Texaco Plaintiffs Propose Payout of $63,000

The 1,377 minority employees who settled their race discrimination lawsuit with Texaco Inc. would each get an average of $63,000 under a distribution plan they have proposed in federal court. The employees sued White Plains, N.Y.-based Texaco in 1994, claiming the company reserved the best promotions and biggest raises for whites and subjected blacks to harassment. Texaco settled the case in November for $176 million after several executives were caught on tape belittling black employees and suggesting the destruction of papers relevant to the lawsuit. Of the $176 million, $26 million will go to pay raises for current minority employees and $35 million will go to a task force on sensitivity and training. Attorneys for the workers, in papers filed Friday, proposed splitting the remaining $115 million three ways, including nearly $29 million for their fees and expenses. Court approval of the civil settlement is expected by next month.