Full opinion text
MEMORANDUM AND ORDER ALLEN SHARP, Chief Judge. The plaintiffs, Frederick G. Grabb and Thomas M. Julow, filed this ease alleging that they were separated from employment with the defendant, The Bendix Corporation (Bendix) because of their age in violation of the Age Discrimination in Employment Act, 29 U.S.C. § 623(a) (ADEA) and further alleged that after their separation, they were not offered employment in other divisions of Bendix because of their age. Extensive discovery has been conducted in this case including the taking of the depositions of the principal people at Bendix responsible for the employment decision in this case and this case had been set on this court’s trial calendar. Bendix has filed a motion for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. All parties have fully briefed the issues and oral argument was heard on May 27, 1986. At that hearing, the parties were given until June 16, 1986 to file any outstanding depositions and any supplemental material with respect to the motion for summary judgment. This court has carefully read and reviewed all of the depositions filed in this case which includes the depositions of Thomas Miner Julow, John P. Makielski, James Richard Wallace, Edgar Anthony Behrmann, Roger William Miller, Louis S. Tang, William T. Birge, Kathleen B. Hayward, Dennis Hayward, Hugo Nováis De Campos, Larry A. Portolese, John Edmund Mackiewicz, David James Lawrence, Wayne Paul Vance, George William Knox (2 volumes), Delbert James Gardner (2 volumes), Frederick George Grabb, George Paul McCabe, Jr., Thomas Robert O’Reilly, Robert Thomas DuCharme, Edward Lynn Akins, Larry Henry, Charlene Theresa Plasschaert, Russell Neal Ether, Richard Lewis Morrison, Jean H. Rideout, Howard Laurence McClelland (2 volumes), Thomas C. Schaefer, Robert H. Michaud, and Paul Meier. This court has also carefully reviewed all of the answers to interrogatories, documents produced in response to requests for production of documents, requests for admissions and affidavits filed in this case. Rule 56(c) of the Federal Rules of Civil Procedure provides that summary judgment must be entered if the pleadings, depositions, answers to interrogatories, admissions and affidavits on file show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Fed.R.Civ.Proc. 56(e). The court must view the record and reasonable inferences drawn therefrom in the light most favorable to the non-moving party. See, e.g., Box v. A & P Tea Co., 772 F.2d 1372, 1375 (7th Cir.1985); Munson v. Friske, 754 F.2d 683, 690 (7th Cir.1985); Posey v. Skyline Corp., 702 F.2d 102, 105 (7th Cir.1983). However, when a motion for summary judgment is properly made and supported, an adverse party may not rest on mere allegations or denials in his pleadings nor is a bare contention that an issue of fact exists sufficient to raise a factual issue. Posey v. Skyline, supra at 105; Shacket v. Philko Aviation, Inc., 681 F.2d 506, 513 n. 8 (7th Cir.1982). The adverse party must set forth specific facts showing a genuine issue for trial. Posey v. Skyline, supra at 105. Further, as a general principle, questions of motive and intent are inappropriate for summary judgment, Box v. A & P Tea Co., supra at 1378; see Cedillo v. International Ass’n of Bridge & Structural Iron Workers, 603 F.2d 7, 11 (7th Cir.1979), so summary judgment in discrimination cases must be approached with great caution. Huhn v. Koehring Co., 718 F.2d 239, 243 (7th Cir.1983). Most recently, the Supreme Court of the United States, in Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) held that Rule 56 must be construed with due regard not only for the rights of persons asserting claims and defenses tried to a jury but also for the rights of persons opposing such claims and defenses to demonstrate in the manner provided by the rule, prior to trial, that such claims and defenses have no factual basis. In reaching this result Justice Rehnquist speaking for the Court said: In our view, the plain language of Rule 56(c) mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial. In such a situation, there can be “no genuine issue as to any material fact,” since a complete failure of proof concerning an essential element of the nonmoving party’s case necessarily renders all other facts immaterial. The moving party is “entitled to a judgment as a matter of law” because the nonmov-ing party has failed to make a sufficient showing on an essential element of her case with respect to which she has the burden of proof. [T]h[e] standard [for granting summary judgment] mirrors the standard for a directed verdict under Federal Rule of Civil Procedure 50(a)....” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, - (1986), 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202. The majority opinion went on to emphasize that Rule 56 does not place upon a moving party the duty of negating an opponent’s claim. I. Mr. Grabb, a mechanical engineer by education, was hired by Bendix in 1951 right out of college to work in its Missile Systems Division. After working in that Division for about 17 years, Mr. Grabb was transferred to the Anti-Skid Group in 1968 which was a part of the Automotive Control Systems Group (ACSG), Department 856. In 1975, Mr. Grabb was promoted to Project Engineer in the Brake Control Systems portion of ACSG-Engineering, also in Department 856. In that position, Mr. Grabb was involved in advanced design and his responsibilities included supervising a group of 3 to 6 persons, inventing and developing new products in the “advanced booster” and vacuum pump area and serving as analytical consultant to other groups in Department 856 of ACSG-Engineering on all products. His responsibilities in that job also included assisting with program planning, organization, delegation and follow up with respect to the project involved. In March 1978, Mr. Grabb was transferred from Project Engineer to Staff Engineer in the Light Brake Division of ACSG-Engi-neering, Department 853. His work in that area involved design and development of an integral suspension system and he was the Suspension Component Program Coordinator which required that he make sure that key dates were met on time, coordinate processing and manufacturing/engineering activities, develop prototypes, do material selection, develop specifications, and do stress analysis. Six months later or approximately September 1978, Mr. Grabb was demoted to Senior Engineer because he received a low performance evaluation due to his failure to meet timing requirements for a project being done for Ford Motor Company and was transferred back to Department 856 of ACSG-Engineering. His work as a Senior Engineer primarily involved work on a new vacuum pump for use on passenger cars and trucks. After the demotion, Bendix instituted monthly reviews of Mr. Grabb in order to put together a program to try and match what Mr. Grabb could do well with the work that needed to be done and assist Mr. Grabb in areas in which he needed improvement as well as look at the progress being made by Mr. Grabb with respect thereto. Mr. Grabb’s performance improved within the context of the work assignment given him and he was promoted back to Staff Engineer in May or June 1980 as he requested by Mr. Delbert Gardner, his supervisor. Mr. Grabb received a pay increase at the time of his last promotion of about IOV2 percent. He continued to work on the vacuum pump program