BOSTON, February 6: In the largest sex harassment settlement in US history, the American subsidiary of a Swedish pharmaceutical company has agreed to pay $9.85 million to settle claims that its former president and other executives pressured women employees for sex and replaced older workers with young beauties.At least 79 women and a man who said he was punished for speaking out will share the sum -- the biggest sexual harassment settlement ever obtained by the US Equal Employment Opportunity Commission (EEOC).
Astra USA, the American subsidiary of Astra AB, admitted it allowed a hostile work environment -- including requests for sexual favours in exchange for favourable treatment -- for women at its US headquarters in Westboro.
"As a company we are ashamed of the unacceptable behaviour that took place," said Ivan Rowley, Astra USA's new president. "To each person who has been harmed and who has suffered because of that behaviour, I offer our apologies."
The EEOC charged that former Astra USApresident Lars Bildman and other Astra officials sexually harassed female sales executives.
Bildman was accused of replacing mothers and older female employees with beautiful, young, single women who were pressured into having sex. Former employees said Bildman demanded that eight hours of work be followed by eight hours of drinking and partying. Some claimed they were fondled while dancing with Bildman and said he suggested they have sex.
Women who sued Astra said after-hours sex was common and total loyalty to the company was required. The EEOC also alleged that Astra bought off women who complained in exchange for their silence, a charge Astra denies.
Bildman was fired in 1996, accused by Astra of spending company cash on home repairs, family vacations and high-priced prostitutes. Bildman, who is being sued by Astra for $15 million to recover costs related to the EEOC investigation, said in a statement on Thursday: "I categorically deny that there was any pattern of sexual harassment at Astra."
0Inaddition to firing Bildman, Astra restructured its personnel department and agreed to a sexual harassment policy.
Also, the company said it took action against about 30 employees and Astra customers for taking part in the harassment.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
