By
The Associated Press
ATLANTA - The Coca-Cola Co. agreed to pay $192.5 million to settle a racial discrimination suit by black workers.
The settlement, announced yesterday, includes $113 million in cash, $43.5 million to adjust salaries, and $36 million for oversight of the company's employment practices.
Coke also will pay $20 million in attorneys' fees and plans to donate $50 million to its foundation for community programs. And it agreed to create an ombudsman post and have its employment practices reviewed by an outside group.
Shares of Coca-Cola were up 12.5 cents to $61.63 in afternoon trading on the New York Stock Exchange.
The settlement given preliminary approval by U.S. District Judge Richard Story, in whose court the suit was filed in April 1999. Details of the settlement will be sent to about 2,000 current and former employees beginning next month.
The lawsuit claimed Coca-Cola discriminated against salaried black employees in pay, promotions and evaluations. The company denied the claims. The settlement covers salaried black employees in the United States who worked for Coke between April 1995 and June 2000.
The seven-member watchdog group, charged with making sure Coca-Cola is fair in pay, promotions and performance evaluations, was a centerpiece of the settlement. The task force will recommend changes and ensure they are carried out; Coke retains the option of challenging changes it feels are not financially or technically feasible.
A toll-free telephone line will be established to receive complaints 24 hours a day.
The task force is modeled after a similar group established four years ago in the settlement of a discrimination lawsuit against Texaco. Coca-Cola's will include former government officials in labor and civil rights, professors, lawyers and diversity consultants.
