Astro Zeneca Settles Women's Pay Inequality Lawsuit
On June 6, the US Labor Department settled with AstraZeneca via a consent decree. If the pharmaceutical giant fails to comply with the decree, it risks cancellation of its current federal contract with the Veterans Administration, valued at more than $2 billion, and debarrment from future contracts. The company will pay $250,000 which will be shared by 124 current and former female employees. It will also work with the Department of Labor to revise its procedures so that discrimination will be avoided.
What had AstraZeneca done? According to the lawsuit, at the Wayne, PA Philadelphia Business Center, it had routinely paid its women sales specialists an average of $1,700 less than men with the same positions. In the press release (see it here), OFCCP Director patricia Shiu said, "I am glad AstraZeneca finally has agreed to pay its employees what they've earned. More importantly, we look forward to working with the company's management to make sure this does not happen again to anyone who works for AstraZeneca."
In addition to the group who will receive compensation, AstraZeneca along with OFCCP will review records of female employees in fourteen states and if additional statistal evidence of wage discrimination is found, the company must remedy it.
It's interesting that we often highlight ways that industry is better than academia, but here is a case where the same old bad assumptions (women need it less, women deserve it less) may be in play. And later this month, not that its science-related but it is probably important for all women, watch for the Supreme Court to decide the women's pay discrimination standing in their Walmart suit, predicted by the end of June, 2011.
cheers,
Laura
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I've also noticed that women are generally poor at salary negotiations. Women need to demand higher pay instead of settling.
Hi Annis,
Yes, thanks for pointing this out. I looked it up and Debra Rolison, research chemist and head of the Naval Research Laboratory’s Advanced Electrochemical Materials section, took up the Title IX for science faculty issue and wrote a book about it in the last decade. She collaborated with congress to get reports on progress for physical science faculty in hiring women nationwide and spoke at women in science events all over the country. I think I'll write about her for the Forum soon. She is definitely a name worth noting.
cheers,
Laura
I seem to recall a woman chemist, I think working for the government, who used to go around and make speeches at women in science events about using Title IX for physics and chem profs and not just for athletic participants. Do you know whom I mean, Laura? It would be good to get a guest spot from her if you can make contact.
Hi Helen,
I am happy to hear that management training is likely to be improved as an aftereffect of the settlement at AstraZeneca. I imagine that will make a fairly fast change in company culture.
As you say, it's good that a lawsuit was filed and settled in a way that can make a change in the culture to help women achieve equal pay. I often think lawsuits work better than just jawboning, which the NIH and NSF seem to do about women professors at major R1 universities.
cheers,
Laura
I agree the fine is too low. I hope they redesign their management training however to focus on that issue when they review the compensation section. I have noticed that whenever my company has legal issues, that's the first thing that changes to help support organizational change. It does work. People who have had the new training are much more aware of the issues than those who didn't have it and continue under their old assumptions.
I'm glad the case went to court and was resolved for the plantiffs! That's the only way to get this kind of bias in the spotlight and effect change.
It galls me that the fine is so low, but I think some of the other commenters are right, they will have to shape up now and fly right. That will be enforced by the government and also by women in the society at large, who take jobs there knowing they may not be paid fairly and ready to stand up for their rights. FBP
I think losing a lawsuit is negative publicity for a firm, which is one reason I'm glad to see it discussed here and posted on various feminist sites. If women know they COULD be discriminating, they'll be more likely to chat about salaries with their colleagues to check. Their curiousity will get the better of them, even if they are not very motivated by money. And then the cat will be out of the bag if they aren't doing it right again. So I think lawsuits are a very powerful tool and we should use them more often.
Hi Ginger and Meghan,
I agree the amount is small. But having the follow up statistical study to carry out, and knowing that they won't get another contract if they don't do it right seems like a good deterrent to me. I hope they get their act together!
cheers,
Laura
I agree with Ginger, the plaintiffs didn't get enough in the settlement. A company like AstraZeneca won't even notice a $250,000 loss in its bottom line! It won't be significant, although having 2 billion at risk might get their attention. I'll be interested to see if they get cases in those other sites and have to ante up there too.
I went to look at the press release to see if they said how long a period the 1700 difference was for, but they did not. It seems very different if it's per month, less so if it's a year, but I agree it's still important. But we cannot really know why they did it. We can only guess. We guess based on our own experience, so it does tell you something. MKS
This makes me so mad. They should have been looking at the employees records, not their sexes. I really don't think this is as common among scientists at the pharma companies, but maybe sales is different. A couple of my friends left science and went into sales, though, because they need people who can explain the science to doctors.
I don't think they got enough money. No punitive damages the way it would be if the lawsuit continued. But it is good that they are auditing their other operations.
