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FedEx Corp. (FDX) said Wednesday that it has agreed to pay $3 million to settle allegations from the U.S. Department of Labor regarding discriminatory hiring practices for part-time package handlers at its ground division.
The Memphis, Tenn., company said the allegations arose in 2004 and involved 25 ground division locations. It denied wrongdoing but said it agreed to a settlement "in an effort to put these matters behind us."
A spokesman for the Department of Labor wasn't immediately available for comment Wednesday.
"While we admitted no wrongdoing and believe [the Department of Labor's] position was not supported by the law, we agreed to pay $3 million to avoid what would have been certainly a prolonged and much more expensive resolution process," FedEx said in a prepared statement.
The company added that it "will continue to review and enhance our hiring practices to promote FedEx ground's commitment to diversity and equal employment opportunity." It also noted that the allegations were based upon statistical analysis, rather than "individual complaints or investigations."
FedEx is scheduled to report its quarterly financial results Thursday.
-By Bob Sechler, Dow Jones Newswires; 512-258-1690; firstname.lastname@example.org