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Wal-Mart rings in the new year by settling wage and hour lawsuits
Come holiday season, what do you get the company that seemingly has everything? How about a settlement to its seemingly endless chain of wage and overtime suits.
We ring in the new year with this news, that Wal-Mart has chosen to settle a massive number of wage/hour and overtime class actions. The terms of the settlement could eventually cost Wal-Mart up to $640 million to settle 63 of the nearly 80 such lawsuits out there. So why, after years of fighting these suits tooth and nail (winning some while others have ended in rather large judgments against the company), has Wal-Mart finally decided to settle? At least one law professor quoted in the Wall Street Journal has an idea:
Paul M. Secunda, an associate professor at Marquette University Law School, suggested Wal-Mart wanted to settle the lawsuits not just to avoid potentially more costly defeats in the courtroom, but to resolve issues that might be used to argue for passage of the Employee Free Choice Act. The legislation, expected to be considered by Congress next year, is fiercely opposed by Wal-Mart because the company worries it will make it easier for workers to unionize. Secunda said: “This is part of their overall strategy to get their labor house in order, and compared to what unionization might cost them, I think they probably realized it was a small price to pay.”
A small price to pay indeed. Wal-Mart has prevailed in getting class actions such as these decertified more times than the company has lost, though when it has and Wal-Mart has gone to trial, the judgments in just a handful of cases have totalled over $300 million. Settling 63 for just over $10 million each might not be so bad, especially if it earns the company some good street cred. Could a settlement in Dukes v. Wal-Mart be next??
Wal-Mart settles suits by workers [Los Angeles Times]
Full list of cases covered by the settlement [Wal-Mart Stores, Inc.]
Posted by Corey Himrod on Monday, January 05, 2009
Click Here for a Printer-Friendly Version
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COMMENTS
Al Norman had interesting insight on this from his “Wal-Mart Elves Get Back $640 Million in “Stolen” Benefits” piece dated December 23, 2008-
“ Fundamentally, these lawsuits are about a form of corporate theft: stealing money from its own workers.”
“There were no estimates of what these settlements would actually mean financially to the typical Wal-Mart worker.”
“The company that Wal-Mart is today is the same company that shortchanged its workers yesterday—but if these cases went to trial, Wal-Mart stood to lose millions—even billions—more.”
“Attorney Robert Bonsignore, of Bonsignore and Brewer, added, “As a result of this settlement, Wal-Mart can now say that it has taken action to make its stores a great place to shop and work.” None of the workers who brought these class action lawsuits, or who waited years for their settlement, were quoted.”
“These workers charged that Wal-Mart basically stole their time, by forcing them to work through breaks, failing to pay them for all hours worked, and neglecting to properly compensate them for overtime. Employees claimed that Wal-Mart engaged in ‘time-shaving,’ dropping minutes of time from workers’ pay, saving the company millions of dollars in payroll costs. Fundamentally, these lawsuits are about a form of corporate theft: stealing money from its own workers.”
WalMart- We got caught for something more than suspected petty theft, again. When others do suspected petty theft at the WalMart temple we reserve the right to kill them.
SanDiegoView in WalMart: business cult for psychopaths
Monday, January 05 at 07:29 PM
It is funny to watch the hammer fall on walmart they deserve everything they get & then some!
Walmart is the most sued company in the world, we hear the excuse “thats because their the biggest”
Shouldnt the “biggest” lead by example and treat their employees with dignity, respect and pay them a living wage!
The Employees speak out blog sure doesnt show this!
walmart and your corporate greed will be your own demise- good riddance!
Michelle in
Monday, January 05 at 10:13 PM
...I think they probably realized it was a small price to pay.
Just another drop in the bucket. I’m not worried though. There are sure to be many new lawsuits to take up the slack.
Wal-mart is the most sued company in the world. ~ Orrin Woodward
Ken V in Texas
Tuesday, January 06 at 10:26 AM
Source: Seattle Times
By Melissa Allison
Starbucks has reached a settlement in principal over a Michigan barista who the National Labor Relations Board said was fired in June because of his union activities.
An administrative trial that was scheduled for today has been canceled, and the agreement is expected to be signed this week, said Chet Byerly, resident officer for the NLRB in Grand Rapids. He would not disclose details of the proposed agreement.
