The Stroh Brewery Co. has agreed to a $3 million out-of-court settlement of a federal lawsuit accusing the brewery of racial and sexual discrimination, according to a government attorney.
The U.S. Equal Employment Opportunity Commission filed the lawsuit in September 1978, charging Stroh with discriminating against blacks and women in hiring and promoting at its now-closed Detroit brewery, said EEOC attorney Charles Taylor.
U.S. District Judge Julian Cook in Detroit signed the consent decree Sept. 27, Taylor said Wednesday.
Under terms of the settlement, Stroh agreed to pay $2 million over the next 2 1/2 years to 2,160 blacks and women who had applied for work at Stroh, Taylor said. Stroh hired some of the applicants, he said. In addition, Stroh is to pay $165,000 to seven people involved in the lawsuit and $835,000 more over three years to the Rosa L. Parks Scholarship Foundation Inc. in Detroit for education of blacks and women.
Stroh said in a statement: "While Stroh does not agree or admit that the allegations raised in this suit are factual, both parties believed it was advisable to agree to an out-of-court settlement in order to reduce litigation costs and avoid disruption of work activities due to legal proceedings."