ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Friday, March 28, 1997 TAG: 9703280059
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
DATELINE: CHICAGO
SOURCE: BLOOMBERG NEWS
STAFF WRITER JEFF STURGEON CONTRIBUTED TO THIS STORY.
A lawsuit claims the printing company fired almost all of its black workers when it closed a Chicago plant in 1993 but offered some white workers jobs at other locations.
R.R. Donnelley & Sons Co.'s major customers may face boycotts if the big printing company doesn't settle allegations of racial discrimination, the Rev. Jesse Jackson said.
Jackson, president of the Chicago-based Rainbow/PUSH Coalition, said after Donnelley's annual meeting Thursday that his group may use boycotts to pressure Donnelley to settle a lawsuit alleging bias and to add minorities to its all-white board of directors.
``We will escalate this if we must,'' said Jackson, who already has met with Donnelley about the allegations.
Donnelley is building the first phase of a $100 million book factory in Roanoke County. Production is scheduled to begin May 5. The company expects to hire 185 people by year's end.
Among Donnelley's customers are Time and Business Week magazines, the U.S. edition of Reader's Digest and the supermarket tabloids the National Enquirer and the Star.
In a lawsuit filed in U.S. District Court in Chicago in November, current and former workers charge that Donnelley fired almost all 575 of its black workers when it closed a Chicago plant in 1993 but offered some white workers jobs at other locations. The suit now has more than 600 plaintiffs.
The suit gained momentum in January when plaintiffs' attorneys released examples of racially offensive computer files taken from a Donnelley plant, and said workers at several locations witnessed graffiti containing racial slurs. Plaintiffs claim the evidence proves the company has a history of discrimination.
``We have a unique relationship with our customers,'' company spokesman William Lowe said about the possibility of boycotts. ``They also know the allegations brought against our company are without merit.''
Time Warner Inc. spokesman Peter Costiglio said the company ``would continue to monitor the situation.'' He said Donnelley is ``one of several suppliers'' for the magazine. He wouldn't disclose the value of the account.
Jackson earlier addressed the shareholders meeting, noting the lack of blacks, Hispanics or other minorities on the board. He likened the board to South Africa's former apartheid racial segregation policy.
``This is unacceptable race discrimination,'' Jackson said. ``There are qualified blacks and browns that I can recommend to you if you are interested.''
Acting chairman John Richman said the company has tried to recruit minority board members. ``We probably haven't been as aggressive as we should,'' he said.
Richman said the company, which last year suffered a net loss of $158 million, or $1.04 a share, is taking steps to regain profitability.
It plans to build its North American commercial print business, expand global markets and develop digital technology to compete in the emerging electronic information market.
``A lot of work lies ahead,'' Richman said.
LENGTH: Medium: 65 linesby CNB