GE Is Sued by CEO of Unit for Alleged Bias

The chief executive of a General Electric Co. subsidiary filed a federal lawsuit Tuesday accusing the conglomerate of discriminating against him and other black managers and employees in pay, promotions and perks.

Marc Thomas, president and chief executive of GE Aviation Materials, accused the parent company of refusing to promote or reward him despite exemplary sales and profit in the business he runs, and instead trying to push him out when he complained of discrimination. GE denied the allegations.

His experience at the Fairfield, Conn.-based industrial, finance and media company echoes that of many other black managers whose careers have been stymied by cronyism and outdated policies, Thomas’ lawsuit alleges.

“To GE, Mr. Thomas was just another African American manager who could be passed over for promotion and paid less than his non-minority counterparts,” the lawsuit says. “Mr. Thomas exemplifies the racial barriers facing GE’s minority employees.”

The lawsuit, which seeks class-action status, asks the court for at least $450 million in damages, as well as back pay, increases in pay and benefits, and broad changes in GE’s personnel practices. The action, filed in U.S. District Court in Bridgeport, Conn., alleges that GE fails to pay black managers and employees on par with their white colleagues, fails to promote them and retaliates against those who complain.

GE said it would seek to have the lawsuit dismissed.

“GE is globally recognized and acknowledged as a leader in diversity and has been recognized as such by national awards received for pursuing and promoting diversity excellence in the workplace,” the company said in a statement. “We are an equal opportunity employer and do not discriminate on the basis of race.”

Thomas has been president, chairman and CEO of Irving, Texas-based GE Aviation Materials since early 2004. The company is a joint venture between GE and Snecma Services, and is a subsidiary of GE’s Engine Services division.

The suit says he served as a commander with the Army’s Green Beret corps, and was later named a White House Fellow during the Clinton administration, working on the staff of Vice President Al Gore. He joined GE in 2001 as a manager at its Connecticut headquarters after working as a consultant at McKinsey & Co.

“Mr. Thomas’ three years at GE illustrates the opportunities that the company can provide to its employees,” the company said, noting that he had moved up the ranks to manage a stand-alone operation.

Also named in the suit, in addition to GE and GE units, are parent company Chief Executive Jeffrey R. Immelt and other executives, and members of the company’s board of directors.