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67 Pages·2011·0.3 MB·English
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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ) AMY GAITANE and MAHASTI ) KOOSHA, individually and on behalf of a ) class of similarly-situated female ) employees, ) CLASS ACTION COMPLAINT ) Plaintiffs, ) JURY TRIAL DEMANDED ) v. ) Civ. No. __________________ EATON CORPORATION, ALFRED ) VINCENZI, PATRICK FERRANG, and ) RONALD QUADE, ) ) Defendants. ) Plaintiffs Amy Gaitane and Mahasti Koosha (“Plaintiffs,” “Named Plaintiffs,” or “Class Representatives”), by and through their attorneys Sanford Wittels & Heisler, LLP, bring this action in their individual capacities and on behalf of a class of women defined below against Eaton Corporation (“Eaton” or the “Company”), and its managers Alfred “Al” Vincenzi, Patrick “Pat” Ferrang, and Ronald “Ron” Quade (collectively “Defendants”). Plaintiffs Gaitane and Koosha allege upon knowledge as to themselves and their own acts, and otherwise upon information and belief, as follows: I. OVERVIEW OF CLASS-WIDE GENDER DISCRIMINATION AT EATON 1. This year, Eaton celebrates its 100th anniversary and, as the Company’s website proudly proclaims, “a 100-year heritage of innovation.” What the website studiously avoids mentioning is Eaton’s 100-year heritage of sexism. For all its talk about innovation, Eaton remains in the dark ages when it comes to gender equality. Across Eaton’s five male-dominated businesses: Aerospace, Automotive, Electrical, Hydraulics, and Truck, Eaton’s largely engineering workforce resembles a workforce of decades past – a place for men only. 2. Engineering is a notoriously unfriendly environment for women. A recent study found that nearly a third of women surveyed left the engineering field because of the male- centric organizational culture,1 as the following quotes illustrate: • “There isn’t a strong network of females in engineering. You either need to learn to be ‘one of the guys’ or blaze the trail yourself, which is very difficult.”2 • “[There is no] opportunity for advancement in a male-dominated field – the culture of engineering is male-centric…”3 • “There’s still a bit of a ‘boys club’ mentality around, even with younger engineers and non-engineer women. Some older male engineers certainly think that females shouldn’t be engineers, or that it’s ‘cute’ when they are, like it’s an amusing phase she’s going through, instead of a career…”4 3. In a male-dominated industry where women are woefully underrepresented5, one 1 Nadya A. Fouad and Romila Singh, STEMMING THE TIDE: WHY WOMEN LEAVE ENGINEERING 27 (University of Wisconsin-Milwaukee 2011), available at http://www.studyofwork.com/wp-content/uploads/2011/03/Full-report-of- Women-in-Engineering.pdf (last visited Mar. 30, 2011). 2 Id. at 23. 3 Id. 4 Id. at 35. 5 Molly Madden, “Colleges address engineering gender gap,” THE NEWS-SENTINEL, available at http://www.news- sentinel.com/apps/pbcs.dll/article?AID=/20100927/BUSINESS/9270330 (last visited Mar. 29, 2011). 2 would expect Eaton to strive to retain and promote its high performing female engineers. Instead, Eaton marginalizes them, undermines them, and pushes them out of the Company. For many talented and hard-working women engineers, the battle for gender equality is lost on the killing fields of Eaton. 4. Women are conspicuously absent from Eaton’s leadership ranks. Of the Company’s 28 Corporate Officers, 26 – or a whopping 93 percent – are men. Similarly, Eaton’s Board of Directors is more than 90 percent male. 5. Although Alexander M. Cutler, Chairman and CEO of Eaton, leads the Company alongside an all-male team, he boasts: “At Eaton, we know that doing business right includes fostering diversity throughout our enterprise, including in senior management. Systematically managing diversity and inclusion has had a tremendously positive effect on our performance. We value inclusion because employees who bring with them a broad spectrum of skills, ideas, experience and background are crucial to our global success.”6 6. Indeed, diversity and inclusion are veritable buzzwords at Eaton. CEO Cutler claims, apparently without any hint of irony, “Diversity and inclusion are two of the important pillars to our global talent strategy. Great talent is not defined by race, religion, sex or nationality. At Eaton, we want the best talent and are committed to insuring our culture is inclusive and attractive to the best talent.”7 7. Unfortunately, for all its talk of diversity and inclusion, Eaton fails to walk the walk. Like its leadership team, the national sales force of Eaton’s electrical sector resembles a workforce of decades