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Former Employees Allege Racial Discrimination |
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On Tuesday, October 18, 2005, three African American former employees of UBS Financial Services, Inc. ("UBSFS"), filed a class action lawsuit against the company in the United States District Court for the Southern District of New York alleging racial discrimination in hiring, promotion and other employment practices. The lawsuit was filed on behalf of all African Americans who were, are, or will be employed, or who sought employment at UBSFS, as brokers, non-broker officers, and other professional positions. The lawsuit seeks to put an end to years of racial discrimination at UBSFS.
The Complaint charges that UBSFS consistently fails to hire qualified African Americans for its professional positions, segregates African Americans within its workforce, assigns African Americans to lower ranking positions with lower compensation than Caucasian employees, denies them opportunities for promotion and advancement provided to similarly situated Caucasian employees, and denies African American employees resources, support and professional opportunities provided to their Caucasian co-workers. According to the lawsuit, these practices stem from stereotypes about the ability of African Americans to operate within UBSFS's system and the securities industry in general.
Among other facts, the Complaint cites the creation by UBSFS of two so- called "diversity" branches based on a "separate but unequal" model, staffed nearly entirely of minority brokers and focused nearly entirely on obtaining business from minority clientele. UBSFS failed to provide these segregated branch offices with proper support and they were eventually closed. Most of the minority brokers who worked there, including two of the plaintiffs, were eventually terminated. The Complaint also cites company-wide racially disparate staffing statistics, including the nearly total absence of African Americans in branch office management positions. The lawsuit seeks injunctive relief to end UBSFS's discriminatory practices as well as compensatory and punitive damages.
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