Microsoft’s Bias
Microsoft’s Bias
•
• In January 2001, sevIn January 2001, seven of Microsoft's former and currenten of Microsoft's former and current
African-African-Americans employees filed Americans employees filed a discrimination suita discrimination suit
against the company. One of the largest discrimination suits against the company. One of the largest discrimination suits ever filed in the US, it alleged racism and plantation
ever filed in the US, it alleged racism and plantation mentality
mentality at their workspace and sought $ 5 at their workspace and sought $ 5 billion inbillion in damages. Microsof
damages. Microsoft was t was accused of accused of discriminating againstdiscriminating against its employees through performance evaluations, pay
its employees through performance evaluations, pay packages, promotions, wrongful terminations and
packages, promotions, wrongful terminations and retaliation
retaliation. This suit co. This suit consolidated all the discriminatory suitsnsolidated all the discriminatory suits filed separately by the seven employees.
filed separately by the seven employees.
•
• Thus, all the Thus, all the former and current African-former and current African-American salariedAmerican salaried
employees employed by Microsoft (in the US) on or after employees employed by Microsoft (in the US) on or after October 4, 1997 and all the
October 4, 1997 and all the former and present femaleformer and present female salaried employees employed by
•
• The plaintiff claimed that The plaintiff claimed that MicrosofMicrosoft's employment policiest's employment policies
and practices permit
and practices permit its managers to its managers to exerexercise discretioncise discretion when deciding on
when deciding on evaluations, pay packages, promotionsevaluations, pay packages, promotions and job selections, resulting in decisions that
and job selections, resulting in decisions that reveal areveal a race/gender bias. During the early 1990s, many
race/gender bias. During the early 1990s, many discrimination related suits had been
discrimination related suits had been filed against Microsoft.filed against Microsoft. The plaintiff also alleged
The plaintiff also alleged that Microsoft discrimithat Microsoft discriminatednated against the Black and female w
against the Black and female workorkers by paying themers by paying them smaller salaries, bonuses and stock options than it paid smaller salaries, bonuses and stock options than it paid white males performing the same work. The suit also white males performing the same work. The suit also
alleged that Microsoft had even retaliated against Black
alleged that Microsoft had even retaliated against Black andand female employees who protested against this
female employees who protested against this discrimination.
•
• ReactiReacting to increasing media coverage ng to increasing media coverage of lawsuits filedof lawsuits filed
against it, Microsoft claimed that the company did
against it, Microsoft claimed that the company did notnot tolerate employee discrimination and was focused on tolerate employee discrimination and was focused on offering unbiased treatment to employees
offering unbiased treatment to employees and promotingand promoting women and members of
women and members of minority groups in its organization.minority groups in its organization. However, few people bought their story. Willie Gray, one of However, few people bought their story. Willie Gray, one of the leading attorneys dealing in
the leading attorneys dealing in discrimination suits, argueddiscrimination suits, argued that Microsoft showed plantation attitude when it came
that Microsoft showed plantation attitude when it came toto dealing with African-American workers. Gray remarked that dealing with African-American workers. Gray remarked that in 1999, only 2.6% of the
in 1999, only 2.6% of the MicrosofMicrosoft's employees and onlyt's employees and only
1.6% of its managers were Black. Throughout the 1980s and 1.6% of its managers were Black. Throughout the 1980s and early 1990s, Microsoft remain
early 1990s, Microsoft remained in the ed in the news fornews for discriminating against women
discriminating against women and African-Americans.and African-Americans.
•
• Many cases of Many cases of both sexual harassment and discriminationboth sexual harassment and discrimination
against female employees w
against female employees were reported.ere reported.
•
• Though the issue of racial discrimination arose in the late Though the issue of racial discrimination arose in the late
1990s, it was only in 2000 that
Hyundai Motor Co
Hyundai Motor Co
•
• Hyundai Motor Co., formed in 1967, was a part of the Hyundai Motor Co., formed in 1967, was a part of the largelarge
South Kor
South Korean Chaebol - ean Chaebol - the Hyundai Group - until the Hyundai Group - until the groupthe group split in September 2000. In the
split in September 2000. In the last four decades, Hyundailast four decades, Hyundai managed to establish itself all over the
managed to establish itself all over the world as a companyworld as a company producing reliab
producing reliable, technically le, technically sound and stylishsound and stylish automobiles.
automobiles.
In the 90s, the company
In the 90s, the company started aggressive overseasstarted aggressive overseas expansion pro
expansion programs. By the late 90s, grams. By the late 90s, when Southeast Asianwhen Southeast Asian crisis struck, the company like all the other chaebols, faced crisis struck, the company like all the other chaebols, faced serious financial problems. To survive, it had to cut its
serious financial problems. To survive, it had to cut its labour force. The company off
labour force. The company offered various retirered various retirementement schemes, unpaid leave for two
schemes, unpaid leave for two years, etc. to workers, andyears, etc. to workers, and expressed its inability to support its entire workforce in t expressed its inability to support its entire workforce in thehe slack period.
Labour Problems in the Late 1990s Labour Problems in the Late 1990s
•
• The slump in the South Korean economy in late 1990s was The slump in the South Korean economy in late 1990s was
bound to have an ef
bound to have an effect on Hyundai also. The automobilefect on Hyundai also. The automobile segment was among the first to be hit by the downslide in segment was among the first to be hit by the downslide in the economy. The domestic automobile sector had negative the economy. The domestic automobile sector had negative growth of almost 55% in 1998
growth of almost 55% in 1998 compared to the previouscompared to the previous year.
year.
Hyundai was responsible for almost 50% of
Hyundai was responsible for almost 50% of total automobiletotal automobile production in South Korea and was therefore badly hit. The production in South Korea and was therefore badly hit. The domestic sales of the company fell by 55% in the year 1998 domestic sales of the company fell by 55% in the year 1998 and its exports crashed by 74 percent to only 15,056 units . and its exports crashed by 74 percent to only 15,056 units . Hyundai recorded a 200 billion won loss
Hyundai recorded a 200 billion won loss in 1998.in 1998.
•
• AccordiAccording to company ng to company officials, Hyundai's six assemblyofficials, Hyundai's six assembly
plants with a yearly production capacity of 1.65 million plants with a yearly production capacity of 1.65 million vehicles, were operating at only 40 percent of their
vehicles, were operating at only 40 percent of their capacity. In May, 1998, Hyundai reacted to this grim capacity. In May, 1998, Hyundai reacted to this grim situation by announcing plans to lay off 27
•
• Unfortunately for the management of the company,Unfortunately for the management of the company,
Hyundai had one of the
Hyundai had one of the most powerful and militant unions.most powerful and militant unions. The decision of the c
The decision of the company to lay off workers sparked off ompany to lay off workers sparked off agitations not only in Hyundai but in other co
agitations not only in Hyundai but in other companies too.mpanies too. The unions were particularly offended at the government's The unions were particularly offended at the government's
approval of Hyundai's decision. approval of Hyundai's decision.
In a demonstration in Ulsan, where Hyundai has its biggest In a demonstration in Ulsan, where Hyundai has its biggest automobile plant, 32,000 employees participated in
automobile plant, 32,000 employees participated in rallies.rallies. All across South Korea almost 1,20,000 employees from
All across South Korea almost 1,20,000 employees from about 125 companies participated in
about 125 companies participated in demonstrationsdemonstrations against Hyundai and the government's decision. The against Hyundai and the government's decision. The government had to deploy nearly 20,000 riot police to government had to deploy nearly 20,000 riot police to control the demonstrators...
