TEAM ordered to pay $255,000 in age discrimination caseBy HEATHER LEINENForum Communications Co. - 02/15/2006
In a case that could have ramifications for laid-off Detroit Lakes workers, District Judge Jay Mondry has ordered TEAM Industries to pay a former employee nearly $255,000 for age discrimination.
The discrimination lawsuit, brought by Edward LaBonte, 62, of Park Rapids, began in June. Over 11 days throughout June, July and August, Mondry heard arguments from TEAM’s attorney, Alec Beck of Minneapolis, and LaBonte’s attorney, Stephen Cooper, Minneapolis, former Minnesota Commissioner of Human Rights.
“We are pleased that Mr. LaBonte had the opportunity to be heard and fairly decided,” Cooper said Monday. “We remain disappointed TEAM acted in the way it did and are pleased (LaBonte) had a just result. We certainly hope other employers remember value and importance of their skilled older workers and will look to this case as a reminder of that.”
Tuesday, TEAM released this official statement on the case:
“TEAM Industries is disappointed in the court’s decision. We are confident that TEAM did nothing wrong or illegal with respect to Mr. LaBonte’s employment. We also believe the court’s decision contains errors and we anticipate filing an appeal. TEAM Industries is proud of its treatment of its employees and continues to have as its business mission, ‘the creation and maintaining of jobs in central and northern Minnesota.’”
LaBonte claimed TEAM Industries of Park Rapids discriminated against him and other older workers during a round of layoffs in April 2003, in which many of the 32 terminated employees were over the age of 50. TEAM insisted the layoffs were non-discriminatory and were necessary due to a work shortage.
To determine which workers to cut, TEAM used a “forced ranking” tool, in which every employee is compared to every other employee individually. LaBonte was ranked in the bottom 25 percent of employees and was therefore terminated. However, by every indication, he was a good worker; co-workers and supervisors testified he was skilled, qualified and did not have any disciplinary or production problems.
In his decision, Mondry said there was little evidence presented indicating forced ranking significantly improved financial or working conditions at TEAM and questioned the system’s validity.
Mondry also said analysis of the data showed age was indeed a factor in the terminations. While six people under age 29 were let go in 2003 — 10 percent of that total age group employed at TEAM — five workers over 60 years old were fired, or 62 percent of that age group at TEAM.
Further, Mondry found that prior to the terminations, a report was prepared that indicated 21 employees who were to be terminated were over age 40, but the terminations were carried out anyway.
The court awarded LaBonte back pay in the amount of $82,650, “front pay” in the amount of $171,600 (Labonte’s previous salary multiplied by five years) and attorney’s fees.
At the TEAM plant in Detroit Lakes, the same ranking system was used to determine who would be laid off. The Detroit Lakes layoff was implemented on the same day — April 7, 2003 — as was the Park Rapids layoff.
Fourteen employees were laid off at Detroit Lakes, reducing the workforce from 112 to 98, according to a post-trial brief from Beck.
(Heather Leinen writes for the Park Rapids Enterprise)
In a case that could have ramifications for laid-off Detroit Lakes workers, District Judge Jay Mondry has ordered TEAM Industries to pay a former employee nearly $255,000 for age discrimination.
The discrimination lawsuit, brought by Edward LaBonte, 62, of Park Rapids, began in June. Over 11 days throughout June, July and August, Mondry heard arguments from TEAM’s attorney, Alec Beck of Minneapolis, and LaBonte’s attorney, Stephen Cooper, Minneapolis, former Minnesota Commissioner of Human Rights.
“We are pleased that Mr. LaBonte had the opportunity to be heard and fairly decided,” Cooper said Monday. “We remain disappointed TEAM acted in the way it did and are pleased (LaBonte) had a just result. We certainly hope other employers remember value and importance of their skilled older workers and will look to this case as a reminder of that.”
Tuesday, TEAM released this official statement on the case:
“TEAM Industries is disappointed in the court’s decision. We are confident that TEAM did nothing wrong or illegal with respect to Mr. LaBonte’s employment. We also believe the court’s decision contains errors and we anticipate filing an appeal. TEAM Industries is proud of its treatment of its employees and continues to have as its business mission, ‘the creation and maintaining of jobs in central and northern Minnesota.’”
LaBonte claimed TEAM Industries of Park Rapids discriminated against him and other older workers during a round of layoffs in April 2003, in which many of the 32 terminated employees were over the age of 50. TEAM insisted the layoffs were non-discriminatory and were necessary due to a work shortage.
To determine which workers to cut, TEAM used a “forced ranking” tool, in which every employee is compared to every other employee individually. LaBonte was ranked in the bottom 25 percent of employees and was therefore terminated. However, by every indication, he was a good worker; co-workers and supervisors testified he was skilled, qualified and did not have any disciplinary or production problems.
In his decision, Mondry said there was little evidence presented indicating forced ranking significantly improved financial or working conditions at TEAM and questioned the system’s validity.
Mondry also said analysis of the data showed age was indeed a factor in the terminations. While six people under age 29 were let go in 2003 — 10 percent of that total age group employed at TEAM — five workers over 60 years old were fired, or 62 percent of that age group at TEAM.
Further, Mondry found that prior to the terminations, a report was prepared that indicated 21 employees who were to be terminated were over age 40, but the terminations were carried out anyway.
The court awarded LaBonte back pay in the amount of $82,650, “front pay” in the amount of $171,600 (Labonte’s previous salary multiplied by five years) and attorney’s fees.
At the TEAM plant in Detroit Lakes, the same ranking system was used to determine who would be laid off. The Detroit Lakes layoff was implemented on the same day — April 7, 2003 — as was the Park Rapids layoff.
Fourteen employees were laid off at Detroit Lakes, reducing the workforce from 112 to 98, according to a post-trial brief from Beck.
(Heather Leinen writes for the Park Rapids Enterprise)
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