Wal-Mart Lose Again Over Employment Disputes

Wal-Mart has today lost a high profile class action suit filed by employees to the tune of an additional $62m, as a result of falling foul of certain employment regulations and contract terms, which will see the total cost of the bill amount to almost $150 million.

Employees at Wal-Mart were previously forced to work beyond the contracted hours and during lunch breaks, in contravention of both legal provisions and indeed their employment contract terms. As a result employees filed a class action lawsuit against the retailing giant, which was initially successful last year.

The action was raised by just under 200,000 employees of the world’s largest retailing operation over the last ten years, with the court ruling that further damages on top of the initial award of $78m should be made payable to the litigant’s party to the suit.

Anecdotal evidence suggested that some workers saw an average of 8 to 12 hours extra worked every month without payment as a result of undue pressures from the employer and an inbred corporate culture of working beyond the paid limits.

Two years ago Wal-Mart was fined $170m, payable in compensation to over 100,000 employees that had been forced to work through their lunches, a practice which seems still to be prevalent in Wal-Mart several years down the line.

Wal-Mart are also facing numerous similar actions for breaching employment legislation and independent worker contract terms which could see them facing similar fines over the coming years.

Additionally the PR nightmare spawned by the affair is likely to have a significant impact on the company’s reputation both domestically and worldwide. And with Wal-Mart looking to continue its global expansion, mistreatment of employees could end up to be a much more significant thorn in the side than had at first been anticipated.

Story link: Wal-Mart Lose Again Over Employment Disputes