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GM in $42 million accord to settle sex and race suit

General Motors Corporation signed a $42.5 million agreement Tuesday to settle a sex and racial discrimination case filed 10 years ago. Government officials said it was the largest out-of-court settlement of an employment discrimination complaint ever made.

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The pact, signed by GM management officials and representatives of the unions covering the company's employees, sets standards and goals for the hiring and promotion of women and members of minority groups. It is valid for five years and applies to all GM divisions in the United States. The largest amount, $15 million, is earmarked for educational endowments and scholarships.

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