after his promotion. Mr. Gardner did not know about the upcoming reduction in force at the time of Mr. Grabb’s promotion to Staff Engineer. The performance evaluations with respect to Mr. Grabb reveal that he consistently was high in some areas and consistently low in others. Mr. Grabb’s strong points were his high degree of knowledge, proficiency and engineering skill, his creativity and that he had an organized and analytical mind. His weak points were work/project planning, organizing/managing projects, delegation and follow up of work, not working well toward meeting deadlines, scheduling and not being result oriented. In May 1980, Mr. Grabb’s performance evaluation revealed that he wanted more responsibility and wanted to be promoted to Staff Engineer. He received a 3+ performance evaluation in May 1980. The evaluations further revealed that Mr. Grabb could not work well in a “stress” environment because of his past history of ulcers and that he approached his job functions/working environment in such a way as to avoid a situation that would reactivate his ulcer problems although the ulcer problem itself did not interfere with his work. Mr. Robert DuCharme, the director or manager of the division of ACSG-Engi-neering in which Mr. Grabb worked, gave the same evaluation of Mr. Grabb as was revealed in the written performance evaluations done by Mr. Grabb’s immediate supervisors. Mr. Julow, the other plaintiff in this case, was also hired by Bendix in 1951. He received his bachelors degree in electrical engineering at Purdue University and started with Bendix as a Junior Engineer doing laboratory testing in the Brake Control Systems Division of ACSG-Engineer-ing, Department 856. In 1975, Mr. Julow was promoted to Project Engineer and his responsibility was primarily liaison between his department and other departments within the corporation and with outside vendors and customers. In that capacity, he had responsibility for overseeing the contact between engineering and purchasing, quality control, manufacturing, outside vendors and sometimes customers. This included acting as watchdog over manufacturing and quality control with respect to Master Vac, Hydrovac and Convac projects, provide comments on new or proposed manufacturing methods or practices, monitor ongoing methods and practices, communicating items that needed attention to the appropriate persons, and initiating action to make improvements. This work included liaison between the Brake & Steering Division of ACSG-Engineering and Bendix Automotive of Canada, Windsor, Ontario (BAC). This BAC operation was closed due to a decline in business and Convac production was moved to a South American operation in 1979. In April 1980, Mr. Julow was assigned to a position of Staff Engineer because of his communication problems and Bendix wanted him to report to someone else. Mr. Julow was in the same department since joining Bendix in 1951. Mr. Julow’s performance evaluations reveal that he received a 2 rating in 1975. In 1978, after a job change that resulted in him better understanding what he was supposed to do, Mr. Julow received a 3 rating. Mr. Julow also received a 3 rating in 1979 and 1980. The performance evaluation of Mr. Julow in 1980 indicated his strengths were in product knowledge, manufacturing and processing expertise, familiarity with vendors and vendor processes, and familiarity with Bendix’s internal procedures. That evaluation also noted that he was very strong in problem recognition and handling day to day manufacturing problems. Areas needing improvement were organization and written communications. The problem with communication was his noted weakness consistently and he found formalizing and documenting communications difficult. In terms of promotion, it was noted that Mr. Julow was very strong technically and highly product oriented and could do well if a higher level job was strictly product related. In 1980, Bendix was a large corporation with several different divisions, including but not limited to, an Energy Controls Division (EC), Missile Systems Division, Aircraft Brake & Strut Division, Chassis & Brake Components Division, Friction Materials Division, ACSG and a Hydraulics Division. The Chassis & Brake Division was located in St. Joseph, Michigan, the Friction Materials Division was in Troy, New York and the remaining divisions mentioned above were in the South Bend, Indiana area. Bendix underwent a massive reorganization company wide in late 1980 and was acquired by Allied sometime thereafter. The ACSG Division was involved in research, development, design, and manufacturing of products used by the automotive industry. ACSG was comprised of five divisions: Management Staff, Brake & Steering (Manufacturing), Engineering, Industrial Relations and Marketing. Within the Engineering Division of ACSG, there were four directorates: Engineering Technical Services; Brakes, Steering & Suspension; Brake Control Systems; and New Products. Further, within the four directorates, there were several departments. The actual work performed in the individual departments varied according to the type of projects being pursued and the responsibilities of the various departments with respect to the projects. Some work involved research and design for new products, redesign of existing products, new uses for various products, getting an item from design into production, working with customers to correct problems in design or manufacture of products, testing and quality control. Further, within the same department the projects being worked on may vary. Some projects were developing and doing research for future products and some projects were in conjunction with a certain customer for a certain product pursuant to specific plans or programs. Within the engineering department of ACSG, there were different classifications of engineers with different grades associated therewith. Those classifications began with Junior or Associate Engineer and ended with Director. The first classification, Junior or Associate Engineer is at grade 20. There is an automatic grade and title change to Engineer, grade 22, which occurs after 6 months of satisfactory performance. This is the only automatic change or promotion. The next promotion is from Engineer to Senior Engineer which is grade 26. This is not an automatic promotion but usually occurs after 3 to 5 years experience with satisfactory performance and clear evidence of personal and technical growth. Beyond the Senior Engineer level, further promotions are made depending on performance and capability of the individual and time in grade is not a consideration. There are two basic paths that engineers take at Bendix which is referred to as the “dual path” or “dual ladder”. Under this system, the interest and capabilities of the individual are assessed in determining which path will be followed. For those engineers capable of and interested in management and supervision, the progression is from Project Engineer (grade 29) to Senior Project Engineer (grade 32), Manager (grade 35), Director (grade 42) and beyond up the management ladder at Bendix. For those that don’t have an interest in or capability for supervision, the other path, the technical side, is appropriate. That progression is from Senior Engineer to Staff Engineer (grade 29), Senior Staff Engineer (grade 32), to Principal Engineer (grade 35). On the technical side of