in November 1925, $2,608,867 has been paid to 1186 em- ployees (or their beneficiaries), of which $1,217,367 was under the free insurance policy of the Company, and $1,391,500 was the additional insurance paid for by the employees. EXHIBIT NO. 0-1 to the Pre-Trial Stipulation of Facts (PLAINTIFFS’ EXHIBIT NO. 44B) 39th Annual Report of GE 1930. VARIOUS EMPLOYEE PLANS For many years the General Electric Company has been making constant endeavors, each one a step in a compre- hensive program, toward removing fear of the future from the minds of its employees—that is, the constant fear of being unable to provide for those dependent upon them. Group Life and Disability /nsurance The first plan aims to give peace and security of mind by provision for the uncertainty of life. In 1920, free group life and disability insurance was provided by the Company, to which, in 1925, was added a participation by the employees, so that the life and disability insurance of 970 employees has been increased. All employees may partici- pate after one year of service. The maximum insurance provided free by the Company is $1500 and the additional insurance, paid for by the employees, varies with age and salary, but the average is larger than the free insurance. At the close of 1930, approximately 67,000 employees were insured for $75,000,000 under the free policy and for $102,000,000 u [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385003_2097%3A05. Public record. Not legal advice.