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November 4, 1991

IBM LOSES FIRST EMPLOYEE DISCRIMINATION SUIT

By CBR Staff Writer

IBM Corp has suffered the excruciating embarrassment of facing its first defeat in an employee discrimination suit after a US District Court jury in Trenton, New Jersey awarded former $70,000-a-year systems engineer Richard Rathemacher $315,000 in back pay plus his costs after he claimed that he was constructively dismissed because of age – he was 55 and had spent his whole career selling small computers to first time customers when in 1984 a new manager was put in charge of the Edison, New Jersey branch and denied him promotion because he wanted to bring in new blood: he was moved to management of the branch’s most complex systems with no training and then told he was not hacking it, and he lost his post as a manager and after several transfers was moved to an abandoned 10,000 square foot branch office in Tinton Falls, one half of which was used as a store; he came in each day with nothing to do, was told that the absolute deadline for the company’s retirement offer was July 31 1987, he decided a day earlier he did not intend to accept, but came in to find not a stick of furniture in his office, and according to Associated Press, one week later he threw in the towel.

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