GE accused of race discrimination

GE boss Jeffrey Immelt is named as a defendant in the lawsuit

US manufacturing giant General Electric (GE) is accused of passing over black managers for promotion and paying them less than their white counterparts.

Marc Thomas, head of GE's Aviation Materials unit, claims the firm halted his career and has filed a lawsuit demanding $450m (£246m) in damages.

Court papers allege that black managers fill about 5% of positions at GE.

GE denied the claims and said it was an "equal opportunities employer and (did) not discriminate on the basis of race".

Clash

Mr Thomas, 43, took over as chief executive at Aviation Materials in March 2004 and says he was instrumental in boosting the company's profits and sales.

However, he claims that problems arose after he complained to GE's human resources department that minority employees were being treated unfairly in terms of pay and advancement.

"At GE, African-Americans are reluctantly allowed to sit at the table," Mr Thomas said on Tuesday. "They're not allowed to ask any questions."

GE is globally recognized and acknowledged as a leader in diversity General Electric Check GE's shares

Management at GE is a "restricted club", he claimed.

Having been a top-rated performer, Mr Thomas says he received a negative performance review after changing Aviation Materials' pay and holiday structure.

He also alleges that while he was paid a base salary of $205,000, a white colleague in a lower position received $219,000.

"Instead of promoting Mr Thomas to a senior management position based on his impressive achievements and courageous stands, GE informed Mr Thomas that his future at GE is over," the lawsuit claims.

Mr Thomas is seeking class action status to represent thousands of current and ex-GE managers.

'Flatly denies'

GE, the world's biggest company by market value, said it "flatly denies the allegations in Mr Thomas' complaint and will clearly defend this lawsuit".

"GE is globally recognized and acknowledged as a leader in diversity and has been recognized as such by national awards," the company said in a statement.

"Mr. Thomas' three years at GE illustrates the opportunities that the company can provide to its employees."

Analysts said that Mr Thomas' team would have to prove that there was active discrimination at GE and that it would not be enough just to show that there was a lack of black managers.

In the US, top management positions are not generally held by African-Americans.

At GE, two of the company's 11 main businesses are run by African-Americans. There are also two African-Americans on the company's 15-member board of directors.

GE's interests range from aircraft engines and power generation to financial services, medical imaging, TV programmes and plastics.