Gerber Pays Nearly $1 Million Fine for Discrimination
Gerber Products Co. has agreed to pay a nearly $1 million fine to job applicants who were discriminated against, the Department of Labor announced this week. The fine comes after a 2005 investigation found the baby food company rejected more than 1,900 minority and female applicants for entry-level positions, and used pre-employment tests that discriminated against minorities.
“This settlement of $900,000 on behalf of more than 1,912 minorities and females should put all federal contractors on notice that the Labor Department is serious about eliminating systemic discrimination,” said Secretary of Labor Hilda L. Solis on Tuesday.
The investigation stems from a scheduled compliance evaluation of Gerber’s Fort Smith, Arkansas, factory by the department’s Office of Federal Contract Compliance Programs (OFCCP). Investigators found the hiring disparity was in part caused by inconsistent selection procedures for entry-level positions. Additionally, the OFCCP found that Gerber used pre-employment tests that negatively impacted minority applicants and determined that there was insufficient evidence of validity to support Gerber’s use of the test. Gerber has discontinued its use of the test in the hiring process for entry-level positions, the Labor Department said.
The fine will cover back pay and interest. As part of the agreement, Gerber’s Fort Smith factory will provide 61 entry-level positions to those who were denied jobs due to discriminatory practices. The company, which is a unit of Nestle NA, has also agreed to undergo self-monitoring measures to ensure all hiring practices fully comply the law and immediately correct any discriminatory practice.
— Renita Burns
Hampton University Nursing School Awarded Millions in Grants
The Hampton University School of Nursing in Hampton, Virginia was recently awarded more than $3 million in grants. The three grants, awarded by the Department of Health and Human Services, will go toward workforce preparation, student retention, and doctoral program enhancement.
“As a result of this funding, the School of Nursing will be able to increase recruitment, retention and graduation of nurse clinicians, scholars and educators, thereby, contributing to the supply of nurses in the profession,†said Dr. Arlene Montgomery, dean of the school, in a statement. “This outcome will directly impact the nurse shortage by providing more practicing professionals. Now we must continue this process for future funding.â€
The Advanced Education Nursing Grant, which was $1.1 million, will go toward enhancing the Doctor of Philosophy program to prepare graduates for national certification as nurse educators.
The Nurse Education Practice and Retention Grant, which was $835,136, will go toward expanding enrollment in the baccalaureate nursing program.
The third award, the Nursing Workforce Diversity Grant, which as $1.2 million, will go toward increasing nursing education opportunities through the implementation of a pre-entry and post-enrollment program that includes retention activities, stipends, and scholarship support for students from disadvantaged backgrounds.
— Janell Hazelwood
FAMU’s Licensing Program Has Record Year
Florida A&M University (FAMU) had a banner year for revenue generated from licensing, the school announced Friday. The Tallahassee-based university had $79,007 in gross royalties during the 2008-2009 fiscal year — the largest amount since the licensing program began in 2000. But, even with the gains made, the historically black institution still has a long way to go to compete against majority-white schools that generate millions of dollars.
Of the seven HBCUs that partner with the Collegiate Licensing Co. (CLC), a licensing agency for colleges, universities, and athletic conferences, FAMU ranked No. 1 in selling licensed merchandise, followed by Southern University, and North Carolina A&T State University, according to a CLC spokesperson.
“This is only an indicator of the success that we can have with this program,†said Sabrina Thompson, coordinator of licensing at FAMU, in a news release. “My goal is to increase sales by 25% in the upcoming year. We hope to continue to soar and bring revenue to the institution during these tough economic times.â€
Licensing revenue for FAMU increased by $5,864, and the school placed 111th among all 156 schools ranked by the CLC for revenue generated. In comparison, The University of Texas at Austin ranked No. 1, for the fourth consecutive year, with gross royalties totaling a little over $8.8 million.
A licensing agreement with Victoria’s Secret Pink, which generated $7,764 in royalties for FAMU during the 2008-2009 school year, is the primary contributor for the royalty increase from last year. The Pink collection, which features casual and athletic women’s clothing with adorned with the school’s logo expanded FAMU’s women’s apparel category by 187%. All royalties from the school’s licensing program fund athletic scholarships at FAMU.
— Marcia Wade Talbert