AFRICAN-AMERICAN FOOD SERVICE MANAGERS WIN MULTI-MILLION DOLLAR SETTLEMENT FOR DIVERSITY

WASHINGTON – April 27, 2005

More than 2,000 African American managers, representing the nation's largest race employment class action lawsuit, on April 27 concluded an $80 million settlement with the food and facilities management Sodexho Alliance in an agreement that includes sweeping changes in diversity and affirmative action practices throughout the corporation.

“This is the best possible outcome for all parties in the case,” noted plaintiff lead counsel Kerry Alan Scanlon. “We applaud the company's commitment in this agreement to its African-American managers. The outcome in this important case will change the lives for thousands of African-American management level employees and help make Sodexho a stronger, better and more profitable company. Many of the plaintiffs we represent still work with Sodexho and share management's desire to make the company a leader in diversity just as it is in food services.”

The lawsuit, McReynolds, et al. v. Sodexho Inc ., alleged that African-American managers were locked out of lucrative promotions and career advancement at the company. The class included approximately 2,400 middle managers.

Cynthia Carter-McReynolds, one of the 10 named plaintiffs still working at the company after 21 years, stressed, “I am now more hopeful than ever that the doors of equal opportunity will open, not only for me, but for others at the company and those who will follow us.”

The consent decree, ordered by Federal District Judge Ellen Huvelle, calls for significant workplace reforms including equal employment opportunity and diversity training at every level of the corporate structure including among the ranks of top executives. The company will establish an Office of Employee Rights, empowering an advocacy voice to represent worker concerns. The company will also provide a new and clearly delineated process for job postings, hiring and validating promotion selections. New systems will be put in place to assure executive accountability and diversity and inclusions in bonus and other awards.

“Equal opportunity and the bottom line go hand in hand,” noted Scanlon. “This case is a reminder of the importance of the law that Congress passed 40 years ago and the way it can lead to a positive and amicable resolution of one of the most divisive issues in the work place.”

The French-based food service corporation, with national headquarters in suburban Maryland , is one of the largest food and facilities management corporations in the world. The U.S. subsidiary, Sodexho Inc., has more than 6,000 clients including government agencies, major corporations, hospitals, public schools and universities and is the largest food services provider in North America . ###

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