A Starbucks spokeswoman confirmed that it is working on a settlement.
It is the third time in a month that Starbucks has faced action from the NLRB regarding the Industrial Workers of the World union.
Read more: http://seattletimes.nwsource.com/html/businesstechnology
NOTE: This employee was fired in June and ALREADY a hearing date had been set! Didn’t it take the NLRB EIGHT YEARS to render a decision against WalMart re: tire and lube workers attempting to organize ?
ddrb in
Tuesday, January 06 at 06:31 PM
ddrb,
“Didn’t it take the NLRB EIGHT YEARS to render a decision against WalMart”
Do you get what the words “An administrative trial that was scheduled for today has been canceled”, doesn’t that mean that a decision HASN’T been rendered yet? Get back to us, when one is!!
RDS in
Tuesday, January 06 at 11:46 PM
hey sdv got anything to say about all the lawsuits against costco and the ufcw union grocers you favor?funny you are so quiet on that.its not all rosy at costco sdv and you are so full of it when you say costco pays all workers 17.oo an hr and 41,000 a yr.most costco workers and ufcw union grocery workers are part time sdv and cant get full time work because the companies and union grocers are too lazy and cheap to do it..where is your same argument about them screwing over workers and not caring about their lives?only fools like ken believe all the united food and commercial workers union bs and garbage on this wmw site.ufcw union grocery stores and costco regularly get sued too folks.
MATT IN in gresham,oregon
Wednesday, January 07 at 06:50 AM
Can you name any UFCW lawsuits against Costco? Nobody ever said “all” workers at Costco are paid $17/hr.
ABC News stated that the average wage at Costco is $17/hr and health care is paid for more than 90 percent of their employees.
“In fact, Costco has the lowest employee turnover rate in retailing. Its turnover is five times lower than its chief rival, Wal-Mart. And Costco pays higher than average wages—$17 an hour—40 percent more than Sam’s Club, the warehouse chain owned by Wal-Mart. And it offers better-than-average benefits, including health care coverage to more than 90 percent of its work force.”
http://abcnews.go.com/2020/business/story?id=1362779
While Wal-Mart makes twice as much profit as Costco, Sinegal (Costco CEO) believes its better business to make a nice profit, but not a killing, and to invest more in Costco’s 92,000 workers. “I don’t see what’s wrong with an employee earning enough to be able to buy a house or having a health plan for the family,” he says.
http://www.alternet.org/story/19014/
WalMart- The less Christian conscience you have, that more money we make.
“The Shepherd drives the wolf from the sheep’s throat, for which the sheep thanks the shepherd as a liberator, while the wolf denounces him for the same act as a destroyer of liberty.” Abraham Lincoln
SanDiegoView in WalMart a taxpayer sucker low wage hellhole
Thursday, January 08 at 09:05 PM
well sdv if costco is doing so great then why cant mr sinegal that cheap slob give all workers full time work and living wages for all then?costco aint as great as you say because they have a much higher turnover rate than the media tells you.i dont buy govt and liberal media biased stats either.you have said costco pays 41,000 a yr and an average of 17.00 per hr.what you neglect to mention is that most costco workers are part time and have to work there a long time to get full time work.even at 30 to 35 hrs a week at 17.00 an hr you still dont even come close to making 41,000 a yr.most workers dont get 17.00 an hr sdv.costco reguarly discriminates when they hire people and have been sued numerous times over the years for that and the same things you pick on wm for being sued for.its not as rosy at costco as you claim sdv.newsflash walmart has 92% of its workers now sdv have health insurance so that shoots down your baloney fed to you by ufcw local 135 in san diego the same union that is too lazy to fight hard enough for and cant get full time work and living and quality wages for all its workers.i am an ex ufcw local 135 member so unlike you i can see through all of their b.s. stats and anti walmart rhetoric.also because i have worked in that union too unlike you.
MATT IN in gresham,oregon
Friday, January 09 at 06:43 AM
Costco is #32 on the Fortune 500. It is the 4th largest retailer in the United States and 7th largest in the world.
Too bad that you are jealous of Costco workers Matt making a decent living in retail or are you still playing the ‘it is great to be poor’ tune as a WalMart worship imbecile?
