Honors 1105 – Wal-Mart February 22, 2006
Current Events
Abstracts/Readings/Viewings
Update on Ken Stone
Labor Issues
Wal-Mart
1. Abstracts – Student Conference
2. Nickel & Dimed and Selling Women Short
3. Wal-Mart – High Cost of Low Price
4. Update on Ken Stone
5. Scott’s e-mail article from the New York Times
6. Labor Issues
Wal-Mart response
“Here is what Lee told Wal-Mart associates about the article today:
‘Well, we had been looking for ways to promote Lee’s Garage, and it looks like the New York Times has done that for us. The reporters take issue with my tone in some cases, but as you all know, with me, what you see is what you get. I will respectfully tell it like it is. I think the story ends on an important point, quoting my advice to an up-and-coming leader: “The first thing you can do is make sure you treat your people well, and understand that your associates are what will make you a success.” I truly believe that and think you can’t go wrong in this business if you live by that. Feel free to check out Lee’s Garage on the WIRE and see what you think.’ - Lee Scott”
*A Look Inside Lee's Garage
*Fri, 17 Feb 2006 15:50:04 CST http://www.walmartfacts.com/newsdesk/article.aspx?id=1709
Factoid from Wal-Mart
*Fact: Wal-Mart Stores, Inc. is the world’s largest retailer, with $285.2 billion in sales in the fiscal year ending Jan. 31, 2005.
*The company employs 1.6 million associates worldwide through more than 3,800 facilities in the United States and more than 2,400 units in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, South Korea and the United Kingdom.
*More than 138 million customers per week visit Wal-Mart stores worldwide.
*http://www.walmartfacts.com/newsdesk/wal-mart-fact-sheets.aspx#a265 accessed 2/20/06
Unions
“Here various associates testify to the ‘essential feeling of family for which Wal-Mart is so well-known,’ leading up to the conclusion that we don’t need a union. Once, long ago, unions had a place in American Society, but they ‘no longer have much to offer workers,’ which is why people are leaving them ‘by the droves.’ Wal-Mart is booming; unions are declining judge for yourself. But we are warned that ‘unions have been targeting Wal-Mart for years.’ Why? For the dues money of course. Think of what you would lose with a union: first, your dues, money which could be $20 a month ‘and sometimes much more.’ Second, you would lose ‘your voice’ because the union would insist on doing your talking for you. Finally, you might lose even your wages and benefits because they would all be ‘at risk on the bargaining table.’ You have to wonder – and I imagine some of my teenage fellow orienteees may be doing so – why such fiends as these union organizers, such outright extortionists, are allowed to roam free in the land.”.
Ehrenreich, Barbara, Nickel and Dimed, Metropolitan Books, 2001, p. 144-145.
Federal law - Unions
*Federal law
*National Labor Relations Act of 1935
*Sec. 7. Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized in section 8(a)(3).
Bureau of Labor Statistics
*12.5% (15.7 million people) of wage & salary workers were unionized (high in 1983 – 20.1%)
*Black more likely than white, Asian or Hispanic
*Men more likely than women
*Public sector – 4X the private sector
*Private industry – 7.8%
*Full-time wage and salary workers who were union members had median weekly earnings of $801 versus $622 for nonunion
*1/20/06 - http://www.bls.gov/news.release/union2.nr0.htm - accessed 2.20.06
Wal-Mart’s website about unions
*Unions (For U.S. Operations Only)
*At Wal-Mart, we respect the individual rights of our associates and encourage them to express their ideas, comments and concerns. Because we believe in maintaining an environment of open communications, we do not believe there is a need for third-party representation.
*http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=49&contId=815 accessed 2/20/06
Bemidji
*Could the employees of Wal-Mart or any of the stores in Bemidji unionize? Why or why not?
*What makes conditions ripe for employees to unionize?
*What is your attitude towards unions and why do you have that attitude?
Unions – from business & employee perspective
Advantages of unions?
1.
2.
3.
4.
Disadvantages of unions?
1.
2.
3.
4.
Alternatives?
*In Wal-Mart - The Face of the 21st Century Capitalism – “A Wal-Mart Workers Association? An Organizing Plan” by Wade Rathke
*What about a hybrid?
**Wal-Mart Workers Association
Health-Care
*“Williams, the company (Wal-Mart) spokeswoman, said that 48% of employees are covered by Wal-Mart's health insurance plan. Among those who aren't, 26% have coverage from another source such as a spouse's employer or Medicare, Williams said.
