The potential for employment practices claims such as sexual harassment allegations, discrimination and wrongful termination has manufacturers on edge, according to the 400 respondents to MAGNET’s Manufacturing Survey. The survey, sponsored by Oswald, asked manufacturers to identify their top concerns and employee lawsuits sit in the top ten.
While major manufacturers are most likely to make headlines, small to mid-size manufacturers are also at risk with 41.5% of all employee lawsuits targeting companies with 100 or fewer employees. Given the recent focus on sexual harassment and the #Metoo movement, this segment of employee lawsuits warrants additional attention by manufacturers.
We are proud to be helping manufacturers address this concern and to work together to provide services that can mitigate risk and offer protection if harassment accusations arise, litigation is pursued and settlements are granted.
Manufacturing places third in the industries facing the most sexual harassment charges. Although the number of charges brought by men has doubled in the past 15 years, females in manufacturing are often targeted for several reasons including:
While other industries face similar challenges, the uniqueness of manufacturing places special concern on the shoulders of owners and leaders in this segment. While the largest may be able to withstand the extended length of time to investigate and settle, many small to mid-sized manufacturers will not survive the storm of publicity, litigation and settlement costs.
Sexual harassment charges cost manufacturers hard dollars and soft expenses, too. Hard dollar costs can stagger, cripple or even close a manufacturer for good. While the EEOC estimates that only 6 to 13 percent of sexual harassment allegations become formal charges, when it happens, the hard dollar costs are high:
There are many soft cost as well that can be hard to measure but have the ability to impact profits:
In addition, for the manufacturer, the time and energy expended on the allegations, litigation and remedies can distract from business operations.
Unfortunately, for manufactures whether a claim of harassment is frivolous or not, it is the responsibility of the company to address the suit and absorb the cost of defense. The impact of these cost as well as potential settlement amounts can be substantially reduced with proper procedures in place and appropriate insurance coverage.
At Oswald, we partner with our manufacturing clients using a comprehensive risk identification, risk mitigation and risk transfer process specifically designed to address sexual harassment in the work place.
Using ACT, we will work with you to:
You need to understand the vulnerabilities your company faces, take the right steps to close gaps and find the best ways to address issues now and in the future. Our professionals will work with you every step of the way to help you create manufacturing success with the protection you need.
To learn more about the ways you can protect your business, contact:
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