Source: Wall Street Journal
WalMart Loses Mexican Pay-Voucher Case
By MIGUEL BUSTILLO in Houston and ANN ZIMMERMAN in Dallas
September 6, 2008; Page B6
Mexico’s Supreme Court ruled this week that WalMart de Mexico, the country’s largest retailer based on sales and a unit of WalMart Stores Inc., violated the constitution by paying workers in part with vouchers only redeemable for merchandise at the chain’s outlets.
WalMart de Mexico, also known as Walmex, gave store coupons as part of salaries. In a statement, the retailer said the program was voluntary, and “designed to help our employees acquire basic necessities.” It went on to explain in the statement that under the program, Walmex would put store credit on electronic cards, and the employees could contribute a matching amount. The credit could then be used at WalMart outlets throughout Mexico.
Representatives for the retailer declined to comment beyond the statement.
The case stemmed from a lawsuit filed by a WalMart employee in Mexico, but details of the suit weren’t available.
In its decision, Mexico’s Supreme Court likened WalMart’s practice to exploitative labor practices in Mexico more than a century ago that led to the Mexican Revolution in 1910.
http://online.wsj.com/article/SB122066524815506105.html
Sam Walton again on exploitation of people-
Wal-Mart founder Sam Walton once said, “I pay low wages. I can take advantage of that. We’re going to be successful, but the basis is a very low-wage, low-benefit model of employment.”
http://en.wikipedia.org/wiki/Criticism_of_Wal-Mart#_note-
iswalmartgood
“Is Wal-Mart Good for America?” PBS. November 16, 2004. Retrieved on February 24, 2007.
“Ronald Reagan is the prototype of the new mythological American, a grinning whore who will probably someday be president.”—Hunter S. Thompson, 1965
SanDiegoView in WalMart is America's #1 poverty engine
Friday, January 09 at 02:46 PM
Hunter Thompson: The original “Gonzo"- LONG before the recent “Gonzo”,i.e., Alberto Gonzales. Although I am NOT particularly a devotee’ of H.T.l, this may be of significance and interest to some:
“We have become a Nazi
“We have become a Nazi monster in the eyes of the whole world, a nation of bullies and bastards who would rather kill than live peacefully. We are not just Whores for power and oil, but killer whores with hate and fear in our hearts. We are human scum, and that is how history will judge us. No redeeming social value. Just whores. Get out of our way, or we’ll kill you. Who does vote for these dishonest shitheads? Who among us can be happy and proud of having all this innocent blood on our hands? Who are these swine? These flag-sucking half-wits who get fleeced and fooled by stupid little rich kids like George Bush? They are the same ones who wanted to have Muhammad Ali locked up for refusing to kill gooks. They speak for all that is cruel and stupid and vicious in the American character. They are the racists and hate mongers among us; they are the Ku Klux Klan. I piss down the throats of these Nazis. And I am too old to worry about whether they like it or not. Fuck them.”
Hunter S. Thompson
Kingdom of Fear: Loathsome Secrets of a Star-crossed Child in the Final Days of the American Century (2004)
ddrb in
Friday, January 09 at 06:49 PM
hey moron sdv i worked for the ufcw local 135 union that feeds you all the anti wm b.s on here and i have worked for your favorite k-mart store and unlike you on here i have grocery and retail exp and know and understand how they operate and know what the hell i am talking about on here unlike you and your full of b.s govt and media stats.hey sdv do you have previous retail and grocery exp?didnt think so.i am not jealous sdv and you still cant debunk your full of it argument that costco pays an average of 17.oo an hr and 41,000 a yr.buddy i earn 17.00 an hr and work full time.on a 40 hr week excluding overtime at 160 hrs a month thats 2720 a month gross times 12 which takes you to a gross of 32,640 clearing debunking your b.s argument that costco pays 17.00 an hr and 41,000 a yr average to most workers.get your facts correct sdv before you ever post on here again.and i see sdv you cant answer my fact on walmart insuring over 92% of its workforce can you?cant answer all those costco lawsuits sdv can you?costco pal aint as great as you claim.
MATT IN in gresham,oregon
Saturday, January 10 at 09:24 AM
Matt, since your not paying attention it may help you to realize your having a problem with ABC NEWS that reports the facts on Costco wages and health care benefits.