**http://www.pulitzer.org/year/2004/national-reporting/works/walmart1.html
*According to the Employee Benefit Research Institute in Washington, nearly 44% of workers in the retail sector as a whole have employer-provided health coverage. Among big companies in all industries, the figure is 66%.
**http://www.pulitzer.org/year/2004/national-reporting/works/walmart1.html
Employment Conditions
*“Wal-Mart's decisions influence wages and working conditions across a wide swath of the world economy, from the shopping centers of Las Vegas to the factories of Honduras and South Asia.”
**http://www.pulitzer.org/year/2004/national-reporting/works/walmart1.html
Wal-Mart pay
*“Wal-Mart company documents released today reveal that CEO H. Lee Scott, Jr., made $17,543,739 in total compensation last year – nearly twice the average of $9.6 million for leading U.S. CEOs as a whole, according to Business Week…
*Currently, according to Wal-Mart, the firm’s full-time U.S. employees earn on average $9.68 per hour.”
*$8,434.49/hour for Scott
**http://www.wakeupwalmart.com/facts/Wal-mart-pay-gap.pdf - accessed 2/20/06 – 4/15/05 article entitled - Wal-Mart’s Pay Gap CEO Compensation 871 times as high as U.S. Wal-Mart Worker Pay; 50,000 times Chinese Worker Pay
Wal-Mart pay
*“Wal-Mart store managers earn about $95,000 annually, including bonuses, according to the company. Supercenter managers earn $130,000.”
**http://www.pulitzer.org/year/2004/national-reporting/works/walmart1.html
Wal-Mart offers competitive pay
*“Wal-Mart's full-time average, hourly wage for store associates is $10.11 - and it's even higher in urban areas where the cost of living is higher.
*For example, it's $11.11 in Atlanta, $11.49 in Boston, $10.99 in Chicago, $10.77 in Dallas, $11.05 in San Francisco, $10.78 in New York, $11.58 in Denver, $10.98 in San Diego, and $10.29 in Los Angeles.”
*Feb 3, 2006 News Release
**http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=512&contId=6046
**Wal-Mart - $10.11 x 40 = $404
Lawsuits
*3/18/05 $11 million to settle federal allegations it used illegal immigrants to clean its stores
http://www.cbsnews.com/stories/2005/03/18/national/printable681593.shtml
*12/23/05 A California jury hit Wal-Mart Stores Inc. with a $172 million verdict for denying lunch breaks to thousands of employees.
Wall Street Journal
*2/21/06 Wal-Mart faces about 50 overtime suits in state courts.
**http://seattlepi.nwsource.com/business/260378_walmartsuit22.html
Discrimination – federal
*Equal Employment Opportunity Commission – www.eeoc.gov
*Title VII of the 1964 Civil Rights Act
*UNLAWFUL EMPLOYMENT PRACTICES SEC. 2000e-2. [Section 703] (a) It shall be an unlawful employment practice for an employer - (1) to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's race, color, religion, sex, or national origin;
Discrimination – federal
*(2) to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's race, color, religion, sex, or national origin.
*Besides the 5 protected classes the EEOC also governs age, disability, equal pay
Discrimination - state
*Minnesota - http://www.humanrights.state.mn.us/
*“In Employment...
*...when, because of race, color, creed, religion, national origin, sex, marital status, sexual orientation, status with regard to public assistance, disability or age:
*Employers refuse to hire, discharge, or discriminate with respect to benefits or conditions of employment;
*Labor Organizations deny membership, fail to represent members, fail to refer for jobs, or otherwise treat members differently;
*Employment Agencies reject job applications, fail or refuse to refer for employment, or comply with requests to screen or refer applicants on a discriminatory basis.
*The employment provisions limit collection and use of information about disabilities; require many employers to make reasonable accommodations for disabilities; require equitable treatment of pregnancy - related conditions; prohibit sexual harassment; and prohibit interference with pension rights.”
