BulletProofBlog the blog on crisis communications

In this regular feature, Bulletproof interviews top plaintiffs' attorneys for their perspective on the crises likely to affect businesses in the near future. Today we talk to Eugene K. Hollander of The Law Offices of Eugene K. Hollander in Chicago.

Last week Mr. Hollander filed suit against the Dr. Pepper Snapple Group on behalf of seven African-American warehouse employees, alleging verbal abuse, intimidation, and systematic discrimination by Hispanic co-workers and supervisors.

The time element seems to be a bone of some contention in this case. What specifically is at issue?

Eugene Hollander: The pattern of abuse and discrimination began in force in 2007, although there was clear indication of tension between the African-American and Hispanic employees as early as 2005. While my clients were certainly being taunted – with words like “nigger” and “monkey” – two years ago, by 2009 abusive graffiti was being spray-painted on their lockers, which the company has since painted over.

Dr. Pepper claims to have launched an immediate investigation, yet none of the abusers were disciplined until this year, when two of the three main offenders were fired. The third is still employed at the warehouse.

It’s outrageous that two years elapsed, yet three other lawsuits have been filed at various times in 2009. Even if we focus only on this year, the company has still been unacceptably tardy in its response. One year is unacceptably tardy. For companies to avoid significant exposure and reputational damage, they must take immediate remedial action in such situations. They must immediately eradicate the cancer.

A further lesson here is that, even if we assume the company was amenable to corrective action, it did not provide adequate resources for the injured employees. These men work at night. Neither at night, nor the next morning were they able to expeditiously contact the human resources office. HR’s phone simply went unanswered in the morning, with no confidential voice mail provided.  

Is there an additionally difficult dimension to this case, as it pits Hispanics against African-Americans?

Eugene Hollander: That is a dimension. With respect to this case, I have discussed the hostility between the two communities on radio. Racism comes in all colors and, hopefully, as a result of this lawsuit there will be greater awareness among employers that they cannot confine their training and remediation to traditional white/black situations.

Likewise, the fact that racism happens in warehouses does not make it any less dangerous than in polite offices among white collar workers.   

What must that training entail to be credible and effective?

Eugene Hollander: There must be at least four unmistakable elements. First, the training must be provided to everyone. Second, it must clearly define and communicate to all employees what a hostile workplace is. Third, it must make it absolutely clear that they’re talking about a zero tolerance policy, and what the consequences of violating that policy are. Finally, supervisors must know that they are obliged to communicate all practical aspects of the policy to anyone working under them – and that they will be held responsible for unacceptable behavior by anyone under their supervision.

Anything short of such pointed and comprehensive training is just window dressing.        

How important is the disparate pay complaint in this case?

Eugene Hollander: Of course, such complaints are always important in labor/employment lawsuits. In this case, the workers are paid based on the number of pallets they load on the trucks. The company has a "one man-one truck" rule whereby only a single employee can work on a truck at a time. At the Dr. Pepper warehouse, only the black workers were subject to that rule. The Hispanics loaded more, so they made more money.

The additional significance of this inequity is that it was so glaringly evident. Aside from the injustice of the disparate pay, it shows that everyone had to be aware of the real situation. It was right there before their eyes, every day.

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Larry Smith is Senior Vice President of Levick Strategic Communications, the nation's top crisis communications firm, and a contributing author to Bulletproof Blog. Connect with Levick on Twitter: @Levick.