3M settles complaints over age discrimination

Technology giant 3M has agreed to pay a total of US$3 million ($3.6 million) to several hundred former employees who accused the company of age discrimination.

The United States Equal Employment Opportunity Commission sued 3M in the US District Court in Minneapolis on behalf of a class of former employees who said the company laid off hundreds of workers over the age of 45 from July 1, 2003, to December 31, 2006.

The lawsuit alleged 3M terminated many highly paid older employees and directed leadership training to younger workers.

The agency said its investigation found an employee email describing then-CEO Jim McNerney's "vision for leadership development" as "we should be developing 30-year-olds with general manager potential".

A consent decree, which needs judicial approval, said 3M will pay US$3 million to about 290 former employees. The company must also provide training for managers and supervisors on how to prevent age bias, said the commission's Michael Baldonado. It will also set up a review process for termination decisions.

Those involved in the EEOC case are not eligible for relief under two private lawsuits filed by a Washington DC law firm on behalf of thousands of present and former employees. Those age-discrimination lawsuits were settled for US$12 million in April.

"The law requires employers to base employment decisions on each person's strengths and talents instead of relying on generalised assumptions calculated around an employee's age," Baldonado said.

The settlement was a compromise that prevents the company from investing any more time and money in litigation, said 3M spokeswoman Donna Runyon. "We deny the allegations in the lawsuit," Runyon said.

Source: NZ Herald