The Lawsuit Gravy Train

Doing It the Black Way

By Elizabeth Wright

[Reprinted from Issues & Views Summer 1998]

In the Winter 1997 edition of Issues & Views, writer Shahrazad Ali described the antics of blacks who either had filed class-action lawsuits or were plotting lawsuits against their white employers for so-called discriminatory practices. Calling this stratagem "a new job related lottery," she chided such blacks for their "perpetual begging" and willingness to have whites "buy and sell" them. Thanks to today’s political climate, the perpetual begging has turned into perpetual demands--with more than a hint of punishment for any corporate executive who’s too dense to understand the nature of the times we live in.

Although several previous lawsuits had set precedents for their large bounties, the victory in 1996 over Texaco, Inc. set a new standard for bounty hunters. Moreso, this case confirmed for new generations of blacks that protest and confrontation are still effective means to redistribute the wealth. The 1960s route to fame and comfort is now ingrained as a method and seems certain to remain a fixture in black culture. The lesson is absorbed early by the young. They soon deduce that, while members of other groups are expected to employ conventional paths to affluence, blacks have a special formula reserved for them. And, daily, black leaders confirm that it’s a formula that works.

The case against Texaco began in 1994, with the disclosure of a tape recording of four indiscreet executives making negative remarks about blacks. This revelation, that set the wheels of "justice" spinning, and was further exacerbated by a couple of inflammatory New York Times editorials condemning Texaco, could not be resolved with apologies. But, then again, who wanted apologies?

Instead, after making the initial threats of boycotts and other disruptions, the Equality Crusaders rolled in their heavy artillery. Led by Jesse Jackson, every "civil rights" celebrity ever heard of, along with some minor unknowns, flooded into Texaco headquarters in White Plains, New York--to sock it good and hard to this billion-dollar, multinational giant.

A class-action suit was entered, which represented 1,400 blacks, comprised of current employees, as well as some former ones. Before the dust cleared two years later, Texaco had to pay direct redress of $115 million to its "offended" employees and their many lawyers, along with an 11% salary increase.

Of course, the requisite "human resources" programs had to be expanded or new ones put in place. Such programs insured that "sensitivity counseling" would be offered to those white folks who might occasionally have thought the very words that were verbalized by those thoroughly chastened, tape-recorded executives. In addition, a Tolerance Task Force, a kind of monitoring unit, was established, in order to keep the rest of Texaco’s bad white boys in line.

As part of the package, the company also had to add black law firms and advertising companies to its roster of vendors, turn over more Texaco franchises and retail outlets to blacks, create a $50 million "credit facility" for minority-owned banks, swear to promote at a greater pace more blacks into upper echelon positions, and dump loads of money, which could never be accounted for, into various "community development" pots. It was, indeed, the granddaddy of all lotteries. And black youth observed, imbibed, and once again learned about the Black Way of doing things. The future leaders took notes.

Much also was learned by the civil rights crusaders. The Texaco case would become the ideal model for future shakedowns. Prior to Texaco, millions had already been extorted from such companies as Nike, Coors and Flagstar (Denny’s), but Texaco raised the reparations stakes higher than ever.

The shakedown with the promise of even greater long-run remuneration is the one pulled off in January 1998, with the full cooperation and blessings of the Clinton Administration. Under pressure from the President himself (who attended), a dozen of the top moguls of industry heeded Jesse Jackson’s call to a three-day meeting atop the World Trade Center. This has come to be known as Jackson’s "Wall Street Project," a scheme designed to persuade those with deep pockets to fund the ventures of blacks who aspire themselves to grow deep pockets.

Each of the companies represented had to cough up $50,000 to help initiate the event. So, a half million rainbow dollars were in somebody’s till even before the meetings began. At the meetings, the captured CEOs listened to speakers who explained the need for "economic inclusion" and how it would work to bring an end to injustice, inequality and oppression of minorities.

Then it was the turn of the financial chieftains themselves, led by the likes of real estate tycoon Donald Trump and the Federal Reserve’s Alan Greenspan. Watching these immensely powerful men, as they obediently followed one another to the podium to deliver tiresome, obligatory platitudes, one wondered what they were really thinking. Certainly, each one fully understood the political chicanery that had brought them to this meeting. Were they sizing up the political reality of minority-instigated lawsuits? Each victory for a black plaintiff (whether settled in or out of the courtroom) carries the seeds of future victories. The demands and threats of today’s case send a signal to the next reluctant or initially stubborn board of directors. And the signal is clear: Give in earlier rather than later and save the company a lot of grief. Do it the Black Way.

One would think in reading any one of the several cringing apologies issued by Texaco’s Chief Executive Officer, Peter Bijur, that dozens of blacks had been mutilated and slaughtered by the company’s wicked executives and their remains scattered helter skelter down river. Did some misplaced words really call for this much contrition? Listen to the lamentations of Bijur: "I want to offer an apology to our fellow employees, to men and women of all races, creeds and religions in this country, and to people throughout America and elsewhere around the world . . . I pledge to you that we will do everything in our power to heal the painful wounds . . . I look forward to the day when the attitudes in question are consigned to a sorrowful chapter of our past . . . ." And on and on he went.

And so the formula is fixed: First seek out a provable rash remark made by some bonehead white official who still doesn’t know what time of day it is. Then broadcast his blunder far and wide, while your "leaders" loudly rail in indignation about racism and white arrogance and threaten boycotts and lawsuits. Next, while the flabbergasted corporate moguls flail around and futilely defend themselves, move in the troops and show them who really is in charge. From there on, it’s a gravy train.

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