The Oakland Press

Trump administra­tion targets diversity hiring by contractor­s

- ByMattO’Brien and AlexandraO­lson

American companies promising to hiremore Black employees in leadership­roles and teach their workforce about racism are getting a message fromPresid­entDonald Trump’s administra­tion: Watch your step if you want to keep doing business with the federal government.

Trump’s Labor Department is using a 55-year-old presidenti­al order spurred by the CivilRight­sMovement to scrutinize­companies likeMicros­oft andWells Fargo over their public commitment­s to diversity. Government letters sent last week warned both companies against using “discrimina­tory practices” to meet their goals.

Microsoft has brushed off the warnings, publicly disclosing the government inquiry and defending its plan to boost Black leadership.

But advocates for corporate diversity initiative­s worry that more cautious executives will halt or scale back efforts to make their workplaces more inclusive out of fear that a wrong step could jeopardize lucrative public contracts. The agency has oversight over the hiring practices of thousands of federal contractor­s that employ roughly a quarter of all American workers.

“For tech companies that don’t care about these issues, the pronouncem­ents are a dog whistle that they can carry on discrimina­ting the way they already have,” said Laszlo Bock, an executivew­ho ranGoogle’s human resources division for more thana decade andnow leads software startup Humu.

Bock said those who do care, however, will see Trump’s actions as political “sound and fury” thatwill be hard to enforce.

“It’s not at all illegal to strive to have a workforce that reflects the makeup of your nation,” Bock said.

Democratic President Lyndon B. Johnson’s 1965 order was designed to “adjust the imbalances of hiring that are a legacy of our racist past,” said employment attorney and public contractin­g expert Daniel Abrahams.

“Trump is turning it around into an instrument of white grievances,” he added.

The president has also ordered theLaborDe­partment to set up a newhotline to investigat­e complaints about anti-racismtrai­ning sessions that Trump has called “antiAmeric­an” and “blame-focused.” The order signed last month calls attention to discussion­s of deep-seated racism and privilege that could makewhitew­orkers feel “discomfort” or guilt.

Trade groups representi­ng the tech and pharmaceut­ical industries are protesting

Trump’s new order, saying it would restrict free speechandi­nterferewi­thprivate sector efforts to combat systemic racism.

Trump’s executive order is a twist on Johnson’s 1965 directive and amendments that followed that set rules banning discrimina­tory practices at companies that contractwi­th the federal government. It requires contractor­s to take “affirmativ­e action” to open the doors to hiring minorities and women.

But the Labor Department is raising questions about the specificit­y of commitment­smade by executives addressing racial injustice in response to thewave of Black LivesMatte­rprotests that followed May’s police killing of

George Floyd inMinneapo­lis.

Microsoft CEO Satya Nadella said in June that the tech company would double the number ofBlack andAfrican Americanma­nagers, senior individual contributo­rs and senior leaders by 2025. Wells Fargo CEO Charles Scharf made a similar commitment in June to doubling Black leadership over the next five years.

Abrahams said he doubts that the Labor Department has much of a case against companies that are trying to boost diversity, though “there’s some discrimina­tion against white people that’s probably actionable,” and courts have danced around the question ofwhat happens when employers set “inflexible” targets for racial quotas.

But he said it’smore likely the Trump administra­tion is using the move as a political tactic ahead of the presidenti­al election. Trump has criticized­workplace training that he says is based on critical race theory, or the idea that racism is systemic in the U.S.

Dozens of companies have ramped up their efforts to bring more Black and other minority employees into their ranks since the protests over Floyd’s death shook the country and triggered a national reckoningo­ver racism. Many have announced initiative­s specifical­ly targeting the African American community.

The CEOs of the 27 largest employers in New York — including Amazon and J.P. Morgan — formed a coalition to recruit 100,000 people from low-income Black, Hispanic and Asian communitie­s in the city by 2030. More than 40 companies have joined a pledge to add at least one Blackmembe­r to their board of directors by 2021.

Several other top government contractor­s have set numeric goals for adding Black or Latino employees, including consulting firms Accenture and Deloitte.

Johnny Taylor, the CEOof the Society for Human ResourceMa­nagement, said he has asked for a conference with U.S. Labor Secretary Eugene Scalia to seek clarity about the intention of the inquiries.

“I want them to ensure the companies are complying with the lawbut that investigat­ion doesn’t result in a chilling effect on diversity and inclusion programs,” said Taylor, whose organizati­on represents 300,000 human resource profession­als across the world.

Taylor said he believed the policies announced by Microsoft and Wells Fargo amounted to aspiration­al goals, rather than quotas based on race. But he said announcing numbers may have opened companies to discrimina­tion complaints.

Companies can protect themselves against claims of discrimina­tion by widening their applicant pool to ensure a large enough number of qualified minority candidates, said Mabel Abraham, an assistant professor ofmanageme­nt at Columbia University. The challenge, she said, is that companies have to show they have measurable diversity goals to attract talented minority applicants in the first place.

“Companies that are going to get the applicants are the ones that actually have minorities in top roles and that are putting out messages of race and diversity,” she said. “It’s a chicken-andegg problem.”

 ?? ASSOCIATED PRESS FILE PHOTO ?? Microsoft CEO Satya Nadella talks during a company event in New York. Nadella said in June 2020that the tech company would double the number of Black and African American managers, senior individual contributo­rs and senior leaders by 2025.
ASSOCIATED PRESS FILE PHOTO Microsoft CEO Satya Nadella talks during a company event in New York. Nadella said in June 2020that the tech company would double the number of Black and African American managers, senior individual contributo­rs and senior leaders by 2025.

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