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http://online.wsj.com/article/BT-CO-20090505-710524.html
3M Accused Of Age Discrimination In Class-Action Suit
Former
and current employees of 3M Co. (MMM) filed a class-action lawsuit
accusing the diversified manufacturer of discriminating against
employees who are older than 46 and claiming it either fires them, or
forces them to resign or retire.The complaint, filed in a
California federal court, alleges that since at least 2001, 3M has
discriminated against these older workers in performance appraisals,
training, promotions and pay because “it perceives them as unwilling or
unable to accept or adequately implement the company’s new management
techniques.”The lawsuit, which so far includes about 50 men and
women, but has a potential 6,000 current and former 3M employees as
plaintiffs, adds that 3M tried to shield itself from liability by
causing departing employees to sign releases that “misrepresent their
rights and fail to give them required information necessary to
determine whether they have been the victims of age discrimination.”The
suit says the alleged discrimination stems largely from the 3M’s
selection of management trainees. According to the complaint, 3M
selects very few persons over age 45 for training as Six Sigma “Black
Belts” or “Master Black Belts” compared to their presence in the work
force, and selection gives younger employees huge advantages in
subsequent employment decisions. The plaintiffs also alleges that older
workers have been disproportionately downgraded in the company’s
performance assessment system, with negative effects on promotion, pay,
and termination decisions.The lawsuit comes on the heels of a
similar case filed against 3M in Minnesota. It also comes as the maker
of a broad range of products including Scotch tape and Post-It notes is
grappling with a drop in demand and other challenges.Last week,
Moody’s Investors Service lowered its credit ratings on 3M by one notch
because of its rising debt-to-earnings ratio. The company has taken out
debt in recent years to fund share buybacks and acquisition in recent
years, outpacing cash flow. Standard & Poor’s Ratings Services
downgraded 3M in March, citing its declining earnings and recent debt
issuance.Shares were down 0.9% at $57.94 in recent trading. They have
lost roughly a quarter of their value over the past year.
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