Quasar Must Pay $2.5 Million in Bias Case

A subsidiary of Matsushita Electric Industrial Co. has been ordered to pay nearly $2.5 million in penalties and costs for discriminating against non-Japanese staff in the United States, lawyers said Tuesday.

The ruling by federal Judge James Alesia stems from a jury verdict returned in 1988 against Quasar Corp. of Franklin Park, Ill.

Three former employees of Quasar sued the company alleging that they were fired in 1986 during a cutback but that their Japanese counterparts in management were not.

They also said non-Japanese managers were excluded from meetings where the reductions were discussed and that the company maintained a different salary and evaluation structure for its non-Japanese workers.

Matsushita, which recently agreed to buy entertainment giant MCA Inc. for $6.13 billion, distributes consumer electronic goods in the United States under the Quasar, Panasonic and Technics brands.

A spate of purchases of major American properties by Japanese concerns has raised fears that heavy foreign investment is compromising American independence.

A court order telling Quasar to pay nearly $2.5 million in penalties, court costs and legal fees was issued Friday and distributed Tuesday by the law firm that represented the three former workers.

The court found that Quasar violated the Civil Rights Act of 1964 that outlaws discrimination by employers on the basis of national origin.

Quasar issued a statement saying it was disappointed by the ruling and will appeal.