Boeing and Lockheed Martin engine supplier GE Aerospace will pay $443,000 in back wages and interest to resolve claims of gender-based hiring discrimination against 116 female applicants at a facility in Rutland, Vermont.
The agreement with the Department of Labor comes after an Office of Federal Contract Compliance Programs review found the aerospace engine maker allegedly discriminated against some applicants for manufacturing operations associate positions at the Rutland plant from Aug. 1, 2018, to Jan. 31, 2020.
The agency found statistically significant differences in the Rutland plant’s hiring rates for female applicants versus male applicants for the operations associate position during this time.
GE Aerospace’s Rutland plant manufactures turbine engines for U.S. Army helicopters as part of its Improved Turbine Engine Program.
Some of the responsibilities for the operations associate role include setting up the production machining equipment such as the forming presses and the computer numerical control machines, according to the GE Aerospace website.
GE Aerospace’s alleged discrimination violates an executive order that prohibits federal contractors from discriminating in hiring, the Department of Labor said. The company reached an agreement with the department to remedy the alleged violations on Feb. 7.
Within the company’s $443,000 payment, GE Aerospace will pay $361,958 in back pay and $81,042 in interest to be distributed among the eligible class members.
Class members will also be prioritized over other candidates for the operations associate position until 14 women from the list of affected applicants have been hired or the list has been exhausted, according to the agreement.
The company has until Aug. 11 to complete these actions.
Men earn over $20,000 more a year on average than women in the aerospace products and parts industry, according to Data USA. The average salary for men is $105,602, while women make an average of $83,439.
“Ensuring equal opportunity during the hiring process is important and required under the law,” Office of Federal Contract Compliance Programs Acting Northeast Regional Director Samuel Maiden said in a statement. “By entering into a conciliation agreement, GE Aerospace is showing its commitment to meeting those standards by eliminating hiring barriers for women.”
In addition to providing monetary compensation, GE Aerospace’s Rutland site must modify its employment practices and evaluate its selection process regarding operations positions.
The engine maker must also retain personnel and employee records and implement an auditing system for its affirmative action program. GE Aerospace must submit progress reports to the Department of Labor through March 2026.
The company denies it violated any laws, according to its agreement with the department.
“GE Aerospace is committed to building a diverse workforce and culture where all employees contribute and succeed,” a spokesperson told Manufacturing Dive in a Feb. 16 email. “While GE Aerospace disagrees with the preliminary findings, we continue working to achieve our goal.”
GE Aerospace is just one of many federal contractors that the Labor Department claims violated Executive Order 11246.
Last year, HVAC system maker Daikin Industries and Raytheon Technologies subsidiary Rosemount Aerospace both settled with the Department of Labor for racial discrimination against applicants in assembly roles.
And the Department of Justice sued Elon Musk-owned SpaceX in September for allegedly discriminating against hiring refugees and those granted asylum. Musk denied wrongdoing on his personal X (formerly Twitter) account.
