3M's age-discrimination settlements with workers to cost over $ 12 million
3M Co., which was charged of age-discrimination against its workers, has finally settled its long-pending lawsuit. Though the exact settlement amount has not been disclosed yet, news has it that the company’s payment would exceed $ 12 million.
3M Co. has decided to recompense over $ 12 million to settle a court case on age-discrimination against 7,000 present and ex-employees.
In the 2004 lawsuit, workers had alleged that in 3M’s performance-review system, older workers were unreasonably demoted. The grievances also include biased training opportunities for younger employees for their undue promotions.
On Friday, first round of approval on the compensation proposal was jointly filed by 3M and petitioners.
The payments won’t affect company’s operations, say officials
3M, a Maplewood-based industrial group’s spokeswoman Donna Fleming Runyon later appeared for the statement and insisted that the settlement won’t hail any liability on the company’s books, but rather release its legal diversions and legal expenses.
Runyon said that "We think it's a reasonable resolution… It will allow the company and our employees to focus on growing our business and serving our customers."
The company lawyers are expecting approximate expenses of $6.4 million, including court charges. However, the exact figure for the petitioners’ reimbursement has not been estimated yet.
3M’s separate age-discrimination lawsuit, submitted at San Jose, Calif. in 2009, has also been closed on settlement, but the finalized amount has not been disclosed by the company.
As the company abstained from making any direct statement on either compensations, last month it mentioned both the lawsuits in a Securities and Exchange Commission as “non material” to its operations or financial condition.
About 3M Co.
3M Co., earlier known as Minnesota Mining and Manufacturing Company, is a U.S. multinational corporation with over 79,000 workers on its rolls, and manufactures more than 55,000 products including optical films, electronic circuits, adhesives, abrasives, laminates, dental products, electronic materials, medical products, car care products, passive fire protection, etc.
The company owns 29 international manufacturing units and 35 labs and operates from over 60 countries.