Transcript Women in the Work Force

Mothers Work Inc.
Brand Image and Accusations of
Employment Discrimination
A Notre Dame case study prepared by research assistants Carolyn Billick and
Lusiena Wong under the direction of Prof. J. S. O’Rourke, IV. Copyright 2004.
Mothers Work’s Brands
Presentation Overview
 Introduction to Problem
 Company History
 Rebecca Matthias, founder of
Mothers Work, Inc.
 Corporate Communication at
Mothers Work
 Cynthia Papageorge
Presentation Overview
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Women in the Workforce
Pregnancy Discrimination
Maternity Laws (FMLA, MMLA)
Lawsuit
Discussion Questions
Problem
 Late June, 2003, Rebecca Matthias called an
emergency meeting to discuss Cynthia
Papageorge’s lawsuit.
 Papageorge is former district manager who has
sued the company and VP Frank Mullay for firing
her, claiming the dismissal was because of her
gender and pregnancy.
Problem
 Mothers Work had settled two similar
cases outside of court, another was
dismissed.
 Response from feminist groups.
 Image and reputation concern.
Company History
 Began by Rebecca and Dan Matthias in
1982 out of their Philadelphia home.
 Market niche for professional-looking
maternity wear.
 Brands include Motherhood Maternity,
Mimi Maternity, A Pea in a Pod and
iMaternity .
 IPO in 1993, facilitated by Meridian
Venture Partners.
Company History
 “Give the customer what she wants, when
she wants it.”
 Vertically integrated, supply chain efficient.
 Recently opened 1,000th store in New
Jersey during summer 2003.
 Considered the leading maternity clothing
provider in the US.
 $500 million organization.
Rebecca Matthias
 President and COO of Mothers
Work, Inc.
 Civil engineer, architect: MIT,
Columbia, Univ. of Pennsylvania.
 Quit job to start computer company
with husband, Dan.
 Became pregnant and had trouble
finding professional maternity wear.
 Advocate for women owning small
businesses.
Rebecca Matthias
 Board of Trustees at Drexel
University, University of
Pennsylvania.
 Author of a popular book about
Mothers Work.
 Honored by the United States Small
Business Administration.
 Mother of three children.
Rebecca Matthias
“I’m a huge advocate for
women starting their
own businesses
because it fits into
[their] lifestyle…Women
need flexibility,
especially women with
children…”
Corporate Communication at
Mothers Work and Mona Astra Liss
 No formal department of
corporate communication.
 Rebecca Matthias serves as
company’s most visible
spokesperson, followed by Mona
Astra Liss, Publicity Director.
Corporate Communication at
Mothers Work and Mona Astra Liss
 Responsible for all of Mothers
Work fashion shows, creation of
A Pea in a Pod’s celebrity mother
program.
 Has written for New York Times,
Washington Post, People, and
US Weekly.
 Appears on a regular TBS show.
“Dinner and a Movie.”
Cynthia Papageorge
 Began work in 1997 overseeing
stores in Massachusetts,
Connecticut, and Rhode Island.
 October 1999: 37 weeks
pregnant and ordered to be
fired by VP Frank Mullay after
surprise store inspections.
 Mullay made several comments
about Cynthia’s “condition”
inhibiting her work.
Cynthia Papageorge
 Jan Dowe, Papageorge’s boss,
refused to fire Papageorge after
being told it would be illegal.
 Six months after returning from
maternity leave, Papageorge
was released after taking
medical leave for an unrelated
shoulder injury.
Women in the Work Force
 Increased participation in the
labor force.
 Accounted for 85% of total
increase in number of workers
with more than one job
between 1989-1999.
 Labor force participation
continues to be highest in the
35-to-44 age groups.
 Working harder.
 “Double shift.”
Pregnancy Discrimination
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The frequency of pregnancy-related
discrimination cases is on the rise.
According to the U. S. Equal Employment
Opportunity Commission:
~ Complaints nationwide increased 10%
during 2002 to more than 4,700 cases.
~ Increase of approximately 40% since 1992.
Protection
 Pregnancy Discrimination
Act (PDA) of 1978.
 Family Medical Leave Act
(FMLA).
 Massachusetts Maternity
Leave Act (MMLA).
Pregnancy Discrimination Act
The Pregnancy Discrimination Act (PDA) of 1978 was
passed as an amendment to Title VII of the Civil Rights
of 1964. The act states, in part:
“Women affected by pregnancy, childbirth, or related
medical condition shall be treated the same for all
employment-related purposes, including receipt of
benefits under fringe benefit programs, as other persons
not affected but similar in their ability or inability to work”
Family Medical Leave Act
The Family Medical Leave Act (FMLA) was passed by
Congress in 1993 and guarantees employees of
companies up to 12 weeks of unpaid leave annually for
certain medical reasons or for the birth or adoption of a
child.
To be eligible:
 Employer must have 50 or more employees.
 Employees have been working for the employer for at
least 12 months and 1,250 hours in the last year.
Family Medical Leave Act
The FMLA protects employees by:
 Guaranteeing employees of companies up to 12 weeks
of unpaid leave annually for certain medical reasons or
for the birth or adoption of a child.
 Requiring employers to reinstate employees to their
former job or an equivalent job at the end of the leave.
 Maintaining any group health insurance coverage under
the same conditions of coverage and cost-sharing
arrangement as if the employees were working during
the leave.
Massachusetts Maternity Leave Act
In the state of Massachusetts, employees receive
additional protection through the Massachusetts Maternity
Leave Act (MMLA).
To be eligible:
 The employer must have 6 or more employees.
 Employees should have completed 3 months of
employment probation.
 Employees must give 2 weeks notice of departure date
and intent to return.
Massachusetts Maternity Leave Act
The MMLA requires that:
 Employee on leave be restored to the previous or a
similar position upon return to employment following
leave.
 The position must have the same status, pay, length of
service credit and seniority as the position the employee
held prior to the leave.
Massachusetts Maternity Leave Act
The MMLA also requires the maternity leave to
not affect the employee’s right to receive:
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Vacation time
Sick leave
Bonuses
Advancement
Seniority
Length of service
credit
 Benefits
 Plans or programs she was
eligible at the date of the
leave
 Advantages or rights of her
employment incident to her
position
Massachusetts Maternity Leave Act
BUT….
 MMLA does not give employee returning from leave
greater rights in terms of benefits or work conditions over
other employees who have been working while the prior
employee was on leave.
 Employer is not required to reinstate a returning
employee to her previous position if other employees of
the same caliber and length of service have been laid off
during her leave period due to economic conditions or
operation changes.
The Lawsuit
 Lawsuit claims Papageorge was fired because she was
pregnant
 Papageorge’s lawyer:
“It seems that pregnant women are subject to termination
by virtue of their pregnancy. That position was made
known in meetings with managers at Mothers Work. The
other women [from other lawsuits] were terminated for
the same reason.”
 Dowe filed a similar suit after being fired shortly after
returning from maternity leave. Case was settled out of
court.
Discussion Questions
 What facts in this case appear to be most
important to you?
 Who are the key stakeholders in this case? How
will a verdict for or against Papageorge affect the
parties?
 What actions (if any) should Mothers Work, Inc.
take? What message should the company send
to the public? Who is Mothers Work’s target
audience?
Discussion Questions
 What are the critical issues of this case? Which
issue should Mothers Work confront first?
 Since there is no Corporate Communications
department, who should deliver Mothers Work’s
message? What mediums should Mothers Work
use to convey its position?
 This lawsuit has not received much media
attention (since the original filing of the suit).
Why do you think this is the case?