Kroger settles for $16 million

RACE DISCRIMINATION SUIT BROUGHT BY CURRENT, FORMER EMPLOYEES IN '01

By JoAnne Viviano

ASSOCIATED PRESS

COLUMBUS, Ohio --

The grocery chain Kroger Co. has agreed to pay $16 million to settle a race discrimination lawsuit brought by 12 current and former employees, according to a memo from the chain's chairman and chief executive.

The workers claimed in the 2001 federal lawsuit that Kroger blocked promotions of black employees and paid them less than whites.

A judge hasn't yet approved any agreement in the suit, which was filed in U.S. District Court in Louisville in 2001 by employees in six states on behalf of black workers at Kroger nationwide since 1998.

Chairman and chief executive David Dillon said in a memo to about 1,500 employees Tuesday that the money -- minus attorney fees and administration costs -- will be placed in a fund and disbursed among black employees who meet certain criteria.

"We take our commitment to inclusion and our policies against discrimination very seriously," Dillon wrote. "The plaintiffs ... obviously felt strongly that the company was not treating them fairly or respectfully. No one in our company should feel this way."

The lawsuit seeks to change Kroger's hiring, promotion and compensation practices. The workers also requested back pay, preferential consideration for jobs and damages for lost pay and benefits.

Dillon said there has been no finding that the Cincinnati-based Kroger engaged in discrimination.

An attorney for the plaintiffs, Joseph Sellers, said he would have no comment unless an agreement is finalized.

The lawsuit named plaintiffs who worked at Kroger stores in Alabama, Georgia, Kentucky, Ohio, Tennessee and Texas but said the claims applied to "all stores and geographic areas."