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Wal-Mart must pay $200m to workers denied lunch breaks
Wal-Mart, the world's largest retail company, has suffered a potentially ominous legal setback, with a California jury awarding more than $200m (£115m) to thousands of employees who alleged they were illegally and systematically denied lunch-breaks.
The company has been fighting allegations for years, in and out of court, that it cuts corners to keep labour costs low. Yesterday's jury verdict in Oakland, near San Francisco, marked the first time that the company had been forced to go to trial and lost.
The suit was one of about 40 in the works nationwide alleging that the Arkansas-based retailer, which boasts a chain of mostly suburban superstores across the United States and beyond, routinely violates US labour laws - keeping workers off the clock so they are not credited for overtime, denying them lunch-breaks and other rests, and so on.
Wal-Mart is at the centre of a growing dispute over the economic desirability of the sort of superstore it has pioneered. While the chain, and others like it, provides affordable consumer goods and plentiful employment, especially in impoverished areas of the country that are badly in need of both, its critics complain that it earns its profits at the expense of both the communities where it takes up occupancy and its own underpaid employees.
While the surviving members of the founding Walton family are all multi-billionaires, almost half the children of company employees either have no health insurance or else rely on government-sponsored subsistence programmes to gain access to basic medical care, according to the company's own figures. An unknown number of employees relies on government food stamps to keep body and soul together month to month.
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http://news.independent.co.uk/world/americas/article334859.ece
The suit was one of about 40 in the works nationwide alleging that the Arkansas-based retailer, which boasts a chain of mostly suburban superstores across the United States and beyond, routinely violates US labour laws - keeping workers off the clock so they are not credited for overtime, denying them lunch-breaks and other rests, and so on.
Wal-Mart is at the centre of a growing dispute over the economic desirability of the sort of superstore it has pioneered. While the chain, and others like it, provides affordable consumer goods and plentiful employment, especially in impoverished areas of the country that are badly in need of both, its critics complain that it earns its profits at the expense of both the communities where it takes up occupancy and its own underpaid employees.
While the surviving members of the founding Walton family are all multi-billionaires, almost half the children of company employees either have no health insurance or else rely on government-sponsored subsistence programmes to gain access to basic medical care, according to the company's own figures. An unknown number of employees relies on government food stamps to keep body and soul together month to month.
More
http://news.independent.co.uk/world/americas/article334859.ece
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'In a statement Thursday, Wal-Mart officials said the company would appeal the judgment. "This case involved a meal-period statute that is unique to California," the statement said. "It has no bearing on any other state."
Scott Brink, a Los Angeles attorney who represents employers in labor issues, said, "California has the most stringent and byzantine wage and hour laws in the country. Wal-Mart has found itself caught, apparently, on some of these very technical wage and hour laws that are peculiar to California."'
Source: http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/12/23/WALMART.TMP
Is Walmart Over?
http://houseoflabor.tpmcafe.com/story/2005/12/9/111748/599
A California court found Wal-Mart broke a state law requiring employers to give staff an unpaid 30-minute lunch break if they worked more than six hours.
More than 100,000 Wal-Mart employees in California will be eligible for compensation.
The company said in a statement that it would appeal against the decision.
'Satisfied'
"We absolutely disagree with their findings," company lawyer Neal Manne told the Associated Press news agency of the jury's verdict.
It ordered Wal-Mart to pay $57m in general damages and $115m in punitive damages.
From 2001, state law called for shift workers to get meal breaks or be compensated with extra pay. Wal-Mart workers got neither, the lawsuit charged.
"We are very satisfied," said Chris Lebsock, one of the lawyers representing Wal-Mart workers.
Wal-Mart stores are popular for their low prices, but critics accuse them of achieving success by denying workers' rights.
http://news.bbc.co.uk/2/hi/business/4554404.stm