past – a male-dominated culture with a complete absence of women in 6 http://www.gcpartnership.com/Economic-Inclusion/Commission/Best-In-Class/Best-in-Class-Eaton- Corporation.aspx 7 http://www.gcpartnership.com/Economic-Inclusion/Commission/Best-In-Class/Best-in-Class-Eaton- Corporation.aspx 3 management. US Sales General Sales Force (GSF) Al Vincenzi Rick Kruzic Ron Papini Gustavo Cedeno Ces Boyd Zone Director Zone Director Zone Director Zone Director Zone Director Northeast Southeast Central Southwest West Rob Mullin Curtis Breit Mark Gilk David Speidelsbach (Open) District Manager District Manager DistrictManager District Manager District Manager Boston Baltimore Minneapolis Dallas Denver Pat Ferrang Pete Bauer Drew Ondik Brian Duncan Eric Franks District Manager District Manager District Manager District Manager District Manager New York Charlotte Chicago Houston Seattle John Grozier Matt Alexander Daryl VanderWeerd Steve Camber Ron Giannini District Manager District Manager District Manager District Manager District Manager Philadelphia Atlanta St.Louis Austin San Francisco Dennis Dowiak Ervin Beckman Don Glenn John Obarski Kent Morgan District Manager District Manager District Manager District Manager District Manager Pittsburgh Orlando Cincinnati Phoenix Los Angeles Eddie Williams Robert Zarabi Todd Hoover Jim Sims Brian Hulse MOEM Sales Manager District Manager District Manager MOEM Sales Manager MOEM Sales Manager Northeast Nashville Detroit Southwest West Werner Kloeckner John Hall / Lee Smith Tobin Vehmeier / Lee Smith Steve Crescenzo Bob Gaylord PQ Region Manager MOEM Sales Manager MOEM Sales Manager PQ Region Manager PQ Region Manager Northeast Southeast Central South West Dennis Lofink Steve Crescenzo Marty Mardirosian (Open) Dave Altman Public Sector Manager PQ Region Manager PQ Region Manager Public Sector Manager Public Sector Manager Northeast South Central Southwest West Mike Blackburn (Open) Public Sector Manager Public Sector Manager Southeast Central 8. Over a quarter-century ago, the U.S. Supreme Court characterized a workforce like Eaton’s as one that effectively proves discrimination on its face – commonly known as the inexorable zero inference – without the need for further statistical evidence.8 Simply put, when the statistical disparity is zero – like Eaton’s zero female sales managers – an employer’s 4 defenses against discrimination are implausible. 9. Eaton endorses a corporate culture and employment practices that inexorably maintain a status quo from the dark ages – an all-male management team who blatantly discriminate against the women working under them. A. Eaton’s Corporate Culture of Gender Hostility and Discrimination 10. Eaton’s Code of Ethics lists “Respecting Diversity and Fair Employment Practices” among its fundamental principles of ethical conduct: “Throughout the world we are committed to respecting a culturally diverse workforce through practices that provide equal access and fair treatment to all employees on the basis of merit. We do not tolerate harassment or discrimination in the workplace.” 11. Although Eaton’s rhetoric and the images on its website paint a picture of a harmonious, diverse, and safe work environment, the reality could not be farther from the truth. Even by the standards of the male-dominated power industry, Eaton stands out for its culture of gender hostility and discrimination – and the Company’s electrical sector is among the worst offenders. 12. On nearly a daily basis, Eaton’s male managers – who are supposed to “be fair and serve as role models of high ethical standards” per the Company’s Ethics Guide – toss around lewd comments and gender epithets such as “bitch” and “dragon lady” with alarming frequency and nonchalance. For example, the head of electrical sales in the Northeast, Northeast Zone Director Al Vincenzi (“Manager Vincenzi”) (at the top left of the organizational chart on page 4), repeatedly announced his plan to force Plaintiff Ms. Koosha out of the Company by 8 Int’l Brotherhood of Teamsters v. United States, 431 U.S. 324, 342 n.23 (1977) (“Fine tuning of the statistics could not obscure the glaring absence of [female employees].... [T]he company's inability to rebut the inference of discrimination came not from a misuse of statistics but from ‘the inexorable zero.’”). 5 telling employees, in both meetings and casual conversations alike, “I’m going to get rid of this bitch.” 13. District Sales Manager Pat Ferrang (“Manager Ferrang”) commonly referred to female sales engineers as “the bitches.” He often called Plaintiff Ms. Koosha a “bitch” and a “dragon lady” in her presence and in the presence of colleagues and representatives from Human Resources (“HR”). He defended his statements by claiming that such language is tolerated in sales. 