A suit-wearing minion of the sort hired in legion strength by banks and insurance companies in the Real World to implement payroll packages in RPG and other such unspeakable horrors. In its native habitat, the code grinder often removes the suit jacket to reveal an underplumage consisting of button-down shirt (starch optional) and a tie. In times of dire stress, the sleeves (if long) may be rolled up and the tie loosened about half an inch. It seldom helps. The code grinder's milieu is about as far from hackerdom as one can get and still touch a computer; the term connotes pity.
Used of or to a hacker, this term is a really serious slur on the person's creative ability; it connotes a design style characterised by primitive technique, rule-boundedness, brute force and utter lack of imagination.