December 7, 1999
Web posted at: 9:48 p.m. EST (0248 GMT)

From staff and wire reports

WASHINGTON (CNN) -- Gay activists reacted angrily Tuesday to the decision by the ExxonMobil Corp. to eliminate health benefits to unmarried domestic partners. ExxonMobil, which made the announcement Monday, the same day regulators approved a merger of the two companies, defended the decision.

The oil giant said it would continue Exxon's long-standing policy of extending spousal benefits only to couples in legally recognized marriages. It will also continue to extend benefits to same-sex partners of Mobil employees who were receiving benefits before the merger, a spokesman said.

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While the move affects new employees with gay or heterosexual partners, gay rights activists were quick to question why the decision was made.

"I believe the motivation is anti-gay. I don't believe there is any other reasoning that has been offered to lead me to believe otherwise," said David Smith of the Human Rights Campaign, the largest gay-rights group in the nation.

ExxonMobil denied the charges. "Who are we to get into somebody's relationship and decide whether it's valid," a spokesman said.

It's a question of how you fairly define a legitimate relationship. This policy is fair for all employees," a company official added.

Some oil giants offer same-sex partner benefits

Smith said other major oil companies like BP-Amoco, Shell and Chevron offer same-sex domestic partner benefits. Currently more than 2,800 private companies offer benefits to domestic partners. Seventy Fortune 500 companies do as well, at least 30 of them to both gay and heterosexual partners.

Experts on hiring patterns say the benefits help companies attract and keep talented employees.

"Domestic partners are a relatively small population, but if it's a crucial component of employment for very valued employees, you want to have that available," said Dallas Salisbury of the Employee Benefit Research Institute.

At their annual meeting in May, Exxon shareholders by a 94.1 percent vote rejected an amendment to company bylaws that would have granted benefits to unmarried partners. Company directors had recommended against the proposal. Gay rights activists plan to protest ExxonMobil's decision ahead of the company's shareholders meeting in 2000.

CNNfn Correspondent Bob Beard contributed to this report.

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