FedEx settles racial discrimination suit

| 4/13/2007

FedEx has agreed to pay more than $53 million to settle a class-action racial discrimination lawsuit against its FedEx Express division.

According to Reuters, the suit was filed on behalf of about 20,000 black and Hispanic workers in the western part of the country who claimed they were unfairly evaluated, passed over for promotions and paid less than white employees.

Despite agreeing to make the big settlement payment, a company spokeswoman told Reuters, “There has been no finding of wrongdoing on the part of FedEx.”

That spokeswoman, Sandra Munoz, was quoted by the Los Angeles Times as saying that the settlement would be covered by insurance and that FedEx voluntarily agreed to the settlement to avoid a lengthy and costly lawsuit and appeals. She also said that FedEx would improve its human resources operations.

The U.S. District Court for the Northern District of California will have to sign off on the settlement before it is final. If the court approves the deal, details will be sent to about 20,000 employees included in the class action, with the process being completely finished by as early as August.