These days one of the most popular news and topics in American business world is a class action lawsuit based on gender discrimination that may impact up to one million current and former Wal-mart women employees. The law suit is based on the fact that Wal-mart pays women less than men for the same jobs and that female employees receive less promotions and have to wait longer to be promoted. The lawsuit alleges that the company’s “strong, centralized structure fosters or facilitates gender stereotyping and discrimination.”
The workers bringing suit also say women make up more than 70 percent of Wal-Mart’s hourly work force but in the past decade made up less than one-third of its store management.
This way, a general problem many employed women all around the world are facing has become a serious issue and gender discrimination has become a topic of the month in business circles.
Being one of the world’s largest private employer and largest retailer by sales (with more than 3,400 stores in 41 regions), Wall-mart Stores Inc, is having a hard period, with the reputation on the line, even though over the past five years the retailer has sought to improve its record on employing women and minorities in its management ranks and has improved its monitoring of compliance with state and federal laws.
One of the leading questions is social responsibility of the company. Social responsibility should be based on equal treatment for all employees, including women, minorities, African Americans, handicapped persons and homosexuals.
This is not the first time Wal-mart is having problems of this kind. In 2001. Wal-Mart paid $6 million dollars to settle 13 lawsuits, which alleged widespread discrimination and violations of the Americans with Disabilities Act.
The case, Dukes Vs Wal-mart, was originally brought in the names of seven former female employees, but includes affidavits from some 120 Wal-mart employees, arguing that the company’s male-dominated culture had placed barriers in the way of women seeking promotion and paid them less. Legal arguments have so far centered not on the merits of the complaints, but on the size of the originally proposed class – estimated by both sides at about 1.5m women – and making it the largest case of its kind in US legal history.
Now it is the responsibility of the lower court to decide whether Wal-mart should face punitive damages if it lost the case – the largest civil rights suit of its kind – which could amount to hundreds of millions of dollars.
“Wal-Mart tries to project an improved image as a good corporate citizen,” said Brad Seligman, a Berkeley, California, lawyer representing the female workers. “But no amount of (public relations) is going to work until it addresses the claims of its female employees.”
This is not the only problem Wal-mart is dealing with at the moment. The Toxic Waste Case will cost them $27, 6 million to settle a lawsuit alleging it improperly stored, handled and dumped hazardous waste at stores throughout California. The law suit is a result of a five-year probe in which California investigators said they found violations at 236 Wal-Mart and Sam’s Club stores, distribution centers and storage facilities in the state. The accord calls for Wal-Mart to pay a $20 million fine, $3 million to improve store maintenance, $3 million for other environmental projects, and $1.6 million for legal costs.
Wal-mart Discrimination Scandal
These days one of the most popular news and topics in American business world is a class action lawsuit based on gender discrimination that may impact up to one million current and former Wal-mart women employees. The law suit is based on the fact that Wal-mart pays women less than men for the same jobs and that female employees receive less promotions and have to wait longer to be promoted. The lawsuit alleges that the company’s “strong, centralized structure fosters or facilitates gender stereotyping and discrimination.”
The workers bringing suit also say women make up more than 70 percent of Wal-Mart’s hourly work force but in the past decade made up less than one-third of its store management.
This way, a general problem many employed women all around the world are facing has become a serious issue and gender discrimination has become a topic of the month in business circles.
Being one of the world’s largest private employer and largest retailer by sales (with more than 3,400 stores in 41 regions), Wall-mart Stores Inc, is having a hard period, with the reputation on the line, even though over the past five years the retailer has sought to improve its record on employing women and minorities in its management ranks and has improved its monitoring of compliance with state and federal laws.
One of the leading questions is social responsibility of the company. Social responsibility should be based on equal treatment for all employees, including women, minorities, African Americans, handicapped persons and homosexuals.
This is not the first time Wal-mart is having problems of this kind. In 2001. Wal-Mart paid $6 million dollars to settle 13 lawsuits, which alleged widespread discrimination and violations of the Americans with Disabilities Act.
The case, Dukes Vs Wal-mart, was originally brought in the names of seven former female employees, but includes affidavits from some 120 Wal-mart employees, arguing that the company’s male-dominated culture had placed barriers in the way of women seeking promotion and paid them less. Legal arguments have so far centered not on the merits of the complaints, but on the size of the originally proposed class – estimated by both sides at about 1.5m women – and making it the largest case of its kind in US legal history.
Now it is the responsibility of the lower court to decide whether Wal-mart should face punitive damages if it lost the case – the largest civil rights suit of its kind – which could amount to hundreds of millions of dollars.
“Wal-Mart tries to project an improved image as a good corporate citizen,” said Brad Seligman, a Berkeley, California, lawyer representing the female workers. “But no amount of (public relations) is going to work until it addresses the claims of its female employees.”
This is not the only problem Wal-mart is dealing with at the moment. The Toxic Waste Case will cost them $27, 6 million to settle a lawsuit alleging it improperly stored, handled and dumped hazardous waste at stores throughout California. The law suit is a result of a five-year probe in which California investigators said they found violations at 236 Wal-Mart and Sam’s Club stores, distribution centers and storage facilities in the state. The accord calls for Wal-Mart to pay a $20 million fine, $3 million to improve store maintenance, $3 million for other environmental projects, and $1.6 million for legal costs.