“In fact, Costco has the lowest employee turnover rate in retailing. Its turnover is five times lower than its chief rival, Wal-Mart. And Costco pays higher than average wages—$17 an hour—40 percent more than Sam’s Club, the warehouse chain owned by Wal-Mart. And it offers better-than-average benefits, including health care coverage to more than 90 percent of its work force.”
http://abcnews.go.com/2020/business/story?id=1362779
There are many other sources documenting the Costco wage and benefit model Matt, but I’m sure your jealousy of better paying jobs will cause you to ignore retail reality wherever it occurs.
“A person who won’t read has no advantage over one who can’t read.”
Mark Twain
SanDiegoView in WalMart is an economic whorehouse
Saturday, January 10 at 08:25 PM
the news media and stats sdv lie all the time and are unreliable.sorry pal but costco has the highest turnover and unhappines of employees in retail and you continue to rely on false news media stats and stories.obviously you have not worked retail and grocery like i have sir.you have no answer why your buddy that cheap slob sinegal is too darn cheap and lazy to give full time work and living quality wages to all workers.see sdv you cant debunk my 17.00 an hr info and proof that costco dont pay an average of 41,000 a yr can you?i have worked retail sdv before and understand how it operates sir thats what you for get.if costco is so great why dont you go work there?because i have known costco workers past and present and its harsd work and they get rid of people for whatever reason.they discriminate when they hire.they dont pay as great as you claim.sorry i dont need to read news stories and others news.no one at costco sdv earns 41,000 a yr unless they are in management. get your facts correct sir.i am not jealous of better paying jobs because i have worked in ufcw local 135 and see all the wm lies they feed you.the same union that cant get full time work and quality wages to all workers.
MATT IN in gresham,oregon
Sunday, January 11 at 06:07 AM
the news media and stats sdv lie all the time and are unreliable.sorry pal but costco has the highest turnover and unhappines of employees in retail and you continue to rely on false news media stats and stories.obviously you have not worked retail and grocery like i have sir.you have no answer why your buddy that cheap slob sinegal is too darn cheap and lazy to give full time work and living quality wages to all workers.see sdv you cant debunk my 17.00 an hr info and proof that costco dont pay an average of 41,000 a yr can you?i have worked retail sdv before and understand how it operates sir thats what you for get.if costco is so great why dont you go work there?because i have known costco workers past and present and its harsd work and they get rid of people for whatever reason.they discriminate when they hire.they dont pay as great as you claim.sorry i dont need to read news stories and others news.no one at costco sdv earns 41,000 a yr unless they are in management. get your facts correct sir.i am not jealous of better paying jobs because i have worked in ufcw local 135 and see all the wm lies they feed you.the same union that cant get full time work and quality wages to all workers.
MATT IN in gresham,oregon
Sunday, January 11 at 06:07 AM
Obviously the UFCW union would not want to accommodate you Matt even if your story was half true. And since you lie about things we can all see why nobody would want to hire you. As a confused ideologue Matt ( jacked up on WalMart indoctrination videos ) you are over the cliff and into the pit with estrangement of purpose and your usual dead beat falsehoods. You died long ago and without life of conscience or concern for the well being of others, you deserve the economy of poverty that you seek to justify.
You can never source your comments or document anything you claim Matt while all the facts confront you regularly seeking to produce life in your dead conscience.
“Whenever I hear anyone arguing for slavery, I feel a strong impulse to see it tried on him personally.”
Abraham Lincoln
SanDiegoView in WalMart is SIFE business theology cult
Sunday, January 11 at 06:42 PM
i lie about what sdv?you lie out of your you know where all the time about costco on here.i dont need to source my comments sdv because i have worked ufcw union grocery and retail before unlike you and thats what you are too stupid and lack the iq to realize.you stll cant debunk my argument debunking you full of crap argument that costco pays an average of 17.00 an hr and 41,000 a year.mr sinegal at costco is a cheap slob.the ufcw union is the biggest sham and pile of crap in america with their laziness and refusal to get living wages and full time work for all grocery workers.thats why i dont buy their b.s. stories on walmart because i worked in the ufcw union and they treat members far worse than walmart has ever been accused of treating its workers.prior exp i have.i dont like a union that picks on others about their wages but dont fight for their own members.hypocrisy.
MATT IN in gresham,oregon
Monday, January 12 at 07:39 AM
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