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Press Release 08-12-2009

MATERIAL RESOURCES TO PAY $57,500 TO SETTLE EEOC RACE DISCRIMINATION AND RETALIATION LAWSUIT

Black Worker Fired for Protesting Unequal Treatment, Federal Agency Alleged

ST. LOUIS – A Washington  Park, Ill., packaging and  warehousing company will pay $57,500 and furnish other relief to settle a race  discrimination and retaliation lawsuit filed by the U.S. Equal Employment Oppor­tunity  Commission (EEOC), the agency announced today.

The suit alleged  that Material Resources, LLC, which does business as Gateway Co-Packing  Company, failed to provide a black employee the pay raise and health insurance  coverage provided to his white co-workers, and then fired him in retaliation  for filing a charge of race discrim­ination with the EEOC. Race discrimination and retaliation for  complaining about such disparate treatment violate Title VII of the Civil  Rights Act of 1964. The EEOC filed suit  (Case No. 08-245-MJR) in federal district court in East St. Louis, Ill.,  after first attempting to reach a voluntary settlement out of court.

As provided in the  consent decree settling the case, pending approval by U.S. District Judge  Michael J. Reagan, Material Resources will pay the former employee $7,500 in  back pay and $50,000 in compensatory damages. The company will also take steps to prevent  discrimination in the future, including disseminating a letter to all employees  from the company president stating that the company will comply with all  federal anti-discrimination laws and enforce its policy prohibiting unlawful  discrim­ination. Additionally, Material  Resources will provide training on race discrimination and retaliation to all  supervisors, and instruct all supervisory employees that their effective  handling of complaints of discrimination or retaliation will be considered in  evaluating their performance for raises and promotions.

“This settlement should go far in  educating the company’s managers on their responsibilities under federal civil  rights law,” said Webster Smith, acting director of the EEOC’s St. Louis  District Office. “The training and  other injunctive remedies provided by this decree will reinforce the law and  help the company effectively handle internal discrimination complaints.”

The EEOC enforces federal laws prohibiting employment  discrimination. Further information  about the EEOC is available on the agency’s web site at www.eeoc.gov.