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Coca-Cola announces details of racial discrimination settlement

Freitag, 17. November 2000 / 08:29 Uhr

Atlanta - Coca-Cola, the drink manufacturer that symbolizes the spread of American culture around the world, on Thursday announced sketchy details of an out-of-court settlement in a racial discrimination suit.

The company indicated in a terse press release that it would pay at least 188 million dollars to compensate the "class" that was discriminated against and to cover initiatives "related to the settlement". It also said it would pay another 50 million dollars to The Coca-Cola Foundation community support programmes. The "class" includes about 2,000 African-Americans symbolically represented by four plaintiffs who brought the suit last year, media reports said. The Atlanta Journal-Constitution, which covers the Georgian city where Coca-Cola has world headquarters, said the total amount was nearer 192 million dollars, including compensatory damages, back pay and attorney's fees.

In June, a federal judge announced that a settlement had been reached, but did not give details. The plaintiffs alleged that they were paid less than their white colleagues, received fewer chances for promotion and were ill- treated. Kimberly Gray Orton, a 13-year employee, said she became a company director in 1994 but was paid "tens of thousands" less than her white counterparts. Motisola Malikha Abdallah, an administrative assistant, said managers made her feel like their "black maid", the Journal-Constitution reported.

Coca-Cola chairman Doug Daft called the settlement "fair" and "equitable" and said "it addresses where the company needs to go in the future," the Journal-Constitution reported. "It comes from the belief that we need to lead, not just comply, on such issues," he was quoted as saying. The settlement must still be approved by U.S. District Judge Richard Story. (dpa)