hrreporter.com
Oct 23, 2012

Walmart hit with minimum wage lawsuit as walkout threat looms

Proposed class action says temp workers required to stay late, work through lunch
(Reuters) — A new lawsuit accused Walmart Stores and two staffing agencies in the United States of requiring temporary employees to show up early for work, stay late, and work through lunch at the world's largest retailer.

The proposed class action, filed in a Chicago federal court, alleged Walmart and the agencies violated minimum wage and overtime laws which could affect several hundred temporary workers in the Chicago area.

Walmart declined to comment immediately, saying it first needed to review the lawsuit.

Walmart has faced protests in various U.S. cities lately and some workers have planned to walk off the job on Black Friday, the busy shopping day right after Thanksgiving in the U.S. Such actions are being sponsored by a groups including a contingent of workers called OUR Walmart that is trying to speak out about what it says are tough working conditions.

In early October, workers who are part of OUR Walmart staged what the group called the first-ever strike against Walmart in Los Angeles, while Walmart itself called the event in Los Angeles a rally. Walmart store employees also walked off the job in other cities including Dallas in actions sponsored by OUR Walmart.

Longer strikes also took place at a Southern California warehouse and at a distribution center in Illinois that supplies Walmart stores.

OUR Walmart, a group of current and former Walmart employees, is backed by the United Food & Commercial Workers International Union. UFCW members work at grocery stores that compete with Walmart.

Walmart has said that OUR Walmart represents just a small fraction of its 1.4 million U.S. employees.

Walmart's labour practices have garnered criticism among consumers and have gotten attention in the press, but so far have not affected investors. Roughly half of Walmart's stock is controlled by descendents of company founder Sam Walton.

In 2008 Walmart agreed to pay as much as US$640 million to settle dozens of federal and state class-action lawsuits alleging it deprived workers of wages. In separate litigation last year, the U.S. Supreme Court ruled that women suing Walmart for gender discrimination could not proceed as a national class action.

The latest lawsuit in Chicago says Walmart also failed to pay temporary workers a minimum of four hours' pay on days a labourer was contracted to work, but was not utilized for a minimum of four hours.

© Copyright Canadian HR Reporter, Thomson Reuters Canada Limited. All rights reserved.