Cover-the-Earth, Inc. operates a pharmaceutical plant located in Fort Worth, TX for the across-the-counter cold remedies. Of the 2,560 production personnel currently employed at the facility, 750 are White males, 130 are Black females, 500 are Hispanic males, 30 are Asian males, 150 are black males, 450 are Hispanic females, and 370 are White females, 70 are Asian females, 30 are Native American males and 20 are Native American females. There are also 30 Mixed Race males and 30 Mixed Race female production workers.
The Fort Worth statistical metropolitan area has a civilian labor force of 520,243 of which 87,979 are Black; 12,541 are Asian-American; 171,435 are Hispanic; 1,172 are Native American, 238,206 are non-Hispanic whites, and 9,010 are Two or More Races.
Males account for approximately 52% of the total local labor market.
In calendar year 2020, 46 Asian males applied for production jobs and 36 passed the first stage of the selection process (a manual dexterity test), compared to 38 Asian females applicants of whom 16 passed. Also, 210 Hispanic males applied and 110 passed. Additionally, 180 Hispanic females applied for work during the same period of which 45 passed. That year, 500 Black males and 300 Black females applied for work of which 110 and 180 passed, respectively. Additionally, 90 White females applied and 65 passed. Of the 610 White males who applied, 340 passed. There were 25 Native American males who applied, of whom 15 passed, and 18 Native American females of whom 5 passed. Finally, 27 of the 41 Mixed Race male applicants passed, and 18 of the 35 Mixed Race females passed. Assume that all production jobs require low skills.
1. The IAM (international Association of Machinists) claims that the company’s manual dexterity test discriminates against Black applicants. Using the four-fifths rule and actual applicant flow analysis, is there adverse impact on the basis of race for Black applicants? Show your calculations (Example: .377/.559 = .674 < .8 Yes, disparate impact)
2. The Libertarian Workers’ Association claims that the company’s manual dexterity test discriminates against White applicants. Using the four-fifths rule and actual applicant flow analysis, is there adverse impact on the basis of race for White applicants? Show your calculations
3. Similarly, NOM (National Organization for Men) contends that company’s manual dexterity test discriminates against male applicants. Using the three standard deviation rule and actual applicant flow analysis, is there adverse impact on the basis of sex for male applicants? Is there disparate impact using the two standard deviation rule? Show your calculations (Example: Z = (595 - 666.66)/15.207 = -4.712 < -3.0 Yes Disparate Impact)
4. To make matters worse, La Raza alleges that company’s manual dexterity test discriminates against Hispanic applicants. Using the three standard deviations rule and actual applicant flow analysis, is there adverse impact on the basis of ethnicity (Hispanic)? Is there disparate impact using the two standard deviations rule? Show your calculations
5. The Iroquois Confederation claims that the company’s manual dexterity test discriminates against Native American applicants. Using the four-fifths rule and actual applicant flow analysis, is there adverse impact on the basis of race for Native American applicants? Show your calculations