Sen. John Kennedy criticized acting Labor Secretary Julie Su during a Senate hearing for not taking action against the alleged sexual misconduct at the Federal Deposit Insurance Corporation (FDIC) following a scathing report released earlier in the week. Su declined to call for the resignation of FDIC chair Martin Gruenberg or commit to investigating the numerous complaints of workplace bullying, racial discrimination, and sexual harassment. She admitted to not being aware of the independent report conducted by Cleary Gottlieb on the misconduct. Kennedy highlighted the severity of the complaints, including instances of sexual harassment and discrimination described by employees.
Kennedy questioned Su about the numerous complaints filed by FDIC employees, including instances of sexual harassment like sending inappropriate photographs and messages to subordinates. Su acknowledged the seriousness of the allegations but stated that the determination of whether the behavior violated labor statutes was a “technical question.” Kennedy continued to describe other appalling instances of sexual harassment and racial discrimination reported by employees, such as forcing a Hispanic worker to recite the Pledge of Allegiance. Su expressed her disapproval of the behavior and suggested that the Equal Employment Opportunity Commission could handle workplace sex harassment complaints.
Despite the seriousness of the allegations, Su did not commit to taking any immediate action against the FDIC supervisors accused of misconduct. Kennedy emphasized the need to protect workers and hold harassers accountable, suggesting that the Labor Department could play a role in addressing the complaints. He criticized Su for not speaking out sooner about the ongoing issues at the FDIC, which have been publicized for several months. Gruenberg, the FDIC chair, acknowledged his responsibility for the misconduct that occurred during his tenure and pledged to implement the report’s recommendations to address the issues within the agency.
Following the release of the report on FDIC misconduct, calls for Gruenberg’s resignation have come from Republicans like House Financial Services Committee chairman Patrick McHenry, while Democrats such as Senate Banking Committee chairman Sherrod Brown have urged him to accept responsibility and make fundamental changes to the agency’s culture. Su promised to ensure that the Equal Employment Opportunity Commission is aware of the complaints and emphasized the need to address the inappropriate behavior exhibited by some supervisors and senior leadership at the FDIC. Kennedy continued to press Su on the issue of workplace harassment, calling for action to protect employees from “pigs” who engage in predatory and bigoted behavior. Su’s response during the hearing indicates a willingness to address the complaints but falls short of committing to specific actions against the accused individuals.