Description : News Release - 03/03/2000 - AMTRAK Settles Race Discrimination Lawsuit

BROTHERHOOD OF MAINTENANCE OF WAY EMPLOYES Suite 200, 26555 Evergreen Road, Southfield, MI 48076

FOR IMMEDIATE RELEASE

AMTRAK SETTLES RACE DISCRIMINATION LAWSUIT

March 3, 2000, Washington, DC—Amtrak has agreed to settle a race discrimination class action lawsuit filed on behalf of African American employees and job applicants for positions represented by the Brotherhood of Maintenance of Way Employes ("BMWE") in the Engineering Department of Amtrak's Northeast Corridor ("NEC"). The settlement, in the form of a Consent Decree, provides for a fund of $16 million to be distributed among the class and counsel and requires Amtrak to implement wide-ranging changes in its personnel policies. Amtrak agreed to alter policies affecting hiring, certification, training and advancement, discipline, internal enforcement of equal employment policies, and data collection and retention.

Amtrak and plaintiffs voluntarily entered into mediation in an effort to address and settle the concerns of the class. The suit, originally filed in the U.S. District Court for the District of Columbia in May 1998 by the BMWE and African-American employees and applicants and pending before Judge Emmett Sullivan, alleges a pattern or practice of discrimination in Amtrak's hiring, discipline and training of African American employees, as well as toleration of a racially hostile work environment. Under the terms of the settlement, Amtrak admits to no wrongdoing.

George Warrington, President and CEO of Amtrak, stated, "Amtrak is committed to a cultural change at the company that will not only make Amtrak a better place in which to work but also will enable us to be more responsive to the diverse marketplace we serve. We have already taken a number of important steps in transforming the company's culture. In agreeing to this settlement, we want our African American employees and the BMWE to know that Amtrak values diversity. It is the right thing to do and makes good business sense."

In his comments, Jed Dodd, General Chairman of the Pennsylvania Federation of the Brotherhood of Maintenance of Way Employes, echoed many of these sentiments. He stated, "the struggle for equal opportunity for all members is a central mission of our union and we are pleased that this settlement will make the working environment a better place for all railroad maintenance and construction workers. We are proud of our African American members. We are also grateful that Amtrak management worked hard with us to fashion a just resolution."

Michael Lieder of Sprenger & Lang, PLLC, lead counsel for plaintiffs, commended Amtrak's receptiveness toward reform and negotiation over litigation. He added, "The policy changes mandated by the Consent Decree are at least as important as the money. The terms are designed to assure fairness for all employees, both black and white, by reducing the opportunity for biased managerial decision-making."

- more -Counsel for both parties will be involved in monitoring compliance with the Decree over a four-year period if Judge Sullivan ultimately approves it. The Washington Lawyers' Committee for Civil Rights and Urban Affairs, Andrew Rainer of the Boston law firm of Shapiro, Haber & Urmy, and the Lawyers' Committee of the Boston Bar Association also served as counsel for plaintiffs in the case.

Because plaintiffs seek to represent a class, the parties must still seek approval by the Court of their proposed settlement, which process will lead to a fairness hearing and take several months. The same Court, however, recently gave its final approval to the settlement of a related case against Amtrak for alleged discrimination against its African-American managers.

This was the first of three race discrimination class action cases filed against Amtrak. The second, filed in September 1998, was the recently settled case of the managers. The third suit, involving all other African-American employees of Amtrak, was filed on November 9, 1999 and is still pending.

The Washington Lawyers' Committee for Civil Rights and Urban Affairs also served as class counsel for plaintiffs.

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