14. Not to be outdone by Managers Vincenzi and Ferrang, Area Manager Ron Quade (“Manager Quade”) took a different but equally offensive approach with female sales engineers. He frequently discussed his open marriage and sexual preferences in the presence of female employees. He propositioned Ms. Koosha for sex in the office, and made comments about another female sales engineer’s breasts. He often announced he wanted to “do” Plaintiff Ms. Gaitane “sexually” to other sales engineers and managers. 15. After incessant abuse by Managers Vincenzi, Ferrang and Quade, Plaintiff Ms. Koosha suffered a heart attack caused by work-related stress the day before her annual review by Ferrang in the Eaton parking lot. Ms. Koosha was so traumatized and outraged by her male managers’ treatment that she instructed hospital security not to let them visit her. As she told HR, “Why would I want to see the faces of the people who put me in here?” When she returned to work, Eaton did nothing to protect Ms. Koosha while her male managers continued to subject her to the same discrimination and harassment. 16. While blatantly harassing female sales engineers, the same all-male management team has taken a great interest in the career development of its male employees. Male employees are exclusively invited to golf outings and dinners expensed to the Company – known 6 as “team-building” events – that give them access to more lucrative, career-enhancing opportunities and a significant advantage over their female counterparts. 17. Moreover, the Company’s predominantly male employees and managers often discuss Company business at sports bars, cigar bars, entertainment venues, and golf clubs on the Company’s tab. Plaintiffs and other female employees at Eaton were systematically excluded from these business meetings and functions, with one notable exception: a female sales engineer who was rumored to have engaged in inappropriate sexual conduct with a male manager. 18. Eaton has done nothing to remedy this disparate treatment, even while paying lip service to the Company’s supposed policy of providing equal access and fair treatment to all employees. Indeed, Eaton’s own example of wrongful conduct described in the Company’s Ethics Guide eerily echoes the exclusion that Plaintiffs experienced: “The sales team (three males and one female) attends a customer lunch at a country club that has a male-only dining room. The female is asked to wait in the car while the rest of the team attends the lunch.” The only part of this scenario that rings hollow is that Eaton’s female sales employees would not even make it as far as the car. 19. Eaton’s female employees, including Plaintiffs, have repeatedly complained to HR about the Company’s rampant gender discrimination and harassment. But rather than properly respond to these complaints, HR shields Eaton’s male managers from any discipline and instead shifts the blame to the victims of the discrimination. For example, when Ms. Koosha complained about Manager Ferrang’s harassment, HR blamed Ms. Koosha, asking her to enroll in online courses about diversity and conflict resolution. And when Ms. Koosha later complained about escalating retaliation against her, the same HR representative dismissively told her to “bring it down a notch” and said she understood why Manager Ferrang had a problem with 7 her. Eaton’s HR Department also fails to keep complaints about gender discrimination confidential, which further fuels the hostile work environment and leaves Eaton’s female employees vulnerable to retaliation. B. Eaton’s Discriminatory Employment Practices Against Female Sales Employees 20. Eaton’s culture of gender hostility pervades its employment practices. As Eaton’s website states, “our values and culture define who we are – both individually and as an organization – and direct our activities every day.” Unfortunately for the Company’s female sales employees, Eaton’s culture promotes widespread discrimination in employment decisions, resulting in women being systematically underpaid and under-promoted across the sales force. 21. Eaton employs a highly subjective promotion and compensation system that lacks transparency. Eaton’s male managers take advantage of the system to pay female employees much less than their male peers. The Company has routinely denied high performing female employees, including Plaintiffs, bonuses and other forms of compensation that their male counterparts enjoy. 