*http://www.humanrights.state.mn.us/rights_yours.html
Affirmative Action
*“Intentional inclusion of women and minorities in the workplace based on a finding of their previous exclusion/ or underrepresentation”
**Bennett-Alexander/Hartman, Employment Law for Business, McGraw-Hill/Irwin, 5th Edition, 2007, p. 775.
*Qualified individuals
*Level-playing field
Wal-Mart Statements on Equality and Diversity
*Equality of Opportunity
*"Wal-Mart will not tolerate discrimination in employment on the basis of race, color, age, sex, sexual orientation, religion, disability, ethnicity, national origin, marital status, veteran status, or any other legally-protected status.“
**http://www.walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=12 accessed 2/20/06
Wal-Mart’s Diversity Fact Sheet
*“Fact: Wal-Mart’s commitment to diversity starts with our board of directors and extends throughout the organization. Our 14-member board of directors includes two females, two African Americans and two Hispanics. Wal-Mart is a leading employer of Hispanics in the U.S. with more 139,000 Hispanic associates; a leading employer of African Americans with more than 208,000 African Americans; an employer of more than 775,000 females; and an employer of more than 220,000 seniors who are 55 and older…
*establishing the Office of Diversity in 2003, we appointed a chief diversity officer…
*Officer compensation is now linked to diversity goals. If company officers do not meet their individual diversity goals, bonuses are reduced up to 15 percent.”
**http://www.walmartfacts.com/newsdesk/wal-mart-fact-sheets.aspx#a265 accessed 2/20/06
Class Action Lawsuits
*Rather than suing separately – join together with other plaintiffs with same claim
*Share expenses
*Efficient for the judicial system
*Companies would prefer not to have them – instead individuals probably wouldn’t bring a lawsuit for their claim
**Beatty/Samuelson, Business Law 3rd Edition, Thomson/SW, 2004, p. 859.
Federal Rules of Civil Procedure
*Rule 23. Class Actions
*(a) Prerequisites to a Class Action.
*One or more members of a class may sue or be sued as representative parties on behalf of all only if
*(1) the class is so numerous that joinder of all members is impracticable,
*(2) there are questions of law or fact common to the class,
*(3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and
*(4) the representative parties will fairly and adequately protect the interests of the class.
*= numerousity, commonality, typicality & adequacy of representation
Federal Rules of Civil Procedure
*Besides Rule 23 a – for a class action you have to look at Rule 23 b and the case has to meet one of the three prongs – for the Dukes case the Court found it met Rule 23(b) (2) .
*An action may be maintained as a class action if the prerequisites of subdivision (a) are satisfied and in addition:
*(2) the party opposing the class has acted or refused to act on grounds generally applicable to the class, thereby making appropriate final injunctive relief or corresponding declaratory relief with respect to the class as a whole
Dukes, et. al. v. Wal-Mart
222 F.R.D. 137, 2004 U.S. Dist. LEXIS 11365 (N.D. Cal., June 21, 2004)
*“…plaintiffs allege that women employed in Wal-Mart stores
*(1) are paid less than men in comparable positions, despite having higher performance ratings and greater seniority; and
*(2) receive fewer promotions to in-store management positions than do men, and those who are promoted must wait longer than their male counterparts to advance.”
Dukes, et. al. v. Wal-Mart,
222 F.R.D. 137, 2004 U.S. Dist. LEXIS 11365 (N.D. Cal., June 21, 2004)
*“….policies and practices underlying this discriminatory treatment are consistent throughout Wal-Mart….seek class-wide injunctive and declaratory relief, lost pay and punitive damages.”
*Website for Impact Fund - http://www.walmartclass.com/walmartclass_forthepress.html - Power Point on Uncovering Discrimination
*Wal-Mart is appealing the certification decision
Class action –
Weiss, Joseph W., Business Ethics, 4th Ed., Thomson/South-Western, 2006, pp. 267-269.
*Wal-Mart
*Decisions at store levels
*Too big a lawsuit
*Ignored women who earned more than men
*Factors that cause one job to pay more than another
*Plaintiffs
*Thousands of women similar experiences
*Gender disparities caused by Wal-Mart’s culture – promotion from within usually to men
