Lockheed Unit Fined $10,000 in Bias Case

A subsidiary of Burbank-based Lockheed Corp. has agreed to pay a $10,000 fine for an alleged violation of federal law in connection with the complaint of a Jewish chemist who maintained that he was not considered for employment in Saudi Arabia because of his religion, company officials confirmed Tuesday.

Lockheed Engineering & Management Services Co. of Houston (LEMSCO), in a consent agreement with the U.S. Department of Commerce, said it would pay the civil penalty of $10,000. Frank Forsberg, a since-retired consultant to LEMSCO, also agreed to pay a $10,000 penalty.

In the agreement, announced by the department, both the subsidiary and the consultant agreed to a denial of their export privileges to Saudia Arabia for one year. The Commerce Department regulates the export of technology and sensitive materials.

Asked to Recruit Chemists

Export-import laws prohibit Americans from discriminating against other Americans because of religion. Neither LEMSCO nor its consultant admitted wrongdoing.

A spokesman for LEMSCO said the subsidiary does no business in Saudi Arabia and had been asked by another Lockheed subsidiary, Lockheed Aircraft International, to help recruit chemists for a laboratory at a Saudi Arabian university.

Lockheed Aircraft International, which does millions of dollars a year in business supplying and supporting aircraft and other aviation technology to Saudi Arabia, is not covered by the terms of the consent agreement.

The chemist, Philip Lurie of New Jersey, said he was contacted in 1982 by Forsberg about a Saudi Arabia job. When Forsberg learned that he was Jewish, Lurie said, he was not considered further.

The Anti-Defamation League of B’nai B’rith also protested to the Commerce Department that a job posting for the positions stated: “The customer has stated no Jewish applicants or women would be acceptable.”

Neither Lockheed nor Forsberg denied the contentions.