US Agency Alleges Discrimination and Harassment at Two Major Automakers

The U.S. Equal Employment Opportunity Commission (EEOC) has filed lawsuits against two major automakers, alleging age discrimination and sexual harassment in their workplaces. The lawsuits, filed in federal courts in Indiana and Detroit, respectively, target General Motors (GM) and Stellantis, the parent company of Chrysler.

In the case against GM and the United Auto Workers (UAW), the EEOC alleges that the companies have maintained a sickness-and-accident benefits policy under their collective bargaining agreement that reduces payouts to older employees who receive Social Security benefits. This policy, in effect since October 2019, discriminates against employees ages 66 and older, violating the federal Age Discrimination in Employment Act. The policy covers at least 50 GM facilities nationwide.

GM had no immediate comment, having yet to review its complaint. FCA and the UAW did not immediately respond to requests for comment about their respective cases. The GM and UAW lawsuit seeks to recoup benefits that workers ages 66 and older deserved but never received, while the FCA lawsuit seeks compensatory and punitive damages for female employees at the Detroit plant. Both lawsuits also seek permanent injunctions against further wrongful conduct.



In the case against Stellantis' FCA US unit, the EEOC alleges that the company has tolerated pervasive sexual harassment of female employees at a Detroit assembly plant since December 2020. The alleged harassment included inappropriate touching and sexually charged comments, creating a hostile work environment that violated Title VII of the Civil Rights Act of 1964. FCA routinely ignored complaints about male supervisors and co-workers, some of whom were placed in leadership roles.

GM had no immediate comment, having yet to review its complaint. FCA and the UAW did not immediately respond to requests for comment about their respective cases. The GM and UAW lawsuit seeks to recoup benefits that workers ages 66 and older deserved but never received, while the FCA lawsuit seeks compensatory and punitive damages for female employees at the Detroit plant. Both lawsuits also seek permanent injunctions against further wrongful conduct.



The lawsuits are part of a string of enforcement actions by several federal agencies in the final days of the Biden administration. It is unclear how EEOC enforcement priorities will change after President-elect Donald Trump enters the White House.

These allegations have significant implications for the reputations and potential future investments of GM and Stellantis. The companies may face loss of consumer trust, difficulty in attracting and retaining top talent, increased scrutiny from regulatory bodies, and potential negative impacts on stock prices and investment opportunities. To address these issues and prevent similar incidents in the future, GM and Stellantis should review and revise their policies, implement effective training programs, establish clear reporting mechanisms, enforce consequences for harassment, promote a culture of respect and inclusion, and regularly review and update their policies and procedures.