Discrimination in Seniority Systems: A Case Study

Abstract

According to the 1977 U.S. Supreme Court decision in Teamsters v. U.S., seniority systems that have disparate impacts on women and black workers as compared to white men are not necessarily illegal. This paper uses a case study to examine what constitutes illegally discriminatory treatment in a seniority system in light of the Teamsters decision and subsequent rulings by federal courts. The empirical findings strongly suggest that as of 1976, at least with respect to promotions, the seniority system in the plant studied illegally discriminated against white women and black workers. The author concludes that the methodology used in this case can be applied more generally to other establishments where formal rules and organizational structures are important in shaping promotion opportunities.