South Carolina Wal-Mart Employees Granted Class Action Status
This is only the latest class action lawsuit that Wal-Mart systematically denied employees break time and due pay. A Wal-Mart spokesman added that there are even more cases like this one that are never awarded class status, implying that Wal-Mart’s unfair labor practices aren’t always systematic - sometimes they’re just random!
Wal-Mart workers win class-action status [Associated Press via Charlotte News & Observer]
Wal-Mart must face a class-action by South Carolina employees claiming the company forced them to work through breaks and off the clock, a judge ruled.
Current and former hourly workers from July 31, 1999, forward can sue in a single case, Judge Perry M. Buckner III in Walterboro, said. The group of about 100,000 workers is large enough and their claims similar enough to allow a class-action lawsuit, Buckner said.“Plaintiffs’ claims are typical, irrespective of varying fact patterns underlying individual claims, because they allege that they were not paid for work performed off-the-clock and were denied rest and meal breaks,” Buckner wrote.
Wal-Mart faces at least 70 U.S. wage-and-hour suits by employees claiming it failed to pay for all hours worked. The South Carolina decision is the fourth since May 1 allowing similar group lawsuits. The company won a ruling in New York in June denying the status to a suit there.
“Even more courts around the country have found that cases like this are not properly suited for class treatment,” said Wal-Mart spokesman John Simley. Wal-Mart doesn’t have a scorecard on which cases have been denied class status because the suits are in different stages of litigation, he said.
Wal-Mart may appeal the South Carolina ruling, he said. “We are disappointed with the court’s decision and are reviewing our options,” Simley said.
The class-action status allows all the workers’ claims to be decided in one case, increasing pressure on the company to settle, and lets workers who couldn’t afford to sue on their own share in any payment for damages.
“There isn’t enough money per person to make it worth the cost” of pursuing a suit individually, workers’ attorney Rodney Bridgers said. “Now they’re going to be able to prosecute their case for lost wages.”
The workers will ask Buckner for a trial in 2008, he said.
The South Carolina workers, who filed the suit in 2001, claim “Wal-Mart, through understaffing, does not allow employees to have meal or rest breaks that they’ve earned,” Bridgers said.
Wal-Mart also forces its employees to work without pay before and after shifts, Bridgers said. “According to Wal-Mart’s own records, they’re operating cash registers and other electronic devices while they’re off the clock.”
Posted by Alex Goldschmidt on Wednesday, August 08, 2007
COMMENTS
...implying that Wal-Mart’s unfair labor practices aren’t always systematic - sometimes they’re just random!
Honestly, I prefer the “no additional commentary” posts over statements this stupid.
tjc in NY
Thursday, August 09 at 09:15 AM
“The group of about 100,000 workers is large enough and
their claims similar enough to allow a class-action lawsuit.”
“Plaintiff’s claims are typical, irrespective of varying fact
patterns underlying individual claims...”
This is more than “just random.”
Rob in Surfside Beach, SC
Thursday, August 09 at 10:43 AM
Well, after Wal-Mart finishes dealing with the systematic unfair labor practices, they can concentrate on the random ones.
Whenever I read about a new suit against Wal-Mart I remember a paragraph from Wal-Mart’s Annual Report. I believe it was the 2005 Report since this year’s had more than two full pages devoted to legal woes.
“The Company (Wal-Mart) is involved in a number of legal proceedings, including antitrust, consumer, employment, tort, and other litigation. The lawsuits discussed below, which are among the matters pending against the Company, if decided adversely, may result in liability material to the Company’s consolidated financial statements.”
...may result in liability material to the Company’s consolidated financial statements.
Has a nice ring to it, don’t you think?
Ken V in Texas
Thursday, August 09 at 02:16 PM
Here you go, Ken. From Costco’s August 9, 2007 sales release:
“Certain statements contained in this document and the pre-recorded telephone message constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are those that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions including exchange rates, the effects of competition and regulation, consumer and small business spending patterns and debt levels, conditions affecting the acquisition, development, ownership or use of real estate, actions of vendors, RISING COSTS ASSOCIATED WITH EMPLOYEES (INCLUDING HEALTH CARE AND WORKERS COMPENSATION COSTS), rising costs associated with the acquisition of merchandise (including the direct and indirect effects of the rising cost of petroleum-based products and fuel and energy costs), geopolitical conditions, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission.”
Is Costco warning of future cost issues? Costco has been slashing prices in an effort to boost sales and profits. The problem with slashing prices at an upscale store is A: it hurts your reputation and B: It is difficult to get customers to pay higher prices later on. Costco will earn $0 from store operations in 2007. Sounds like they are kicking the crap out of Wal-Mart, eh?
Nick in
Thursday, August 09 at 05:22 PM
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