Issues | Discrimination
As America’s largest company, Wal-Mart has a duty to treat all employees and suppliers with respect. However, this is not always the case. Wal-Mart is currently facing the largest workplace-bias lawsuit in U.S. history for widespread discrimination against women employees; a class action lawsuit filed by African-American truck drivers; and numerous other cases involving discrimination against workers with disabilities. For example, in 2001, Wal-Mart paid $6 million dollars to settle 13 lawsuits, which alleged widespread discrimination and violations of the Americans with Disabilities Act.
Discriminating Against Women
Wal-Mart faces the largest workplace bias suit in American history -- and that's just one of its issues:
- World's Largest Company Facing Nation's Largest Workplace-Bias Lawsuit. In June 2004, U.S. District Court Judge Martin Jenkins granted class-action status to 1.6 million current and former female Wal-Mart employees who charge the company with paying women less and offering them fewer opportunities for promotion. [Dukes v. Wal-Mart Stores, Inc., No. C01-02252 MJJ (U.S. District Court for the Northern District of California).]
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- Earning Less, Holding Fewer Senior Positions. In 2003, Dr. Richard Drogin, professor emeritus at California State University-Hayward, conducted a study on wages for female employees at Wal-Mart and found that:
- female hourly workers earn up to 37 cents less per hour than their male counterparts;
- female full-time employees working at least 45 weeks earn on average nearly $5,000 less than male employees in yearly salary;
- women make up 72 percent of Wal-Mart's total workforce, but only 33 percent of its managers;
- and women make up 92 percent of Wal-Mart's cashiers, but only 14 percent of Wal-Mart store managers.
[Wal-Mart Class, Plaintiff's Expert Dr. Richard Drogin's Statistical Report; New York Times, 12/30/04.]
- Ignoring Warnings to Improve Conditions for Women. According to a report by Bloomberg, "Wal-Mart Stores Inc. took no action on internal warnings seven years ago that it was falling short in promoting women, documents in a federal sex-discrimination lawsuit show. The world's largest retailer didn't carry out the 1998 recommendations of a diversity task force and disbanded the panel, according to company memos, reports and depositions filed in the case. Two years later, Wal-Mart had a reduced percentage of female managers." [Bloomberg News, 7/15/05.]
FEMALE WAL-MART EMPLOYEES SAY "NO" TO DISCRIMINATION
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Problems With Minorities
From courts of law to the court of public opinion, Wal-Mart's facing tough evidence on relations with African Americans:
- Facing NAACP Criticism for Business Practices. Wal-Mart received a C- grade on the NAACP's 2005 Economic Reciprocity Initiative (ERI) industry report cards, which grade major corporations on their business practices with respect to African Americans. NAACP Interim President & CEO Dennis Courtland Hayes said "the report cards are a good indicator for the NAACP to measure efforts or the lack thereof of major corporations in the areas of hiring, promotion, procurement, philanthropy and marketing." [NAACP Source]
- For Truckers, Hiring Discrimination. Wal-Mart is facing allegations of discrimination in its hiring of truck drivers. Nationally, 15% of truck drivers are African-American, yet at Wal-Mart African-Americans comprise only 2-3% of its fleet, which employs 7,800 truck drivers. [New York Times, 7/14/05, 2005 Wal-Mart Annual Report]
- For Customers, Racial Profiling. Customers have sued Wal-Mart Stores, saying they were racially profiled while shopping at its stores. The lawsuit says at least 9 customers were followed, searched, humiliated, and in some cases, detained by employees. [Boston Globe, 7/13/05]
Demeaning the Disabled
For the Americans with disabilities who work at Wal-Mart, hazards abound:
- Paying Millions Over Americans with Disabilities Act Violations. In 2001, Wal-Mart paid $6 million dollars to settle 13 lawsuits charging the firm with widespread discrimination and violations of the Americans with Disabilities Act. Even after these lawsuits, Wal-Mart continued to discriminate against Americans with Disabilities; in 2004, the Equal Employment Opportunity Commission filed suit against Wal-Mart on behalf of a Kansas City man confined to a wheelchair. [29 U.S.C. S 706 et seq; Business Journal, 1/20/04.]
- Discriminating Against Employees with Cerebral Palsy. In 2002, Wal-Mart hired then 21-year old Patrick Brady, an American living with cerebral palsy, as a sales associate in the pharmacy department. After one day in the pharmacy, however, the company reassigned him to other responsibilities -- including collecting garbage and shopping carts from the parking lot. A Long Island jury found that Wal-Mart discriminated against Brady when he was transferred and asked impermissible pre-employment questions about his disability. The jury awarded Brady $7.5 million in damages, and a judge ultimately awarded Brady $2.8 million. [Associated Press, 2/24/05; Newsday, 3/24/05; New York Law Journal, 6/23/05.]
What You Can Do
Ready for Wal-Mart to treat all Americans with dignity and respect?
- Join thousands in signing the Handshake with Sam agreement and calling on Wal-Mart to respect Americans' equality -- and America's laws
- Tell friends and family about Wal-Mart's treatment of women, minorities and the disabled -- and how that reflects on the company's spirit
- Write a letter to the editor of your local newspaper about the impact of Wal-Mart's discrimination on your community