*Job openings to mgmt. kept quiet
*Monetary
**Analysts estimated settlement at $8 billion
***Weiss, Joseph W., Business Ethics, 4th Ed., Thomson/South-Western, 2006, pp. 268.
*Change the way Wal-Mart does business
**Epilogue to Lisa Featherstone’s Selling Women Short, Basic Books, 2004.
*Individual differences (Dukes raise)
*Public relations
*Train new management
*Posting of jobs
*Formal system of applying for management training
*Diversity
*Increase in high ranking women
*Pay equity
*Board members
Next Week 3/1
Reading 6 – Los Angeles Times series on Wal-Mart, Nov. 2003 at http://www.pulitzer.org/year/2004/national-reporting/works/
View: Store Wars and Save Our Land, Save Our Towns (on reserve in library)
Abstracts/Readings/Viewings
Update on Ken Stone
Labor Issues
Wal-Mart
1. Abstracts – Student Conference
2. Nickel & Dimed and Selling Women Short
3. Wal-Mart – High Cost of Low Price
4. Update on Ken Stone
5. Scott’s e-mail article from the New York Times
6. Labor Issues
Wal-Mart response
“Here is what Lee told Wal-Mart associates about the article today:
‘Well, we had been looking for ways to promote Lee’s Garage, and it looks like the New York Times has done that for us. The reporters take issue with my tone in some cases, but as you all know, with me, what you see is what you get. I will respectfully tell it like it is. I think the story ends on an important point, quoting my advice to an up-and-coming leader: “The first thing you can do is make sure you treat your people well, and understand that your associates are what will make you a success.” I truly believe that and think you can’t go wrong in this business if you live by that. Feel free to check out Lee’s Garage on the WIRE and see what you think.’ - Lee Scott”
*A Look Inside Lee's Garage
*Fri, 17 Feb 2006 15:50:04 CST http://www.walmartfacts.com/newsdesk/article.aspx?id=1709
Factoid from Wal-Mart
*Fact: Wal-Mart Stores, Inc. is the world’s largest retailer, with $285.2 billion in sales in the fiscal year ending Jan. 31, 2005.
*The company employs 1.6 million associates worldwide through more than 3,800 facilities in the United States and more than 2,400 units in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, South Korea and the United Kingdom.
*More than 138 million customers per week visit Wal-Mart stores worldwide.
*http://www.walmartfacts.com/newsdesk/wal-mart-fact-sheets.aspx#a265 accessed 2/20/06
Unions
“Here various associates testify to the ‘essential feeling of family for which Wal-Mart is so well-known,’ leading up to the conclusion that we don’t need a union. Once, long ago, unions had a place in American Society, but they ‘no longer have much to offer workers,’ which is why people are leaving them ‘by the droves.’ Wal-Mart is booming; unions are declining judge for yourself. But we are warned that ‘unions have been targeting Wal-Mart for years.’ Why? For the dues money of course. Think of what you would lose with a union: first, your dues, money which could be $20 a month ‘and sometimes much more.’ Second, you would lose ‘your voice’ because the union would insist on doing your talking for you. Finally, you might lose even your wages and benefits because they would all be ‘at risk on the bargaining table.’ You have to wonder – and I imagine some of my teenage fellow orienteees may be doing so – why such fiends as these union organizers, such outright extortionists, are allowed to roam free in the land.”.
Ehrenreich, Barbara, Nickel and Dimed, Metropolitan Books, 2001, p. 144-145.
Federal law - Unions
*Federal law
*National Labor Relations Act of 1935
*Sec. 7. Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized in section 8(a)(3).
Bureau of Labor Statistics
*12.5% (15.7 million people) of wage & salary workers were unionized (high in 1983 – 20.1%)
*Black more likely than white, Asian or Hispanic
*Men more likely than women
*Public sector – 4X the private sector
*Private industry – 7.8%
*Full-time wage and salary workers who were union members had median weekly earnings of $801 versus $622 for nonunion
*1/20/06 - http://www.bls.gov/news.release/union2.nr0.htm - accessed 2.20.06
Wal-Mart’s website about unions
*Unions (For U.S. Operations Only)
*At Wal-Mart, we respect the individual rights of our associates and encourage them to express their ideas, comments and concerns. Because we believe in maintaining an environment of open communications, we do not believe there is a need for third-party representation.
*http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=49&contId=815 accessed 2/20/06
Bemidji
*Could the employees of Wal-Mart or any of the stores in Bemidji unionize? Why or why not?
*What makes conditions ripe for employees to unionize?
*What is your attitude towards unions and why do you have that attitude?
Unions – from business & employee perspective
Advantages of unions?
1.
2.
3.
4.
Disadvantages of unions?
1.
2.
3.
4.
Alternatives?
*In Wal-Mart - The Face of the 21st Century Capitalism – “A Wal-Mart Workers Association? An Organizing Plan” by Wade Rathke
*What about a hybrid?
**Wal-Mart Workers Association
Health-Care
*“Williams, the company (Wal-Mart) spokeswoman, said that 48% of employees are covered by Wal-Mart's health insurance plan. Among those who aren't, 26% have coverage from another source such as a spouse's employer or Medicare, Williams said.
