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October 26, 2005
FedEx Freight East Settles Racial-Bias Lawsuit

FedEx Freight East has agreed to pay $500,000 to settle a lawsuit in which the U.S. Equal Employment Opportunity Commission (EEOC) accused the trucking company of denying 20 qualified African American employees promotions and assignments based on their race.

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The EEOC alleged in the lawsuit that American Freightways, which was subsequently acquired by FedEx, 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 resolving the litigation--pending approval by the U.S. District Court in St. Louis--also requires reporting by FedEx on promotions from part-time to full-time dockworker positions and to dock supervisor positions.

"We are pleased that FedEx corrected the problems at its St. Louis terminal after it acquired American Freightways and now has reached a fair resolution of this lawsuit," says Robert G. Johnson, regional attorney for EEOC's St. Louis District Office.


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