On July 15, 1983, a black salaried General Motors employee, along with other similarly situated GM employees, filed a lawsuit under 42 U.S.C. § 1981 against General Motors in the United States District Court for the Eastern District of Michigan.

The plaintiffs, represented by private counsel, asked the court for both monetary damages and injunctive relief. Several amendments to the original complaint were filed. The third amended complaint was filed in 1986 and alleged that General Motors' performance appraisal system was discriminatory with respect to promotions, demotions, layoffs, recalls, salary increases, and transfers.

On October 16, 1986, the district court (Judge John Feikens) certified the class. The class was limited to employees in the states of Michigan, Ohio, and Indiana who were subject to General Motors' performance appraisal system between October 8, 1982, and September 25, 1986. Employees in the legal and personnel departments were excluded. In total in the class consisted of nearly 10,000 current and former employees.

After extensive discovery and lengthy settlement negotiations, the parties proposed a consent decree to the court on January 29, 1989.The district court preliminary approved the consent decree on February 3, 1989.

The consent decree provided the following: (1) a computerized system would monitor the performance appraisal system and notify General Motors when the employment statistics relating to black employees varied significantly from those of white employees; (2) General Motors, when informed of statistically significant deviations, would make necessary adjustments to offset any discrepancies; (3) monetary relief, which would be provided in the form of one-time payments to former employees who were members of the class, for named plaintiffs and anecdotal witnesses, and attorneys' fees. Permanent salary adjustments for current employees as well as attorneys' fees were also included in the proposed consent decree.

Nathaniel Koslof - 07/25/2010


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