Qualcomm to Pay to Settle Claims of Bias Against Women
July 26 2016 - 7:10PM
Dow Jones News
Chip maker Qualcomm Inc. will pay $19.5 million to settle claims
that women at the company receive lower pay and fewer chances for
promotion than men, according to papers filed Tuesday in a San
Diego federal court.
The deal will affect roughly 3,300 current and former Qualcomm
employees, primarily those in science, technology, engineering and
math positions.
As part of the agreement, which requires approval from a federal
judge, Qualcomm also said it will try to level the playing field
for women going forward, including hiring independent consultants
and an internal compliance officer, ramping up training, and
conducting regular pay-equity and promotion analyses.
"Qualcomm is committed to treating its employees fairly and
equitably," Christine Trimble, the company's vice president of
public affairs, said in a statement Tuesday.
The plaintiffs alleged women at Qualcomm face "systemic gender
discrimination," which they say is more acute for working mothers.
That includes a "flawed" compensation system that negatively
affects female employees, according to court filings, and a
promotion system that relies on sponsorship by mostly male managers
rather than allowing interested parties to apply for openings.
"The effects of this model in the context of Qualcomm's
male-dominated culture are apparent in the trend towards reduced
proportions of women at each successive level of Qualcomm's
hierarchy," the plaintiffs claimed. Women hold less than 15% of
senior leadership positions at the company, court filings show.
Plaintiffs and the San Diego-based company reached the
settlement before a lawsuit was actually filed. Plaintiffs' lawyers
have been in negotiations with Qualcomm outside of court since
autumn.
Ms. Trimble said the company believes it has "strong defense to
the claims" but "elected to focus on continuing to make meaningful
enhancements to our internal programs and processes that drive
equity and a diverse and inclusive workforce."
David Sanford, an attorney for the employees, called it an
"extraordinary result" and said not all companies will take
Qualcomm's stance and work through the issues outside of court.
Plaintiffs' attorneys are requesting 30% of the settlement for
themselves, leaving an estimated $13 million for the affected
employees to split after additional expenses are taken out. The
women are expected to be paid just under $4,000 each on average
before tax, court filings show, calculated on time with the company
and other factors.
The company discouraged taking leave and penalized female
caregivers, the plaintiffs say, by rewarding a culture of working
late and being available 24/7.
Qualcomm, which has around 15,000 employees in the U.S., makes
processors and modem chips for smartphones and licenses cellular
technology patents to smartphone makers.
The company reported revenue of $6 billion in the three-month
period ending June 26, with profits of $1.4 billion that beat
analyst expectations.
Write to Sara Randazzo at sara.randazzo@wsj.com
(END) Dow Jones Newswires
July 26, 2016 18:55 ET (22:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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