FedEx Corporation will write a check for $55 million dollars to settle a class-action suit alleging race and national-origin discrimination in hiring, promotions and performance practices. FedEx’s “pay day” comes after minority employees challenged the company’s “Basic Skills Test” hiring and promotion tool for having a discriminatory impact on them. FedEx has agreed to discontinue use of the selection test and change other hiring and promotion procedures and performance-processes. FedEx will also provide training for managers.
It is estimated the class of affected employees numbers approximately 20,000, with about 1,000 managers. FedEx will be under a four-year consent decree but strongly denies any discriminatory conduct. (Satchell v. Federal Express Corp., N.D.Cal., No. 03-02659 proposed consent decree filed 4/9/07).
Lesson Learned... Without Going To Court
Scrutinize your hiring and promotion devices and procedures.