WEST POINT CEO A 'DAVID' VS. BUREAUCRACY

GREG GATTUSO

AKRON, Ohio -- The second-generation operator of West Point Market here has become an unlikely hero among retailers as a David who took on the Goliath of federal bureaucracy.

Russell Vernon, president and chief executive officer of the family store known for its gourmet foods, classical music and theatrical shopping experience, is using his newfound icon status to urge small retailers to brush up on government issues to guard against federal agencies that hold "the unbridled power and resources to outspend and destroy any small business."

Vernon endured a 30-month "reign of terror" by the federal Equal Employment Opportunity Commission over alleged employment discrimination. Although the case was settled out of court last November, the business community at large learned of it March 26, when an essay by Vernon was excerpted in the Op-Ed section of The Wall Street Journal.

Vernon told SN that dozens of retailers have called to say congratulations and "right on" since the essay was published. Numerous radio talk shows have invited Vernon to tell his story on the air.

"For small business in America to prosper, individuals must become involved in government, watch voting records, stay informed on business issues and remain in contact with congressmen and senators," Vernon said. "A fact of life is that the government is going to be your partner. So you've got to get to know your partner and stay informed on the issues."

An EEOC spokesman told SN that federal law prohibits the agency from discussing any case that has not gone to trial. The spokesman would neither confirm nor deny that charges were ever filed against West Point Market, and he would not comment on whether the EEOC was depicted fairly in the essay.

In the essay, Vernon recalled how in 1991 a local civil rights attorney, acting independently, accused the company of illegal hiring practices. Two years later, the complaint reached the EEOC, which charged West Point Market with "failing or refusing to hire Blacks for all positions because of their race."

While he acknowledged the need to ensure fair hiring practices, Vernon insists his company did nothing illegal. He said his staff's makeup of 8% to 10% African-Americans reflects the community and the local food- retailing industry.

The EEOC proposed a settlement that included a 33% minority hiring quota, full-page ads aimed at African-American job-seekers and $100,000 in payments to two dozen African-American applicants, including two who were offered jobs but turned the company down.

Vernon, who maintained his company's innocence, said this settlement would have been financially disastrous. So the company fought the EEOC and eventually arrived at an out-of-court settlement in which the company would encourage the 24 job-seekers to reapply with the company. Any one of them still employed there a year later would receive a $1,000 scholarship as a bonus. Vernon said none of the 24 persons reapplied.

"We spent $67,000, but it all went to our attorneys," Vernon said. "The minorities didn't get a thing. And the affected class members, they weren't interested anyway."