Executive sues GE, claiming gender bias

SOUTHFIELD, Mich. -- General Electric Co.'s top lawyer in its transportation division filed a $500 million sex-bias lawsuit against the company and chief executive Jeffrey Immelt after she was demoted.

Lorene F. Schaefer, general counsel at GE Transportation, said in her complaint that the Fairfield, Conn.-based company pays its female executives and attorneys less than their male colleagues and doesn't promote them at the same rate. The lawsuit, filed yesterday in federal court in Bridgeport, Conn., seeks class-action status on behalf of 1,500 women.

"GE has long been aware of the great gender disparity in its numbers, but has ignored the problems," Schaefer said in her complaint. "Women have had to suffer in silence as less qualified men have been promoted ahead of them."

The lawsuit is one of several pending against US companies claiming gender discrimination against women who are managers or who are seeking management jobs. A suit against Costco Wholesale Corp., claiming bias in promotions, was given class-action status in January. In April, Morgan Stanley settled a gender bias lawsuit brought by female financial advisers for more than $46 million.

GE spokesman Gary Sheffer said in an e-mailed statement that the company "works very hard to promote and ensure diversity within our culture."

"We have increased the number of women in senior executive positions in the past five years," Sheffer said. "There are more women in big jobs at GE than ever before."

Schaefer's lawsuit asks for policy changes on pay and promotions at General Electric, the world's second-largest company as measured by its market value of $386 billion. Exxon Mobil Corp., with a market value of $471 billion is the largest.

Schaefer said in the suit that women at GE hit a "glass ceiling" that blocks them from promotions to upper management.

"The representation of women in the officer ranks has remained steady at a dismal 13 percent for five years," Schaefer said. About 80 percent of senior executives, at a level called senior executive band at GE, are men, she said in her complaint.

GE disputes that assertion. Sheffer said in his e-mail that the percentage of female officers has increased, to 14.5 percent from 9 percent in 2001. Twenty women have joined the executive board since 2001, he said.