the ladder, if an engineer earns promotions, he will have the potential of salary grades up to the equivalent of the department manager level on the supervisory ladder. Promotions are based on performance and capabilities as determined by the individual’s superiors. This program recognizes the importance of the different qualities inherent in the two paths to the success of Bendix. There is a salary range within each grade and there may be some overlap of salary between grades. Bendix also has a High Potential Program that was implemented in 1967. This program recognizes individuals with high potential early in their careers. There are very few individuals in this program and those individuals do not know that they are in the program, only their supervisors know. Once an individual is recognized as having high potential, there is a special emphasis on making sure that that individual gets the proper job mix for personal development and experience to enhance and accelerate his upward movement in the corporation. ACSG has a performance review system which is outlined in a written document entitled “Salaried Employees Performance Review System.” Written evaluations are prepared and performance planning and review interviews are scheduled 3 months after the date of hire and annually thereafter. This schedule for performance evaluations may be varied in some circumstances such as in the event of promotion, transfer, reclassification or demotion. The purposes of the performance evaluations are to: clarify duties and responsibilities, establish performance goals, identify and plan career growth activity, inform employees of supervisor’s evaluation of past performance and goal accomplishments and provide an opportunity to clarify performance difficulties, career aspirations, and suggestions for work goals for the coming period as well as aid in the administration of salary and promotion decisions. An individual’s performance is evaluated in three areas: (1) major duties and responsibilities as identified and written for each position; (2) performance factors which include knowledge and proficiency planning, organizing work, control skills, communication skills, problem solving, adaptability, initiative, reliability, supervisory skills, performance appraisal skills, affirmative action and health and safety concerns if applicable; and (3) goal accomplishment — performance goals, project goals, and self development goals. Percentages of goal completion (from 0% to 100%) are assigned to the third area and rating points are assigned in the first two areas for each factor. The rating points range from 1 to 5 as follows: 1-Out-standing, 2-Exceeds Requirements, 3-Meets Requirements, 4-Below Requirements and 5-Unsatisfactory. A composite rating is then given for areas 1 and 2 outlined above. Upon completion of the performance evaluation by an employee’s supervisor, that performance evaluation is reviewed with the employee and the employee may respond thereto in writing if he so desires. The automobile industry has had a problem with a five year hire and layoff cycle that has impacted on suppliers to the automobile industry as well. In the early 1970’s, there was a severe downturn in the automobile industry which resulted in a severe downturn in business for Bendix. Consequently, Bendix had a large reduction in force across the board from production to management. For example, in the Mish-awaka plant of Bendix, there was a reduction from 2,000 employees to 300 employees. With the reduction, Bendix kept the more senior, well-rounded, experienced people and laid off the younger engineers. Accordingly, the bell curve for engineering manpower weighted toward the mature end. Further, Bendix did not have a program for hiring new engineers regardless of business conditions like Ford, IBM and Xerox had so the hire/layoff cycle left Bendix without engineers with middle level experience. When the new management team came in at corporate headquarters in Southfield, Michigan with respect to Bendix’s automotive section, they along with Mr. Birge, the then Director of Engineering for ACSG, recognized a need to do something about the situation referred to in the depositions as the “mature work force problem.” Mr. Birge was particularly concerned that there would be no engineering department at ACSG in 3 to 5 years because of the pension program at Bendix, early retirement plus the competitive nature of the market that emerged in the mid-1970s when the marketplace for the automotive industry turned very good all of a sudden and Bendix began losing some of its key people. Accordingly, Bendix started recruiting heavily at college campuses which resulted in the Engineering staff being comprised of young engineers and older engineers but few in between. In late 1979 and 1980, there was another severe decline in the automotive industry which necessitated a reduction in operations at ACSG. There were five reductions in force (rif) during this period of time: August 1979, January 1980, March or April 1980, June 1980 and September 1980. Those rifs impacted primarily on three of the five divisions of ACSG. Management Staff was not affected at all and the Industrial Relations Division only lost 3 employees. Further, the rifs did not affect any co-op employees. Co-op employees are students that are still in school with a five year program which permits engineering students to get work experience during the time they are attending school. The Engineering Division of ACSG was first impacted in the second rif although the most severe rif was the fifth one which occurred in September 1980 and was the one in which the plaintiffs in this case were separated from employment with Bendix. At the time the plans for the September 1980 rifs were being made, Bendix’s policy with respect to rifs was in a transition period. Bendix had Policy 1200 that dealt with rifs but there was not enough emphasis on business needs under the Policy. In May or June 1980, Mr. George Knox, Group Director of Employee Relations for ACSG received a new proposal, Policy 1202, from Dennis Hayward, Vice President of Human Resources for the automotive sector for Bendix. There were no substantial differences between proposed Policy 1202 and Policy 1200. Proposed Policy 1202 was the policy that ACSG tried to follow with respect to the September 1980 rif. Proposed Policy 1202 was subsequently adopted by Bendix after the rif and was made retroactive to August 1, 1980. Policy 1202 has since been superseded. Policy 1202 basically outlined the procedures to be followed in a rif situation with respect to the selection and approval of employees that would be affected by a rif as well as the administration of the rif itself. Bendix ACSG attempted to follow the procedures set forth in Policy 1202 as closely as possible with respect to the September 1980 rif although, because of timing and other considerations, the steps taken by ACSG were not necessarily done in the chronological order suggested in the policy. The fiscal year for Bendix ends on September 30th so the rif had to be completed by then. Accordingly, the procedure had to be expedited and some of the steps were done concurrently instead of chronologically but the Bendix personnel involved in the decision making and implementation of the rif tried to follow the policy at all times and accomplish the task in the fairest manner possible. Policy 1202 contained, in part, the following provisions: C. RIF SELECTION AND APPROVAL It is important that the determination of the necessity for a RIF be made as far in advance of an actual termination of employment as possible, in order to provide for the least disruptive implementation of these procedures. 