World: Wal-Mart Owes $78.5 Million in Back Pay, Jury Finds |
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| Monday, 16 October 2006 | |||
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Wal-Mart Stores Inc. owes workers in Pennsylvania $78.5 million for missed rest breaks and hours worked beyond regular shifts, a jury ruled, handing the world's largest retailer its second such trial loss in less than a year. Jurors in Philadelphia awarded the damages today at the end of a six-week trial over workers' pay starting in 1998. After hearing arguments this morning on how much money to award, the jurors needed just two hours this afternoon to accept a figure proposed by the workers' lawyers in the class-action suit. The verdict is Wal-Mart's second multimillion-dollar loss in 10 months in employee group lawsuits over wages. In December, a jury awarded $172.3 million to California workers for missed meal breaks. More than 70 such actions have been filed against the Bentonville, Arkansas-based company. ``They're going to have to give some serious thought to their labor relations policies,'' Jai Ghorpade, an emeritus management professor at San Diego State University, said of the retailer. Today's verdict ``might win their attention,'' he said. ``I'm confident there will be an appeal,'' said Neal Manne, an attorney for the company. Lawyers for the lead plaintiffs, Dolores Hummel, 53, and Michele Braun, 27, are seeking $62 million in addition to back pay. Under Pennsylvania law, each person in the class, put at 186,979 by lawyers, can receive $500 beyond actual damages, said Michael Donovan, an attorney for the two women. Women `Vindicated' Donovan said he expects Judge Mark Bernstein to decide on those damages at a later date. ``These women have been vindicated, and the people who had the nerve to call them liars now have to eat their words,'' said Judy Spanier, another of their attorneys. Company lawyers tried to show in the trial the women weren't truthful about their work experiences. ``We're not the ones that are the liars. They are,'' Hummel said. The women's lawyers claimed Wal-Mart made Pennsylvania workers skip more than 33 million rest breaks from 1998 to 2001 to boost productivity and curb labor costs. The rest breaks were worth $76 million in damages, the unpaid time $2.5 million, the lawyers argued to jurors this morning. Former Wal-Mart employees testified they were pressured by store managers to skip breaks and cut meals short. Two cashiers claimed they were locked in stores after their shifts ended and forced to restock merchandise before they could leave. `Their Own Choice' Wal-Mart denied the claims, with executives testifying that the company required workers to take scheduled breaks and didn't ignore employee complaints. Company officials said records showed that workers appeared to miss their breaks because some chose not to take them or neglected to sign out. ``Many employees testified that they skipped, or cut short, their breaks by their own choice,'' spokesman John Simley said in an e-mailed statement. ``Wal-Mart strongly discourages this practice and should not be penalized when an employee chooses to do this on his or her own.'' In his closing arguments today on damages, the company's Manne asked jurors to award only $6.9 million. A plaintiff's expert's calculation of unpaid hours was inaccurate because only 16 stores of 139 were studied, he said. And just 10 percent of the claimed missed breaks were actually missed, Manne said. In most instances, employees chose to come back early or forgo taking breaks so they could leave earlier, the lawyer told jurors. Meals and Rest Under Wal-Mart's policy, 30-minute meal periods are unpaid. An employee is entitled to a meal after six hours of work. Rest breaks are paid, with employees who work more than six hours allowed two 15-minute periods. Today's verdict is having a modest impact on Wal-Mart's stock, said Michael Morcos, a money manager at Aurora, Illinois- based Old Second Wealth Management, which has $1.1 billion in asset including Wal-Mart shares. ``The overall sort of anti-Wal-Mart movement and political atmosphere is weighing against Wal-Mart to some degree,'' Morcos said. Shares of Wal-Mart today rose 14 cents to $48.46 in New York Stock Exchange composite trading. Braun worked as a cashier at the Franklin Mills Wal-Mart Store in Philadelphia. Hummel was a cake decorator at a Wal-Mart- owned Sam's Club in Reading. Hummel said she is unemployed and looking for work. Braun said she is considering opening an Italian restaurant in Philadelphia. `Said My Piece' ``I don't really care about the money,'' Braun said. ``I'm here. I said my piece, and that's that.'' The company faces a trial Jan. 16 in Denver in a pharmacists' wages-and-hours lawsuit. A similar trial in Massachusetts, previously set to begin Oct. 25, was postponed so the judge can reconsider which claims will be heard, workers' attorney Robert Bonsignore said. The Pennsylvania cases are Braun v. Wal-Mart Stores Inc., 3127, and Hummel v. Wal-Mart Stores Inc., 3757, Court of Common Pleas, Philadelphia County, Pennsylvania (Philadelphia). Set as favorite Bookmark Comments (1)
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Susan
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I worked for Sam's Club, recently, and was told several times to take "my last break" at the end of my shift. I had a choice to clock out or not...I take the extra 15 minutes. Missed lunches...oh please...how abundant. I received a "verbal notice" because I didn't take a lunch on a Saturday afternoon, when I was all alone, and had no choice but to work. This non-union business better get it together or expect too much turn over with the employees. This costs them a lot. All of the fellow employees that I worked with were disastisfied with many aspects of employment. This should be looked into by a Federal Agency. This should not be normal practice of employment in the United States. |