Signal International Settles EEOC Lawsuit for $5 Million

Signal International, a company that's been in the news for all the wrong reasons, has finally settled a lawsuit filed by the EEOC. They're paying out a whopping $5 million to resolve the case.

The lawsuit was a result of the company's treatment of Indian guest workers, who were subjected to forced labor and other forms of exploitation. It's a stark reminder that even in the US, some companies will stop at nothing to cut costs and increase profits.

The $5 million settlement is a significant victory for the EEOC, which has been working tirelessly to protect the rights of workers like these Indian guest workers. It's a testament to the power of holding companies accountable for their actions.

Signal International, a ship building and repair company, has agreed to pay $5 million to settle a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC).

The lawsuit alleged that Signal International subjected Indian guest workers to a pattern of race and national origin discrimination. The workers were recruited from India through the federal H-2B guest worker program to work at facilities in Texas and Mississippi after hurricanes Katrina and Rita.

Signal International forced the men to live in overcrowded, unsanitary camps, where they were charged $1,050 a month to stay. Non-Indian workers were not required to live in these camps.

The company's actions violated Title VII of the Civil Rights Act of 1964, which prohibits discrimination in employment based on race or national origin.

Signal International's CEO has issued a statement acknowledging the company's wrongdoing and apologizing for its treatment of the guest workers.

Signal International has faced a significant controversy surrounding human trafficking and labor exploitation. In 2008, the company was sued for allegedly forcing 12 guest workers to live in squalid conditions in Orange, Texas.

The workers, who were hired to rebuild infrastructure damaged after Hurricane Katrina, were promised a decent living but instead found themselves in overcrowded quarters with up to 24 men sharing a space the size of a double-wide trailer.

Signal International deducted $1050 per month from employee paychecks to pay for "rent", and workers were subject to regular searches, no alcohol or visitor policies, and guards addressing them by numbers.

The company saved an estimated $8 million in labor costs as a result of this scheme. Signal International's actions had a profound impact on the lives of these workers, who were treated more like prisoners than employees.

In May 2013, 83 more workers filed suits with similar claims, and the Southern Poverty Law Center filed additional suits representing 500 more workers in August 2013.

Signal International faced a string of lawsuits related to human trafficking and visa policy infringement. In 2008, the company was sued in federal court by 12 guest workers who claimed they were forced to live in squalid conditions.

Approximately 500 skilled Indian nationals were promised a decent living in worker's quarters but were instead housed in overcrowded conditions. The workers were hired to rebuild infrastructure damaged after Hurricane Katrina.

Signal International deducted $1050 per month from employee paychecks to pay for "rent" and saved an estimated $8 million in labor costs as a result. This scheme was uncovered by lawsuits filed by migrant workers.

In May 2013, 83 workers filed suits with similar claims, and in August 2013, the Southern Poverty Law Center filed additional suits representing 500 more workers. These suits led to a federal court jury awarding $14.1 million in damages to 5 workers in February 2015.

Signal International filed for Chapter 11 bankruptcy protection on July 12, 2015, with 11 similar lawsuits involving 227 other migrant workers from India. The company settled another $20 million with trafficked workers just before filing bankruptcy.

Signal International is a global leader in the maritime industry, with a presence in over 20 countries.

The company was founded in 2000 and has since grown to become one of the largest providers of ship repair and maintenance services in the world.

Signal International operates a network of 23 ship repair yards across the globe, employing over 7,000 people.

One of the company's key strengths is its ability to provide a wide range of services to its clients, including ship repair, maintenance, and newbuilding construction.

Signal International's commitment to innovation and technology has allowed it to stay ahead of the curve in the maritime industry, with a focus on digitalization and sustainability.