News Article

Coke Agrees To Employment Review

The Atlanta Constitution

Published: November 16, 2000

ATLANTA -- Coca-Cola has agreed to a wholesale review of its employment practices -- to be overseen by an outside group with enforcement powers --- as part of settling a class-action racial discrimination lawsuit.

The examination over the next four years is likely to produce major changes in the company's relationship with its employees, particularly those who are black.

Details of the settlement, including much-anticipated monetary awards to four plaintiffs and the 2,000 class members, will be announced today by plaintiffs' attorneys at a noon press conference.

Aside from the monetary component, which both sides have kept under wraps, the watchdog group of experts, or task force, is one of the settlement's central pieces, according to a document obtained by the Journal- Constitution.

The seven-member task force will be responsible for reviewing company practices on pay, promotions and performance evaluations, as well as for recommending changes and seeing that they are carried out during the four- year life of the agreement.

The lawsuit, which was filed in April 1999, claimed the company discriminated against African-American salaried employees in pay, promotions and performance evaluations. Coca-Cola has denied the claims.

Atlanta attorney Hunter Hughes, who was the mediator for the settlement, highlighted the innovative approach of the agreement. "In my experience, the programmatic relief required by the Coke settlement is unique and groundbreaking. It calls for an analysis and potential revamping of virtually all aspects of Coke's personnel practices by independent professionals, with further direct oversight and input from a separate independent task force," he said.