FedEx Settles Racial Discrimination Suit

October 26, 2005 ( - FedEx Freight East has agreed to a $500,000 settlement with the EEOC over a racial discrimination lawsuit.

The EEOC accused American Freightways, which was acquired by FedEx, of denying 20 qualified African American employees promotions and assignments based on their race, according to The lawsuit alleged the company discriminated against African Americans in making promotions from part-time to full-time dockworker positions, promotions to dock supervisor positions, and work assignments at its St. Louis terminal.

In addition to $500,000 in monetary relief, the consent decree also requires reporting by FedEx on promotions from part-time to full-time dockworker positions and to dock supervisor positions. The settlement is pending approval by the US District Court in St. Louis.