Reference no: EM131110194

Hazen Paper Co. manufactured coated, foil laminated, and printed paper and paper¬board for use in such products as cosmetic wrap, lottery tickets, and pressure-sensitive items. Walter Biggins, a chemist hired by Hazen in 1977, developed a water-based paper coating that was both environmentally safe and of superior quality. By the mid-1980s, the company's sales had increased dramatically as a result of its extensive use of "Biggins Acrylic." Because of this, Biggins thought he deserved a substantial raise in salary, and from 1984 to 1986, Biggins's persistent requests for a raise became a bone of contention be¬tween him and his employers. Biggins ran a business on the side cleaning up hazardous wastes for various companies. Hazen told Biggins that unless he signed a "confidentiality agreement" promising to restrict his outside activities during the time he was employed by Hazen and for a limited time afterward, he would be fired. Biggins said he would sign the agreement only if Hazen raised his salary to $100,000. Hazen refused to do so, fired Biggins, and hired a younger man to replace him. At the time of his dis¬charge in 1986, Biggins was sixty-two years old, had worked for the company nearly ten years, and was just a few weeks away from being entitled to pension rights worth about $93,000. In view of these circumstances, evaluate and answer the following questions.

Biggins sued Hazen for age discrimination in violation of the Age Discrimination in Employment Act of 1967. If you were the judge, would you hold for Biggins or Hazen? Discuss fully.

Did the company owe an ethical duty to Biggins to increase his salary, given the fact that its sales increased dramatically as a result of Biggins's efforts and ingenuity in developing the coating? If you were one of the company's owners, would you have raised Biggins's salary? Why or why not?

Generally, what public policies come into conflict in cases involving employers who, for reasons of cost and efficiency of operations, fire older, higher-paid workers and replace them with younger, lower-paid workers? What would you do, and on what ethical premises would you justify your decision, if you were an employer fac-ing the need to cut back on personnel to save costs?