**http://www.pulitzer.org/year/2004/national-reporting/works/walmart1.html
*According to the Employee Benefit Research Institute in Washington, nearly 44% of workers in the retail sector as a whole have employer-provided health coverage. Among big companies in all industries, the figure is 66%.
**http://www.pulitzer.org/year/2004/national-reporting/works/walmart1.html
Employment Conditions
*“Wal-Mart's decisions influence wages and working conditions across a wide swath of the world economy, from the shopping centers of Las Vegas to the factories of Honduras and South Asia.”
**http://www.pulitzer.org/year/2004/national-reporting/works/walmart1.html
Wal-Mart pay
*“Wal-Mart company documents released today reveal that CEO H. Lee Scott, Jr., made $17,543,739 in total compensation last year – nearly twice the average of $9.6 million for leading U.S. CEOs as a whole, according to Business Week…
*Currently, according to Wal-Mart, the firm’s full-time U.S. employees earn on average $9.68 per hour.”
*$8,434.49/hour for Scott
**http://www.wakeupwalmart.com/facts/Wal-mart-pay-gap.pdf - accessed 2/20/06 – 4/15/05 article entitled - Wal-Mart’s Pay Gap CEO Compensation 871 times as high as U.S. Wal-Mart Worker Pay; 50,000 times Chinese Worker Pay
Wal-Mart pay
*“Wal-Mart store managers earn about $95,000 annually, including bonuses, according to the company. Supercenter managers earn $130,000.”
**http://www.pulitzer.org/year/2004/national-reporting/works/walmart1.html
Wal-Mart offers competitive pay
*“Wal-Mart's full-time average, hourly wage for store associates is $10.11 - and it's even higher in urban areas where the cost of living is higher.
*For example, it's $11.11 in Atlanta, $11.49 in Boston, $10.99 in Chicago, $10.77 in Dallas, $11.05 in San Francisco, $10.78 in New York, $11.58 in Denver, $10.98 in San Diego, and $10.29 in Los Angeles.”
*Feb 3, 2006 News Release
**http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=512&contId=6046
**Wal-Mart - $10.11 x 40 = $404
Lawsuits
*3/18/05 $11 million to settle federal allegations it used illegal immigrants to clean its stores
http://www.cbsnews.com/stories/2005/03/18/national/printable681593.shtml
*12/23/05 A California jury hit Wal-Mart Stores Inc. with a $172 million verdict for denying lunch breaks to thousands of employees.
Wall Street Journal
*2/21/06 Wal-Mart faces about 50 overtime suits in state courts.
**http://seattlepi.nwsource.com/business/260378_walmartsuit22.html
Discrimination – federal
*Equal Employment Opportunity Commission – www.eeoc.gov
*Title VII of the 1964 Civil Rights Act
*UNLAWFUL EMPLOYMENT PRACTICES SEC. 2000e-2. [Section 703] (a) It shall be an unlawful employment practice for an employer - (1) to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's race, color, religion, sex, or national origin;
Discrimination – federal
*(2) to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's race, color, religion, sex, or national origin.
*Besides the 5 protected classes the EEOC also governs age, disability, equal pay
Discrimination - state
*Minnesota - http://www.humanrights.state.mn.us/
*“In Employment...
*...when, because of race, color, creed, religion, national origin, sex, marital status, sexual orientation, status with regard to public assistance, disability or age:
*Employers refuse to hire, discharge, or discriminate with respect to benefits or conditions of employment;
*Labor Organizations deny membership, fail to represent members, fail to refer for jobs, or otherwise treat members differently;
*Employment Agencies reject job applications, fail or refuse to refer for employment, or comply with requests to screen or refer applicants on a discriminatory basis.
*The employment provisions limit collection and use of information about disabilities; require many employers to make reasonable accommodations for disabilities; require equitable treatment of pregnancy - related conditions; prohibit sexual harassment; and prohibit interference with pension rights.”