1.When a proposed RIF would result in 5 or more salaried employees leaving the company, the Director of Employee Relations (DER) of the location shall notify the group DER and shall consult with the Corporate Director of Human Resources. This consultation should be at the initial stage of the development of the RIF Plan, to ensure the following: a) the Plan minimizes the impact on employees with records of high performance or unique job qualifications; b) placement activities inside and outside of Bendix are vigorously pursued; c)the Plan does not have adverse impact on EEO goals, age and skill distribution of the workforce and similar corporate objectives; 2. The DER shall work with appropriate operating personnel in the selection of RIF candidates and shall be responsible for approving all RIF recommendations before submission to the Separation Committee. The following guidelines should govern such recommendations: a) the need to retain employees with unique job qualifications, higher performance or significant capability to contribute to the overall business objectives. If these factors are equal, employees with the least service should be laid off first; b) the impact which projected terminations would have on corporate goals or programs such as EEO and workforce age and skill distribution. Temporary and part-time employees should generally be terminated first, especially if they have similar skills and work in the same departments as permanent, full-time personnel who are terminated. Exceptions may be warranted based on the factors identified in 2a) and b) above. Other exceptions may be considered for co-op students or situations in which the work to be performed requires only part time rather than full time personnel. 3. The DER shall present the recommended RIF candidates to the Separation Committee for approval. This Committee shall consist of the General Manager or senior group executive, DER, assigned counsel and at least two other major department heads. The following supporting material which will constitute the R.I.F. Plan shall accompany the R.I.F. recommendations: a) a RIF Request Form (Document A), or other form providing substantially similar material, for every proposed RIF candidate; b) Performance material if it is a factor in the selection of the RIF candidate. This material should include a current performance appraisal, or some recent documentation of the supervisor’s performance evaluation if a formal appraisal is not available. If there has been a change in performance over time, a summary of previous performance should also be provided; c) a workforce impact summary as described in C lc); d) documentation that placement opportunities within the division/group have been explored. 4. When the Separation Committee approves the RIF Plan, the DER shall forward it to the Group D.E.R. for senior operating executive approval. 5. The senior operating executive shall review the Plan’s adherence to the criteria outlined above. Upon his approval of the proposed actions, he shall forward the following information to the Corporate Director of Human Resources: a) Employees with 65 or more points; and b) Employees within 12 months of vesting or early retirement eligibility. This shall be done at least 15 working days prior to the scheduled RIF. The DER will be notified when the Vice President, Corporate Organization and Human Resources approves this portion of the RIF Plan. (NOTE: Employees within 12 months of vesting or early retirement eligibility, as governed by the applicable pension plan, will be granted an unpaid, personal leave of absence in order to fulfill service requirements for vesting.) D. ADMINISTRATION 1. Employee Relations staff groups must be sensitive to the personal and professional difficulties faced by individuals selected for RIF. Sufficient time and effort must be devoted to the following: a) the manner and timing of employee RIF notification; b) outplacement counseling and assistance; c) communicating status of benefit programs. The attached guidelines may be used for this purpose. 2. The DER shall administer this policy in accordance with the following provisions: a) salaried employees placed on a reduction in force should be given notice as much in advance of their departure from the payroll as possible (normally 30 days, but in no case less than 2 weeks). Payment in lieu of notice is permissable. To ensure continuity of pay the effective date of separation should be the last day of the month. Salaried employees shall not be given notification or be separated as a result of a RIF between December 1 and January 15; b) an employee should not be informed that he/she is a candidate for RIF prior to the division receiving Corporate approval, if required. The only exception to this shall occur if placement efforts require the forwarding of specific materials to other divisions which have expressed an interest in employing the individual. Under such circumstances, the employee should be advised that he/she may be affected by a RIF, and interviews should be scheduled as appropriate; c) notification should be provided by the immediate supervisor through personal contact and consultation with each employee. A member of the Employee Relations staff should provide any necessary assistance; d) the DER shall designate a staff person to provide individual attention to employees selected for RIF and to coordinate the following potential outplacement activities: 1) assistance in resume preparation 2) counseling in interview techniques 3) circulation of resumes to other employers and agencies 4) placement of “personnel available” ads in newspapers 5) provisions for in-plant interview facilities for outside employers 6) employee time off for interviews 7) other activities considered appropriate e) whenever possible, the scope of responsibilities of a new Bendix assignment should be comparable to those of the employee’s previous position. If an employee refuses a comparable position without sufficient reasons, such as relocation difficulties, the employee should be separated as a quit, rather than as a RIF; f) if an employee is placed in a lower Bendix position, appropriate salary action shall be taken so that his/her salary is no more than 110% of the maximum of that grade; g) if an employee is placed in another Bendix division, the receiving division pays the relocation cost; h) separation payments for employees at divisions adopting this policy shall be paid in accordance with Employee Relations Policy Number 1205. Further, if an employee that was to be separated from employment because of a reduction in force had 80 or more points based on age plus years of service, that employee could elect early retirement and receive pension benefits as entitled. Mr. Thomas Schaefer, Vice President of ACSG-Engineering in 1980 first became aware of the need for the September rif in May or June 1980 when Mike Leonard, his immediate supervisor, told him that Bendix Management was requiring the ACSG-En-gineering Department to reduce its budget by approximately three million dollars ($3,000,000.00) due to the declining business