FedEx Settles Race Bias Class Action for $55 Million

August 15, 2007

FedEx Express, a subsidiary of FedEx Corp., reports it has received final approval on the settlement agreement in the case of Satchell, et. al. vs. FedEx Express alleging racial discrimination by the company.

The company said that the settlement includes a payment of approximately $55 million, paid by insurance, which covers administrative costs associated with the settlement, $15 million for the attorneys’ fees and costs of class counsel and compensation for approximately 23,000 class members.

Judge Susan Illston in the U.S. District Court in San Francisco granted final approval to the settlement.

FedEx continues to maintain that it does not tolerate discrimination of any sort in the workplace.

“We are gratified that the court granted final approval of the settlement which draws this matter to a close and allows the company to move forward and avoid the expense and uncertainty of protracted litigation,” said Larry Brown, senior vice president and chief human resources officer for FedEx Express.

As part of the agreement FedEx Express agrred to eliminate its Basic Skills Test (BST), which Fedex says was designed to ensure that employees possess map reading, listening, reading and sorting skills. FedEx Express said it still firmly believes the BST is a “lawful and valid selection tool” but that “[d]iscontinuing the BST removes the perception by some that this test was a barrier to advancement for minority employees.”

Source: FedEx Corp

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