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- BUSINESS, Page 63Business NotesLITIGATIONClosing a Color Gap
-
- The battle began as a simple lawsuit filed by one black
- employee who had been passed over for a promotion at General
- Motors. But by the time GM agreed to a settlement last week, the
- complaint had grown into a class-action suit representing some
- 10,000 workers, mostly clerical and managerial, who will reap
- millions of dollars in pay adjustments. The accusation: that GM's
- system for judging worker performance discriminated against blacks.
- "Evaluators were allowed to indulge their biases, conscious or
- unconscious," said Dennis James, lawyer for the plaintiffs.
-
- While admitting no guilt, GM has agreed to pay more than $3
- million in damages to 3,800 past and present employees, along with
- $13 million in pay raises for black workers whose salaries are most
- out of line with those of their white counterparts. The automaker
- has promised that future raises and promotions for blacks will keep
- pace with those for whites, a pledge that could cost $20 million
- to $40 million over the next few years.