Avis Expresses Satisfaction With Justice Department Review
23 May 1998
Avis Expresses Satisfaction With Conclusion of Justice Department Review Justice Takes no Action Against Company,
Citing Avis' Voluntary Anti-Discrimination Measures
Avis Will Continue Vigorous Pursuit of Zero Tolerance for Discrimination
GARDEN CITY, N.Y., May 22 -- Avis Rent-A-Car, Inc.
was notified today that the Civil Rights Division of the
Department of Justice had formally ended its review of the company. The
Justice Department concluded that no legal action against Avis was necessary.
In completing its inquiry, the Department cited the measures Avis had
previously adopted to promote the company's policy of 'zero tolerance'
for discrimination and to further diversity within Avis.
Responding to the announcement, Avis CEO and Chairman R. Craig Hoenshell
said, "We are very pleased with the outcome of the Justice Department's
review. Avis' new management team has enacted aggressive measures to
advance the company's policy of zero tolerance for discrimination, and
we are gratified that the Department recognized our efforts. We will
continue vigorous pursuit of our zero-tolerance policy for discrimination of
any kind."
Among the measures that Avis has voluntarily adopted to advance its policy
of zero tolerance for discrimination and to promote diversity at Avis are:
-- A refined and enhanced system to ensure a rapid and appropriate
response to any complaints of discrimination;
-- A special employee hotline operated by an independent service for
complaints related to discrimination and diversity issues;
-- Company-wide diversity training for all 17,000 Avis employees;
-- Enhanced programs to further diversify Avis' workforce
and contractors; and,
-- Retention of Alexander & Associates, a firm headed by the former
Chairperson of the Equal Employment Opportunity Commission to
evaluate and provide recommendations in a wide range of areas
related to diversity.
The Justice Department initiated a review of Avis following allegations
of discrimination made against an independent licensee of the company in the
case of Pugh et al. v. Avis Rent A Car, Inc. and New Hanover Rent-a-Car, Inc.
Avis reached a settlement with the plaintiffs in that case in December 1997,
which is now pending before the Court. That settlement did not include a
consent decree against Avis. Similarly, the Justice Department concluded
today that a consent decree was not needed against Avis, and expressed its
appreciation of the company's voluntary programs.
Avis Rent A Car, Inc., in Garden City, New York, operates the second
largest general use car rental business in the world, based on total revenue
and volume of rental transactions. The Company rents vehicles to business and
leisure travelers through over 600 locations in the United States, Canada,
Puerto Rico, the U.S. Virgin Islands, Argentina, Australia and New Zealand.
Annually, the Company completes approximately 15 million rental transactions
with a fleet that averages approximately 200,000 vehicles, generating over $2
billion in revenue.
AVIS FACT SHEET
-- Avis Rent A Car, Inc. operates the second largest general use car
rental business in the world, based on total revenue and volume of
rental transactions. Avis rents vehicles to business and leisure
travelers at over 600 locations in the United States, Canada, Puerto
Rico, the U.S. Virgin Islands, Argentina, Australia and New Zealand.
-- Avis completes approximately 15 million rental transactions
annually with a fleet that averages approximately 200,000 vehicles,
generating over $2.0 billion in total revenue, of which
approximately 89% is derived from its operations in the United
States.
-- Avis has a policy of zero tolerance for discrimination and has
adopted a number of measures to advance this policy and to promote
diversity at the company, including:
-- A refined and enhanced system to ensure a rapid and
appropriate response to any complaints of discrimination;
-- A special employee hotline operated by an independent service
for complaints related to discrimination and diversity issues;
-- Company-wide diversity training for all 17,000 Avis employees;
-- Enhanced programs to further diversify Avis' workforce and
contractors; and,
-- Retention of Alexander & Associates, a firm headed by the
former Chairperson of the Equal Employment Opportunity
Commission to evaluate and provide recommendations in a wide
range of areas related to diversity.
-- Already, 42% of Avis' employees are members of minority groups.
-- The Justice Department initiated a review of Avis as a result of
allegations that New Hanover Rent-A-Car, an independent licensee
that is neither owned nor operated by Avis, engaged in
discrimination. The allegations were made the lawsuit of Pugh et al
v. Avis Rent-A-Car System, Inc. and New Hanover Rent-A-Car, Inc.
The Justice Department has concluded that there is no basis for
action against Avis.
-- Avis reached a settlement with the plaintiffs in the Pugh litigation
in December 1997 that dismisses all claims against the company.
That settlement is now awaiting final approval by the Court.
-- Commenting on Avis, John P. Relman, the lead counsel for the
plaintiffs in the Pugh litigation, stated, "Based on our extensive
investigation and review, which involved numerous interviews,
depositions, and review of thousands of documents, we believe that
the evidence does not show a pattern or practice of discrimination
by Avis at corporate or independent licensee locations across the
country, and we believe that the alleged problems associated with
the locations operated by New Hanover, an independent single
licensee, were aberrational. We are convinced that Avis and its
current management are committed to a zero-tolerance of
discrimination, and we applaud the new management of Avis for its
commitment."