climate, i.e., the severe downturn in the automotive industry resulting in dramatically decreased business for ACSG. Mr. Schaefer then asked the directors of the four engineering divisions for preliminary information on how to meet the reduction. He gave the directors ball park figures proportional to the size of their budgets so collectively they would come up with a little in excess of the 3 million dollar reduction amount. In giving the directors the ball park figures, the number of employees that had to be reduced was determined by taking the average cost of an employee and dividing it into the total required reduction. Although the salary of the various positions in ACSG varied, an average salary plus costs was used to determine the number of persons who had to be let go to meet the budget reduction. Accordingly, the directors were to identify what programs and/or departments could be eliminated or discontinued and what impact such cuts would have on ACSG’s business. In this step, Mr. Schaefer was trying to scope out the magnitude of what ACSG was encountering by the cut. Mr. Schaefer also instructed the directors not to replace any employees that quit or were transferred and these employees were included in the number to reach the projected reduction in budget. Three engineers, all under 40 years of age, were transferred about this time and included in the budget reduction calculations. George Pope, a Manager Engineer, was transferred to the Friction Materials Division. James Putt, a Supervisory Engineer, was transferred to the Brake & Steering Division. Both of these individuals’ names had appeared as candidates for the September rif. David Krebs, a Project Engineer, was transferred to the Bendix International Division of DBA-France. Mr. Krebs spoke French and had wanted an exchange position for several years. Mr. Schaefer made arrangements for Mr. Krebs since his language ability, skills and talents matched an opening in France. Informal efforts were made for placement of all engineers at the Missile Division and if other Bendix divisions had openings with certain requirements, that description might translate to a certain individual within ACSG. However, there first had to be a legitimate opening and no one was singled out for special treatment except Mr. Krebs because of his language ability and desire to be in France. Mr. Schaefer had a list of all the employees in the organization by directorate/division, by grade or classification or title, latest performance review, length of service, age and combination of age and service points. Mr. Schaefer plotted the age distribution and skill distribution by classification or title pre-rif. The directors reported back to Mr. Schae-fer in about two weeks with a preliminary list of programs and departments to be cut. The projects cut were primarily those in the early stages of development, i.e., for the future, whereas the projects for customers near completion or in production were not cut because of their relative impact on ACSG operations. At that point in time, the work which would continue to be performed in the scaled down operations was specifically identified and a new organizational structure was developed for the reduced operation. Mr. Schaefer, together with Mr. Gardner and Mr. McClelland, the two remaining Directors in ACSG, then went through the list of employees and built the new organization with the best available people within the limit of the total number of people permitted by the budget. The organizational structure was filled from the top down, i.e. Director down to Secretary. A major criteria in determining who should fill a particular slot in the organization was a particular individual’s ability to do the specific job. These ability assessments were based on the combined knowledge of Mr. Schaefer, Mr. Gardner and Mr. McClelland and were considered a unique job qualification. In making the assessment of ability, they looked at the individual’s educational background as well as the individual’s product familiarity. For example, if a position required an individual with product knowledge of axles, the group would look at the list to find the engineer with the best background in axles to fill the position. No distinction was made between Staff and Project Engineers in their selection process. Mr. Schaefer basically relied on what the supervisors said with respect to critical skills and day to day ability of the individual involved. The employees in the High Potential program were also considered, as well as an employee’s significant capability to contribute to the overall business objectives of Bendix in the future. Once the engineering slots were filled in the new organizational structure, the group then filled in the staff positions in a particular area. Mr. Schaefer, Mr. Gardner and Mr. McClelland only considered performance evaluations and years of service when all other criteria were equal among possible candidates. They did not consider any EEO requirement in making their decisions on the reorganization. Once the organizational chart was filled in, the remaining employees were the ones who would be affected by the rif. There were layoffs in all job categories and Bendix kept what it believed to be the most qualified people needed to perform the work remaining in the reorganized engineering division as ACSG. The recommendations of Mr. Schaefer, Mr. Gardner and Mr. McClelland were then reviewed by the Rif Review Committee/Separation Committee which consisted of Mr. Schaefer, Mr. Delbert Gardner (Director of Engineering Production), L. McClelland (Director of Product Engineering), George Knox (ACSG Director of Employee Relations) and R. Michaud (Automotive Group Operation Counsel). This committee considered qualifications including educational background, product knowledge, flexibility, capability, performance, versatility, potential, and length of service and finalized the list of individuals that would be affected by the rif. Mr. Michaud and Mr. Knox asked questions about certain selections as needed to satisfy themselves that Policy 1202 had been complied with and that the rif selection process was accomplished in the fairest manner possible but did not challenge the organizational structure itself. Mr. Knox had not reviewed the rif recommendations before they went to the Rif/Separation Committee. The Rif/Separation Committee did not see any impact statements when it made its decision. A document entitled “Reduction-In-Force Request Form” was filled out for each employee that would be affected by the September 1980 rif. These forms were filled out in part by Mr. Gardner and Mr. McClelland with respect to the abilities portion of the form. The Rif Request form contained information about the employee including personal background, position duties and responsibilities, reason for selection and recommendations. Under the position and duties section, the position title of the employee was identified, his assignments and previous Bendix positions were described along with his strongest abilities and limitations and the necessity for reduction of personnel was explained. Under the recommendations section, the proposed date of separation was identified as well as an indication of whether the employee’s qualifications and performance were sufficiently high to be considered for transfer to another department or division at Bendix. The only reason an employee