Coca-Cola has agreed to set up a taskforce to look into its diversity policies over the next four years.
The taskforce is to be created as part of an $188million settlement of an action brought by 2000 current and former African-American employees who allege that they were paid less for equal work and were denied promotions.
The world’s largest soft drinks manufacturer will have to carry out the taskforce’s recommendations unless it can prove in court that this would jeopardise its financial position.
In 1997 Texaco set up a similar taskforce as part of a $176m race discrimination settlement.
A Coca-Cola statement said the settlement included ‘cash payments to fund back pay and compensatory damages,’ together with money to set up a ‘promotional achievement fund’ for black employees and a $50m donation to The Coca-Cola Foundation to fund community initiatives. Before the settlement, Coca-Cola had already decided to spend $670m over five years on a new diversity programme.
Coca-Cola chief executive Douglas Daft said he hoped the agreement would ‘close a painful chapter in our company’s history.’