Magazine article Workforce

Texaco Loses Racial-Bias Suit

Magazine article Workforce

Texaco Loses Racial-Bias Suit

Article excerpt

IN MID-NOVEMBER, WHITE PLAINS, NEW YORK-BASED Texaco Inc. settled a racial-harassment lawsuit out of court for a record sum of $176.1 million. Texaco sets the record for the most money ever paid in the United States to resolve a racial-bias suit.

The lawsuit, which was filed in 1994 by six black officials in the company's finance department, recently came into sharp public focus when evidence of senior managers trying to shred documents related to the case and excerpts from audio tapes of conversations at the company were made public. In the tapes, certain Texaco managers belittled black employees using racial epithets. In the suit, the employees alleged that the company was unfair in its promotion and compensation policies and practices-often promoting white men to better positions over equally qualified African-Americans. The suit also alleged the organization often gave white employees much larger raises than black workers.

After learning of the tapes, the Rev. …

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