would not be eligible for transfer within Bendix would be for disciplinary reasons or something similar to that. Further, if the form indicated that the employee was eligible for transfer, another form entitled “Available Managerial and Professional Personnel Form” was to be attached. This form is also referred to as the “Bendix Resume Form” and contained information about the employee including personal data, education, Bendix experience, other significant experience, other data (awards, patents, etc.) and information on who to contact for further information. This form was filled out by the personnel department before the rif and the information was based on the employee’s record. This form as then sent to corporate headquarters in Southfield, Michigan. Usually, this form was then sent out to the other Bendix divisions in an effort to find alternative employment for those individuals to be affected by a rif to decrease the impact caused thereby by finding alternative employment before they were actually laid off. Impact statements with respect to age, minorities and females were prepared with respect to the September rif as required by Policy 1202. The age distribution of employees at ACSG was also reviewed for before and after the rif. Before the rif, the average age of employees was 43 years and the median age was 44 years. After the rif, the average age was 44 and the median age was 46 years. Upon completion of the rif plan by the people responsible in South Bend, the rif plan was reviewed by Dennis Hayward and Kathleen Brown Hayward. Mr. Hayward was Vice President of Human Resources for the automotive sector of Bendix and was stationed in Southfield, Michigan. In that position, Mr. Hayward had overview responsibility from the automotive standpoint for reductions in force and compliance with Bendix policy for reductions in force. Ms. Brown Hayward, as manager or director of Human Relations for the automotive group, was also involved in rifs and plant closings in the automotive sector. She managed some of the details and paper work associated with those efforts. Ms. Brown Hayward was also involved in general human resource planning for the automotive group and to some extent with EEO compliance. She was involved in the plant closing of Bendix Automotive of Canada and also at the Heavy Vehicle Systems Group in Elyria, Ohio and the Friction Material Division in Troy, New York. She had reviewed the rif plans for those divisions. Mr. Hayward was notified of the planned rif at South Bend and a date was established to go to South Bend to review the rif planning being put together there as required by Policy 1202. The trip to South Bend, which occurred in early September, was the first substantive activity Mr. Hayward had with respect to the September rif in South Bend. While in South Bend, Mr. Hayward and Ms. Brown Hayward reviewed the rif request forms for each person that was to be affected by the rif and also reviewed some performance material related to some of those employees. At that time, they also reviewed the work force impact statements and placements opportunities. Mr. Hayward and Ms. Brown Hayward first talked to George Knox who presented them with the rif request forms and other material relative to the reduction. After an initial review, they talked to Tom Schae-fer and reviewed what ACSG-Engineering was trying to accomplish and what skills were necessary to the operation given the reduction. Each individual’s rif request form was then reviewed and they asked questions of Mr. Schaefer if necessary. After the review with Mr. Schaefer, they then reviewed the reductions with each department head with respect to his particular section or division. After finishing the review, they determined that the plan was consistent with Bendix policy on rifs and returned to Southfield. After returning to Southfield, Mr. Hayward gave Mr. Birge, the Corporate Director of EEO the information on the impact of the rif with respect to age, minorities and females. Ms. Brown Hayward did statistical comparisons or impact analysis and found no adverse or disparate impact on age distribution as a result of the rif. This analysis was done for ACSG as an entity and not by classification. Information with respect to age plus service for purposes of early retirement and those individuals within one year of pension vesting was also provided. After review by the proper corporate executives, the rif plan for South Bend was approved and George Knox was so advised. On September 16, 1980, each employee affected by the rif was called into the office of the director for their division and told that they would no longer be employed by Bendix after September 30, 1980. Each individual was given a packet that included a document entitled “Reduction-in-Force, Information for Salaried Employees, September, 1980” which contained information with respect to pay, separation allowances, Salaried Employees’ Savings and Stock Ownership Plan, Individual Retirement Accounts, Insurance, Application for Unemployment Compensation Benefits, Outplacement Services, Rehire and Persons with Hourly Seniority. Further, as part of the rif process, an exit interview was held with each employee affected by the rif between the date they were informed of the rif and September 30, 1980. Both of the plaintiffs were part of the rif in September 1980 because both of their positions were eliminated due to economic austerity. Both of the plaintiffs agreed that the economic climate for ACSG indicated that a rif was needed. The rif request form filled out for Mr. Grabb indicated that he received a performance rating of 3 and possessed a high degree of technical engineering skill which he is able to apply to required tasks. His limitations were that his work planning and report skills were weak and that he did not work well towards deadlines which made him hard to place in other areas. The rif request form noted that he was eligible to be considered for transfer to another department or division of Bendix. Mr. Grabb’s position and the program he was working on, the vacuum pump project, were both eliminated so no one performed his specific duties although the engineering function continued to be performed at ACSG. Mr. Grabb elected early retirement and receives $976.75 per month. Mr. Grabb also received a separation allowance of $5,928.75. At the time of Mr. Grabb’s exit interview, it was noted that he was eligible for rehire and preferred a job in the South for medical reasons. The rif request form on Mr. Julow indicated that he received a performance rating of 3 and that his strongest abilities were manufacturing and processing expertise, his familiarity with vendor’s situations and Bendix procedures and his ability to identify causes of problems and suggest quick fixes. His limitations were noted to be communication problems, long-term planning and problem solving, and written reports being few and late. The rif request form also noted that his product experience was narrow and not applicable to other job areas and that his problems with communication make him difficult to place in other areas although he was eligible for transfer to another Bendix department or division. After the rif, certain of Mr. Ju-low’s job duties were performed by Henry Dorsett, a Project Engineer whose responsibilities included Master Vac liaison in the Brake & Steering Division. The September 1980 rif resulted