Oracle is in danger of losing its lucrative contract with the US government after the Department of Labor accused it of racial and sex discrimination. The department has already filed a lawsuit and with the relevant US judicial body claiming that Oracle's wage scales violate applicable labor rules, things do not seem to be easy for the technology giant.
According to a study conducted by Oracle, it pays its male employees more than its female and minority employees. This study goes back to 2013 and examines cases at different levels and rungs of the company. The conclusion is that male employees are treated more favorably than women, African Americans and Asians. The salary differences existed even in cases where the hours, specialty, level and work experience were exactly the same.
The report also states that Oracle favored Asians as new workers, particularly Indians. It is noteworthy that the company did not cooperate with the investigation by the competent agency and refused to provide the necessary data in an investigation that lasted about two years.
If Oracle is found to have violated labor rights, it could lose millions in government contracts. The Labor Department has said that if the company fails to comply, existing contracts will be canceled and future work will be barred.
Oracle has been quick to object to what it says is an act of political vendetta. "The complaint is politically motivated, based on false allegations, and has no merit. Oracle values diversity and inclusion for all and is an equal opportunity employer," the company said in a statement.
