Ford to put sex policy to vote - Orientation issue is valid, SEC rules

Ford to put sex policy to vote
Orientation issue is valid, SEC rules

By Dee-Ann Durbin
Copyright by The Associated Press


DETROIT -- Ford Motor Co. shareholders will decide whether to exclude sexual orientation from the company's equal employment policy.

Ford had asked the U.S. Securities and Exchange Commission to allow it to keep the resolution from being raised at its annual meeting, the automaker said yesterday.

Ford's policy says the company won't discriminate on the basis of sexual orientation, gender, religion and other factors. Shareholder Robert Hurley of Alton, Ill., has submitted a proposal recommending Ford change its policy to exclude any reference to sexual interests, activities or orientation.

Ford asked the SEC to exclude the proposal from its proxy statement, saying it would hurt the company's ability to recruit since some universities require companies to include sexual orientation in their policies.

Ford also said publicity over changing the policy could hurt sales to gay-rights supporters.

Ford is sending its proxy statement to shareholders on Friday, spokeswoman Becky Sanch said. Shareholders will vote on the proposals and the results will be announced at the company's annual meeting on May 11.

In a recent decision, the SEC said Ford can't exclude the proposal. The SEC said a rule that allows companies to reject proposals that deal with "ordinary business operations" doesn't apply to this case.

The SEC agreed with Ford's decision to keep other proposals off the proxy statement, including one that would have required the company to pay managers no more than $500,000 per year.

Ford has about 9,000 employees at two factories in Louisville.

Ford has had an ongoing struggle with the American Family Association and other conservative groups about homosexuality. In December, Ford said it would stop advertising its Jaguar and Land Rover luxury brands in gay publications to reduce marketing costs. But after meeting with several gay-rights groups, Ford said it would put ads featuring all eight of its brands in gay publications.

Last month, 19 conservative groups reinstated a boycott against Ford over the issue. The American Family Association said yesterday that it supports the SEC's decision.

"I find Ford's logic in asking the SEC to omit the resolution interesting," said Don Wildmon, the group's chairman, in a statement. "In essence Ford is saying they are concerned that a boycott by homosexual groups would financially hurt the company, but the boycott by the pro-family groups will not."