News Article

Coke Suit Mediation Ordered

The Atlanta Constitution

Published: February 09, 2000

ATLANTA -- A federal judge has ordered Coca-Cola and the plaintiffs in a racial discrimination suit to try to settle the case.

In an order made public Tuesday, Judge Richard Story told both sides "to attempt in good faith to settle this case by participating in non-binding, confidential mediation. " In mediation, a neutral third party attempts to bring both sides together in talks aimed at reaching a compromise.

Both sides said they are pleased with the court's order in the case, in which eight current and former employees allege Coca-Cola has discriminated against African-Americans in pay, promotions and performance evaluations.

The plaintiffs are seeking class-action status to represent more than 2,000 black salaried employees in the United States. Coca-Cola has strongly denied the allegations.

Plaintiffs' attorney Cyrus Mehri said the order comes at an important time for prospective class members who face layoffs as Coke cuts 3,300 jobs in the United States. That's because the judge ruled last week that the company can require laid-off workers to sign release forms giving up their right to be plaintiffs or prospective class members if they want to receive enhanced severance benefits. They can, however, still get those benefits if they are witnesses.

"We are pleased that class members facing the important decision of whether to stay in the case or accept the enhanced severance benefits will be aware of the existence of the attempts to settle the case through mediation," Mehri said.