in a reorganization of ACSG-Engineering and reduction of departments from 18 to 12 in number. The reorganized ACSG-Engineering required liaison functions at the Hydraulics Division in St. Joseph, Michigan for hydraulic boosters and master cylinders. Mr. Julow did not have experience, knowledge or qualifications necessary for that position. Mr. Julow elected early retirement and receives $986.09 per month. Mr. Julow also received a separation allowance of $6,540.04. A comprehensive outplacement program was established to assist employees affected by the September 1980 rif as required in Policy 1202. This program was available to all persons terminated regardless of their job classifications and status. James Richard Wallace was the Manager of Employee Relations at ACSG and it was his responsibility to assist the riffed employees in finding alternative employment. He called in Charlie Pletcher to assist him in doing so. Group meetings were set up to help the riffed employees with respect to interview techniques, resume preparation, and job seeking skills. ACSG also set up an Outplacement Office to assist the riffed employees. Services available in this Office included help in drafting resumes and letters, copying, typing, phone privileges and telephone answering service at no cost to the employee. ACSG subscribed to mailing lists of companies in similar businesses, purchased industrial directories and subscribed to eight major newspapers and posted notice of job openings that were available both locally and nationwide. All of these were available in the Outplacement Office. The outplacement program also included distribution of resumes to over 500 Indiana and Michigan industrial concerns, other Bendix divisions, Bendix corporate headquarters, employment agencies and other companies requesting information on candidates. This distribution occurred as the employees turned in their resumes to ACSG. ACSG also provided space for on-site interviews with companies and placement agencies. Ms. Brown Hayward assisted in the circulation of information to other Bendix divisions. Mr. Grabb received calls from several employment agencies and got two job offers. One was from Garrent Corporation, Air Research Division, located in Arizona for an annual salary of between $35,000 and $36,000. The job would have required him to work on the MX missile. He had previous experience in that area from working at Bendix’s Missile System Division. He turned down that job offer because of the political climate surrounding the MX missile and for family reasons since he did not want to leave the South Bend area. Mr. Grabb also received a job offer from Manufacturing Technologies in Mishawaka, Indiana at a salary of $28,-000.00 per year which he accepted and he is still working there. Mr. Grabb did not interview at any other Bendix division nor did he receive a job offer at any other division of Bendix at the time of the September 1980 rif. Mr. Julow received calls from several outside employment agencies. He accepted a job at Goshen Rubber Company in Gosh-en, Indiana. That job paid less and had less benefits than he was receiving at Bendix before the rif. He did not interview at any other Bendix division nor did he receive a job offer at any other Bendix division at the time of the September 1980 rif. At the time of or shortly after the September rif at ACSG, there was one opening at the Bendix Friction Materials Division in Troy, New York. The qualifications for that vacant position required an engineer with a chemical background to become a compounder. A compounder is responsible for formulating new friction materials and their related processes. The individual responsible for hiring an individual for that position, Mr. Patrick A. Theisier, reviewed the resumes of Mr. Grabb and Mr. Julow but found that their qualifications did not suit the position. Mr. Theisier selected William Hayes, Jr. to fill the position because his qualifications were suited to the position. William Hayes, Jr. had been an Associate Engineer at ACSG prior to the September rif, having been hired by ACSG on March 12, 1980. In October 1980, Mr. Richard Riel was promoted from the position of Senior Reliability and Quality Assurance Engineer to Manager of Reliability and Quality Assurance at the Bendix Chassis & Brake Components Division located in St. Joseph, Michigan, leaving a vacancy in that position. The vacancy was a salary grade 26 position and called for a degreed engineer with experience in the Master Cylinder and Hydro-Max product lines. Mr. Riel interviewed candidates for the position and selected John Mackiewicz for the position because of his qualifications, having had experience in both the Master Cylinder and Hydro-Max product lines. Mr. Mackiewicz had been a Senior Engineer at ACSG prior to the September rif, having been hired by ACSG on June 13, 1977. He graduated from Tri-State University in 1977 with a degree in mechanical engineering. While at ACSG, Mr. Mackiewicz did developmental work on Hydro-Max. After being promoted to Senior Engineer, he was the only engineer responsible for an electronic reserve system related to a brake system that went into production in model year 1980. He got his knowledge of electronics from an electronics lab at home, people at Bendix, self study and courses at Bendix. Mr. Mackiewicz interviewed for this job and one at EC but took this offer at St. Joseph, Michigan because he wanted to stay in automotive, further his production experience and he got a raise. He had prior experience in manufacturing as a coop at CTS Corporation, had direct product experience and was knowledgeable on master cylinders so his background fit their need at that time. He stayed in that position for 14 months and then transferred back to ACSG on January 1, 1982. During October 1980, Michael Martin, an engineer working on the tilt steering product line with the ACSG resigned from employment with Bendix. To fill the vacancy created by the resignation, Mr. H.L. McClelland as Director-Product Engineering for ACSG, reviewed the files of those engineers who had recently left Bendix as a result of the rif, including those of Mr. Grabb and Mr. Julow. The only engineer with experience with the tilt steering product line in the files reviewed was Edgar Behrmann. Mr. Behrmann was contacted and accepted an offer of reemployment with ACSG in Department 853, the steering products group. Mr. Behrmann did not have any direct experience in tilt wheel steering at the time of the September 1980 rif but did have some indirect experience from his employment at Chrysler Corporation in Highland Park, Michigan from 1969 through 1973. At Chrysler, Mr. Behrmann was an engineer in the advanced body group and had accumulated knowledge on auto parts from that experience. At the time of the September 1980 rif at ACSG, there were 7 vacant positions in engineering at EC. There were more openings at this division because it was a larger division. The Employment Requisitions for those 7 openings set forth the needs and requirements for the positions. One position was in Department 863 New Programs-Hydromechanical for a Senior Engineer, Grade 26, 3 to 7 years experience with a degree in Mechanical or Aeronautical Engineering. The work involved design, development, testing and production of new derivative fuel control for single-engine application of F404 engine, i.e. hydro-mechanical controls