Coke Lets Workers in Layoff Retain Rights

Coca-Cola Co., embroiled in a racial discrimination suit, backed off a demand that laid-off workers forfeit their rights to sue the company in exchange for enhanced benefits. Atlanta-based Coca-Cola, which is cutting 6,000 jobs, or 20% of its work force, had been accused of using the waiver to limit the number of blacks who might be eligible to join a potential class-action lawsuit against the company. The suit alleges the beverage giant has tolerated a pattern of racial discrimination in pay scales, promotions and performance reviews. Coca-Cola has denied the allegations. The company said the new waiver would not apply to any claims against the company filed or pending in court as of Jan. 12, the date of an amended complaint in the lawsuit. Coca-Cola’s U-turn could allow scores of former black employees in the United States to join the lawsuit, though the total will depend on how many are ultimately laid off. Coke closed up 50 cents at $50.13 on the NYSE.