DOW JONES NEWSWIRES
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.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com