FedEx reports that on August 14, 2007, Judge Susan Illston of the U.S. District Court for the Northern District of California gave final approval to a class action settlement in Satchell v. FedEx Express, a class action that alleged racial discrimination by the company. In part, the terms of the class action settlement require FedEx discontinue its use of a Basic Skills Test (BST), which the company believed necessary to “ensure that customer-facing employees possess the basic skills required for successful job performance”; the class action alleged that the BST acted as a barrier to minority advancement in the company. FedEx further reports that the class action settlement requires payment of roughly $55 million to 23,000 class members, from which will be deducted $15 million in attorney fees and costs.
The company’s summary may be found at news.van.fedex.com/node/3974.
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