for gas turbine engines, and the skill requirements included experience in mechanisms design, fuel control or servomechanisms with knowledge, experience or interest in electronics. The form indicated that EC was seeking a person with primary interest in hydraulics, pneumatics, machine design, servo controls for the positions and would prefer someone who had been exposed to or had working knowledge of fuel control and/or gas turbine operation and was interested in design and hardware. Three more positions were available in Department 863 New Programs-Propulsion Controls. One of those positions was for a Senior Engineer with the same basic requirements as the position described above in New Programs-Hydromechanieal. The other two positions available in New Products-Propulsion controls required the same basic qualifications and job duties. The positions were for a Project Engineer, Grade 29, 7 to 10 years experience with a bachelor, master or Ph.D. degree in Mechanical or Aeronautical Engineering. The positions involved leadership of Project Engineering Group of “New Products” section working on design, development and qualification testing of new hydromechanical/electrical controls and related components for use on large gas turbine aircraft engines. The positions also required the individuals to direct technical and cost proposals preparation, plan program activities, budgets and schedules as well as lead a group of 10 to 15 professional personnel and coordinate development programs with customers. The special skill requirements for the job were demonstrated leadership qualities with a primary interest in hydrau-lies, pneumatics, machine design, servo controls, electrical/electronic components and interfaces with a working knowledge of fuel control systems and/or gas turbine engine operation. The last three positions available at EC at that time were in Department 861-Engi-neering Current Programs and required the same basic qualifications and job duties. The positions were for Engineer or Senior Engineer, Grades 22, 26 or 29, with 2 to 4 years experience and a bachelors degree in Mechanical or Aeronautical Engineering. The position involved project responsibility in design, development and production or manufacturing support, including assembly and test operations for F100 and TF30 Engine Controls as well as hydro-mechanical control systems. The special skills required of the job were a special emphasis on communications skills since that position required interfacing with a widely diverse group of people and disciplines including vendors, customers (engine companies and military) as well as all staff and operational disciplines within Bendix. EC received a packet from ACSG of information on people affected by the ACSG September 1980 rif including the resumes of both plaintiffs in this case. Mr. Richard Morrison, an employee in the Personnel Department at EC whose responsibility was professional staffing and staffing of salaried employees, reviewed the resumes in light of the needs within the division as set forth on the requisition forms. In determining whether there was a match of a person with an open position, the salary grade of the individual was taken into account because only a certain salary grade or range had been approved for a certain position and if the maximum salary grade is exceeded by the candidate, reapproval would then have to be obtained. Other factors considered in the initial review were educational background and experience. With respect to education, if an individual had an advanced degree, it generally showed some specialization which could be either an asset or a detriment depending upon the nature of the job opening. Further, the application of engineering in EC required a much higher degree of state of the art engineering than at ACSG so preference may be given to later college graduates because they would be more up to date on the state of the art technology than earlier graduates but some engineers who graduated in the 1950s may have kept up, particularly if the engineer utilized the general education assistance policy available at Bendix. After the initial review, Mr. Morrison would separate the resumes into two groups: ones with qualifications that closely fit the needs and had a serious likelihood of being considered were grouped together and the other resumes were grouped together. The resumes were than given to the engineering director or manager who had the opening and the engineering department would then determine who to interview. Mr. Morrison stated in his deposition that an engineer that only has had two or three years experience is not so entrenched in a particular type of work or discipline and could be moved into a different assignment and pick up the new assignment more readily than an engineer with more years of experience. Mr. Morrison further noted that an engineer with less experience would no doubt have a more up to date engineering education than one with a long tenure. Jean Rideout, the Director of Employee Relations in EC stated she thought it was the practice of EC to hire recent engineering graduates unless EC was looking for specific skills since the learning curve is rather long whether the individual is a recent graduate or an engineer with several years experience. Ms. Rideout further stated that an engineer with 20 years experience on a product that has no relation to the products involved at EC would be over-qualified for a position requiring 2 to 4 years experience and that it would not make good business sense to consider an over-qualified person since they would still have to go through the learning curve to be able to perform on EC products. Thus, although an engineer with 30 years experience might be considered for a particular position, that engineer would not likely be interviewed if the experience factor set out in the job requisition did not match the particular individual’s level of experience. EC interviewed several candidates and hired 7 of the engineers that had been affected by the rif at ACSG. Neither of the plaintiffs were interviewed or hired at EC because their qualifications were not as compatible with the job openings as those that were hired. One other engineer, John Mackiewicz, was offered a position with EC but declined in order to accept an offer at another division of Bendix. Larry Vance was hired for the open position in Department 863 New Programs-Hy-dromechanical by James Rupp, Supervisor Engineer for EC. Mr. Vance graduated from Purdue University in 1972 and was originally hired at Bendix on June 25, 1979 and at the time of the rif was a Senior Engineer at ACSG. He was hired at EC as a Senior Engineer. While at ACSG, Mr. Vance was involved in testing and development with respect to pneumatic actuation and the vacuum pump. Prior to joining Bendix, he was a supervising project engineer at Chrysler Corporation and his job duties involved support of assembly and manufacturing. Mr. Vance did not find his job at EC much different than the work he was doing at ACSG except that it was a different product. Larry Portolese was hired for the open position in Department 863 New Programs-Propulsion Controls designated for a Senior Engineer. He was hired as an Engineer. Mr. Portolese received his engineering degree in 1977 from the University of Notre Dame, a B.S. in mechanical engineering, and joined Bendix in 1977 as an Associate Engineer. At