*http://www.humanrights.state.mn.us/rights_yours.html
Affirmative Action
*“Intentional inclusion of women and minorities in the workplace based on a finding of their previous exclusion/ or underrepresentation”
**Bennett-Alexander/Hartman, Employment Law for Business, McGraw-Hill/Irwin, 5th Edition, 2007, p. 775.
*Qualified individuals
*Level-playing field
Wal-Mart Statements on Equality and Diversity
*Equality of Opportunity
*"Wal-Mart will not tolerate discrimination in employment on the basis of race, color, age, sex, sexual orientation, religion, disability, ethnicity, national origin, marital status, veteran status, or any other legally-protected status.“
**http://www.walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=12 accessed 2/20/06
Wal-Mart’s Diversity Fact Sheet
*“Fact: Wal-Mart’s commitment to diversity starts with our board of directors and extends throughout the organization. Our 14-member board of directors includes two females, two African Americans and two Hispanics. Wal-Mart is a leading employer of Hispanics in the U.S. with more 139,000 Hispanic associates; a leading employer of African Americans with more than 208,000 African Americans; an employer of more than 775,000 females; and an employer of more than 220,000 seniors who are 55 and older…
*establishing the Office of Diversity in 2003, we appointed a chief diversity officer…
*Officer compensation is now linked to diversity goals. If company officers do not meet their individual diversity goals, bonuses are reduced up to 15 percent.”
**http://www.walmartfacts.com/newsdesk/wal-mart-fact-sheets.aspx#a265 accessed 2/20/06
Class Action Lawsuits
*Rather than suing separately – join together with other plaintiffs with same claim
*Share expenses
*Efficient for the judicial system
*Companies would prefer not to have them – instead individuals probably wouldn’t bring a lawsuit for their claim
**Beatty/Samuelson, Business Law 3rd Edition, Thomson/SW, 2004, p. 859.
Federal Rules of Civil Procedure
*Rule 23. Class Actions
*(a) Prerequisites to a Class Action.
*One or more members of a class may sue or be sued as representative parties on behalf of all only if
*(1) the class is so numerous that joinder of all members is impracticable,
*(2) there are questions of law or fact common to the class,
*(3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and
*(4) the representative parties will fairly and adequately protect the interests of the class.
*= numerousity, commonality, typicality & adequacy of representation
Federal Rules of Civil Procedure
*Besides Rule 23 a – for a class action you have to look at Rule 23 b and the case has to meet one of the three prongs – for the Dukes case the Court found it met Rule 23(b) (2) .
*An action may be maintained as a class action if the prerequisites of subdivision (a) are satisfied and in addition:
*(2) the party opposing the class has acted or refused to act on grounds generally applicable to the class, thereby making appropriate final injunctive relief or corresponding declaratory relief with respect to the class as a whole
Dukes, et. al. v. Wal-Mart
222 F.R.D. 137, 2004 U.S. Dist. LEXIS 11365 (N.D. Cal., June 21, 2004)
*“…plaintiffs allege that women employed in Wal-Mart stores
*(1) are paid less than men in comparable positions, despite having higher performance ratings and greater seniority; and
*(2) receive fewer promotions to in-store management positions than do men, and those who are promoted must wait longer than their male counterparts to advance.”
Dukes, et. al. v. Wal-Mart,
222 F.R.D. 137, 2004 U.S. Dist. LEXIS 11365 (N.D. Cal., June 21, 2004)
*“….policies and practices underlying this discriminatory treatment are consistent throughout Wal-Mart….seek class-wide injunctive and declaratory relief, lost pay and punitive damages.”
*Website for Impact Fund - http://www.walmartclass.com/walmartclass_forthepress.html - Power Point on Uncovering Discrimination
*Wal-Mart is appealing the certification decision
Class action –
Weiss, Joseph W., Business Ethics, 4th Ed., Thomson/South-Western, 2006, pp. 267-269.
*Wal-Mart
*Decisions at store levels
*Too big a lawsuit
*Ignored women who earned more than men
*Factors that cause one job to pay more than another
*Plaintiffs
*Thousands of women similar experiences
*Gender disparities caused by Wal-Mart’s culture – promotion from within usually to men
*Job openings to mgmt. kept quiet
*Monetary
**Analysts estimated settlement at $8 billion
***Weiss, Joseph W., Business Ethics, 4th Ed., Thomson/South-Western, 2006, pp. 268.
*Change the way Wal-Mart does business
**Epilogue to Lisa Featherstone’s Selling Women Short, Basic Books, 2004.
*Individual differences (Dukes raise)
*Public relations
*Train new management
*Posting of jobs
*Formal system of applying for management training
*Diversity
*Increase in high ranking women
*Pay equity
*Board members
Next Week 3/1
Reading 6 – Los Angeles Times series on Wal-Mart, Nov. 2003 at http://www.pulitzer.org/year/2004/national-reporting/works/
View: Store Wars and Save Our Land, Save Our Towns (on reserve in library)
posted by Louise Mengelkoch at
9:00 AM