22. In the general sales force where Plaintiffs worked at Eaton, female sales engineers are almost exclusively assigned to the less lucrative, service-oriented accounts. Eaton’s male managers routinely award credit for larger projects to male sales engineers, even when female sales engineers were instrumental in completing the sale. Because this credit is relevant to bonus compensation, annual merit increases, and performance evaluations, male sales engineers enjoy a financial and promotional advantage over their female colleagues. 23. In addition, Eaton consistently overlooks high performing female employees for promotion, while grooming less qualified male employees for leadership positions within the 8 Company. Although approximately 100 female sales engineers currently work in Eaton’s sales force in the electrical sector, not one Zone Director or District Manager is female. 24. Plaintiffs Gaitane and Koosha are just the latest in a wave of female employees Eaton has driven out through unrelenting gender discrimination and harassment. When Plaintiffs and other female employees complained about the gender discrimination and hostile work environment at Eaton, the Company did nothing to remedy its practices. Instead, it upped the ante by further retaliating against Plaintiffs and others until it forced them out of the Company. 25. To remedy the discrimination at Eaton, Plaintiffs Gaitane and Koosha bring this class action to challenge Eaton’s systemic, company-wide discriminatory treatment of its female sales employees, including Plaintiffs. Such gender discrimination includes: (a) paying Plaintiffs and other female sales employees less than similarly-situated male employees; (b) denying promotions or other advancement opportunities to Plaintiffs and other female sales employees at the same rate as similarly-situated male employees; (c) carrying out discriminatory terminations, demotions, and/or job reassignments of Plaintiffs and other female sales employees based on their gender; (d) subjecting Plaintiffs and other female sales employees to disparate terms and conditions of employment based on their gender; and (e) retaliating against Ms. Gaitane and Ms. Koosha after they reported Eaton’s gender discrimination, culminating in Ms. Gaitane’s wrongful termination and Ms. Koosha’s constructive discharge. 26. Plaintiffs bring this lawsuit on their own behalf and on behalf of a class of similarly situated female employees in Eaton’s electrical sector nationwide to remedy the gender discrimination that they have witnessed and experienced during their several years of exemplary service to the Company. The lawsuit is designed to achieve systemic injunctive relief and to 9 change Eaton’s discriminatory pay and promotion policies and practices, as well as its unlawful perpetuation of a hostile work environment for female employees. III. JURISDICTION AND VENUE 27. This Court has subject matter jurisdiction over this suit pursuant to 28 U.S.C. § 1332(a)(1), Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000(e)-5(f), et seq., as amended (“Title VII”), and the Fair Labor Standards Act of 1938, 29 U.S.C. §§ 206, et seq., as amended by the Equal Pay Act of 1963 (“EPA”), and supplemental jurisdiction pursuant to 28 U.S.C. § 1367. 28. Venue is proper in this District pursuant to 28 U.S.C. § 1391(b) and 42 U.S.C. 2000e-5(f) because Defendant Eaton has an office and conducts substantial business in this District, and because Plaintiffs Gaitane and Koosha worked in Eaton’s New York, New York office when the unlawful employment practices were committed. 29. Plaintiffs have standing to bring this suit as they have duly filed their administrative charges before the U.S. Equal Employment Opportunity Commission. Ms. Koosha and Ms. Gaitane received their right to sue letters on January 25, 2011 and March 8, 2011, respectively, and have filed this action within ninety days of receiving their letters. IV. THE PARTIES 30. Plaintiff AMY GAITANE is a resident of New Jersey and worked in New York and New Jersey during her employment at Eaton. Plaintiff GAITANE was employed as a Sales Engineer in Eaton’s Electrical Engineering Services Sales (“EESS”) division of the General Sales Force from August 2005 until her wrongful termination from the Company in April 2010. 31. Plaintiff MAHASTI KOOSHA is a resident of New Jersey, and worked in New York and New Jersey during her employment at Eaton. Plaintiff KOOSHA was employed as a 10

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AID=/20100927/BUSINESS/9270330 (last visited Mar Zone Director Al Vincenzi (“Manager Vincenzi”) (at the top left of the collective action pursuant to Section 16(b) of the Fair Labor Standards Act (“FLSA”), 29 U.S.C..
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