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Gray Matter
Monday, February 09, 2009 1:52 AM


(Source: Fairfield County Business Journal)trackingBy Soule, Alexander

A Ridgefield woman has filed a $2 million lawsuit against the parent company of Cartus Corp., claiming the Danbury-based relocation manager started a whisper campaign two years ago to persuade older workers to take retirement -- and failing that to demote them in hopes they leave on their own accord, or flat out fire them.

Joan Zawacki filed suit against Parsippany, N.J.-based Realogy Corp., whose Cartus division had more than 1,600 workers in Fairfield County at last report, numbering it among the 10 largest companies in the region.

According to Zawacki's lawsuit, Cartus has been steadily chipping away at its work force through multiple rounds of job cuts driven by the downturn in the real estate market; the erosion of client fees; an increase in debt following the company's acquisition by Apollo Management LP; and cost overruns for new information technology systems.

Before getting a pink slip herself in November 2007 at the age of 55, Zawacki claims she and other Cartus managers were instructed to approach older workers "as a friend" in her words, and suggest they check in with the company's human resources department on what special retirement packages could be had.

Zawacki said the Connecticut Commission on Human Rights and Opportunities issued a document supporting her ability to demonstrate a case of age discrimination.

At deadline, Cartus did not respond to a request for comment and had yet to file an answer in court.

The Zawacki lawsuit arrives even as the Obama administration and Congress moved ahead on new rules meant to strengthen prohibitions on compensation practices that discriminate against various groups. The new Lilly Ledbetter Fair Pay Act makes it easier for plaintiffs to bring lawsuits against companies that maintain unequal pay brackets based on gender, race, disability or age. The U.S. House of Representatives passed the Paycheck Fairness Act sponsored by U.S. Rep. Rosa DeLauro, who represents the Bridgeport area, but the Senate did not proceed with the bill.

Some experts had already predicted an increase in discrimination- related lawsuits this year and next, as companies execute layoffs that trigger complaints from workers who feel they were singled out due to their demographic profile.

Zawacki's lawsuit is not without a few interesting wrinkles -- her mother Betty Esterheld helped crack the gender barrier at Rochester, N.Y.-based Eastman Kodak Co. during the 1940's, becoming one of Big Yellow's first female managers according to an obituary published in the Ridgefield Press.

For her part, Zawacki had the title of vice president of business process and work force management at Cartus, leading a unit of 200 people, and claims to have created a formula the company used to forecast its labor needs via triggers based on business volume and client inquiries. She joined the company through PHH Corp., which merged with Cendant Mobility to form Cartus as a subsidiary of Realogy, which is controlled by Apollo.

Zawacki said Cartus first outlined a strategy for personnel cuts at an October 2006 retreat at The Boulders, an inn in New Preston 20 miles north of Danbury. There and at other meetings to identify cost savings, Zawacki claims attendees were instructed to "protect up- and-comers," which she interpreted to mean protecting younger workers; while weeding out the "less desirable," which she inferred as older colleagues.

In her lawsuit, Zawacki cites several ex-employees by name whom she said were unfairly targeted for cuts as a result of the alleged program.

Copyright Westfair Communications Feb 9, 2009

(c) 2009 Fairfield County Business Journal. Provided by ProQuest LLC. All rights Reserved.

A service of YellowBrix, Inc.



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