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Coca-Cola Settles Race Bias Case For 192.5 Million Dollars
Coca-Cola Co., the world's largest soft-drink maker, Thursday will pay a record 192.5 million dollars to settle a racial bias case covering hundreds of black workers who said they lost out on pay and promotion, according to news release from the company.
The amount includes 113 million dollars in cash, 43.5 million dollars to adjust salaries and 36 million dollars for oversight of the company's employment practices. Coke also will pay 20 million dollars in attorneys' fees.
The settlement eclipses the previous record 176.1 million dollars settlement in a racial discrimination case by oil-giant Texaco Inc.
Coca-Cola said it will take a 188 million dollars charge in the fourth quarter for the settlement with about 2,000 black workers who say the company tolerated a pattern of discrimination in pay, promotions and performance reviews. Coca-Cola has denied the allegations.
The settlement also calls for the Atlanta company to undergo a full-scale review of its employment practices. The review will be conducted by an outside task force, which will be able to issue binding recommendations for changes in Coca-Cola's employment practices.
Analysts said settling the lawsuit, which could have dragged through the courts for years, helps Coca-Cola remove the taint of discrimination, which could have hurt the Coke name and, consequently, sales.
The monetary settlement covers back pay and damages for salaried blacks who worked for the company between April 22, 1995 and June 14, 2000.
Employees and former employees who filed the lawsuit in April 1999 said they were satisfied with the settlement.
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