Ethics Newsline®

NEW YORK
Ending a class-action lawsuit, food services giant Sodexho Inc. agreed last week to pay $80 million to settle charges that it denied promotions and limited account offerings to black workers.

Workers complained that they were denied promotions awarded to less-qualified white workers and were shunted into static positions with predominately black clients, reported the Associated Press.

Ten lead plaintiffs and as many as 3,000 other workers employed between 1998 and 2004 will be eligible for payments ranging between $2,000 and $59,000 depending on the length of their time with the company.

“The opportunities that this settlement provides both for African-American employees and for the company are the best possible outcome,” lead plaintiffs’ attorney Kerry Scanlon said last week.

Sodexho president and CEO Richard Macedonia also sounded a positive note, saying his firm is “a stronger and better organization as a result” of grappling with the issues raised by the suit and its settlement.

Sodexho, which did not admit any wrongdoing in heading off the case before next month’s scheduled trial, was part of U.S.-based Sodexho Marriott Services, which was purchased by French firm Sodexho Alliance.

Last week’s deal awaits approval by a U.S. district court judge, noted the Agence France-Presse.