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We’ve covered Wal-Mart’s wage and hour (and overtime) issues many times over, culminating with last week’s $54 million settlement in Minnesota. We all get that Wal-Mart would prefer its employees work through breaks. And we certainly know that when it comes to paying employees for overtime, well, Wal-Mart would prefer that be optional.

California wage laws are, not surprisingly, fairly strict. And now, with that state facing a financial shortfall, the LA Times is reporting that business groups and GOP lawmakers are using wage and hour law as a bargaining chip in negotiations over how to fix a $14.8-billion hole in the state budget. The argument is that state laws like those in California - the ones mandating breaks for workers working at least 6 hours in succession, and requiring an employer to pay time-and-a-half once a worker has worked more than 8 hours in day - are expensive for employers to follow and force them to flee the state for friendlier confines. Places where breaks are voluntary [for the employer] and overtime exists only in a fantasy dreamland.

Not surprisingly, California Democrats and labor officials in the state disagree.

Employers’ latest efforts to tie both the meal break and overtime issue to contentious budget negotiations are aimed at reversing basic worker rights, said Art Pulaski, executive secretary-treasurer of the California Labor Federation.

“It’s about trying to help Wal-Mart and other big corporations get away from the long-established understanding that people should get a meal break at work” or be paid extra for extra hours, Pulasksi said.

“This has nothing to do with the budget or stimulating the economy,” said Barry Broad, a lobbyist for the International Brotherhood of Teamsters and other labor unions. “It doesn’t help the economy to lower 20 million people’s wages during a recession.”

It has been suggested that if state lawmakers can’t come to a consensus and close out these budget negotiations, a state government shutdown in the spring is a distinct possibility.

Overtime pay, rest breaks become bargaining chips in state budget crisis [LA Times]

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Posted by Corey Himrod | Permalink

Tags: employees, legal issues, wages, california, labor, unions, economy, jobs, revenue, tax

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Check out this week’s issue of the Wal-Mart Watch Weekly Update for Elected Officials – a compilation of Wal-Mart news from across the country and beyond.

This week’s issue begins with a new study from the group Good Jobs First, which reveals that cash-strapped states are forgoing a total of roughly $1 billion annually in tax revenue because of little-noticed laws that permit retailers to keep a slice of the sales taxes they collect for the government. In fact, the study finds thirteen states do not cap the amount that a retailer can receive as vendor compensation for collecting sales tax, resulting in millions of lost tax dollars.

A large focus this week is also on Wal-Mart’s announcement that Lee Scott will step down as CEO in February 2009, to be replaced by Michael Duke, Wal-Mart’s Vice Chairman of its International Division. In addition to the CEO change, you’ll find stories on the battle over the Employee Free Choice Act, how Wal-Mart will deal with the Obama Administration from a labor perspective, and related news on Wal-Mart’s labor battles in Canada.

And finally, check out our “Stateside” and “Wal-Mart International” sections to find out what’s going on with Wal-Mart around the country and across the globe. Wal-Mart has founded a new consumer group in New England geared towards fighting Wal-Mart opponents, and has purchased its own wind-energy supply based out of Odessa, Texas

Wal-Mart Watch Weekly Update for Elected Officials [November 21, 2008]

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Despite its best efforts, Wal-Mart could not hold off Barack Obama and the incoming Democratic wave hitting our nation’s capital. When asked about the election results, Wal-Mart CEO Lee Scott, in a letter to associates, said Wal-Mart was committed to working with either party.

“A number of associates asked me how our company viewed the election and what our post-election plans were. I told those associates that this is clearly a time of great opportunity for our country, and also a time of great challenge. I reminded them that last June I said that Wal-Mart looked forward to working with the new President and Congress, regardless of party, to find solutions to our challenges. We are even more committed to that objective today.”

Talk about revisionist history. Wal-Mart, since the beginning of the campaign, made it clear to everyone that the company would rather deal with John McCain. While disappointment is in the air in Bentonville, regular associates around the country should rejoice. Now workers have an advocate in the White House!

So where does Wal-Mart go from here? It looks like Wal-Mart has decided to hire a new set of “reputation warriors” and other government relations personnel to mislead inform Congress about two key issues – health care and sustainability. These new directors will beg for mercy advocate for Wal-Mart’s interests on Capitol Hill.

I think we are all familiar with Wal-Mart’s benefits package and green campaign. Good luck to the brave souls who fill these positions, you will need all the help you can get.